QBE says on track to meet full-year forecasts

(Adds details, share price)

SYDNEY, April 4 (Reuters) - QBE Insurance Group Ltd. (QBE.AX), Australia's top insurer by premium income, said on Wednesday it was on track to meet its full-year insurance profit margin target of 17.5-18.5 percent. QBE Chief Executive Frank O'Halloran also told the annual shareholders meeting that the company was on track to hit an operating profit growth forecast of at least 20 percent for fiscal 2007.

QBE, which earns about two-thirds of its premiums from overseas, has made more than 90 small-to-medium acquisitions since 1982 to drive growth. It operates in over 40 countries.

"We have just completed the first quarter of 2007 and I am pleased to report that we are on track to meet our targeted full year insurance profit margin," QBE Chairman John Cloney told shareholders.

QBE shares were trading up 0.9 percent at A$32.24 at 0148 GMT, lagging a 1.1 percent rise in the benchmark S&P/ASX 200 Index .AXJO.

QBE stormed into the United States insurance market with two large acquisitions in December and January, paying about $2.0 billion to buy Winterthur U.S. Holdings and Praetorian Financial Group.

"However, any unforseen regulatory delays in completing the recent U.S. acquisitions will impact on premium and profit growth in 2007," Cloney added.

The company said large loss and catastrophe liabilities in the first quarter were running below last year.

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((Reporting by Denny Thomas, editing by James Thornhill; denny.thomas@reuters.com; Reuters Messaging: denny.thomas.reuters.com@reuters.net; +612 9373 1812)) Keywords: QBE GUIDANCE/

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