QBE Insurance Group Ltd. shares tumbled sharply despite a 6% lift in annual profit as its cautious outlook for 2010 made it the worst performing stock among the top-200 listed companies.

Shares in the nation's largest insurer by market value backpedalled 6.96%, to finish at $21.40.

QBE reported that net profit rose to $1.97 billion, from the previous corresponding period, where as insurance profit margin came in at the lower end of guidance at 17%.

The Sydney-based company expects the insurance profit margin forecast between 16-18% for the year 2010.

Tyndall Investment Management Insurance Analyst Jason Kim said, "To get that kind of insurance margin is still a really good outcome, it's a very well-run company, but I suppose people have these high expectations of them".

QBE Chief Executive Frank O'Halloran said QBE's insurance profit margin missed expectations but the business was in good shape.

Gross written premium, a benchmark measure of insurance businesses, rose 10% to $14.455 Billion.

Tyndall's Mr. Kim expressed that the outlook was a little bit more subdued than what the market hoped for.

QBE's combined operating ratio amounted to 89.6% in 2009, but during the fifth straight year it came in below 90%.