QBE Insurance Group has reported a 5 per cent increase in full-year net profit after tax $US844 million ($A1.1 billion) and has unveiled a $A1 billion share buyback to reward shareholders who have stuck with the company as its rebuilds.

Cash profit after tax increased to $US898 million in the 12 months to 31 December, 2016 compared with $US893 million a year ago as the company better managed claims, increased prices and looked for global growth, beating a $US769 million forecast of 13 analysts polled by Thomson Reuters. Adjusted for currency changes, cash profit was 12 percent higher than a year ago.