* FY cash profit $893 mln vs $833 mln consensus
* 2015 Insurance profit margin of 9 pct
* Sees GWP of $14.2-$14.6 bln for 2016
* Sees NEP of $11.6-$12 bln for 2016
* Shares jump nearly 14 pct to 1-1/2 month highs (Adds analyts comment, shares)
By Swati Pandey
SYDNEY, Feb 23 (Reuters) - QBE Insurance Group Ltd QBE.AX on Tuesday posted a higher-than-expected 9 percent rise in annual cash profit even as Australia's No.1 insurer by premium income lowered guidance for premium growth for the current year.
Cash profit rose to $893 million for the twelve months to Dec. 31 from $821 million a year ago and higher than analysts' forecast of $833 million. QBE shares jumped nearly 14 percent in morning deals to 1-1/2 month highs.
The insurer, which generates almost three quarters of its premiums abroad, lifted its 2015 interim dividend by 36 percent to 30 Australian cents a share.
"It's quite a solid result and the dividend was nice - another sizeable increase," said Romano Sala Tenna, a money manager at Katana Capital which owns QBE shares.
"Investors were expecting a worse outcome. We were genuinely nervous given their history to surprise on the downside."
Under CEO John Neal, QBE has taken steps to bolster future earnings and reinstate investor confidence after years of underperformance. negative or low interest rate environment globally, a China-led slowdown in Asia and weaknesses in some North American and Australian market segments, along with currency headwinds, had investors nervous about QBE earnings, analysts said.
In November, QBE warned the market of challenges in growing gross written premiums due to pricing pressures. missed its own guidance for gross written premiums (GWP) of $14.8 billion in 2015. It sees GWP at $14.2-$14.6 billion this year.
Net earned premium (NEP) for 2015 at $12.2 billion also fell short of its own expectations. For 2016, it sees NEP at a $11.6-$12.0 billion range.
It posted an insurance profit margin of 9 percent during the year, towards the bottom-end of a 8.5-10 percent full-year target. Insurance margin is a measure of profit the company makes on premiums.
At 0010 GMT, QBE shares had climbed 9.6 percent to A$11.39 each. They've lost nearly a tenth of their value so far this year after gaining more than 12 percent in 2015.