Global insurance giant QBE has warned climate change poses a material threat to its business and the entire economy as its chief executive Pat Regan said premiums were at risk of becoming too high in areas exposed to repeated, extreme weather.

The comments came after the insurer posted a statutory profit of $550 million, up 41 per cent from the prior year. Shares in QBE rose 4.3 per cent to close at $14.76, their highest level in more than five years.

QBE chief executive Pat Regan delivers the company's full year results. Credit:Louie Douvis

The company booked earnings per share of 62 cents, compared to 43 cents last year. It declared a 30 per cent franked final dividend of 27 cents.

Mr Regan said there had always been parts of the world that were difficult to insure. But as floods and fires become have dominated headlines this summer, this risk was increasing across "swathes of Australia" and could potentially price out customers from home and business property insurance.