Insurance Australia Group has posted 16% net profit growth to $1.07 billion in 2019, driven by strong results in personal insurance and an improvement in commercial insurance in Australia, as well as strong profitability and sound growth in New Zealand.
IAG’s overall net profit included a $200 million gain on the sale of the group’s Thailand and Indonesian operations to Japan’s Tokio Marine Holdings for $525 million.
IAG also reported that its gross written premiums were up 3.1% to more than $12 billion, mainly from higher rates; while its insurance division profit dipped 13% to $1.22 billion, partly due to large natural disaster claims such as the Sydney hailstorm in December.
IAG said it expects “low single digit” growth in premiums this fiscal year, supported by commercial rate increases and underlying margin growth.
“Over the last year we have significantly increased our focus on risk, strengthening our business so we can continue to deliver the best outcomes for our customers – and all those who depend on us,” said Peter Harmer, IAG managing director and CEO. “We are using data to gain insightful risk perspectives and support rapid decision making, and we are strengthening our enterprise-wide capabilities to better manage current and emerging risks.”