The largest general insurance company in Australia and New Zealand has released its financial results for the year ended June 30 (FY20).
As forecast, Insurance Australia Group (IAG) posted an underlying insurance margin and a reported insurance margin of 16% and 10.1%, respectively. Both figures are down compared to the corresponding numbers in 2019.
IAG’s financial summary for FY20 shows a 39.5% decline in insurance profit to $741 million, as well as a 59.6% plunge in net profit after tax to $435 million. A positive change (1.1%) was seen in the group’s gross written premium (GWP), which grew to $12.1 billion.
GWP in Australia and New Zealand improved in 2020, but underwriting profit in both markets took a hit. IAG managing director and chief executive officer Peter Harmer, nonetheless, is confident about where the group stands.
“We face the future with the confidence that we have a resilient business and we are well-equipped to rise to the challenges presented by the current environment, as well as the opportunities we see in a post-COVID-19 world,” stated Harmer.
The CEO added that the company will continue to shift its focus towards customer-led growth by leveraging data, customer reach, and its brands to enhance IAG’s core insurance business.