Insurance company IAG New Zealand has boosted its annual profit 79% mainly due to premium growth and a lack of natural disaster claims.

IAG New Zealand’s annual profit jumped to AU$390 million in the year ended June 30 from AU$218 million last year.

According to the company, net claims from natural disasters totalled only AU$15 million this year compared to AU$100 million last year.

“New Zealand maintained its record of strong profitability and sound growth, reinforcing its position as the country’s leading general insurer,” said IAG.

Gross written premiums also contributed to IAG New Zealand’s massive annual profit as they increased 7% at AU$2.66 billion this year. In New Zealand dollar terms, the gain was 5.2% at NZ$2.84 billion.

The NZ division’s consumer premiums rose 4.9% due to increased rates and volumes for private motor policies and higher rates for home policies. Meanwhile, business premiums rose 5.5% due to higher rates and volumes for commercial vehicle policies.

The division’s earnings outshone those of its parent company – with IAG’s total insurance profit dropping to 13% at AU$1.22 billion due to storms in Australia that resulted in numerous payouts on natural disasters.

IAG predicted that its New Zealand division will stay strong despite expecting a competitive market in the 2020 financial year.