IAG's full-year profit drops 60%

IAG's full-year profit drops 60% | Insurance Business

IAG

Insurance Australia Group (IAG) – which in New Zealand is known for brands NZI, State, AMI, and Lumley – has released its financial results for the year ended June 30 (FY20).

In line with last month’s forecast, the general insurance giant 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 AU$741 million (around NZ$802 million), as well as a 59.6% plunge in net profit after tax to AU$435 million (around NZ$471 million). A positive change (1.1%) was seen in the group’s gross written premium (GWP), which grew to AU$12.1 billion (around NZ$13.1 billion).

GWP in New Zealand and Australia 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.