Insurance Australia Group (IAG) has released its 2024 full-year results. The trans-Tasman insurance giant reported a net profit after tax (NPAT) of A$898 million, up nearly 8%. Insurance profit was up almost 80% on FY23 at A$1,438 million.
In New Zealand, GWP growth of 15.6% delivered an insurance profits of A$457 million compared to FY23’s flood and cyclone impacted profits of A$44 million.
The reported insurance margin of 22.5% “reflected the significantly lower perils experience” said the Sydney ASX announcement.
The announcement said the broker intermediated channel grew underlying local currency GWP by 10.8% to NZ$1,856m.
“IAG New Zealand’s profit was driven by growth in gross written premiums, stronger returns on investments and fewer devastating weather events than we have experienced in recent times,” said Amanda Whiting (pictured above), IAG New Zealand’s CEO.
She referred to “notable highlights” including the launch of AMI Insurance Hubs in Auckland and Christchurch alongside partner Motor Trade Finance (MTF).
However, the NZ CEO also said flooding and natural hazard risk must be reduced, “where necessary, through relocating people away from at-risk properties.”
She called for further action from the Government and said “we are committed to playing our part.”
“Today’s result reflects the strength of the IAG business as well as the operational improvements we have implemented,” said CEO Nick Hawkins in this morning’s ASX announcement in Australia.
Hawkins referred to “continued high customer advocacy and retention in our retail businesses in Australia and New Zealand” and strategic measures, including streamlining.
“We have also improved our claims management capability to ensure we are well placed to support our customers when they need us the most,” he said.
The results reported that IAG’s overall gross written premium (GWP) grew by 11% to A$16,400 million.
Intermediated Insurance Australia’s (IIA’s) GWP growth was 6.4% with insurance profits of A$328 million. The announcement said this was up more than 50% on last year and exceeded the target of A$250 million.
The IAG Board declared a final dividend of 17.0 cents per share (cps), almost double last year’s.
