Insurance Australia Group (IAG) has released financial results for IH25. The insurance giant reported a net profit after tax (NPAT) of A$778m, up 91% and gross written premium (GWP) of A$8.43 billion.
In an ASX announcement from Sydney, the trans-Tasman firm attributed the profit increase to a post-tax release of the COVID Business Interruption provision, an increase in net earned premiums and an improvement in insurance profits.
In a media release, IAG New Zealand reported business insurance profit of A$311 and gross written premium (GWP) of A$1.89 billion, growth of just over 1%.
Whiting said the country remains “highly vulnerable” to weather related disasters.
“So, it is critically important that we take a longer-term view, recognising that today’s profit underpins access to the resources and capital which will be needed to help us recover from the next big event,” said the CEO.
The ASX announcement said IAG paid out A$5.2 billion in claims and policy renewals levels were at 90%. Hawkins said the high renewals reflect confidence in IAG’s brands and its “quality of service”.
Hawkins said IAG has migrated more than three million insurance policies to its Retail Enterprise Platform and is adding 300,000 policies each month, “delivering significant improvements in customer experience and enabling us to efficiently price and manage risk.”
Like Hawkins, Whiting referred to recent natural catastrophes.
“In recent months we have seen local and international examples of the devastating impact that climate related natural hazards can have on people and the importance of having a sustainable insurance industry to support their recovery,” she said.
Whiting also said the firm is “conscious of the financial pressures many New Zealanders are experiencing” and has “bolstered” support for them.
In Sydney, Hawkins said he was “confident in IAG’s ability to support our customers, deliver strong returns for shareholders and help build resilience and strength across Australia and New Zealand.”
