IAG’s New Zealand business has shown robust growth in the year ended 30 June 2018, according to the insurer’s FY18 results released today.
Managing director and CEO Peter Harmer said the firm’s New Zealand business has “maintained a strong performance” with solid growth across the board, which is expected to continue in FY19.
IAG New Zealand’s GWP saw a growth of 8.9% in FY18, with the Consumer Division growing by 8% - a trend led by higher motor rates and volumes. The Business Division grew by over 10% and recorded higher commercial rates, though figures showed some offset from lower new business volumes.
Underlying margin was recorded at 17.6%, with an improved reported margin of 13.8%. Peril claim costs were above allowance after the storm activity in the second half of 2018, but were lower than the earthquake-affected FY17.
Further GWP growth is expected in FY19 from rate and volume, and IAG’s New Zealand operations are expected to maintain strong underlying profitability.
“This is a solid result for IAG with an encouraging improved underlying performance,” said Harmer. “Overall, we are making sound progress to transform IAG into a company able to anticipate, respond to, and satisfy the needs of all those who rely on us – our customers, our people, the communities we help and the shareholders who support us.”
