What were Insurance Australia Group's first-half cash earnings?

Insurance Australia Group's first-half cash earnings were A$507 million, a 21% decrease from the previous year.

Why did IAG's earnings perform better than expected?

Higher gross written premiums, which rose 6% to A$8.93 billion, helped offset increased claims costs and lower investment income.

Home / Business and Economy / IAG Earnings Beat Expectations Amidst Claims Surge

IAG Earnings Beat Expectations Amidst Claims Surge

Q: What is Insurance Australia Group's outlook for full-year premium growth?

IAG forecasts full-year gross written premiums growth in the high single digits.

12 Feb

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Summary

First-half cash earnings fell 21% but exceeded forecasts.
Higher gross premiums offset increased claims and lower investment income.
IAG announced a new A$200 million share buyback program.

IAG Earnings Beat Expectations Amidst Claims Surge

Insurance Australia Group (IAG) announced its first-half cash earnings, reporting a 21% decrease to A$507 million for the six months ending December 31. This figure, however, outperformed market expectations. The insurer's strong capital position enabled the announcement of a new A$200 million share buyback program.

Gross written premiums saw a 6% rise, reaching A$8.93 billion. This growth, alongside an 8.5% increase in net earned premiums, was crucial in mitigating the impact of a 15% surge in net claims expenses and a 14% decline in investment income.

CEO Nick Hawkins noted significant claims from severe weather events in October and November across Queensland and northern New South Wales. Despite these challenges, IAG maintained its interim dividend at 12 Australian cents per share. The company now forecasts full-year gross written premiums growth in the high single digits.