IAG’s financial results: healthy profits and GWP growth

Insurance Australia Group (IAG), the trans-Tasman insurance giant, has released half-yearly results for FY23-24. Net profit after tax was A$407m, a drop compared to last year, but gross written premium (GWP) grew 12.5% to almost A$8 billion.

“We’ve achieved a solid operating first half result, with our focus on strategy execution,” said Nick Hawkins (pictured immediately below), IAG’s CEO.

“The margins and underlying claims ratios in Australia and New Zealand improved, and we are on track to meet our FY24 financial guidance,” said the CEO.

Improvements in Australia and New Zealand

Hawkins also said this growth reflected premium increases across Direct Insurance Australia (DIA), Intermediated Insurance Australia (IIA) and the New Zealand business. These increases, he said, were a response to inflation pressures, higher perils, and reinsurance costs.

The intermediated business is on track, said Hawkins, to deliver a A$250 million insurance profit in FY24.

Growth in NZ

Amanda Whiting (main picture), CEO of IAG New Zealand, said the results reflect the progress the firm has continued to make against strategic priorities.

“Our focus continues to be on delivering for our customers by building a strong and resilient insurance business, so we can be here for New Zealanders when they need us the most,” said Whiting.

IAG’s GWP in New Zealand grew by nearly 19% to A$2,015 million.

Whiting said the 2023 North Island floods and Cyclone Gabrielle events “are still having a profound impact on our communities.”

Hawkins also referred to the impact of natural disasters.

“Since the 2022 floods, we’ve increased our claims team numbers, scaled up our partner workforce, improved our triaging and claims oversight to identify vulnerable customers,” he said.

“We are well positioned to continue to play our critical role as an economic shock absorber for consumers and businesses in Australia and New Zealand,” he said.