Disasters buffet IAG
Insurance Australia Group’s (IAG’s) financial results have taken a buffeting from the natural disasters that have hit Australia, forcing it to downgrade its full-year insurance margin and acknowledge full-year natural peril cost claims of $500 million.
In an update provided to the Australian Securities Exchange (ASX) today, the big general insurer acknowledged the recent string of natural disasters in Australia — along with a greater than expected insurance loss from the United Kingdom operation — had served to undermine the strong performance recorded during the first six months.
Commenting on the performance, IAG managing director Mike Wilkins said that since the beginning of January the group had incurred an estimated net natural peril claim cost of around $300 million from major weather and other natural peril events.
He said AIG now expected to deliver a full year insurance margin in the range of 9-11 per cent, compared to its expectations held at the beginning of the year of 10.5-12.5 per cent.
However, Wilkins said the group’s full-year guidance for underlying gross written premium growth remained unchanged at 3-5 per cent.
The company will announce its full-year result to the ASX later this month.
AUTHOR
Mike Taylor
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