Australia’s IAG cash earnings jump 27% on growth across key businesses, dividend steady

Feb 13 (Reuters) – Insurance coverage Australia Group (IAG.AX) reported a 26.7% leap in its first-half money earnings on Monday, boosted by quantity development throughout its key companies that helped offset the continued impression of upper inflation on claims prices.

The insurance coverage large mentioned it witnessed its strongest first-half Gross Written Premium (GWP) development in seven years, up 7.5% to A$7.06 billion, in comparison with A$6.57 billion final 12 months.

The insurer mentioned GWP development was pushed by price hikes, to offset the excessive inflation within the provide chain, in addition to buyer quantity development within the house and motor portfolios.

The corporate, nonetheless, in early February had mentioned that it obtained greater than 15,000 claims as folks sought safety for damages attributable to flash flooding in New Zealand, whereas smaller peer Suncorp (SUN.AX) obtained about 3,000 claims. learn extra

The insurance coverage large’s pure perils prices ballooned to A$524 million following the extreme climate occasions throughout a number of states in Australia throughout the interval. learn extra

Money earnings for the six months ended Dec. 31 got here in at A$223 million ($154 million), in contrast with A$176 million within the prior corresponding interval and a Refinitiv estimate of A$464 million.

The final insurer retained its objective to attain a 15% to 17% insurance coverage margin and a reported return on fairness of 12% to 13% over the medium time period.

Australia’s prime basic insurer declared an interim dividend of 6 Australian cents per share, the identical as within the prior corresponding interval.

($1 = 1.4480 Australian {dollars})

(This story has been corrected to say A$223 million, not $223 million, in paragraph 6)

Reporting by Riya Sharma and Archishma Iyer in Bengaluru; Modifying by Paul Simao and Diane Craft

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