Retiring IAG Managing Director and CEO Peter Harmer has provided a trading update for the first quarter of the 2021 financial year, ending 30 September, at the company’s Annual General Meeting.
“In the opening quarter we have recorded low single digit gross written premium growth, despite incurring an adverse foreign currency translation effect from New Zealand,” Mr Harmer said.
“Our insurance profit for the quarter reflects the seasonally low incidence of natural peril events in this period, while underlying profitability has been similar to that seen in the second half of the previous financial year.
“Within our underlying insurance margin, COVID-19-related effects have been broadly neutral in aggregate during this period, with some benefit from lower motor claims frequency offset by incremental expense and provisioning impacts.
“And we continue to retain a strong capital position, well above our targeted benchmarks.
“Despite the uncertainty confronting us, including that from COVID-19, we face the future with the confidence that we have a resilient business which is in strong financial shape, and which is well‐equipped to rise to the challenges presented by this current environment,” Harmer concluded.
IAG Chairman Ms Elizabeth Bryan welcomed incoming IAG Managing Director and CEO Nick Hawkins at the AGM while thanking Harmer for his contribution.
“Nick will assume the role of CEO from 2 November and the Board and I look forward to working with him in his new role and congratulate him on his appointment.
“I’m very pleased that we have been able to appoint a new CEO from within the ranks of our current management team. At a time of significant external disruption, we see tremendous value in the stability and continuity that comes from making an internal appointment.
“I take this opportunity to recognise Peter’s significant contribution to our company. On behalf of the Board, I sincerely thank him for his five years at the helm of IAG. Peter has been pivotal to the creation of a more innovative and customer focused IAG."