IAG has released an update on its preliminary results for the financial year 202 with an expected net loss of $426 million. The insurance giant expects its final financial year 2020/21 results to include:
A gross written premium (GWP) growth of 3.8 per cent, included negligible COVID-19 impacts in the second half of the financial year (2H21); its net earned premium of $7,473 million showed a growth of 1.5% on last financial year.
An underlying insurance margin of 14.7%, included a second-half result of 13.5%. A reported net loss of $427 million, opposed to a FY20 net profit of $435 million, had a slight lift with a reported profit of $33 million in 2H21.
IAG’s dividend policy is reported to pay out 60% to 80% of cash earnings on a full-year basis.
Nick Hawkins, the managing director and chief executive officer of IAG, said the underlying results for 2021 followed the insurance giant’s expectations. However, IAG faced challenges that have been identified and provisioned for in the preliminary results.
IAG has re-introduced guidance for FY22, it includes: GWP guidance for low single-digit growth in FY22. This incorporates modest growth in customer numbers in Direct Insurance Australia (DIA), ongoing rate increases across personal and commercial lines and further portfolio remediation, which is expected to constrain IIA volume growth.