IAG has announced its 2024 full-year results, reporting a net profit after tax (NPAT) of $898m, up 7.9% on FY23. This increase was driven by an 11% rise in net earned premiums, an improvement in the insurance profit, and higher investment income on shareholder funds of $286m up 35% on the previous year.
The insurance profit of $1,438m was up 79.1% on FY23 and equated to a reported margin of 15.6% (FY23: 9.6%). The company’s natural perils costs of $983m, $115m below the $1098m allowance, positively impacted the insurance profit.
Commenting on the company’s performance, IAG Managing Director and CEO Nick Hawkins said:
“Today’s result reflects the strength of the IAG business as well as the operational improvements we have implemented. The trust our customers have in our brands is reflected in continued high customer advocacy and retention in our retail businesses in Australia and New Zealand. We are well positioned to continue supporting our customers and the broader economy.
“The strategic measures we have put in place over the past few years have created a stronger and more resilient IAG. We’ve streamlined our Australian business, established a clear brand strategy and launched NRMA Insurance nationally, outside of Victoria. We have also improved our claims management capability to ensure we are well placed to support our customers when they need us the most.
“We’ve delivered on our target of at least $250m in insurance profit from our Intermediated Insurance Australia business, and significantly improved our technology platform that delivers the products and services we provide to our retail customers.
Hawkins said the company's result was primarily driven by a combination of growth in gross written premiums, stronger investment returns, and less volatile weather in Australia and New Zealand compared to previous years.
However, he noted that the business is focused on minimising the impact of premium increases on its customers. Looking ahead to next year he said: "We enter FY25 with a clear strategy and a strong and scalable business model as we focus on the next phase of growth. Having streamlined our operations in recent years, we are now focused on building on our strong customer relationships with our leading brands and products and enhancing our retail business – enabled by our integrated Enterprise Platform."
Download the IAG FY24 Results here.