IAG’s insurance profit rose 75.4% or $264 million to $614 million in the half of the financial year.
Higher premium increases across IAG’s three divisions – Direct Insurance Australia, Intermediated Insurance Australia and New Zealand – drove the first-half result, leading gross written premium (GWP) to increase 12.5% to $7.94 billion. That rise is the strongest in nine years and exceeds the 7.5% increase from a year earlier.
The rate rises have affected new business volume growth but retention levels have stayed strong around 90%, IAG says.
“We’ve achieved a solid operating first half result, with our focus on strategy execution and the momentum in the underlying business continuing to drive IAG’s performance," said IAG managing director and CEO Nick Hawkins.
1H24 financial highlights
- GWP up 12.5% to $7.9b
- Insurance profit of $614m, up from $350m
- Reported insurance margin of 13.7%, up from 8.5%
- Underlying insurance margin of 13.7%, up from 10.7%
- Net profit after tax of $407m, down from $468m
- Up to $200m on-market share buyback
- Reaffirmed FY24 financial guidance
- Interim dividend of 10 cents per share