Small toy figures are seen in front of displayed IAG (Insurance Australia Group) logo in this illustration taken, November 8, 2021.
The country's top general insurer posted cash earnings of A$452 million ($290.00 million) for the year ended June 30, up from A$213 million a year ago but missing analysts' average estimate of A$656.7 million, according to Refinitiv Eikon data.
Australian insurers have seen their profits soar this year, as they incur higher premiums in an elevated interest-rate environment, while also benefiting from a rebound in investment income.
The company also expects an insurance margin in fiscal 2024 of 13.5%–15.5%, higher than the 12.6% margin last year.
However, elevated inflation in home and motor claims costs, as well as the higher natural perils allowance, impacted the underlying insurance margin, IAG said in a statement.
Persons:
Dado Ruvic, IAG, Nick Hawkins, Nausheen Thusoo, Archishma Iyer, Paul Simao, Stephen Coates, Rashmi
Organizations:
Insurance, REUTERS, cps, Insurance Australia Group, New Zealand, Citi, UBS, Thomson
Locations:
Australia, New