23 Aug 2013

IAG profit up 66%

6:58 am on 23 August 2013

IAG, the largest general insurance company in New Zealand, which is Australian owned, has lifted its annual insurance profit by 66%.

Insurance Australia Group, which owns the NZI, State and AMI brands in New Zealand, made a profit of more than $A1.4 billion for the 12 months to the end of June, up from $A845 million the previous year.

Gross written premiums in New Zealand rose nearly 27% in local currency terms and that it is on track to realise synergies of at least $NZ30 million from purchasing AMI within nine months.

The group's insurance profit was more than $1.4 billion, up from $845 million.

The insurance profit for the New Zealand arm was up nearly 12% to $A115 million.

IAG claims a 39% share of the $5 billion New Zealanders pay in annual insurance premiums.

Chief executive officer Mike Wilkins said the New Zealand market has maintained its strong underlying performance.

He said the outlook for IAG's New Zealand business remains positive and further gross written premium growth is expected for New Zealand in 2014 and the maintenance of the businesses strong underlying profitability.