28 Oct 2010

IAG 'performing strongly' despite quake claims

2:26 pm on 28 October 2010

The Australian owner of State Insurance and NZI says it is on track to meet its 2011 full-year guidance despite wide-spread storms and the Canterbury earthquake.

After a disappointing year, Australia's largest home and car insurer Insurance Australia Group says it's back on track, and its insurance margins should be between 10.5% and 12.5% this year.

IAG told shareholders at its annual general meeting on Wednesday that its Australia and New Zealand businesses are performing strongly, despite having thousands of claims from the Christchurch earthquake and storms that affected south-east Australia.

But, the year to June 2010 was a different story, with chief executive Mike Wilkins admitting that it had been disappointing. Net profit halved to $91 million compared to the previous year.