IAG New Zealand Announces First Half Result

IAG New Zealand has today reported a business insurance profit of A$311m (1H24: A$204m) and an underlying margin of 19.5% (1H24: 14.9%), largely due to materially lower claims volumes. As a result, perils costs are A$93 million below allowance.

Gross Written Premium (GWP) grew by 1.2% to A$1,887m (1H24: A$1,864m). In local currency terms, underlying growth of 4.7%, was achieved.

Amanda Whiting, CEO IAG New Zealand says: “Today’s result is driven by the continuation of a benign weather period, GWP growth and strong underwriting discipline.

“New Zealand remains highly vulnerable to natural hazards and weather-related disasters which are expected to increase in frequency and severity. So, it is critically important that we take a longer-term view, recognising that today’s profit underpins access to the resources and capital which will be needed to help us recover from the next big event.

“In recent months we have seen local and international examples of the devastating impact that climate related natural hazards can have on people and the importance of having a sustainable insurance industry to support their recovery.

“We are continuing to invest in our people and operations to ensure we can deliver the products and services to meet our customers evolving needs and support the resilience of our customers and their communities.

“Increasing weather volatility, reinsurance costs, government levies and the industry’s move to more granular risk-based pricing will continue to affect customer premiums. Inflation, however, continues to ease, and this is being reflected in current premiums. We are conscious of the financial pressures many New Zealanders are experiencing and so we have bolstered our support for those impacted by these pressures.”

Helping make New Zealand safer and stronger

“We know that the next natural disaster can strike at any moment and that while it’s essential to have insurers ready and able to help recovery, it’s better New Zealand avoids the impacts that these disasters can have. And so, our focus remains on promoting and supporting risk reduction in our most hazard prone communities.

“We are committed to playing our part in making New Zealand safer and stronger, and this extends to safety on our roads. In July, we made our AMI Roadside Rescue service available to all New Zealanders, not just AMI customers.

“All newly licensed drivers are now also eligible for free AMI Roadside Rescue for that crucial first year, which gives them extra confidence as they head out on our roads for the first time.

“We continued to evolve our popular Hub Services model to deliver customer experiences beyond insurance, including expanding AMI MotorHub and AMI HomeHub with new locations and services across the country.

“We also delivered advances in customer facing technology, with new customer apps for AMI and State, as well as transitioning more customers to a future-ready digital platform with better access and simple-to-buy insurance.”

* All figures reported in AUD, unless stated otherwise.

To view financial result materials, visit: http://www.iag.com.au/results-and-reports.

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