IAG profits soar in NZ

A fallen tree in Napier brought down by Cyclone Ita. Shed owner Christina Mitchell (l) and Luke Mitchell. Big insurer IAG's profits are up 10per cent. Photo / APN

The parent company of New Zealand's biggest insurer pushed up profits 10.6 per cent from last year's A$1.43 billion to make A$1.58 billion in the year to June 30, 2014.

Insurance Australia Group (IAG) is the parent company of a business with operations in New Zealand, Australia, Thailand and Vietnam. IAG owns some of this country's biggest insurance brands including State Insurance, NZI, Lumley Insurance and AMI.

IAG's New Zealand chief executive Jacki Johnson said the New Zealand result reflected the good momentum in this country's economy, disciplined underwriting and pricing in a competitive market and a strong focus on delivering positive customer experiences.

"The result was achieved in a year that saw IAG in New Zealand, through its family of brands, actively supporting its customers through increased incidence of major weather events including:

• storms in September 2013 where damage was concentrated mainly around the Canterbury region;

• ex-Tropical Cyclone Ita which caused damage across the country in April 2014; and

• nationwide heavy rain and storm activity in June 2014," a statement from IAG this morning said.

Jacki Johnson said that underlying profitability was expected to remain strong as IAG focused on improving operational efficiencies.

"Settling claims relating to the Canterbury earthquakes continues as our most pressing priority, while considerable attention is also being given to welcoming Lumley employees and customers into IAG and leveraging the strengths of both businesses," she said.

View the full document below: