IAG confident of growth

SYDNEY: Insurance Australia Group (IAG) has reported a profit for 2008-09, and is confident of a better performance this year as it looks to growth in insurance margins and premiums.

Net profit for the year ended June 30 was A$181 million ($225.32 million) compared with a loss of A$261 million in the previous financial year.

Managing director and chief executive Michael Wilkins said he was confident IAG would further improve its performance.

In 2008-09, IAG's insurance profit rose A$515 million, from A$392 million, representing an improved insurance margin of 7.1 per cent, up from 5.4 per cent in the previous year.

Gross written premium rose to A$7.842 billion, from A$7.793 billion.

After excluding foreign exchange impacts, its underlying gross written premium growth was 4 per cent.

"This year we have strengthened the business and now have a platform for future success," Wilkins said.

IAG's result compared with the consensus analyst forecast for a net profit of A$188 million.

Wilkins said 2008-09 was a year of rebuilding for IAG, as it refocused on its core businesses and improved underwriting disciplines.

IAG declared a final dividend of 6 cents, taking the total for the year to 10 cents.

- AAP