Australian insurer IAG expects to achieve low double digit gross written premium growth in their fiscal year 2024 (FY24), while the firm’s reported insurance margin guidance currently sits in the range of 13.5 – 15.5%.
During a recent presentation, IAG’s Managing Director and CEO Nick Hawkins, explained that the firm has experienced a relatively benign start to FY24 from a natural perils perspective.
He noted that to the end of September, the company’s natural perils costs have been approximately $120 million, which also includes $47 million in additional claims from events sparking from FY23.
At the same time, inflationary trends also continue to be elevated across the company, particularly within motor claims costs. As a result, Hawkins stated that this is expected to result in some prior-period development in their first half result.
IAG also highlighted the costs springing from earlier New Zealand flooding. These relate to restoring its reinsurance protection. The disasters struck early this calendar year but IAG has accounted for part of that restoration cost, $70 million, in this period.
Meanwhile, reflecting on their FY23 results, IAG’s Chair, Tom Pockett highlighted how the last two years have been a “very challenging” environment for both Australia and New Zealand.
He noted that this period included the highest levels of peril events in Australia & NZ since the 2010 and 2011 NZ earthquakes.
However, despite a variety of challenges, IAG managed to deliver solid FY23 results, which included its GWP increasing by 10.6% to $14.7 billion, while insurance profit rose 37% to $803 million.
