Insurance Australia Group Limited (IAG) announced a strong operating performance for the financial year ended June 30, 2014 (FY14), posting an insurance profit of A$1.579 billion [US$1.467 billion] for the year, up 10.6 percent from A$1.428 billion [US$1.326 billion] for FY13.
IAG’s report notes that this “equates to a reported insurance margin of 18.3 percent compared with 17.2 percent for FY13. The underlying margin1 improved to 14.2 percent, compared with 12.5 percent in FY13. Gross written premium (GWP) increased by 3 percent to A$9.779 billion [US$9.27 billion], while net earned premium (NEP) rose by 3.9 percent to A$8.644 billion [US$8.029 billion].
Net profit after tax increased 59 percent to A$1.233 billion [US$1.145 billion] (FY13: A$776 million [US$721 million]). This was boosted by increased investment income on shareholders’ funds, which grew by 14 percent to A$396 million [US$366 million], and the absence of the prior year’s loss of A$287 million [US$266.5 million] in respect of the discontinued UK business, which was sold in April 2013.
IAG Managing Director and CEO Mike Wilkins commented: “This has been a significant year for IAG. We have delivered a strong financial result, maintained the strength of our capital position and completed the acquisition of the Wesfarmers insurance underwriting business.
“The improvement in our underlying performance has continued and demonstrates the value of pursuing a disciplined and consistent strategy over a number of years.”
Source: Insurance Australia Group Limited (IAG)