INSURANCE | Staff Reporter, Australia

IAG records $365m net profit loss for H1 2021

Gross written premiums grew 3.8%.

Australia’s IAG has posted a $356m (A$460m) net profit loss in H1 2021 due to a $891m (A$1.15b) pre-tax expense announced in November 2020 for potential business interruption claims from COVID-19, a statement read.

On the other hand, gross written premiums grew 3.8% to $4.8b (A$6.19b) on the back of rate increases in its commercial and home insurance units in Australia and across all key classes in New Zealand, as well as customer growth in New Zealand’s direct brands and high retention rates in our commercial portfolios in Australia.

Insurance profit jumped 33.1% to $517m (A$667m), equating to a higher reported margin of 17.9%, due benign natural perils period and favourable credit spreads.

Its underlying margin improved to 15.9%, benefiting from lower motor claims.

The insurer announced $0.54 (A$0.7) dividends per share.

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