IAG reports year end results, insurance profit surges 37%

Operating costs stayed within its target for the third consecutive year.

The Insurance Australia Group (IAG) reported its fiscal year 2023 (FY23)  performance with insurance earnings climbing 37% to AU$803m, whilst the underlying insurance margin shrank 12.6%.

This was affected by elevated inflation in home and motor claims costs, along with a higher natural perils allowance

Gross Written Premium (GWP) growth has exceeded 10% this year.

Further, IAG maintained its operating costs within its AU$2.5b target for the third year in a row. 

The Australian insurer also lowered its expense ratio, and enhanced net profit after tax (NPAT) despite a challenging economic environment. 

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Capitalising on its strong first-half momentum, IAG achieved a 10.6% GWP growth in FY23, surpassing our around 10% guidance. 

This increase mainly stemmed from premium adjustments across our three businesses due to inflation and heightened reinsurance and natural perils costs. 

“We enter FY24 with positive momentum across the company and confidence that the strategy we have in place will deliver long-term benefits for our shareholders and the 8.7m customers we serve.” Nick Hawkins, IAG Managing Director and Chief Executive Officer said.