IAG reports 80% rise in insurance profit, hikes dividend
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The news: Insurance Australia Group (IAG) reported large increases in insurance profit in the 2024 financial year, driven by a double-digit rise in gross written premium (GWP).
The numbers: IAG posted insurance profit of $1.42 billion, up 79.1% compared to FY23, at the top end of its $1.2 billion to $1.45 billion guidance range. Net profit after tax grew 7.9% to $898 million as GWP rose 11.3% $16.4 billion. IAG's reported insurance margin of 15.5% improved on 9.6% in FY23 and topped its guidance band of 13.5% to 15.5%.
The company declared a final dividend of 17 cents per share, up 89% on last year, with a full-year dividend of 27 cents per share representing an 80% improvement year on year.
IAG guided "mid-to-high single digit" growth in GWP in FY25 and reported insurance profit of $1.4 billion to $1.6 billion.
The context: IAG said the result was primarily driven by a combination of growth in GWP, strong investment returns, and less volatile weather in Australia and New Zealand compared to previous years.
IAG managing director and CEO Nick Hawkins noted that in recent years the company has streamlined its Australian business, established a new brand strategy, and launched NRMA Insurance nationally outside of Victoria.
Meanwhile, he flagged that the business is focused on minimising the impact of premium increases on its customers.
What they said: "We recognise premium increases are affecting customers, and we've bolstered our support for those impacted by cost-of-living pressures," Hawkins said.
Our specialised customer care teams are helping those in financial hardship by finding tailored solutions and providing extra support. This year, we've also enhanced training for our frontline teams and introduced AI tools to better identify and assist vulnerable customers."
The source: ASX announcement
