Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


AMI underpins 40% lift in IAG's New Zealand premium revenue

AMI underpins 40% lift in IAG's New Zealand premium revenue

By Paul McBeth

Feb 21 (BusinessDesk) - Insurance Australia Group's $380 million purchase of the beleaguered AMI Insurance helped boost the firm's New Zealand premium revenue by 40 percent in its first half.

The New Zealand unit, the country's biggest underwriter across the NZI, State and AMI bands, lifted profit to A$53 million in the six months ended Dec. 31 from A$34 million a year earlier, with a 40 percent increase in gross written premium (GWP) revenue to A$751 million. The bulk of the premium increase came from the AMI acquisition, and excluding that business, GWP rose 8.4 percent.

"In New Zealand, the underlying performance of the business has remained strong with an improved reported insurance margin of 8.3 percent," chief executive Mike Wilkins said in a statement. "The acquisition of AMI has cemented our market-leading position in the country and its integration is tracking to plan."

Profitability in New Zealand is expected to stay strong with significant price increases expected to offset rising costs, lower costs achieved from better integration of AMI, disciplined underwriting and containing costs on claims, IAG said.

The Australian parent more than tripled net profit to A$461 million with a 14 percent gain in GWP. It expects GWP annual growth of between 9.5 percent and 11.5 percent and an insurance margin from ongoing operations of between 12.5 percent and 14.5 percent. That margin forecast is up from the 11 percent to 13 percent range previously forecast.

The Sydney insurer's board declared an interim dividend of 11 Australian cents per share, more than twice the 5 cents a year earlier. The return is payable on April 3 with a record date of March 6.

The shares rose 3 percent to A$5.58 on the ASX today, and have gained 13 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news