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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news