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

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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