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

 


IAG gains in NZ, confident of approval for Wesfarmer’s buy

IAG gains in NZ, confident of approval for Wesfarmer’s takeover

By Suze Metherell

Feb. 20 (BusinessDesk) – Insurance Australia Group, New Zealand’s largest general insurer, reported a 75 percent gain in its kiwi operations for the first-half, as the company expects to finalise the purchase of Wesfarmers’ insurance underwriting business by the second quarter of 2014.

Earnings for the division was A$93 million for the six months ended Dec. 31, up from A$53 million in the same period a year earlier, the insurer said in a statement. IAG had an 18 percent gain in its gross written premium (GWP) revenue to A$884 million. The division’s insurance margin was 12.4 percent, up from 8.3 percent a year earlier

The Australian owned company, which trades in New Zealand under the State, NZI and AMI brands, is waiting for clearance from Australasian antitrust regulators to buy Wesfarmers’ WFI and Lumley Insurance brands.

Full-year forecasts didn’t assume a contribution from Wesfarmers acquisitions, but “it remains the group’s expectation that the related transaction will be completed in the second quarter of calendar 2014, subject to regulatory approvals.”

IAG expects that GWP will grow at a slower pace in the second-half due to increased competition, although underlying profit will remain steady due to the integration of AMI and stronger earnings generated from significant premium increases over the previous years.

The insurer said it had settled 51 percent of all Canterbury earthquakes claims, worth more than NZ$2.7 billion in the first-half, up from NZ$2.2 billion for the same period a year earlier. Finalisation of commercial claims was close to 80 percent settled. Of residential claims, 70 percent were either underway or settled.

Total reported expenses in IAG’s New Zealand business rose 32 percent to A$229 million in the first-half, in part amplified by the high value of the kiwi against the Australian dollar. Reinsurance expenses were up 24 percent to $140 million, reflecting higher cover costs since the Canterbury earthquakes and increased regulatory requirements.

The Australian parent saw a 7 percent decline in first half earnings, dropping to A$758 million, with its insurance margin at 17.5 percent from 19.9 percent a year earlier. The margin reflects net natural peril claim costs of A$335 million, A$200 million higher than the 2013 comparable period owing to New South Wales bushfires and hail storms and Queensland floods.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news