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

 

IAG announces New Zealand financial result for 2013

Media Release 22 August 2013

IAG announces New Zealand financial result for 2013

IAG’s New Zealand divisional result for the 2013 financial year, announced to the Australian Securities Exchange (ASX) today within the Group results, shows that the business has reacted and adapted well to a very dynamic environment.

New Zealand CEO Jacki Johnson says that IAG’s investment to support the shift to sum insured home policies required by reinsurers was significant (NZ$13 million), and impacted the business’s cost base, but was necessary to help New Zealand consumers understand the change and consider what they needed to do as a result. “We recognised early that this was a fundamental change that would be difficult for some homeowners to respond to. IAG decided across its brands, and working with its brokers and financial institution partners, that we had a responsibility to help our customers understand what is now required. As a result we created a major public awareness and information campaign to achieve a positive outcome from this change,” Ms Johnson said. “The Need2Know campaign has contributed to a better understanding of sum insured policies, important to getting a better outcome for homeowners, helping them to be more comfortable with establishing their insured amount, and insurers – through achieving greater certainty around our total exposure in the event of a major natural catastrophe.” A strengthening of reserves as part of IAG’s Canterbury earthquake recovery commitments, coupled with the investment in managing the home insurance changes contributed to a divisional reported insurance margin of 8.9% (10.4% FY2012).

IAG’s New Zealand insurance profit was up 11.7% to A$115 million, but off a bigger premium base. IAG’s New Zealand business increased in size – as measured by gross written premium (GWP) – by over 30% to A$1,575 million ( $1,210 million in FY2012) largely due to the first full year impact of the AMI purchase (compared to only three months worth of premiums contributing in the 2012 result). Other factors contributing to the GWP growth were necessary rate increases to recover increased reinsurance costs (notably in the home portfolio) and new and additional regulatory capital requirements. 2 of 2

The integration of AMI has been a major focus for the year and IAG reported it was on track to achieve projected synergies of at least NZ$30 million by April 2014 (two years after the acquisition). “This is an important achievement and part of our focus on managing our cost base to make sure we can keep insurance as affordable as possible,” Ms Johnson said.

Through the year NZI reinforced its strong market standing, winning intermediated Insurer of the Year for the second year in a row; and progress accelerated in Canterbury where IAG’s Canterbury Recovery team has set a target date of December 2015 to complete its residential rebuild programme, and is confident that this will be achieved. “Overall it is a result that reflects well on the efforts to maintain a strong business with an extensive network that is able to respond to the dynamic insurance environment, innovate and lead, but most importantly, through our brands and partners, to be there consistently for our customers where and when they need us.” “While there continue to be challenges emerging from Canterbury’s rebuild we are working diligently on appropriate solutions and progress is building. I have been particularly proud of the response across our brands to a number of natural disasters encountered through the year, sometimes when our own branches and people have damage by the same storms and floods that have hit our customers.” “This commitment, agility and the spirit shown by those who are part of IAG gives me great confidence in what we can achieve in the year ahead,” Jacki Johnson said.

- ends -

Full Group results details can be viewed via http://iag.com.au/results/index.shtml


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: