News & Analysis » Asia

Insurance Australia Full Year Profit Slumps - Quick Facts

(RTTNews) - Insurance Australia Group Ltd (IAUGF.PK) reported full year net profit after tax of A$91 million, compared to A$181 million last year. Earnings per share were 4.36 cents, down from 9.26 cents a year earlier. Insurance profit for the year fell to A$493 million from A$515 million in the previous year.

The company stated that the results was diluted by the impact of the unprecedented Melbourne and Perth storms in March 2010, and the one-off A$367 million charge recognised in UK business, following increase in bodily injury motor claims in that market.

Net premium revenue declined to A$7.07 billion from A$7.23 billion in the prior year.

The board has determined to pay a final dividend of 4.5 cents per share fully franked, which is payable on 6 October 2010 to shareholders registered as at 8 September 2010.

Looking ahead, the company reaffirms fiscal 2011 guidance of an insurance margin of 10.5-12.5% and underlying GWP growth of 3-5%.

Brian Schwartz named Chairman of IAG Board, succeeding James Strong, in line with the transition plan announced in November 2009, the company stated. The Board expects to appoint another director before the end of the 2010 calendar year.