IAG Expected Profit Drop
IAG Expected Profit Drop – Annual profit to June 30 will be $91 million, down from $181 million in fiscal 2009, IAG said in a statement on Tuesday.
Insurance margins for the year to June 30 would be seven per cent, in line with guidance.
IAG said it expects to announce an insurance profit of $493 million for the year, down from $515 million in fiscal 2009.
This would be achieved on net earned premium of $7.1 billion, down from $7.2 billion in 2009, it said.
IAG would pay a final dividend of 4.5 cents, fully franked.
IAG chief executive Mike Wilkins said the FY10 result showed a further uplift in the underlying performance of the group’s Australian and New Zealand businesses during the year.
“While this year’s financial result does not reflect the expectations we held at the outset of the year, I’m encouraged by the clear and ongoing improvement in the operational performance of our businesses in our home markets of Australia and New Zealand,” he said in a statement.
“The results of these three businesses, which represent almost 90 per cent of our GWP, have improved year on year, providing evidence were continuing to benefit from our refined corporate strategy.
“The second half of the 2010 result has borne in excess of $200 million of net pre-tax claim costs in respect of the unprecedented Melbourne and Perth storms in March 2010, as well as the $367 million charge required in our UK business following the deterioration in bodily injury claim experience,” the company said.
Tags: 1 Billion, Australia And New Zealand, Bodily Injury, Corporate Strategy, Deterioration, Dividend, Financial Result, Gwp, Home Markets, Iag, Margins, Mike Wilkins, Operational Performance, Outset, Perth, Profit Drop, Storms, Uk Business, Uplift, Zealand Businesses
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