Insurance Australia Group Ltd
(ASX:IAG) has that its reported net profit (after tax) fell 14.1% to $625 million. IAG is facing declining profits just like its competitors, Suncorp and QBE.
IAG says its commercial business in Australia and NZ face continuing price pressures and strict underwriting discipline, which resulted in lower business volumes.
The company also declared a fully-franked final dividend of 13 cents per share. This brings its full year dividend payout to 26 cents per share. This is lower last year, as IAG paid a total dividend of 29 cents per share in FY15.
Despite the result, IAG has also announced it will enter a $300 million off-market share buyback, which it says will be completed in mid-October.
