Insurance company Insurance Australia Group Ltd
(ASX:IAG) says the company is on track to deliver on its fiscal 2010 guidance.
CEO Michael Wilkins says if the operating conditions experienced to date continue for the remainder of the year the company will be on track to report a full year insurance margin approaching the upper end of the company’s 9 - 11 per cent guidance.
Mr Wilkins says in the first quarter, IAG has seen the underlying performance of the business continue to improve and it has had the added benefit of narrowing credit spreads.
He also says the company expects to achieve its previous guidance for gross written premium growth in the range of 3 - 5 per cent, but says that reported gross written premium is likely to be affected by the strength of the Australian dollar.
IAG says its improved underlying performance was attributed to higher premiums, including the earned effect of rate rises implemented in fiscal 2009, the full benefit of operating efficiencies in Australia, improved performance from CGU and New Zealand and reduced exposure to the underperforming UK private motor market.
IAG pulled itself out of the red in 2009 to post a profit of $181 million.
