Insurance Australia Group
(ASX:IAG) has posted a 4.3% drop in net profit in 1H FY17.
IAG announced that its first half net profit was $446 million, compared with $466 million in the prior corresponding period.
Its gross written premiums increased 4.7% to $5.8 billion, particularly due to rate increases to counter higher claim costs in Australian and New Zealand short tail claims.
As for IAG’s underlying insurance margin, that rose 14.2% to 12.6 percent, which IAG says was a softer than expected operating performance.
The insurance company declared a fully franked interim dividend of 13 cents per ordinary share, and a special dividend of 10 cents.
