Insurance Australia Group Ltd
(ASX:IAG) says it expects to achieve a full year insurance margin in the range of 11.5% to 13% up from previous guidance of between 9-11%.
The company says it also expects to report a half year insurance profit of $488 million compared to $227 million recorded in the first half of fiscal 2009, representing an improved insurance margin of 13.4% compared to 6.2% in the previous corresponding period.
CEO Michael Wilkins says IAG’s overall performance in the first half is a significant improvement on the previous corresponding period, with more than half of the expansion in the company’s insurance margin derived from operational improvements.
Mr Wilkins says the company’s performance has also been aided by narrowing credit spreads and natural peril claim costs below its allowances.
For the 2009 financial year IAG reported net profit after tax of $181 million.
