Insurance Australia Group Ltd
(ASX:IAG) has reported a massive jump in profit for the half year and reaffirmed expectations for a higher full year insurance margin.
Net profit after tax for the six months to December 31, 2009 came to $329 million up from just $4 million for the same period a year ago.
The company’s half year insurance profit rose to $488 million up from $227 million representing an improved insurance margin of 13.4%, compared to 6.2% the year before.
CEO Mike Wilkins says the result confirms that the turnaround in the group’s underlying performance is progressing to plan.
Looking ahead the company says it now expects the group to achieve an insurance margin in the range of 11.5% to 13% for the full year, up from previous guidance of 9% to 11%.
IAG also says it expects underlying gross written premium growth for the year of 35%.
Mr Wilkins says the revised outlook reflects the stronger than expected first half performance as well as the company’s expectation that the improvement in the group’s operating performance will continue during the second half.
IAG’s fiscal 2009 profit came to $181 million.
