IAG margin guidance to rise amid higher reserve release

Company News

by Jessica Amir

IAG (ASX:IAG) has raised its reserve release and as a result, it expects its FY17 margin guidance will rise to the range of 13.5 per cent to 15.5 per cent.

It’s previous margin range was 10.5 per cent to 12.5 per cent.

It comes as the general insurance giant increased its reserve release expectation for its Australian long-tail insurance, for the FY ending 30 June 2017 (after reviewing its prior reserve release). 

IAG’s reserve releases mainly relate to long-term cover such as CTP, liability, professional risk and workers compensation.

IAG’s net earned premium rose to least 5 per cent, from its previously advised guidance of 2 per cent.

The company says the higher result reflects the favourable experiences with claim size and inflation.

Shares in IAG (ASX:IAG) are trading 4.12 per cent higher to $6.82.
 

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