Insurance Australia Group Ltd
(ASX:IAG) has downgraded its first half-year profit expectations after a worse than anticipated loss in its UK operations.
The insurer has also dropped its insurance margin outlook for the current financial year by 9 to 10 per cent, down from the previously forecast 10.5 to 12 per cent.
IAG says it now expects first-half insurance profit to fall 3.7 per cent to $470 million, down from $488 million the same time a year before.
For its UK operations IAG posted an insurance loss of $121 million, more than had been expected as the insurer battles against industry-wide higher inflation claims in bodily injuries.
IAG is due to release its earnings report on 24 February.
In the year to 30 June 2010, IAG posted a net profit of $190 million.
