Insurance Australia Group Ltd (ASX:IAG) has booked a 51 per cent drop in its first half net profit, weighed down by its troubled UK business in addition to recent weather and environmental conditions in Australia and New Zealand.
In the six months to 31 December 2010, the home and car insurer says net profit was $161 million, down from the $329 million achieved in the prior corresponding half.
As advised earlier this month, the interim result was struck with a $121 million loss from IAG’s UK business.
Looking ahead, IAG has confirmed its full-year insurance margin guidance is now expected to be between 8 to 10 per cent, down from the earlier forecast of up to 12.5 per cent.
A fully franked interim dividend of 9 cents per security has been declared.
In the 2010 financial year IAG posted a net profit of $190 million.
