Insurance Australia Group Limited
(ASX:IAG) has lifted its full year guidance on insurance margins, after paying out less than expected for natural disasters.
The insurance giant says it expects to post an insurance margin of between 16.8 per cent and 17.2 per cent for the year to June, well above previous guidance of 12.5 per cent to 14.5 per cent.
Net earned premium for the year was expected to come in at about $8.3 billion.
IAG chief executive officer Mike Wilkins says the group has been favourably impacted by natural peril, reserve release and credit spread outcomes.
The company says it expects to pay a full year dividend equivalent of 50 to 70 per cent of cash earnings.
IAG generated a net profit of $521 million in the first half of the 2013 financial year.
