IAG reaffirms FY guidance

Insurer sees gross written premium growth of between 3-5% in full year.

Insurance Australia Group has reaffirmed its full-year guidance of gross written premium (GWP) growth of between 3 and 5 per cent, while Australia Direct GWP growth is expected to be relatively flat.

Despite the forecast, Australia Direct is expected to improve its underlying margin in the full year, as compared to the previous corresponding period.

IAG managing director Mike Wilkins reaffirmed the importance of Australia Direct, noting the group represented 48 per cent of IAG's GWP and 54 per cent of insurance profit for the six months to December 31.

Australia Direct generates over $4.5 billion GWP per annum, IAG said.

Chief executive officer of Australia Direct, Andy Cornish, said the group's strategy was to deliver a superior customer experience, coupled with low operating costs.

"We have market-leading capabilities in customer insights, digital offerings and risk assessment and selection," he said.

"We are also leveraging our scale to realise supply chain improvements, both in terms of customer service and cost."

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