LONDON (dpa-AFX) - Insurance Australia Group Limited reported that its profit attributable to shareholders for the first-half of fiscal year 2020 dropped 43.4% to A$283 million from A$500 million in the previous year.
Profit attributable to IAG shareholders from continuing operations declined 2.0% to A$287 million from A$293 million in the prior year.
Gross written premium was A$5.96 billion, up from A$5.88 billion last year. Net earned premium was A$3.71 billion, up from A$3.61 billion in the previous year.
The company said it lowered its reported margin guidance range for fiscal year 2020 to 12.5%-14.5% from 16%-18%. It took into account a reduction in expected contribution from prior period reserve releases, following the lower than anticipated reserve releases in the first half.
The outlook also took into account an increased net natural peril claim cost assumption following the significant January hailstorm across parts of Melbourne, Canberra and Sydney and the heavy rain event which affected south-east Australia in February.
GWP guidance, of low single digit growth, has been reaffirmed, and the underlying performance of IAG is expected to remain strong in the second-half of fiscal year 2020.
Copyright RTT News/dpa-AFX