IAG SEES EXPANSION IN ASIAN OPS, CONTINUES WORK ON CHINESE MOVE

Insurance Australia Group (IAG) has reported gross written premiums of A$79m for the first half to December 31, up from A$16m in the same period in 2005. A gain of A$4m was recorded, compared with a loss of A$2m in the corresponding previous period. The combined ratio grew to 96.8% from 77.7% as claims increased. The second half of 2005 was the first period for which the Asian units of IAG in Thailand and Malaysia were included in IAG’s accounts. IAG said that it was continuing to work  with the China Pacific Insurance Co (CPIC) to finalise IAG’s investment in China Pacific Property Insurance. Although draft contracts were agreed in June last year, delays have occurred over CPIC’s pricing and CPIC’s proposed float. IAG admitted that “the timing of the resolution of these issues and any impact on the group’s proposed strategic investment in CPPI are now unclear”. IAG said that it remained committed to participation in the Chinese non-life sector.