Asia Pacific

IAG produces underwriting profit

Insurance Australia Group (formerly known as NRMA), the biggest nonlife insurer in the country, suffered a net loss of A$25mn for the year ended 30 June as investment losses overshadowed an underwriting profit of A$142mn, its first positive underwriting result for years. IAG was hit by an investment loss of A$98mn. This compares with an investment profit of A$358mn the year before. But the markets responded positively to the underwriting result and the value of IAG’s shares rose by 5.4% at a time when insurance sector shares rose by an average of 1%. Chief executive Michael Hawker said that the results were driven by a 15% growth in net earned premium income. He predicted that IAG’s premium income would double over the next three to five years. IAG’s combined ratio improved from 100.8% in 2000/2001 to 95.6% in 2001/2002.