IAG’s first-half earnings were buoyed by an absence of natural disasters.
Its New Zealand earnings rose to A$119 million in the six months ended December 31, up from A$36m a year earlier.
That was mostly due to a 15% drop in claims expense. Only A$17m was used from its natural disasters allowance of A$43m.
"Reported margin of 14.2% benefited from the absence of earthquake events, with some offset from prior period reserve strengthening," the insurer said.
IAG's New Zealand division increased gross written premiums 9.5% to $1.3 billion.
The insurer's New Zealand business includes AMI, State, NZI and Lumley Insurance and contributed 21% to group GWP of A$5.83 billion. The group posted a 24% gain in net profit to A$551 million.
"At a reported level, our comprehensive reinsurance protection in the half saw net peril claim costs below allowance while a higher favourable credit spread impact and larger than anticipated reserve releases also helped our reported margin," managing director Peter Harmer said.
IAG is reviewing its Asian operation after deciding growth opportunities in the region were limited and expects to complete the review by the end of the year.
