IAG New Zealand recently announced an insurance profit of AU$268m (NZ$314m) for the six-month period ended 31 December, delivering a reported insurance margin of 25.1%.
This result reflects a lower cost of natural disasters than expected (by AU$15m/NZ$17.6m) and a stronger underlying margin of 22.9% due to lower underlying claims costs.
Gross Written Premium (GWP) reduced by 4.6% to AU$1,800m, partly impacted by a weaker New Zealand dollar. In local currency terms, GWP decreased by 2.6% to NZ$2,022m.
Amanda Whiting, CEO IAG New Zealand says, “Our financial performance reflects the continued investment we are making in our business to focus on our customers, including by delivering a simpler digital experience, while remaining financially strong and ready to help when our customers need us most.
“We are mindful of the continued cost-of-living pressures many New Zealanders are experiencing. As indicated, premiums have stabilised over the period, with some customers receiving premium reductions.
“Recent severe storms in Northland, Auckland, Bay of Plenty, Coromandel and Tairāwhiti are a devastating reminder of the potential for sudden, severe weather. These events have a profound impact on people and communities, and our thoughts are with those directly affected by the tragedy.
Supporting more New Zealanders
“During this half year, IAG New Zealand received more than 260,000 claims and paid out NZ$1.2 billion to help get New Zealanders back on their feet. We continue to protect over NZ$1.07 trillion in assets and around one in two households.
“Providing strong financial support to New Zealanders impacted by extreme weather and natural hazard events is what we are here to do. IAG, for our part, intends to be here for the long-term, providing insurance to as many New Zealanders as possible.
Simpler, faster and better service
“It is important that we continue to focus on providing insurance services that are simpler, faster and better, keeping prices competitive and helping our customers understand their cover.
“Significant investments have been made to improve systems to settle straightforward claims more quickly and reduce the volume of more complex outstanding claims. We have reduced the time taken to process simple motor claims by half, and we have also shortened the time taken to process property claims.
“We are proud to support New Zealanders in other ways, and I am pleased that our customers are responding enthusiastically to our nationwide Hubs network.
“AMI MotorHub has 10 sites across the country, including five full-service centres offering warrant of fitness (WoF) and vehicle servicing, alongside mechanical repairs associated with collision claims.
“We continue to lead the market with our AMI Roadside Rescue offering. We now support over 1.2 million New Zealanders to drive with the assurance that they have 24/7 support in the case of an unexpected breakdown - many for free through their AMI car insurance.
“AMI HomeHub continues to streamline the home repair experience and has recently expanded to include Dunedin customers in its network alongside those in Auckland, Hamilton, Tauranga, Christchurch, the Bay of Plenty and Wellington. Close to 4,000 repairs were managed by AMI Homehub during the last six months."
The path forward
“New Zealand is highly exposed to natural hazards, and the impacts they can have. It is encouraging that our national conversation is maturing to focus on how we can reduce risk and better adapt in our most hazard-prone communities. Achieving this will improve the availability and affordability
of insurance.
“The way forward for New Zealand is clear: invest in better hazard data, make smarter planning decisions, strengthen infrastructure, and, where necessary, relocate communities out of high-risk areas.
“I am optimistic about the path ahead for New Zealand, and confident the country is up to the challenge of further strengthening its resilience to natural hazards and wild weather events. IAG is committed to leading and supporting that work, and we will continue to drive the action our communities need to adapt and thrive.”
