IAG New Zealand, the insurance group behind AMI, NZI and State Insurance, posted a solid set of half-year results for the six months to December 31 last year.

Local currency gross written premium grew 18.8% to $2015m (1H23: $1,696m). The company said the growth reflected premium rate increases in response to inflation pressures and high reinsurance costs.

The NZ business reported an insurance profit of $204m in 1H24 (1H23: $136m).

The group’s reported insurance margin was also up to 20.8% (1H23: 15.2%), reflecting a combination of higher earned premium, lower natural perils costs, and stronger investment income.

Amanda Whiting, CEO of IAG New Zealand said the results “reflect the progress we have continued to make against our strategic priorities. Our focus continues to be on delivering for our customers by building a strong and resilient insurance business, so we can be here for New Zealanders when they need us the most.”

“Having a sustainable, strong insurance business remains a key focus, so we can continue to be here for our customers in the face of growing risks and more extreme weather events,” Whiting added. “For instance, the 2023 North Island floods and Cyclone Gabrielle events are still having a profound impact on our communities, and we are working hard to resolve our customers' claims as quickly as possible.”

IAG said it has received a total of over 52,000 claims from the North Island floods and Cyclone Gabrielle.

Of those claims, 99% of motor, 99% of contents, and 96% of home claims have now been settled, with IAG’s insurance payouts topping $1 billion, a number second only to the Canterbury earthquakes.

“We will continue to transform our business and do everything we can to ensure New Zealanders have access to appropriate insurance cover that is easy to understand and simple to buy.

“A strong insurance sector, with the financial strength to meet the needs of New Zealanders is just one part of the equation, which is why we will continue to work closely with local and central government to make a real difference around flood resilience. 

“To keep New Zealanders safe, and insurance available and affordable, we must reduce flooding and natural hazard risk through good planning decisions, investment in protection and resilience measures, and where necessary, through relocating people away from at-risk properties,” Whiting added.

March 2024