Insurance Australia Group Ltd (ASX:IAG) on Thursday reported a full year profit for the 12 months ending 30th June 2019 of $1,076 million, up 16.6 per cent on the same period a year earlier.
On a per-share basis, the company said it had a profit of 44.6 cents. This compares with a profit of 38.3 cents per share in the corresponding period last year. The company declared a full year dividend for the period of 32 cents per share, a decrease of 6 per cent.
Peter Harmer IAG Chief Executive Officer said “We have had a successful year which reflects the work we have done to better connect with our customers. We’ve improved our underlying performance as we realise the benefits of our simplification program, build on our customer focus and identify future growth opportunities.”
He went on to say “Our underlying insurance margin continued to improve, increasing to 16.6%. At the reported margin level, our improved underlying performance was outweighed by higher costs from natural disasters and significantly lower prior period reserve releases. Net profit after tax of $1,076 million was more than 16% higher than in the prior year and included an over $200 million profit on the sale of our Thailand operations, completed in August 2018.”
Looking ahead, IAG said they expected low single digit growth in gross written premiums for FY20.
In early trading on Thursday, the IAG share price fell 28 cents or 3.5 per cent to $7.80.
The Insurance Australia Group Ltd share price has gained 13 per cent since the beginning of the year, while the S&P/ASX 200 Index has gained 17 per cent.