IAG posts “solid” 2008 results

by David Masters

Story link: IAG posts “solid” 2008 results

Insurance Australia Group (IAG) posted its 2008 full year results this week with a profit of A$181 million ($150.5 million).

Gross written premiums grew to A$7.84 billion, up from A$7.79 billion in 2007.

The group said selling its under-performing UK businesses, coupled with a strong performance by UK-based Equity Red Star, helped it recover from its A$261 million loss in 2007.

“The retained business, Equity Red Star, delivered a sound margin, excluding reserve releases from a syndicate in run-off,” the company said in a statement.

The firm also credited the results to its “unworry” advertising campaign, despite concern about the adverts among shareholders.

“Unworry! We’re really happy with it,” said chief executive Michael Wilkins.

“Customers have reacted well to it. Shareholders haven’t, because they keep telling me unworry isn’t a word.”

Wilkins added that the result is “a very solid platform for 2010 and beyond.”

IAG is Australia’s top home and car insurance provider. Shares dropped 5.3% after the results were announced.