Insurer posts profits after completing acquisition

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IAG has posted its first financial results since the acquisition of the Wesfarmers insurance business, posting a half-year profit of $693 million.

Following on from an extensive restructure to bring brands like Lumley and WFI into the fold, IAG’s Commercial division recorded gross written premium (GWP) growth of almost 44%.

However, like-for-like GWP growth shrank slightly, which IAG attributed to tough market conditions and increased competition.

IAG Managing Director and Chief Executive Officer Mike Wilkins says the company’s underlying performance remains strong.

“We have made significant progress in moving to our new operating model in Australia, and integrating the former Wesfarmers business,” he says.

“This ensures we can efficiently respond to the changing business environment, while also maintaining our strong underwriting discipline.”

IAG says aggressive competition in the commercial lines space has made new business difficult to obtain at acceptable pricing levels, with the firm focusing its competitive efforts on its partnerships and service offerings.

“This focus on partnerships and service is translating into improved partner relationships and service levels, as reflected in a significant improvement in the CGU brand’s net promoter score amongst brokers and its placing as a finalist in the NIBA general insurer of the year awards for the first time in more than ten years,” the company states.