By Alice Uribe
SYDNEY--Insurance Australia Group Ltd. said it expects to report a 427 million Australian dollar (US$315.2 million) loss the 2021 fiscal year, as it reintroduced guidance for the coming 12 months.
IAG said the forecast loss for the 12 months through June compares to a net profit of A$435 million in the previous year.
The Australian insurer on Friday also said a preliminary assessment of its cash earnings for fiscal 2021 is A$747 million, up from A$279 million the previous year.
"Our underlying financial results for the year are sound and within expectations," said Chief Executive Nick Hawkins. "However, we have had challenges with issues that have been identified and provisioned for in our preliminary results."
IAG restarted guidance for fiscal 2022, citing confidence in the business and its outlook.
It expects "low single-digit" gross written premium growth in fiscal 2022, and a reported insurance margin of 13.5-15.5%.
The gross written premium guidance reflects modest growth in customer numbers in Direct Insurance Australia, ongoing rate increases across personal and commercial lines and further portfolio remediation.
Write to Alice Uribe at email@example.com
(END) Dow Jones Newswires