By Stuart Condie
SYDNEY--Insurance Australia Group Ltd.'s annual insurance profit margin fell short of company guidance due to factors including a blowout in natural peril costs following rain that inundated large parts of the country's east.
IAG on Friday reported an unaudited reported insurance profit for the 12 months through June of 586 million Australian dollars (US$406.4 million), representing a margin of 7.4%. That was down from 13.5% in the prior fiscal year and below IAG's 10%-12% guidance range.
The insurers said that net natural peril costs of A$1.12 billion were A$354 million above its original allowance. Its guidance for a 14%-16% margin in FY 2023 assumes a natural peril allowance of A$909 million, up by 19% on its FY 2022 allowance.
IAG expects to report a A$347 million net profit when it releases its audited FY 2022 results on Aug. 12. It posted a A$427 million loss in FY 2021.
Write to Stuart Condie at email@example.com
(END) Dow Jones Newswires