Insurance Australia : IAG Cuts Dividend, Posts A$460 Million Loss

By Alice Uribe

SYDNEY--Insurance Australia Group Ltd. posted a half-year net loss, driven in part by expenses for potential business interruption pandemic-related claims.

The general insurance company on Wednesday recorded a net loss of 460 million Australian dollars (US$356.0 million) for the six months through December, compared to a A$283 million profit a year earlier.

"While our business has been relatively stable, our profitability was affected by the pre-tax A$1.15 billion expense we announced in November for potential business interruption claims relating to Covid-19," said IAG.

Cash earnings at IAG, a measure tracked by analysts that excludes certain costs and one-time items, rose to A$462 million from A$380 million a year earlier.

Directors of the company declared an interim dividend of A$0.07 cents a share, down from a payout of A$0.10 a year earlier.

Write to Alice Uribe at [e-mail]

(END) Dow Jones Newswires

02-09-21 1706ET