IAG takes a hit from storms
March 12, 2010
Insurance Australia Group Limited (IAG) has said it has received more than 24,000 claims following Victorian storms earlier this month. Following the storms, IAG said natural peril costs were now estimated to exceed the budgeted $184 million allowance for the second half by $105 million.
IAG said that the company was ‘refining’ its FY10 insurance margin guidance to between 10.5% - 12.0%, from 11.5% - 13.0%.
The group now expects the related claim cost to reach its maximum event retention of $135 million under the Group's reinsurance cover.
”The Group’s ER for any subsequent event in calendar year 2010 now reduces to $75 million,” CEO Michael Wilkins said.
At lunchtime, IAG shares were trading up 4c to $3.99.
Leave a Reply