Insurer, IAG Profits Down

IAG (ASX:IAG), owner of NRMA and RACV, has issued a statement that it expects to report a drop in annual profit for the 2010 fiscal year. A day after competitor, QBE Insurance announced profit forecasts downgrades, Insurance Australia Group have released poor financial figures on what most analysts were already expecting.

IAG Financial Forecasts and Numbers

IAG net profit will be halved to $91 million. IAG profitability, insurance margin is 7 percent. IAG's disaster bill is at $463 million (for which it had budgeted $350 million for the year). Net earned insurance premium was $7.1 billion for the year compared to $7.2 billion the previous year. The company has given a guidance of an insurance margin of 10.5 to 12.5 percent for 2010-2011. Annual insurance profit is expected to be $493 million, down from $515 million in financial 2009.

IAG is listed on the Australian stockmarket. Insurance Australia Group shares can be traded on the Australian Securities Exchange (ASX).