Wednesday 24th October 2012 3 Comments
|Text too small?|
Insurance Australia Group, the insurance company besieged by angry clients in Christchurch, has told shareholders it is happy with its strong operating performance, which will improve further in New Zealand.
IAG has fronted angry mobs in the city as residents, particularly those on unstable land, have vented frustrations at the slowness of claims payments.
Some clients have been caught between the Earthquake Commission, which pays out the first $100,000 of earthquake claims and private insurance companies. IAG owns the NZI, State and AMI brands, giving it 55 percent of the home and contents market and 60 percent of the motor insurance market in New Zealand.
Chief Executive Mike Wilkins told the annual meeting in Sydney yesterday that a highlight of the 2012 financial year was a significant increase in profitability in New Zealand and the momentum achieved was expected to continue in 2013.
The company achieved an insurance margin of 10.4 percent in its New Zealand business in its 2012 financial year, up from 0.4 percent the previous year. It increased gross written premiums by 26.6 percent and expects further growth in 2013.
The company expects further synergies from the integration of the AMI business to improve earnings in 2013.
It has previously said that AMI will generate at least $NZ30 million per annum in net synergies within two years.
A shareholder asked why the company had paid $A296 million for AMI when it had $A60m of net identifiable assets. The rest was "intangible and hot air".
He was told that AMI was a very, very good brand and the business would generate substantial value in terms of savings in the New Zealand market.
AMI brought half a million new customers to the company and its business was complementary to the existing State Insurance business IAG had in New Zealand.
Wilkins told shareholders the company was pleased at how its business had met the needs of earthquake-affected customers in Christchurch and there had been sound progress in dealing with these claims.
It was a difficult situation in Christchurch but at June 30 the company had paid $1.3 billion in claims.
China’s Assertiveness Is Becoming a Problem for Its Friends, Too
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020
General Capital gives notice of Annual Meeting