(Reuters) -Insurance Australia Group reported on Wednesday a near 30% jump in annual cash earnings and raised its dividend, as higher premiums and lower-than-expected natural peril costs boosted profits.
The general insurer reported cash earnings of A$1.17 billion ($763.54 million) for the year ended June 30, up from A$905 million a year earlier and slightly above Visible Alpha’s consensus estimate of A$1.15 billion.
Favorable weather conditions kept natural disaster costs well below budget, while continued premium growth and improved operations across its Australian market boosted the insurer’s cash earnings.
Net earned premium rose 8% to A$9.98 billion, helping drive a A$305 million increase in annual insurance profit to A$1.74 billion. It expects to log a reported insurance profit of A$1.45 billion to A$1.65 billion for fiscal 2026.
Natural peril costs for the year came in at A$1.09 billion, about A$200 million below the company’s provision.
IAG declared a final dividend of 19 Australian cents per share, up from 17 cents last year.
($1 = 1.5323 Australian dollars)
(Reporting by Rishav Chatterjee & Sherin Sunny in Bengaluru; Editing by Mohammed Safi Shamsi)
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