IAG profit slumps 43pc after bushfires

“On 24 January 2020, we revised our reported margin guidance to 14.5 to 16.5 per cent after the devastating bushfires and hail event in Melbourne, Canberra and Sydney,” Mr Harmer said.

“With the recent heavy rain event in south-east Australia in early February, we have further lowered guidance for the full year to 12.5 to 14.5 per cent … in what is providing to be an exceptionally harsh perils season.”

While costs for the biggest rainstorm since the 1990s would be capped at $135 million under its reinsurance program, Mr Harmer said the spike in claims meant the company had to increase its assumption for net natural peril claim costs to $850 million, up from $715 million advised in late January.

IAG will pay an interim dividend to shareholders of 10¢ a share, with the franked amount per security at 7¢.


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