IAG says New Zealand's weather conditions have been "relatively benign" in the past year. File photo. Photo: RNZ / Cole Eastham-Farrelly
The country's biggest insurer IAG's full-year insurance profit has increased by a third as its margins and premium income rose, while claims costs fell.
The Australian company, which operates the AMI, NZI and State insurance brands, delivered an insurance profit of A$606 million (NZ$664m) in the 12 months ended June, compared to A$457m ($501m) a year ago.
In New Zealand dollar terms, gross written premium increased 1.7 percent to $4.17 billion, and its insurance margin was 27.4 percent, compared to 22.5 percent a year ago.
IAG said homeowner premium rates increased by more than 10 percent as it increased prices, while private motor premium decreased slightly.
Claims expenses were also down 3 percent to A$1.1b ($1.2b).
The combined trans-Tasman business posted an after-tax profit of $A1.36b ($1.49b), up 51 percent from a year ago.
Commenting on the overall result, chief executive Nick Hawkins said the company had strong momentum throughout the year.
"By delivering on our strategy and investing for growth, we can execute at scale and are set to protect significantly more Australians and New Zealanders," he said.
"This year, Australia experienced weather conditions broadly in line with expectations, while New Zealand was relatively benign," he said.
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