{"id":13259,"date":"2023-08-21T00:52:53","date_gmt":"2023-08-21T00:52:53","guid":{"rendered":"https:\/\/isafespend.com\/investing\/australias-iag-misses-annual-cash-earnings-estimates-shares-slip\/"},"modified":"2023-08-21T00:52:54","modified_gmt":"2023-08-21T00:52:54","slug":"australias-iag-misses-annual-cash-earnings-estimates-shares-slip","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=13259","title":{"rendered":"Australia’s IAG misses annual cash earnings estimates; shares slip"},"content":{"rendered":"
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\u00a9 Reuters. FILE PHOTO: Small toy figures are seen in front of displayed IAG (Insurance Australia Group) logo in this illustration taken, November 8, 2021. REUTERS\/Dado Ruvic\/Illustration<\/span>
\n<\/i>\n<\/div>\n

By Nausheen Thusoo<\/p>\n

(Reuters) -Insurance Australia Group (IAG (LON:)) said on Monday its cash earnings for fiscal 2023 more than doubled, buoyed by a rise in premiums in Australia and New Zealand but missed market expectations, sending its shares down 1.2% in early trade. <\/p>\n

The country’s top general insurer posted cash earnings of A$452 million ($290.00 million) for the year ended June 30, up from A$213 million a year ago but missing analysts’ average estimate of A$656.7 million, according to Refinitiv Eikon data.<\/p>\n

IAG also declared a final dividend of 9 Australian cents per share, up from 5 cents per share a year ago. <\/p>\n

Citi analysts said the result is a “little disappointing” and the dividend is also lower than consensus. <\/p>\n

IAG added that it expected lower double-digit growth in gross written premiums (GWP) for fiscal 2024 on a likely modest volume growth and an increase in customer numbers due to the company’s desire to cover claims inflation, higher reinsurance costs and an increased natural peril allowance. <\/p>\n

GWP rose 10.6% to A$14.73 billion ($9.4 billion) for fiscal 2023, matching the Refinitiv estimate.<\/p>\n

IAG’s topline guidance (for GWP) looks “solid” for FY24 and is ahead of consensus of 8%-9%, UBS analysts wrote in a note. <\/p>\n

“We enter FY24 with positive momentum across the company and confidence that the strategy we have in place will deliver long-term benefits for our shareholders and the customers we serve,” CEO Nick Hawkins <\/span><\/span> (NASDAQ:) said. <\/p>\n

Australian insurers have seen their profits soar this year, as they incur higher premiums in an elevated interest-rate environment, while also benefiting from a rebound in investment income.<\/p>\n

The company also expects an insurance margin in fiscal 2024 of 13.5%\u201315.5%, higher than the 12.6% margin last year.<\/p>\n

However, elevated inflation in home and motor claims costs, as well as the higher natural perils allowance, impacted the underlying insurance margin, IAG said in a statement. <\/p>\n

($1 = 1.5586 Australian dollars)<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. FILE PHOTO: Small toy figures are seen in front of displayed IAG (Insurance Australia Group) logo in this illustration taken, November 8, 2021. REUTERS\/Dado Ruvic\/Illustration By Nausheen Thusoo (Reuters) -Insurance Australia Group (IAG (LON:)) said on Monday its cash earnings for fiscal 2023 more than doubled, buoyed by a rise in premiums in<\/p>\n","protected":false},"author":1,"featured_media":12692,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[32],"class_list":{"0":"post-13259","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing","8":"tag-featured"},"yoast_head":"\nAustralia's IAG misses annual cash earnings estimates; shares slip | iSafeSpend<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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