Insurance Australia Group (IAG) has reported a slight dip to its profits for the 1H 2016 at $610 million, compared to $693 million in 1H 2015.
The company also saw small fall in its gross written premiums in 1H 2016 to $5.5 billion, compared with $5.6 billion in 1H 2015.
The 1H16 reporting period is the first to include the earnings impact of the 20 percent quota share arrangement with Berkshire Hathaway. The arrangement has met IAG’s expectations, lowering earnings volatility and reducing regulatory capital requirements, it said.
Despite the dip in profits, IAG claimed that this was a sound result due to challenging conditions in its core Australian and New Zealand commercial markets.
Peter Harmer, managing director and chief executive officer, IAG, said: “We are pleased with the performance of our consumer businesses where we have been able to broadly maintain market share with limited movement on price – demonstrating the strength and resilience of our franchises.
"In our commercial businesses we are prudently maintaining our underwriting discipline in the most competitive conditions in almost four decades.
“We have initiated a series of changes in the past 12 months, to improve our organisational agility and develop a sharper customer focus, that have helped create a solid platform from which we can look with increased confidence at our future for the benefit of our shareholders, people and customers.”
Insurance Australia Group, Half Year 2016 Results, Peter Harmer, Asia-Pacific