Australia’s IAG misses annual cash earnings estimates; shares slip By Reuters

<p> <br />
</p>
<div>
<div>
<img decoding="async" alt="Australia's IAG misses annual cash earnings estimates; shares slip" id="carouselImage" src="https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ7J0AJ_L.jpg" style="visibility:hidden" /><br />
<span>© 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><br />
<i class="imgGrad"/>
</div>
<p>By Nausheen Thusoo</p>
<p>(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>
<p>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>
<p>IAG also declared a final dividend of 9 Australian cents per share, up from 5 cents per share a year ago. </p>
<p>Citi analysts said the result is a “little disappointing” and the dividend is also lower than consensus. </p>
<p>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>
<p>GWP rose 10.6% to A$14.73 billion ($9.4 billion) for fiscal 2023, matching the Refinitiv estimate.</p>
<p>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>
<p>“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 <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Hawkins </span></span> (NASDAQ:) said. </p>
<p>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>
<p>The company also expects an insurance margin in fiscal 2024 of 13.5%–15.5%, higher than the 12.6% margin last year.</p>
<p>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>
<p>($1 = 1.5586 Australian dollars)</p>
</div>
<p><br />
<br /><a href="https://www.investing.com/news/stock-market-news/insurance-australia-group-forecasts-lower-doubledigit-growth-in-gross-written-premiums-3157761">Source link </a></p><p>The post <a href="https://forextraderhub.com/australias-iag-misses-annual-cash-earnings-estimates-shares-slip-by-reuters.html">Australia’s IAG misses annual cash earnings estimates; shares slip By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>