By Alice Uribe


SYDNEY--Insurance Australia Group Ltd. returned to an annual net profit, but saw its reported insurance margin take a hit due to higher natural perils costs.

The general insurance company reported a net profit of 347 million Australian dollars (US$246.6 million) for the 12 months through June, compared to a A$427 million loss a year earlier which was driven by significant one-off expenses mainly relating to business interruption, customer refunds and payroll remediation.

Directors of IAG declared a final dividend of 5 Australian cents a share, after declaring a 13 Australian cents a share dividend last year.

"Our FY 2022 financial results reflect the quality of our underlying business," said Chief Executive Nick Hawkins. "We had strong gross written premium growth, and the performance of our business was steady despite the challenging external environment."

Cash earnings at IAG, a measure tracked by analysts that excludes certain costs and one-time items, fell to A$213 million from A$747 million a year earlier.

IAG said its reported insurance margin of 7.4% was below its expectations due partly to higher natural perils costs.

The insurer pre-announced much of its results on July 22, issuing guidance for the coming 12 months which it said reflected its strong underlying business momentum.

For the 2023 fiscal year, IAG expects GWP growth to be mid-to-high single digit, and provided reported insurance margin guidance of 14% to 16%


Write to Alice Uribe at alice.uribe@wsj.com


(END) Dow Jones Newswires

08-11-22 1833ET