SYDNEY — Shares in Insurance Australia Group Ltd. rose early on Monday after the general insurer said its half-year net profit more than doubled and its gross written premium ticked up, helped by premium rate increases.
The stock was up 4.1% at 4.91 Australian dollars (US$3.40). It hit a two-week high of A$4.95 earlier, and is currently the best performer on the ASX 200.
IAG on Monday reported a profit of A$468 million for the six months through December, compared with A$173 million a year earlier. Its gross written premium came to A$7.06 billion in the half, up 7.5% from a year earlier. It said this was driven by rate increases designed to offset high inflation in supply chains, as well as growth in customer numbers in its home and motor portfolios.
“Despite the challenges from the high inflation and perils experience impacting our business in the half, I believe we have a sound basis for confidence as we move into the second half,” said Chief Executive Nick Hawkins.
For fiscal 2023, IAG is guiding for GWP growth of around 10%, an increase from the previous guidance of mid- to high-single digit growth. The company also said it expects its fiscal 2023 reported insurance margin to be around 10%, compared with its previous range of 14% to 16%.
IAG said Monday that it is raising rates to reflect higher inflation, with further rate increases planned in its second half.
IAG shares are up 3.2% so far this year.