News: IAG UPDATE 1-Insurance Australia half-year cash earnings nearly double; announces $130 mln...

(Adds details on results)

Feb 16 (Reuters) - Insurance Australia Group (IAG) on Friday said its half-year cash earnings nearly doubled due to higher premiums and volume growth in its Australia and New Zealand businesses and announced an A$200 million ($130.44 million)share buyback plan.

Australia's top general insurer posted cash earnings of A$415 million ($270.66 million), compared with A$223 million reported a year earlier. That missed LSEG estimate of A$423.2 million.

The Sydney-based insurer said it hiked insurance premium rates in response to increased frequency and severity of natural perils, inflation, and higher reinsurance costs.

Its gross written premiums (GWP) rose 12.5% to A$7.9 billion during the six months ending Dec. 31, while underlying insurance margin was at 13.7%, up from 8.5%.

IAG also declared an interim dividend of 10 Australian cents per share, compared with 6 Australian cents per share from a year earlier.

($1 = 1.5335 Australian dollars)