News: IAG Insurance Australia Group Sees FY20 Cash Earnings Of $279 Mln

July 24 (Reuters) - Insurance Australia Group Ltd (IAG) :

• GROSS WRITTEN PREMIUM GROWTH OF AROUND 1%, CONSISTENT WITH 'LOW SINGLE DIGIT' GUIDANCE MAINTAINED THROUGHOUT FY20
• SEES FY20 INSURANCE MARGIN OF APPROXIMATELY 10%
• SEES 2020 PRE-TAX LOSS FROM FEE-BASED BUSINESS OF $23 MILLION
• SEES FY20 PRE-TAX LOSS ON SHAREHOLDERS' FUNDS INCOME OF $181 MILLION
• COVID-19 PANDEMIC IS ESTIMATED TO HAVE HAD MODESTLY NEGATIVE EFFECT ON IAG'S GWP IN FY20
• EXPECTS FY20 UNDERLYING INSURANCE MARGIN OF 16.0%
• COVID-19 ESTIMATED TO HAVE HAD MODESTLY NEGATIVE EFFECT ON IAG'S GWP IN FY20, AND BROADLY NEUTRAL IMPACT ON REPORTED INSURANCE MARGIN
• ANTICIPATED COMMON EQUITY TIER 1 RATIO OF 1.23 AT 30 JUNE 2020
• LOWER NEW BUSINESS VOLUMES ESTIMATED TO HAVE REDUCED GWP BY ABOUT $80 MILLION ACROSS MONTHS OF MARCH TO MAY 2020
• FY20 CASH EARNINGS ARE EXPECTED TO AMOUNT TO $279 MILLION
• SEES FY20 TOTAL PROFIT AFTER TAX OF $326 MILLION ON SALE OF IAG'S 26% INTEREST IN SBI GENERAL INSURANCE IN INDIA
• ANTICIPATED NO FINAL DIVIDEND WILL BE PAID IN RESPECT OF FY20
• PROVISION OF ABOUT $100 MILLION FOR POTENTIAL COVID-19 CLAIM COST IMPACTS THAT ARE HIGHLY UNCERTAIN IN FY20
• ENTERS FY21 WITH STRONG REINSURANCE COVER IN PLACE