News: IAG Insurance Australia Group Updates H120, FY20 Guidance And Hailstrom Impact

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

• IAG NOW EXPECTS ITS FY20 REPORTED INSURANCE MARGIN WILL BE IN RANGE OF 14.5-16.5%
• ALSO INDICATED ITS 1H20 RESULTS WILL CONTAIN A POST-TAX PROVISION OF ABOUT $80 MILLION FOR A CUSTOMER REFUND PROGRAM
• EXPECTS 1H20 NET NATURAL PERIL CLAIM COSTS OF $419 MILLION
• EXPECTS 1H20 UNDERLYING INSURANCE MARGIN OF 16.9%
• EXPECTS ITS 1H20 RESULTS TO CONTAIN LOSS FROM FEE-BASED BUSINESS OF $2 MILLION
• EXPECTS 1H20 RESULTS TO CONTAIN GROSS WRITTEN PREMIUM GROWTH OF AROUND 1.4%
• REAFFIRM ITS 'LOW SINGLE DIGIT' GWP GROWTH EXPECTATION IN FY20
• HAILSTORM IMPACT WILL RESULT IN A PRE-TAX COST OF $169 MILLION UNDER CALENDAR 2020 CATASTROPHE REINSURANCE PROTECTION
• BY 5PM ON 23 JAN 2020, IAG HAD RECEIVED OVER 28,000 CLAIMS RESULTING FROM HAILSTORM EVENT
• CLAIMS RESULTING FROM HAILSTORM EXPECTED TO INCREASE OVER COMING DAYS
• HAS REVIEWED ITS ASSUMPTION FOR NET NATURAL PERIL CLAIM COSTS FOR FY20 AND INCREASED IT BY $74 MILLION TO $715 MILLION
• YEAR-TO-DATE NET NATURAL PERIL CLAIM COSTS, AS AT 23 JAN 2020, ARE ESTIMATED TO AMOUNT TO $608 MILLION
• CONTINUES TO EXPECT AN FY20 LOSS FROM FEE-BASED BUSINESS OF UP TO $50 MILLION
• WORKING TO IDENTIFY INDIVIDUAL CUSTOMERS WHO HAVE BEEN AFFECTED BY SPECIFIC MULTI-YEAR PRICING ISSUE AND TO ARRANGE REFUNDS
• WOULD REQUIRE $208 MILLION OF NET NATURAL PERIL CLAIM COSTS OVER 24 JAN TO 30 JUNE 2020 TO EXCEED REVISED FY ASSUMPTION
• PROVISION FOR SPECIFIC MULTI-YEAR PRICING ISSUE WILL BE RECOGNISED IN NET CORPORATE EXPENSE LINE IN IAG'S 1H20 REPORTED EARNINGS
• ABOUT $20 MILLION OF ATTRITIONAL LOSS EXPERIENCE IN PERIOD FROM JAN 1 TO 23, 2020 INCLUDING MINIMAL NET BUSHFIRE-RELATED COSTS

Source ( http://bit.ly/30LmycW)

(([email protected];))