The company behind NRMA Insurance and CGU has more than tripled its full year profit and forecast further growth in its business in the year ahead.
Insurance Australia Group (IAG) also more than doubled its dividend for shareholders.
Chief executive Mike Wilkins said it had been a year of significant achievement for the insurer, including the sale of its troubled commercial insurance broker business in the UK.
Lower claims from natural disasters, a favourable credit spread impact and a greater than expected release of reserves - amounts held to cover insurance liabilities - contributed to the profit growth.
It also achieved growth in the number and value of premiums it wrote in the year, and forecasts further growth in all its insurance businesses in the 2013/14 financial year.
"Further improvement in the group's performance is expected," Mr Wilkins said.
"The momentum evident in FY13 will continue into FY14 and we have set guidance of gross written premium growth of between five to seven per cent and a reported insurance margin in the range of 12.5 to 14.5 per cent."
IAG declared a fully franked final dividend of 25 cents per share, up from 12 cents at the same time last year.
But its shares fell, dropping 13 cents, or 2.2 per cent, to $5.80.
