Insurance Australia Group is on track for a strong full year result after paying out less than expected in claims for natural disasters such as floods and bushfires.
The company expects to announce an insurance margin of between 18 and 18.4 per cent in its full year results in August, well above the insurance giant's expectations.
IAG had forecast a margin of between 14.5 per cent to 16.5 per cent for the 2013/14 financial year.
Meanwhile, IAG expects its gross written premiums to have risen by about three per cent for the year, which is at the bottom of the insurer's previously expected range of three to five per cent.
It said a lack of cost pressures reduced the need for the company to lift its premiums.
The insurance giant attributed the better-than-expected margins to fewer claims from natural perils and favourable credit spreads.
IAG also expects its full year results to include a pre-tax hit of $70 million, linked to costs related to the restructure of its Australian operations and transaction charges related to the purchase of Wesfarmer's insurance division.
The insurer is due to announce its full year earnings results on August 19.
Share
