Cash-strapped households take heart: you probably won't be paying much more for insurance in the next 12 months.
IAG, which owns the NRMA and CGU brands, isn't expecting any significant rise in insurance premiums this financial year.
"We don't see that there is a lot of pressure on premiums to rise," chief executive Michael Wilkins told AAP.
Mr Wilkins said low inflation and stabilisation in the reinsurance market had taken the pressure off for premium rises for the time being.
Higher reinsurance costs have played a key role in pushing up insurance premiums in recent years.
"We think we're in a place of equilibrium and on that basis really all we've got to do is look to recover the underlying inflation that's been coming through on our claims and that's negligible," he said.
Still, the company expects to lift its gross written premium - the amount of money it receives from policy holders through premiums - to between 17 and 20 per cent in 2014/15.
That's mostly a result of IAG's $1.85 billion acquisition of Wesfarmers' insurance business, which was completed in July.
Meanwhile, IAG expects to record a net insurance margin of between 13.5 and 15.5 per cent.
That would be another strong result for the insurer, which last year lifted its full year profit 60 per cent to $1.2 billion.
But the result will depend, to some extent, on the weather.
IAG is expecting natural peril claims to run to around $700 million for the year, up from around $540 million last year.
However, Mr Wilkins admitted there's no certainty around that number.
"There's only one thing I know about that $700 million, it won't be right," he said.
"I'm just not sure which side of $700 million it will be on."
Meanwhile, Mr Wilkins said IAG was continuing to integrate the Wesfarmers' business into its broader operations and expected the acquisition to yield annual synergies of around $230 million by the 2016 financial year.
"It is a highly complementary acquisition which will deliver significant value to IAG," he said.
Shares in IAG rose 16 cents to $6.45.
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