Australian insurer IAG has reported a net profit after tax of A$1.4 billion for the full 2025 financial year, a 51.3% increase compared to A$898 million in FY24.
The company attributed the rise in net profit to higher net earned premiums, increased insurance profit, stronger investment income on shareholders’ funds, and pre-tax releases of A$330 million from the Business Interruption provision.
Gross written premiums totalled A$17.1 billion, representing a 4.3% increase from A$16.4 billion the previous year.
Net earned premiums amounted to A$10 billion, up 8% from A$9.2 billion.
Underwriting profit was A$1.3 billion, up from A$982 million.
Insurance profit stood at A$1.7 billion, up 21.2% from A$1.4 billion.
IAG’s natural peril costs were A$1.1 billion, A$195 million below allowance, contributing to the financial results. The result reflects a balanced mix of earnings across divisions, supporting the group’s overall performance.
Nick Hawkins, Managing Director and CEO of IAG, “We had strong momentum through FY25 and supported our customers when they needed us most. By delivering on our strategy and investing for growth, we can execute at scale and are set to protect significantly more Australians and New Zealanders.
“IAG’s financial outcomes this year are a result of the positive financial and operational performance of all our divisions supported by favourable natural perils and investment markets.
“We have migrated over five million policies onto our Enterprise Platform that supports our retail businesses. The platform delivers best-in-class technology for underwriting expertise, policies, pricing: and claims, significantly improving our customers’ experience.
“We commenced a significant technology transformation in our Intermediated businesses which will fundamentally change how these businesses underwrite and distribute insurance.
“Our efficient capital platform supports our businesses, reduces volatility, and enables organic funding of growth opportunities. It includes innovative, comprehensive global reinsurance arrangements that reduce our earnings volatility for customers, partners and shareholders.”
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