Insurance News: 28 Jul 2010
Insurance company IAG says its profit is likely to have halved last financial year after it was hit with claims worth more than $200 million from the massive storms that wreaked havoc in Melbourne and Perth earlier this year...
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It says net profit after tax for the 2009-10 financial year is likely to come in at $91 million, down from $181 million the previous year.
It has also had to write off almost $370 million because a rising number of "no-win, no fee" accident lawyers have pushed up the number of injury claims in its UK business.
IAG also announced a number of executive changes, including the standing down of the head of its UK business, Neil Utley, at the end of September.
IAG shares have slipped 2.9 per cent in early trade to be worth $3.40 by 10:49am (AEST).
Yesterday, shares in QBE Insurance dropped more than 5 per cent after it foreshadowed a 40 per cent decline in profit.
SOURCE: ABC News
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