IAG posts 91% surge in net profit to A$778m in H1’25

Australian insurer IAG has reported a net profit after tax of A$778 million for the first half of the 2025 financial year, a significant 91% increase from A$407 million in the same period last year.

IAG noted that this increase was largely driven by a A$140 million post-tax release from the COVID Business Interruption provision, along with higher net earned premiums, and an improvement in the insurance profit.

The company posted a pre-tax insurance profit of A$957 million in 1H’25, up 56% from A$614 million in 1H’24, with a reported margin of 19.4%, compared to 13.7%.

IAG’s natural perils costs were A$215 million below allowance for the half and had a significantly positive impact on the insurance profit.

Underwriting profit stood at A$730 million in 1H’25, in comparison to A$324 million the year prior.

Gross written premiums increased by 6%, rising from A$7.9 billion to A$8.4 billion.

IAG reported net earned premiums of A$4.9 billion, representing a 9.7% increase from A$4.5 billion in 1H’24.

Nick Hawkins, Managing Director and CEO, commented, “Today’s result was delivered in a period of favourable weather and benefited from a $200m release from the COVID Business Interruption provision. Our results reflect the volatility of our sector and the fact we’re often subject to factors outside our control – the good years help us weather the bad and be well positioned to pay future customer claims.

“We continue to focus on customers as we help keep communities safe and support those experiencing cost of living pressures. Recent storms, floods and the LA fires are a stark reminder of the need to be a well-prepared nation.”

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