Australia top general insurer posted a net profit after tax of $832 million, up 140% on last year’s profit of $347 million. IAG is the operator of some of the biggest insurance businesses like NRMA Insurance and CGU.
IAG also increased their insurance margin of 9.6%, up from 7.4% from last financial year.
This growth in profits is even more startling considering the total amount of claims paid out by the company was up 20% on this time last year.
Insurance is in the top five most submitted issues by ordinary Australians for the Price Gouging Inquiry.
Quotes attributable to ACTU Assistant Secretary Joseph Mitchell:
“We’ve all had that sinking feeling opening our car or home insurance quote for the year to see that yet again it’s gone up, even if you haven’t made a claim. The term, insurance ‘premium’ seems to only suit the provider.
“What’s hard to swallow is seeing those bills come in, and then finding out the reason your insurance is rising is because your already profitable insurance company is increasing its profit margins, all when millions of Aussies are under the pump.
“Insurance is an essential. To protect our homes and to get to work we all have to pay those premiums. It’s beyond the pale to expect hard working Australians to continue cop increases to life’s essentials just to have big business creaming from the top.”
Gareth Hathway 0499 878 782