SYDNEY, AAP – Insurer IAG is headed for a full-year loss from COVID-19 but company leaders say there is more certainty in the economic outlook.
Preliminary earnings issued on Friday showed a full-year net loss of $427 million, largely due to the impact of the virus.
The insurer collected less in premiums, although this was partially offset by fewer claims.
Motorists made fewer claims as people travelled less often due to travel restrictions.
IAG said most of the COVID-19 impact occurred during the first half of FY2021. The second half had a profit of $33 million.
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Despite about half the population in lockdown again, company leaders felt confident to reinstate guidance on some key measures for this financial year.
IAG said its premiums business was expected to improve by a low, single-digit percentage.
The company will set more money set aside to cover costs from natural perils claims, which include storms, drought and environmental impacts.
This will increase from $658 million last financial year to $765 million.
IAG brands include CGU, NRMA and SGIO.
The full-year earnings are due on August 11.
Shares were up 0.51 per cent to $4.88 at 1520 AEST.