SYDNEY, AAP – Insurer IAG has made a full-year loss after business interruption claims from COVID-19 and refunds to customers weighed on the bottom line.

The company behind CGU and NRMA on Wednesday reported a net loss after tax of $427 million.

The result is a stark contrast from the 2020 financial year’s profit of $435 million by the same measure.

Many business owners made claims after their livelihoods were devastated by coronavirus measures and lockdowns. IAG incurred charges of $1.15 billion.

The insurer also had $238 million in expenses from refunding customers.

IAG in 2019 identified some customers entitled to discounts on their premiums had not received them in full. The company has since been repaying those affected.

Despite its problems, IAG still increased revenue from premiums by 3.8 per cent.

Shareholders are due a final dividend of 13 cents per share. There was no final dividend paid last year.

Shares on the ASX were down 1.52 per cent to $5.20 at 1136 AEST.