Insurance Australia Group (ASX:IAG) to the growing list of companies seeing their fortunes improve as market conditions recover.
Speaking at a market strategy briefing today, CEO Michael Wilkins said the that if conditions continue, the group should deliver margins towards the upper end of its guidance for FY10.
“In the first quarter, we’ve seen the underlying performance of the business continue to improve, and we’ve had the added benefit of narrowing credit spreads,” he said.
But he warned that the company’s bottom line will be negatively affected by the strong Australian dollar.
Ongoing cost-cutting efforts and improved performance from its New Zealand business have also contributed to the earnings growth.