Investors have been snapping up shares in insurance giant IAG (ASX:IAG), ever since CEO, Mr Michael Wilkins, advised investors that IAG was likely to deliver an insurance margin towards the upper end of its 9–11% guidance for the 2010 financial year – as long as current operating conditions continued. Since the October 30 announcement IAG shares have risen over 13%.
Wilkins said that higher premiums and greater operating efficiencies and ongoing cost controls were delivering dividends for the company. He also said that the company had improved performance in its CGU brand and had reduced its exposure to the weak UK private vehicle market.
IAG is Australasia’s largest general insurer and includes the brands NRMA insurance, SGIO, CGU and NZI.
IAG today closed at a 12 month high of $4.21.