IAG New Zealand's annual "insurance profit" has weighed in at A$606 million, about NZ$644 million, up from A$457 million the previous year, with the lower cost of natural disasters and reduced claims costs credited.
Insurance profit is the underwriting result plus the investment income on assets backing the insurer's technical reserves, the country's largest general insurer says.
IAG NZ, which owns State Insurance, AMI and NZI, says it has insured over NZ$1.07 trillion in assets and protects one in two local households. It released its full year 2025 financial results on Wednesday
More than half a million claims were received in the 2025 financial year, and NZ$2.17 billion was paid out, it says.
IAG NZ reported an insurance margin of 27.4%, up from 22.5% in its 2024 financial year.
"This result reflects the lower cost of natural disasters and achieving a stronger underlying margin of 20.1% due to lower claims costs," IAG NZ says.
The lower cost of natural disasters was A$156 million below allowance. In 2024 it had an underlying margin of 16.9%.
Its Gross Written Premium (GWP) rose 0.3% to A$3.807 billion.
“In local currency terms, it achieved growth of 1.7% to NZ$4.173 billion,” the annual report says.
GWP is the total amount of money customers are required to pay for insurance coverage on policies issued by an insurer.
When it came to direct local currency premium, there was an increase of 4.7%, the report says, to NZ$1.745 billion.
“Within this, private motor premium saw a modest decline reflecting lower claims experience. New business levels improved while renewal rates were slightly down."
“Homeowner premium increased over 10%, driven by strong rate increases and improved new business levels," the report says.
IAG NZ chief executive Amanda Whiting says: “New Zealand is highly exposed to natural hazards and weather-related disasters and their growing impacts.”
“We must remain financially strong to be able to pay claims and help our customers recover from the next big event, and today’s results help us do this.”
Whiting says: “This year, we have been focused on improving our ability to understand, prepare for and respond to disasters so that we can be there for our customers when they need us most."
“We are conscious of the financial pressures many New Zealanders are experiencing."
“Delivering on our strategy and investing for growth, alongside falling inflation has allowed us to provide lower rate increases for customers over the course of the year and we expect this to continue in 2026," Whiting says.
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