IAG New Zealand has announced its financial results for the financial year ended 30 June 2026, delivering a reported insurance margin of 22.8% (FY2025: 27.4%).
It also recorded a profit of A$467m ($331.7m) for FY2026, a 22.9% fall from the A$606m reported in FY2025.
According to a statement from the company, the result reflects a lower-than-expected cost of natural disasters (A$19m below allowance) and achieves an underlying margin of 20.6% (FY2025: 20.1%).
Gross written premium also reduced from A$3.81bn in FY2025 to A$3.5bn in FY2026 (-8%), attributed to a softer commercial insurance market and a weakened New Zealand dollar, the statement added.
“This result reflects a year of disciplined execution, with the business continuing to focus on delivering simpler, faster and better customer experiences,” said IAG New Zealand Chief Executive Phil Gibson.
“Although wild weather and natural hazard events during the past 12 months were relatively less impactful than in other years, we know our country remains highly exposed to these risks.”
Lesser premiums, more customers
According to Mr Gibson in the statement, as cost of living pressures continued to affect a variety of New Zealand communities, “many customers received premium reductions, and many more experienced a significant levelling-off in premium increases as inflationary pressures moderated”.
Retail offerings also attracted 80,000 new customers over the fiscal year.
“In its first full year, the inclusion of free AMI Roadside Rescue in our AMI motor policies has resulted in more than 1m New Zealanders now driving with the added assurance of on-road help whenever and wherever they need it,” he said.