IAG feels Impact of UK Business

Although the Insurance Australia Group’s (IAG) profit has dropped 17 percent from last year till June 30 of this year, IAG is predicting that it will recover in the months ahead.

In the previous year, the net profit was $250 million and fell to $207 million as reported from the end of year in June 30.

IAG Chief Executive Mike Wilkins said in an interview that he is hopeful that with the foreseeable improvement in the UK business sector, IAG will do well, too. He added that he is even looking to meet the break-even mark.

The drop in profit in IAG is due to the $297 write-down on the value of its UK business counterpart.

IAG is one of the largest multinational insurance companies in Australia. Its headquarters are located in Sydney and has offices in New Zealand, the United Kingdom, and other parts of Asia.

The company was founded in 2000 after the demutualization of the NRMA insurance business. IAG is also listed on the ASX.