IAG Loses 50% of Net Income Because of UK

On July 27th, IAG, Insurance Australia Group Limited, revealed that its net income fell to $82 million this year, down from $163 in 2009, thus marking an almost 50% decrease.

Having seen its profits fall dramatically, Insurance Australia Group removed Mr. Utley, its UK executive from the post. He was replaced with former head of New Zealand branch of IAG, Mr. Foy.

The serious fall in the profits of the cover provider is being linked to the increase in the number of claims in the UK, particularly of those associated with personal injury.

Commenting on the news, Mr. Mike Wilkins, the insurer's chief executive officer, said that IAG was struck by the loss-making performance of its British unit as its financial results were far from the company's expectations.

He added that Insurance Australia Group was encouraged by the stability of its position on the Australian and New Zealand markets.

The revealed figures are preliminary. The full results of IAG UK will be available in a month, on August 26.