IAG New Zealand, the largest general insurance company in New Zealand, has announced an insurance profit of A$268m ($189m) (1H2025: $311m) for the six-month period ended 31 December 2025.
This result means a reported insurance margin of 25.1% (1H2025: 28.6%).
Lower claims
This result reflects a lower cost of natural disasters than expected (by A$15m) and a stronger underlying margin of 22.9% (1H2025: 19.5%) due to lower underlying claims costs.
Gross written premium (GWP) reduced by 4.6% to A$1.8bn (1H2025: A$1.88bn), partly impacted by a weaker New Zealand dollar. In local currency terms, GWP decreased by 2.6% to NZ$2.02bn ($1.22bn).
“Our financial performance reflects the continued investment we are making in our business to focus on our customers, including delivering a simpler digital experience, while remaining financially strong and ready to help when our customers need us most,” said IAG New Zealand CEO Amanda Whiting.
She also said, “We are mindful of the continued cost-of-living pressures many New Zealanders are experiencing. As indicated, premiums have stabilised over the period, with some customers receiving premium reductions.”
According to Ms Whiting, over 2H2025, IAG New Zealand received more than 260,000 claims and paid out NZ$1.2bn.
Improving service
“It is important that we continue to focus on providing insurance services that are simpler, faster and better, keeping prices competitive and helping our customers understand their cover,” she said.
“Significant investments have been made to improve systems to settle straightforward claims more quickly and reduce the volume of more complex outstanding claims. We have reduced the time taken to process simple motor claims by half, and we have also shortened the time taken to process property claims.
Looking ahead
“New Zealand is highly exposed to natural hazards, and the impacts they can have. It is encouraging that our national conversation is maturing to focus on how we can reduce risk and better adapt in our most hazard-prone communities. Achieving this will improve the availability and affordability of insurance,” Ms Whiting said.
“The way forward for New Zealand is clear: invest in better hazard data, make smarter planning decisions, strengthen infrastructure, and, where necessary, relocate communities out of high-risk areas.”