Shareholders in Insurance Australia Group will be disappointed in the wake of the company announcing a $261 million net loss for the year ended June 30, including nearly $400 million in restructuring and impairment charges.
The disappointment is likely despite the result being in line with guidance provided by the company last month.
As well as the events leading up to today’s poor results, the announcement has already seen the departure of former chief executive Michael Hawker and a radical restructuring, including staff cuts.
IAG chief executive Michael Wilkins acknowledged that it was “a poor result” and said there was a need to do better.
“While we have been affected by the increased frequency of natural perils, widening credit spreads and soft cycles in key markets, we have acknowledged the need to do better,” he said. “We have recently made some tough decisions to ensure we get the fundamentals right and set a clear course for the future.”
Wilkins said that the actions the business was taking to increase its efficiency, maintain pricing discipline and improve customer experience should give shareholders confidence that the current financial year will bring an improved performance.
