Insurance Australia Group – formerly NRMA Insurance – has announced a $49 million net profit for the half year to December 31.

There were some good signs highlighted by new CEO Michael Hawker, including an underwriting profit of $37 million. That’s a much better result than the $26 million loss recorded in the corresponding period last year and an indication that insurers are getting their bottom lines back under control.

Acquisitions also played their part, with better returns from the NZ State Insurance and HIH Workers’ Compensation businesses. Reflecting the dismal equities scene at present, IAG said investment returns fell $70 million in comparison to last year. Analysts were generally upbeat about the results, noting that the company’s ambitious full-year targets could deliver an additional $50-80 million.