After its acquisition of British motor insurance broker Hastings and general insurer Advantage in September, IAG now expects its gross written premium growth rate to be greater next year.

Speaking at the recent AGM, CEO Michael Hawker said the insurer has firmed its full-year guidance.

“At the time of our results we expected our gross written premium to grow 5-10%. With this UK purchase we expect the growth rate to be at the higher end of the range, between 8-10%.

“There is also some possibility that it could go above the range, as we have more potential acquisitions in the pipeline.”

Mr Hawker says the company has acquired 10 businesses over the past four years, disposed of two and been under-bidder on many more.

“These acquisitions have all been earnings accretive within 18 months and have substantially broadened the capacity and expertise of the company.

“As general insurance markets tend to have cyclical profit patterns, having the ability to acquire businesses in markets that are improving in profitability and also provide diversification, both in terms of earnings and capital, is critical to our company’s success.”

At an operational level, Mr Hawker says IAG has renewed momentum in its NSW personal lines business. The soft cycle in commercial lines continued in the first three months of this financial year but gross written premium and insurance margins performed in line with the corresponding period last year.

“We will continue our disciplined underwriting approach that is focused on maintaining insurance margins and strong customer relationships, rather than chasing unprofitable business.”