Despite posting a record 14.3% rise in net profit to $760 million for its full-year results, IAG took a beating from disappointed investors on Friday.

The result was about $35 million below the average of major analysts’ forecasts, and CEO Michael Hawker isn’t upbeat about thing getting better immediately, warning that intense competition for volume from companies like Promina and Suncorp will continue to hurt profits.

Mr Hawker said IAG is focused on its strategy of optimising its home markets in Australia and New Zealand, while looking to expand internationally for medium to long-term growth.

“We’ve made progress against our goal to build a portfolio of assets in Asia, with the acquisition of a small general insurer in Thailand in July, and we’re actively looking at other opportunities for international expansion,” Mr Hawker said.

But the group is competing for Asian assets with Japanese and US insurers, who apparently have deeper pockets.