IAG is confident it will meet its gross written premium growth forecast of 17-20% after a good start to the financial year and the continuing integration of the Wesfarmers insurance operations it acquired last December.

“In the opening months of the financial year we have seen a continuation of our strong operating performance and we believe we are well placed to deliver on our full-year guidance,” CEO Mike Wilkins told the insurer’s AGM.

The company forecasts a reported insurance margin of 13.5-15.5% and says it will achieve annual pre-tax synergies and benefits of $230 million by the end of 2015/16 from the Wesfarmers acquisition and a new operating model in Australia.

Assumptions for this financial year include net losses from natural perils in line with a budgeted allowance of $700 million.

IAG moved to a new Australian structure from July 1, establishing new enterprise operations, personal insurance and commercial insurance divisions.

Mr Wilkins says the group is where it expected to be, “if not a bit ahead”, on the Wesfarmers integration and anticipates business loss attrition within a typical range of 5-10%.

“The Wesfarmers acquisition and our new Australian operating model are key to the next phase of our growth,” he told the meeting.

The two major changes are being treated as one project, he says.