Improved conditions in the first quarter of the financial year have left IAG confident about delivering an insurance margin at the top end of its 9-11% fiscal guidance range.

CEO Mike Wilkins told an investor briefing on Friday that the group’s performance continues to improve thanks to higher premiums, operating efficiencies introduced in its Australian business, and ongoing cost control.

“We’re seeing improved performance from our CGU and NZ businesses, and we are benefiting from the reduced exposure to the under-performing UK motor market,” he said.

IAG intends to improve the performance of its Australian and NZ operations, pursue select general insurance opportunities by growing its presence in targeted Asian markets, and drive operational performance and accountability across the group.

“Putting aside external factors such as the impact of sharp interest rate movements in the first half of the 2009 financial year – and those factors are still influencing our financial results today – I’ve got to say we are progressing to plan,” Mr Wilkins said.