Insurance Manufacturers of Australia (IMA), the distribution and underwriting joint venture between Insurance Australia Group (IAG) and the Royal Automobile Club of Victoria (RACV), has posted another solid financial result.

Its statutory accounts for 2010/11 show its gross written premium (GWP) increased by 4.6% for the year.

Merrill Lynch insurance analyst Andrew Kearnan says IMA’s margins are “exceptional” at around 17%.

IMA is 70% owned by IAG and 30% by the RACV, sells personal lines cover direct and contributes around 31% of IAG’s total GWP.

In its annual report the RACV says it received dividends of $81.9 million from IMA in the 2011 financial year – lower than the previous year’s dividend of $100.2 million. The Melbourne-based insurer says the result reflects “the impact of national and international natural disasters and patchy investment performance over the past 12 months”.

RACV’s share of IMA’s after-tax profit also fell in 2010/11 to $88 million compared with $100.3 million the previous year. But its commissions from the distribution of IMA insurance products rose to $68.1 million, compared to $64.4 million the prior year.