Poor equity returns will affect the bottom line returns of many companies this year, with insurer IAG leading the rush to warn its investors that things aren’t all rosy. Deputy CEO Ian Brown confirmed that the group’s profit for the June 30 year would continue the trend set by the half-year results, which showed a 1% drop in equity market returns, reducing before-tax profit by almost $31 million.

While it is too early for IAG to determine whether these investment results will cause a loss for the full year, Mr Brown is certain about one thing: the underwriting business has turned around and is performing strongly. “We can confirm we are on track to deliver sustainable, quality underwriting results which will continue to drive shareholder value.”