IAG earnings more than tripled last financial year as gross written premium (GWP) increased 11.8% to $9.5 billion and catastrophe claims were lower than expected.

Net profit was $776 million for the year to June 30, up from $207 million in the previous year.

“Each of our divisions is performing well and making contributions at least in line with expectations,” CEO Mike Wilkins told an earnings briefing.

GWP grew due to rate increases and improvements in volume, plus a full-year contribution from the New Zealand AMI business, acquired in 2011.

The group’s $464 million net peril claim expense was below an allowance of $620 million, following a benign first half.

Second-half claims were slightly above expectations, including a $130 million expense from ex-Tropical Cyclone Oswald.

IAG’s Australia Direct business – which includes the NRMA and RACV brands – increased its insurance profit more than 50% to $822 million, including a benefit from credit spreads amid “intense” competition in the personal lines market.

“Newer entrants, including the major supermarket chains, are active in their marketing but still represent a relatively small portion of the overall market, with a greater presence in motor than home,” the group said.

IAG will withdraw from the Queensland compulsory third party (CTP) market, where the company has a share of about 5%, Mr Wilkins says.

“It was economically not sensible for us to stay in that market. We won’t be offering renewals and will just redeploy [affected employees] into other parts of the business.”

Possible reforms to the NSW CTP system are not expected before the middle of next year, the group says.

Its intermediated insurer CGU, which accounts for about a third of group GWP, reported an insurance profit of $470 million, up from $258 million in the previous financial year.

Earnings were aided by strong rate rises across most property classes, which aimed to recover substantial increases in reinsurance and natural peril costs in recent years.

New Zealand GWP grew more than 30% to $1.58 billion after the acquisition of AMI. The division had settled more than $NZ2.2 billion ($1.9 billion) of claims arising from the Canterbury earthquakes at June 30.

Recent quakes near Wellington have not yet prompted significant claims costs, Mr Wilkins says.

IAG’s Asia division posted a $20 million profit, compared with a loss of $62 million the previous year.

The group predicts its overall GWP growth rate will slow to between 5% and 7% this financial year, as commercial rates flatten and competition remains strong in commercial and personal lines.

The insurance margin is forecast at 12.5-14.5%.