Legislative reforms like the Financial Services Reform Act and changes to tort laws will help to maintain a positive and stabilising effect on the local insurance industry, according to Promina MD Mike Wilkins. Speaking at the group’s AGM last week, he said acceptable returns have now been achieved and premium rate increases across the board will slow.

“Our industry provides a valuable community service, especially at times when companies are impacted by unforeseen calamitous events,” he said.

Praising Promina staff for their “prompt and caring” response to the Canberra bushfires, the Melbourne floods and the Wellington storms, Mr Wilkins said the impact on claims “is within our expectations of normal weather-related claims for this time of year”.

“Despite the volatile nature of our industry, on the basis of how our first quarter performance is tracking, the outlook for Promina remains favourable, and we reiterate our confidence in the capacity of the business to deliver on our expectations.”

Mr Wilkins has previously indicated a return on capital between 12.5% and 15%, and last week he said the return will be “in the upper half” of the expected return – “subject to unforeseen events and catastrophes”.