Credit ratings agency Standard & Poor’s (S&P) has affirmed its A+ rating on Insurance Australia Group (IAG) and AA- on core operating companies, including Insurance Australia Ltd and IAG New Zealand.

S&P’s outlook on the group is stable. The agency notes IAG’s positive margins across most lines after rate increases and improved operating efficiency, along with a firmer capital position reached by adding about $530 million in ordinary equity over the year, and restructuring debt.

“The rebuilding strategy under the relatively new management team and organisational structure is starting to deliver positive results,” S&P credit analyst Thomas Cherian said.

“The group has substantially improved its capital position, previously seen as a rating weakness, while focusing on fixing business fundamentals in each of its target markets.”

IAG is commended for restructuring its UK operations and focusing more on judicious expansion into the higher-growth markets of India and southeast Asia.

“The economy and weather remain unpredictable, but we expect the company will manage these uncertainties,” S&P said.