Insurance Australia Group (IAG) revealed on Friday morning that full-year profit attributable to shareholders fell to $625 million in the year ended June 30, down 14.1 per cent from the previous year.
The percentage of shares to be bought back is not presently known and will depend on the
final Buy‐Back price and the amount determined by the Company to be bought back.
The target size of the Buy‐Back is approximately A$300 million. The Company
also retains the discretion to vary the size of the Buy‐Back This includes the discretion to buy back more or less shares or no shares at all. In any event, the Company will buy back less than 10% of the smallest number, at any time during the last 12 months of votes attaching to voting shares of the Company.
The hit to profits came as the insurer was forced to pay out more compulsory third party (CTP) claims in NSW and its investment portfolio was hit by low interest rates and volatile markets.
Costs from implementing a new reinsurance program and entering a quota share arrangement with Warren Buffet’s Berkshire Hathaway from July 1, 2015 also dampened the full year profit result.
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