Insurer's Operating Profit Up By 29pc
Illawarra Mercury
Saturday July 15, 2000
Insurance group AAMI has posted a 29 per cent increase in profit in 1999, despite having to account for the GST, Y2K and hail storms in Sydney and Brisbane.
In its annual report released yesterday, AAMI said its operating profit rose to $56.8 million for the 1999 calendar year from $44.1 million in 1998.
AAMI chief executive Bruce Keane said the result was achieved after providing $16 million to cover the impact of the GST on insurance claims.
``AAMI has grown strongly over the past five years and while our 1999 growth was modest by comparison, overall our financial results were excellent," Mr Keane said.
``This is despite the costs associated with the GST and Y2K, violent hail storms in Sydney and Brisbane, a sharp increase in motor accident claims, and competitor under-pricing."
AAMI reported a 24 per cent rise in notional operating profit in 1998.
Mr Keane said AAMI was ideally placed to take advantage of anticipated growth opportunities in the car and home insurance markets from mid-2000.
AAMI, which is owned by Royal & Sun Alliance, held 16.6 per cent of the national car insurance market in 1998.
© 2000 Illawarra Mercury