IAG's NZ profit slumps as Berkshire deal more than doubles reinsurance costs

Tue, 16 Feb 2016

By Paul McBeth Feb. 17 (BusinessDesk) - Insurance Australia Group's New Zealand division posted a 94 percent drop in first-half earnings as reinsurance costs more than doubled from an arrangement entered into with Warren Buffett's Berkshire Hathaway. Sydney-based IAG's New Zealand business is the biggest general insurer in the country, with the Lumley Insurance, NZI, AMI and State brands on this side of the Tasman. The local division reported an insurance profit of A$11 million in the six months ended Dec. 31, down from A$193 million a y...

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