By Michael Jones

July 2 - (The Insurer) - IAG has upped its financial year 2025 profit guidance after it estimated natural perils costs will total approximately $1.08 billion for the year, around $200 million lower than the annual allowance, the insurer said on Tuesday.

The Australian insurer said this included over 4,000 claims lodged from the New South Wales mid-north coast and Hunter floods in May, which had an estimated cost of approximately $100 million.

This below allowance natural perils costs means IAG has increased its insurance profit guidance range to $1.6 billion to $1.8 billion from the previous $1.4 billion to $1.6 billion.

Its insurance margin guidance range has also been increased "towards the top end of the 15.5% to 17.5% range" from the previous "towards the top end of the 13.5% to 15.5% range.

IAG said gross written premium growth is expected to be between 4% and 4.5% for FY25. It said this includes the impact of the Coles exit, adverse currency effects and multi-year workers' compensation premiums.