Insurance Australia Group (ASX:IAG) has posted a 91.2% jump in profit during the first half of the 2025 fiscal year, with a major contributor being the $140 million post-tax release of the COVID-19 Business Interruption provision, as well as better net earned premiums and insurance profits.

In the half year to December 2024, IAG recorded a net profit after tax (NPAT) of $778 million, up from $407 million in 1H FY24.

This included an insurance profit of $957 million – up 55.9% from $614 million.

Managing director and CEO Nick Hawkins said the results showed this half had been a particularly good period for the insurer. “Today’s result was delivered in a period of favourable weather and benefited from a $200 million release from the COVID Business Interruption provision,” he explained.

“Our results reflect the volatility of our sector and the fact we’re often subject to factors outside our control – the good years help us weather the bad and be well positioned to pay future customer claims.

“We continue to focus on customers as we help keep communities safe and support thoseexperiencing cost of living pressures. Storms, floods, and the L.A. fires are a stark reminder of the need to be a well-prepared nation.”

IAG’s interim dividend was set at 12cps – a rise of 20% from 1H24’s 10cps.

IAG has been trading at $8.92.

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