Ahead of its full-year results release on the 22 of August, Insurance Australia Group (ASX: IAG) has come out and upgraded expectations for its insurance margin from a previous range of 12.5%-14.5%, to a new, higher range of 16.8%-17.2%.
CEO Mike Wilkins the upgrade was due to the company benefitting from lower natural peril claims and better reserve release and credit spread outcomes. Wilkins also took the opportunity to announce that for the full year, IAG expected to report net earned premiums of $8.3 billion.
The market either didn't seem to be overly impressed with IAG's news, or perhaps investors though the good news was reflected in IAG's share price already. IAG's shares gained just 1.7% for the day with fellow domestic insurer Suncorp (ASX: SUN) also gaining 1.7%. Surprisingly perhaps, the good news didn't extend to QBE Insurance (ASX: QBE), with the global insurer's share price actually falling 1.7%.
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Motley Fool contributor Tim McArthur owns shares in QBE Insurance.
