IAG NZ Profit Falls as Weakening Dollar Hits Insurance Sector
IAG New Zealand's annual insurance profit fell by NZ$167.5 million to NZ$563 million in the 2026 financial year, despite adding 80,000 new customers and experiencing lower-than-anticipated natural disaster-related costs.
The country's largest insurer said its profits were affected by a weakening New Zealand dollar, cost-of-living pressures, and a challenging commercial environment. According to IAG NZ chief executive Phil Gibson, insurance premiums were impacted as many customers experienced premium reductions or a levelling-off in premium increases due to inflationary pressures.
IAG NZ reported a 22.9% drop in insurance profit for its 2026 financial year, with its Gross Written Premium (GWP) falling by 8.0% or A$253 million to A$3.504 billion. The company's GWP edged down by 2.7% to NZ$4.060 billion in local currency terms.
IAG NZ called on the Government to put forward a long-term road map on how to strengthen the country's ability to reduce natural hazard risk, and has proposed a possible 15-year roadmap option.