Australia's second largest insurer by market value, Insurance Australia Group (IAG), has announced that its net profit for the financial year ended 30 June 2019 jumped by 16.6% to A$1.08bn ($733m). Analysts had been expecting profit of about $1bn.

The profit growth is attributed to a number of factors including the sale of IAG's Thai operations, strong performance by its Australian personal insurance division and good profitability and growth in New Zealand.

Profit in the insurance division dived 13% to A$1.22bn because of large natural disaster claims and diminished fixed-interest investment returns.

Pre-tax profit derived from insurance operations fell by 13% to A$1.22bn, the result of large natural disaster claims, lower reserve release and diminished fixed interest investment returns. But the sale of the Thailand operations had brought in profit of more than A$200m.

IAG said its gross written premiums rose 3.1% to more than A$12bn, mostly the result of higher rates, and its underlying margin climbed 250 basis points to 16.6%.

The company flagged guidance of "low single digit" gross written premiums growth for 2020, supported by commercial rate increases and underlying margin growth.