(Reuters) – Insurance coverage Australia Group reported a 26.7% bounce in its first-half money earnings on Monday, boosted by quantity development throughout its key companies that helped offset the continuing affect of upper inflation on claims prices.

The insurance coverage large mentioned it witnessed its strongest first-half Gross Written Premium (GWP) development in seven years, up 7.5% to A$7.06 billion, in comparison with A$6.57 billion final 12 months.

The insurer mentioned GWP development was pushed by price hikes, to offset the excessive inflation within the provide chain, in addition to buyer quantity development within the dwelling and motor portfolios.

The corporate, nevertheless, in early February had mentioned that it acquired greater than 15,000 claims as individuals sought safety for damages brought on by flash flooding in New Zealand, whereas smaller peer Suncorp acquired about 3,000 claims.

The insurance coverage large’s pure perils prices ballooned to A$524 million following the extreme climate occasions throughout a number of states in Australia throughout the interval.

Money earnings for the six months ended Dec. 31 got here in at A$223 million ($154 million), in contrast with A$176 million within the prior corresponding interval and a Refinitiv estimate of A$464 million.

The overall insurer retained its aim to attain a 15% to 17% insurance coverage margin and a reported return on fairness of 12% to 13% over the medium time period.

Australia’s high basic insurer declared an interim dividend of 6 Australian cents per share, the identical as within the prior corresponding interval.

($1 = 1.4480 Australian {dollars})

(This story has been corrected to say A$223 million, not $223 million, in paragraph 6)