Insurance Australia lifts FY10 margin outlook

SYDNEY Feb 3 (Reuters) - Insurance Australia Group Ltd (IAG.AX), Australia's top car and home insurer, on Wednesday lifted its FY 2010 margin outlook to between 11.5-13 percent, up from a previous forecast of 9-11 percent on lower claims and favourable credit spreads.

The insurer expects to report a half year insurance profit of A$488 million ($433 million) compared with A$227 million a year ago, representing an improved insurance margin of 13.4 percent. ($1=1.128 Australian Dollar) (Reporting by Narayanan Somasundaram; Editing by Denny Thomas)