Australia's IAG sees FY insurance profit down 4.3 pct

MELBOURNE, July 27 (Reuters) - Insurance Australia Group (IAG.AX), Australia's top home and car insurer, expects to report a 4.3 percent drop in insurance profit for the 2010 financial year, it said on Tuesday.

It said its insurance margin for the year to June 30, 2010, was likely to be 7 percent, at the top end of its 6 percent to 7 percent forecast provided in June.

"I'm confident our performance will improve significantly in FY11," IAG Managing director Mike Wilkins said in a statement. (Reporting by Sonali Paul; editing by Balazs Koranyi)