Insurance Australia profit slips 27 pct on storms

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SYDNEY, Aug 24 (Reuters) - Insurance Australia Group Ltd (IAG.AX), the nation's top car and home insurer, missed analysts forecasts with a 27 percent fall in full-year profit on Friday, due to recent storm losses, but flagged 10-12 percent revenue growth in the current year.

IAG, which owns brands such as NRMA, SGIO and CGU in Australia, said it was actively pursuing acquisition opportunities in China, India and Europe.

IAG reported net profit of A$552 million ($452 million), compared with A$759 million a year ago. A survey of 12 analysts by Reuters Estimates projected full-year profit at A$619 million.

Based on Reuters calculations, IAG's second-half profit fell about 31 percent to A$207 million.

"The group was on track to deliver an improved insurance margin until the final month of the period, when it incurred a A$200 million net loss from the June storms in Australia and the UK, which had a negative 3 percent impact on the insurance margin," the company said in a statement.

Gross written premiums, which are forecast to rise by up to 12 percent this year, climbed 15 percent last year to A$7.38 billion.

Severe storms and floods caused estimated loss of A$750 million in New South Wales in June, according to Insurance Council of Australia.

IAG's overseas expansion received a setback earlier this year when it had to call off its planned up to A$375 million stake buy in China Pacific Property Insurance Co.

Last year, IAG bought Britain's fifth-largest car insurance broker, Hastings Insurance Services Ltd and car insurer Advantage Insurance Co. for A$350 million as it expanded overseas to offset tough competition in local markets.

IAG shares are down 10 percent in 2007 compared with a 8.4 percent rise in the benchmark S&P/ASX 200 Index .AXJO.

"The momentum in our biggest business ... has continued with gross written premium in the second-half up 4.5 percent on the first, and 2.6 percent overall. That is a clear turnaround from the 3 percent decline last year," IAG Chief Executive Michael Hawker said in the statement.

Earlier this week, QBE Insurance Group Ltd (QBE.AX), which earns about 80 percent of its premiums from overseas, beat forecasts with a 56 percent rise in its first-half earnings, while another rival Suncorp-Metway Ltd (SUN.AX) is scheduled to release its earnings on Monday.

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((Reporting by Denny Thomas; denny.thomas@reuters.com; Reuters Messaging: denny.thomas.reuters.com@reuters.net; +612 9373 1812)) Keywords: IAG RESULTS/

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