IAG on Thursday said its net profit after tax for the six months to December 31 was up 91.2 per cent to $778 million, thanks in part to favourable weather that meant fewer natural disaster claims.
IAG said it made an insurance profit of $857 million, as its natural peril claims, which have been elevated over the past four years, came in $215 million below allowance.Â
"Our results reflect the volatility of our sector and the fact we're often subject to factors outside our control," said chief executive Nick Hawkins.
"The good years help us weather the bad and be well-positioned to pay future customer claims."
The recent storms, floods and the Los Angeles wildfires were a stark reminder of the need to be a well-prepared nation, Mr Hawkins added.
The company behind the brands NRMA Insurance, SGIO, SGIC and CGU paid out $5.2 billion in claims during the half-year.
IAG said it would pay a 12 cents per share interim dividend, up from 10 cents from a year ago, but under analysts' predictions.
In mid-morning trading, IAG was the worst-performing ASX200 component, down 9.3 per cent to $8.095.
