"Profitability has been strong as we benefited from a relatively benign first quarter natural perils experience," Insurance Australia Group chief executive Nick Hawkins told shareholders at the company's annual general meeting on Thursday.
He added, however, that IAG is mindful conditions can change quickly and so far it hasn't adjusted its expectations for $1.47 billion in natural perils claims.
Last financial year IAG had $1.08 billion in natural perils claims - $200 million under its allowance - including $100 million from 4,000 claims related to flooding around the NSW Hunter region in May.
IAG and other insurers were subject to scorching criticism and a parliamentary inquiry after their botched response to the 2022 NSW floods.
IAG chairman Tom Pockett said IAG was working on faster, more empathetic and more personal services to help customers recover from adversity, and had enhanced its catastrophe management plan with a new 24/7 command centre at its Hurstville office in Sydney.
Mr Hawkins also said the Royal Automobile Club of Queensland insurance business, which IAG acquired in September for $855 million, was performing slightly ahead of expectations.
"The internally funded acquisition is strategically aligned with our growth ambitions, and the integration process is progressing smoothly," Mr Hawkins said.
IAG upgraded its guidance on Wednesday following the RACQ acquisition, saying it expects its 2025/26 insurance profit to be in the range of $1.55 billion to $1.75 billion, up $100 million from its previous range.
Mr Pockett was re-elected on Thursday for another three years, which he said would be his final term on IAG's board.
IAG shares were up 2.9 per cent to $8.10 early on Thursday afternoon.
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