Insurance Australia Group on Monday said it expects lower double-digit growth in gross written premiums (GWP) for fiscal 2024, while annual cash earnings more than doubled for the current fiscal year.

IAG's forecast was issued on the back of an expectation of modest volume growth and an increase in customer numbers and is driven by the company's desire to cover claims inflation, higher reinsurance costs and an increased natural peril allowance.

The company reported a 10.6% rise in GWP to A$14.73 billion for fiscal 2023, matching the Refinitiv estimate.

Australian insurers have seen their profits soar sharply this year, as they charge higher premiums in an elevated interest-rate environment. Insurers have also benefited from a rebound in investment income.

IAG also declared a dividend of 9 Australian cents per share, up from 5 cents per share a year ago.

Australia's top general insurer posted cash earnings of A$452 million ($289.42 million) for the 12 months ended June 30, up from the A$213 million posted a year ago.

It, however, missed analysts' estimate of A$656.7 million, according to Refinitiv Eikon.

($1 = 1.5618 Australian dollars)

(Reporting by Nausheen Thusoo and Archishma Iyer; Editing by Mark Porter, Lisa Shumaker and Paul Simao)