Insurance Australia Group today announced that an improvement in the underlying performance of a number of its businesses along with milder than usual weather, supported it to fetch more than double profit measures and dividend in its first half.

IAG witnessed its net profit for the six months ended December 31 to jump to $329 million from $4m the previous year, when losses from its largely divested UK businesses and higher natural peril claims, weighed on the result.

The company's December half figures depicted a vast improvement in the same half of the corresponding period.

Moreover, IAG's insurance registered more than doubled margins, from 6.2 per cent to 13.4 per cent, with more than half the improvement attributable to management.

"In particular, the performance of our businesses in Australia and New Zealand has improved on the back of better pricing and underwriting discipline, improved claims management practices and cost saving initiatives", Mr. Wilkins, company's Chief Executive said.

Shares of Australia's biggest home and car insurer registered a growth of 7 cents, or 1.8 per cent, to $4.02 by late morning, exceeding gains in the broader market. The benchmark S&P/ASX 200 index was 0.6 per cent higher.