Insurance Australia Group Ltd., the biggest car and home insurer in Australia, has again cut its 2010 insurance margin on rising claims form Perth's hailstorm and the cyclone in Queensland. This is the second time in this month when the insurance giant has cut its insurance margin.

Insurance Australia Group, the owner of the NRMA, SGIO and CGU brands, said today that the company has again lowered its 2010 insurance margin and now expects the insurance margin between 9.5% and 11.0%.

Earlier in the month, IAG had lowered its outlook for full year 2010 insurance margin to 10.5% to 12% on the increased natural peril costs due to the Melbourne storm.

IAG said that it has received over 13 500 claims resulting from the severe weather in Perth. A heavy storm ripped through Perth on Monday and damaged thousands of homes. IAG said that it expects the natural peril costs of the company for the second half to exceed the budgeted $A184 million by $A180 million.

However, the company is confident about the performance of its business in rest of the year.