Turners loses IAG contract
Turners Auctions has lost a contract with New Zealand's largest insurer IAG which is worth 15 per cent of its bottom-line profit.
The listed auctioneer told the NZX this morning that its contract to sell damaged vehicles on behalf of IAG - which includes insurance brands State, AMI and NZI - was not being renewed.
Turners said the contract generated "in excess of 15 per cent" of its net profit, which the company recently declared as $4.2 million for the year to the end of December 2012.
It said the contract would finish within the next few months and would have a negative impact on the second half of the 2013 year "and beyond".
Last week the company announced its seven-year chief executive Graham Roberts had "left the company's employ", with chairman Michael Dossor taking over initially.
Chief operating officer Todd Hunter was later promoted to the CEO role.
As recently as February 12, Roberts was giving investor presentations for the company which showed an outlook for volume in the damaged vehicles market would be "similar to last year".
It said almost 25,000 vehicles were written off by insurers in New Zealand last year, down 5 per cent on the previous year.
However the company commented that new customer wins in the damaged car market had given it "sound growth".
Turners' annual profit was up 14 per cent from $3.7m the previous year.