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Quick Takes of the Week to August 15

In case you missed it: News bites for the week.

NBR Staff Fri, 15 Aug 2025
Monday August 11
Coalition Government to weigh up recognition of Palestinian state

Gaza building devastation.

Foreign Minister Winston Peters said the Government would spend the next month weighing up its position on recognising the state of Palestine. The matter was discussed at Cabinet today ahead of a formal consideration of it in September. Peters said some of New Zealand’s close partners had opted to recognise Palestine, while some had not. “Ultimately, New Zealand has an independent foreign policy, and, on this issue, we intend to weigh up the issue carefully and then act according to New Zealand’s principles, values, and national interest,” he said.
But he repeated his comment that recognising Palestine was a matter of when, not if. He acknowledged, though, that it was not a straightforward issue and there were a range of strongly held views, including within the Government.


 Tuesday August 12
Vulcan Steel FY25 profit to fall 68%

The dual-listed metal distributor said this morning its net profit for the 12 months ended June is expected to be between $14 million and $16m, compared with a $40m profit in the prior year.
Accounting for a $3m impairment to its bottom line, the company expects its ebitda to be between $106m and $109m, down from $147.6m in FY24.
However, Vulcan has made progress to reduce its net debt, which it expects to fall to $232m, from $242m at its interim balance date in December, and from $276m at the end of its 2024 financial year in June.
Vulcan managing director Rhys Jones said 2025 had been influenced by persistent economic challenges on both sides of the Tasman, which have contributed to “unsustainable” pricing by some of its competitors.
However, it believes the downward trend is beginning to level out, and it expects sales volumes in FY26 to remain broadly stable at low levels during the first half before “firming” in the second.
Vulcan will release its audited accounts on August 26.


Wednesday August 13
IAG NZ posts 32.6% rise in annual profit

Insurer IAG New Zealand has reported a profit of A$606 million ($665m) for the year to the end of June, up from A$457m in the prior year. The company, which trades under the AMI, State, NZI, NAC, Lumley and Lantern brands in this country, reported an insurance margin of 27.4%, up from 22.5% in FY24. It said the result reflected the lower cost of natural disasters, which were A$156m below allowance, and a stronger underlying margin of 20.1%, up from 16.9%, due to lower claims costs. Gross Written Premium (GWP) increased by 0.3% to A$3.8b, with growth of 1.7% in local currency terms. Amanda Whiting, CEO of IAG New Zealand said: “New Zealand is highly exposed to natural hazards and weather-related disasters and their growing impacts. We must remain financially strong to be able to pay claims and help our customers recover from the next big event, and today’s results help us do this.” The company expects to provide lower rate increases to customers in FY26.


Thursday August 14
New biodiversity research centre part of infrastructure programme

Construction is to begin next week on a new biodiversity research centre in Upper Hutt to house Te Papa’s natural history specimen collection, which contains more than 860,000 preserved specimens. It includes the world’s largest collection of New Zealand and Southern Ocean fish. Arts, Culture and Heritage Minister Paul Goldsmith said about 150 staff would be working on the site at peak times, but the contractor expected more than 2000 people to be involved in the project in some way. “This is just one of the $6 billion worth of infrastructure projects our Government is getting underway before Christmas,” Goldsmith said. The project is expected to be completed by March 2028. Te Papa’s current facility, which is earthquake-prone, will be decommissioned by April 2029.

General insurer Suncorp NZ reports major profit boost

Jimmy Higgins.

Suncorp New Zealand has reported an 82% increase in profit after tax to $419 million for the year ending June 30, compared to the previous year. The general insurer’s annual gross written premium (GWP) was up a more modest 1.3% to $2.89 billion. GWP is the total amount of money customers are required to pay for insurance coverage on policies issued by an insurer. Suncorp is Australia and New Zealand’s second largest general insurer and has the Vero Insurance brand and the joint venture AA Insurance in New Zealand. It sold Asteron Life earlier this year to Resolution Life. Suncorp NZ CEO Jimmy Higgins said a range of factors contributed to this year’s net profit, including the earn-through impact of the previous year’s pricing changes, lower reinsurance costs, and a relatively benign natural hazard environment. It followed a period of lower profitability after major weather events including the Auckland floods and Cyclone Gabrielle. The company paid out $1.2b in claims during the year.

 

NBR Staff Fri, 15 Aug 2025
Contact the Writer: editor@nbr.co.nz
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Quick Takes of the Week to August 15
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