Insurance Australia Group (IAG) says it is on track to deliver on its full year financial guidance after an encouraging performance in the first quarter.

Chief executive Mike Wilkins told the insurer’s annual general meeting on Wednesday that gross written premium growth in the first few months of the financial year was encouraging, while natural peril activity had been benign.

However the company was adversely affected by volatile investment markets, he said.

“We remain on track to deliver our full year guidance of an improved insurance margin of 10 to 12 per cent and gross written premium growth of six to nine per cent,” Mr Wilkins said.

IAG also said it was considering selling $NZ150 million ($A115.22 million) of unsecured subordinated bonds to the New Zealand public.

The proceeds would be used for general corporate purposes and to provide additional flexibility in managing future refinancing requirements, the company said.

It is expected the bonds would have a term to maturity of 25 years and be callable at IAG’s discretion on the fifth anniversary of their issue and on each interest payment date thereafter.

Interest would be payable quarterly in arrears.

More details of the offer are expected to be available in November.

IAG’s shareholders approved the re-election of chairman Brian Schwartz, Philip Twyman, Peter Bush, and Richard Talbot and adopted the insurer’s remuneration report.

IAG’s shares gains four cents to $3.16.