Insurance Australia Group Limited Analysis

Overview

IAG is the parent company of a general insurance group with controlled operations in Australia and New Zealand. Our businesses underwrite over $16 billion of premium per annum, selling insurance under many leading brands, including - NRMA Insurance, CGU, WFI and ROLLiN' (Australia) and NZI, State and AMI (New Zealand).

Performance

The following has been extracted from IAG’s FY25 Half Year results released,13 February 2025.

IAG announced its first half results for financial year 2025, reporting a net profit after tax of $778m, up 91% (1H24: $407m).

This increase was mainly driven by the $140m post-tax release of the COVID Business Interruption provision, an increase in net earned premiums, and an improvement in the insurance profit. The pre-tax insurance profit of $957m was up 56% (1H24: $614m) and equated to a reported margin of 19.4% (1H24: 13.7%). The company’s natural perils costs were $215m below allowance for the half and had a significantly positive impact on the insurance profit.

The IAG Board declared an interim dividend of 12cps.