Insurance Australia Group (ASX:IAG) shares were down as much as 4% by midday, after the company’s leadership discussed inflation pressures, as well as higher insurance claim volumes amid extreme weather events in Australia.
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The issues were discussed at IAG’s AGM, where the company stated in response, it’s increased premiums for some customers. Despite the premium increases, IAG CEO Nick Hawkins said customer retention rate has remained high. The insurer this week announced a buyback plan that would see it repurchase up to AU$350 million worth of its shares.
Insurance Australia Group share price prediction
IAG shares have gained about 15% in the past three months. According to TipRanks’ analyst rating consensus, IAG stock is a Moderate Buy based on six Buys and two Sells. The average IAG share price prediction of AU$5.03 implies about 6% upside potential.
Insurance Australia Group scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Closing remarks
Insurance Australia Group seems to enjoy strong customer confidence in its services. That can be seen from customer retention rate remaining high despite premium hikes.