tiprankstipranks
Trending News
More News >
Insurance Australia Group Limited (AU:IAG)
ASX:IAG
Advertisement

Insurance Australia Group Limited (IAG) AI Stock Analysis

Compare
85 Followers

Top Page

AU:IAG

Insurance Australia Group Limited

(Sydney:IAG)

Rating:68Neutral
Price Target:
AU$9.50
▲(9.70% Upside)
The overall stock score reflects strong financial performance with efficient operations and a solid capital structure. Technical indicators suggest moderate positive momentum, and the valuation is fair with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Insurance Australia Group Limited (IAG) vs. iShares MSCI Australia ETF (EWA)

Insurance Australia Group Limited Business Overview & Revenue Model

Company DescriptionInsurance Australia Group Limited (IAG) is a leading insurance company in the Asia-Pacific region, headquartered in Sydney, Australia. The company operates through a range of well-known brands, including NRMA Insurance, CGU, SGIO, SGIC, and WFI in Australia, as well as AMI and State Insurance in New Zealand. IAG offers a comprehensive suite of insurance products and services, including motor, home, business, and travel insurance, catering to both personal and commercial customers.
How the Company Makes MoneyIAG makes money primarily through the underwriting and sale of insurance policies across various sectors, including motor, home, and business insurance. The company collects premiums from policyholders in exchange for providing coverage against specified risks. Revenue is generated through the difference between the premiums collected and the claims paid out, a concept known as underwriting profit. Additionally, IAG invests the premiums collected in financial markets, earning investment income which contributes to the company's overall profitability. Strategic partnerships and collaborations with other financial institutions and distribution partners also play a role in expanding IAG's market reach and enhancing its revenue streams.

Insurance Australia Group Limited Financial Statement Overview

Summary
Insurance Australia Group Limited demonstrates strong operational efficiency and a solid capital structure. However, the decline in revenue and inconsistent profitability are concerns. The company shows resilience in cash flow generation, which is a positive indicator for future stability.
Income Statement
65
Positive
The income statement shows a mixed performance. Gross profit margins are exceptionally high, indicating strong pricing power or cost management. However, the net profit margin is relatively low, suggesting high operating expenses or other costs. Revenue has declined by 12.27% in the latest year, which is a concern, though previous years showed growth. EBIT and EBITDA margins are healthy, indicating operational efficiency.
Balance Sheet
70
Positive
The balance sheet is stable with a moderate debt-to-equity ratio of 0.40, indicating a balanced approach to leverage. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity has been inconsistent, reflecting fluctuating profitability.
Cash Flow
75
Positive
Cash flow analysis reveals a positive trend with a 31.26% growth in free cash flow, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting potential issues in converting income to cash. However, the free cash flow to net income ratio is strong at 1.0, indicating good cash profitability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue17.55B14.76B15.99B409.00M7.57B7.88B
Gross Profit15.06B15.06B15.99B8.93B7.57B7.88B
EBITDA2.40B2.63B1.88B1.69B779.00M-67.00M
Net Income1.36B1.36B898.00M832.00M347.00M-427.00M
Balance Sheet
Total Assets26.31B26.31B25.62B35.03B34.16B33.46B
Cash, Cash Equivalents and Short-Term Investments703.00M703.00M631.00M1.35B938.00M2.00B
Total Debt2.96B2.96B2.94B2.64B2.58B2.57B
Total Liabilities18.52B18.52B18.50B27.98B27.66B26.90B
Stockholders Equity7.33B7.33B6.66B6.65B6.16B6.25B
Cash Flow
Free Cash Flow324.00M1.35B1.16B452.00M-526.00M-799.00M
Operating Cash Flow1.35B1.35B1.80B452.00M900.00M1.61B
Investing Cash Flow38.00M38.00M-628.00M394.00M-1.46B-2.42B
Financing Cash Flow-982.00M-982.00M-682.00M-437.00M-527.00M516.00M

Insurance Australia Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.66
Price Trends
50DMA
8.51
Positive
100DMA
8.36
Positive
200DMA
8.16
Positive
Market Momentum
MACD
0.05
Negative
RSI
53.91
Neutral
STOCH
33.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IAG, the sentiment is Positive. The current price of 8.66 is above the 20-day moving average (MA) of 8.54, above the 50-day MA of 8.51, and above the 200-day MA of 8.16, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 33.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IAG.

Insurance Australia Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$17.89B12.0310.28%3.73%9.80%1.66%
68
Neutral
$20.03B14.7319.09%3.57%8.47%54.09%
€882.65M5.5725.94%
$9.15B27.0020.97%3.59%
€2.05B16.1818.51%
$20.81B10.6218.97%4.41%
$14.92B13.6312.51%24.45%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IAG
Insurance Australia Group Limited
8.66
1.48
20.63%
DE:0GI0
Genworth Mortgage Insurance Australia Ltd
3.24
1.24
62.00%
MDBPF
Medibank Private
3.17
1.29
68.62%
DE:3GU
NIB Holdings Ltd
3.92
0.41
11.68%
QBEIF
QBE Insurance Group Limited
13.92
3.71
36.34%
SNMYF
Suncorp Group
12.38
1.70
15.92%

Insurance Australia Group Limited Corporate Events

Insurance Australia Group Issues New Unquoted Equity Securities
Jul 11, 2025

Insurance Australia Group Limited announced the issuance of 20,340 unquoted equity securities, specifically ordinary fully paid shares, as of June 13, 2025. This move is part of the company’s ongoing financial operations and may impact its market positioning by potentially increasing its capital base, thereby influencing stakeholder interests.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$6.85 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

Insurance Australia Group Announces Cessation of Securities
Jul 11, 2025

Insurance Australia Group Limited announced the cessation of certain securities, specifically 183,220 performance rights and 44,630 award rights, due to the lapse of conditional rights that were not satisfied. This development may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic positioning in the market.

The most recent analyst rating on (AU:IAG) stock is a Buy with a A$9.65 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

IAG Updates FY25 Financial Guidance with Positive Outlook
Jun 30, 2025

IAG has updated its financial guidance for the fiscal year ending June 2025, highlighting a favorable reduction in natural perils costs, estimated at $1,080 million, which is $200 million below the allowance. This reduction has led to an increase in the company’s reported insurance profit guidance to a range of $1,600 million to $1,800 million and an improved insurance margin guidance towards the top end of the 15.5% to 17.5% range. The Gross Written Premium (GWP) growth is expected to be between 4% and 4.5%, despite challenges such as the Coles exit and adverse currency effects. The Australian direct home and motor segments are experiencing solid growth, while the New Zealand commercial business faces softer market conditions.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$6.85 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

Insurance Australia Group Ceases 45,000 Securities
Jun 16, 2025

Insurance Australia Group Limited has announced the cessation of 45,000 subordinated floating rate notes, which were redeemed without conversion. This move reflects the company’s ongoing efforts to manage its capital structure effectively, potentially impacting its financial strategy and stakeholder interests.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$6.60 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

IAG Mobilizes Major Event Response for NSW Floods
May 27, 2025

Insurance Australia Group Limited (IAG) has responded to the recent floods in the NSW Mid North Coast and Hunter regions by receiving approximately 2,500 claims related to property damage. The company has deployed its Major Event Response teams to assist affected customers, offering immediate support such as temporary accommodation and emergency financial assistance. IAG is also working on resilience measures during the repair process to mitigate future risks. While the financial impact of the floods is still being assessed, IAG’s comprehensive reinsurance program is expected to provide substantial protection against potential losses.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$6.60 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

IAG Secures ACCC Approval for Strategic Alliance with RACQ
May 22, 2025

Insurance Australia Group Limited (IAG) has received approval from the Australian Competition and Consumer Commission (ACCC) for its strategic alliance with RACQ Insurance Limited, allowing IAG to acquire RACQ Insurance and provide general insurance products to RACQ members and Queenslanders. This 25-year alliance, subject to further regulatory approvals, is expected to be completed in the third quarter of 2025 and will add approximately $1.3 billion to IAG’s Gross Written Premium. The partnership aims to leverage IAG’s scale and technology while maintaining RACQ’s brand and customer relationships, with anticipated synergies exceeding $50 million annually.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$6.60 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

ACCC Approves IAG’s Acquisition of RACQ Insurance
May 22, 2025

The Australian Competition and Consumer Commission (ACCC) has decided not to oppose IAG’s proposed acquisition of RACQ Insurance Limited (RACQI), as the acquisition is unlikely to significantly reduce competition in the insurance market. The ACCC’s investigation found that RACQI has been losing market share and faces challenges in maintaining competitiveness due to higher natural hazard risks and limited capital access. The acquisition is not expected to impact the markets for smash repair, windscreen repair and replacement, and building repair services due to IAG’s market position relative to other insurers.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$6.60 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

IAG Announces Redemption of $450 Million Subordinated MTNs
May 19, 2025

Insurance Australia Group Limited has announced the redemption of its $450 million Subordinated Medium Term Notes (MTNs) due on 15 June 2045. The redemption will occur on 16 June 2025, as part of the company’s wholesale debt issuance program. This move reflects IAG’s strategic financial management and may impact its capital structure, but it does not indicate future redemptions of other regulatory capital instruments.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$6.60 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

IAG Forms Strategic Alliance with RAC to Expand Insurance Reach in Western Australia
May 15, 2025

IAG has announced a strategic alliance with The Royal Automobile Club of Western Australia (RAC), involving the acquisition of RAC Insurance and a 20-year exclusive distribution agreement for RAC-branded insurance products. This partnership is expected to enhance IAG’s market presence in Western Australia, adding approximately $1.5 billion to its Gross Written Premium and generating $100 million in pre-tax annual synergies. The alliance will leverage IAG’s national scale and advanced technology to benefit RAC’s 1.3 million members, while maintaining the trusted RAC brand and supporting local employment and community initiatives.

The most recent analyst rating on (AU:IAG) stock is a Hold with a A$5.45 price target. To see the full list of analyst forecasts on Insurance Australia Group Limited stock, see the AU:IAG Stock Forecast page.

Insurance Australia Group Appoints New Director
May 11, 2025

Insurance Australia Group Limited has announced the appointment of JoAnne Maree Stephenson as a director, effective May 12, 2025. The initial director’s interest notice indicates that Stephenson currently holds no securities in the company, suggesting a fresh perspective and potential strategic shifts in the company’s governance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025