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 Half year results, released 12 February 2026

Results overview

IAG today announced its first-half results for FY26, reporting a net profit after tax of $505m(1H25: $778m). The result includes a one-off RACQI impact of $174m from severe seasonal weather immediately following the acquisition, and before the business was integrated into IAG’s comprehensive reinsurance program in January 2026. The prior corresponding period benefited from $250m favourable perils experience and a $200m BI provision release.

The company declared an interim dividend of 12.0cps and announced an on-market share buyback of up to $200m, reflecting its strong capital position.

The underlying insurance profit was $804m (1H25: $747m), equating to an underlying insurance margin of 15.1%, in line with the prior corresponding period. This reflects an improvement in the underlying claims ratio and expense ratio, partially offset by a lower investment yield on technical reserves.

The reported insurance profit of $724m (1H25: $957m) equated to a reported insurance margin of 13.5% (1H25: 19.4%). It included the RACQI perils costs and a $66m release of prior year reserves.

Excluding the one-off RACQI perils impact, the underlying insurance margin was 16.3% (1H25: 15.1%) and the reported insurance margin was 17.7%.