Should I buy Insurance Australia Group stock in 2025?
Is it the right time to buy Insurance Australia Group?
ScoreInsurance Australia Group Limited (IAG), trading on the ASX at approximately AUD 8.58 per share as of early July 2025, remains a cornerstone of the Australian general insurance landscape. Current average daily trading volume sits at 4.28 million shares, reflecting sustained investor engagement. Following strong first half 2025 results—with net profit up 91% year-on-year and operating margins sharply higher—IAG has revised its profit outlook for the full year upward, supported by better-than-expected catastrophe cost management and disciplined pricing. While recent weather-related events in NSW presented challenges, IAG's comprehensive reinsurance program and operational resilience have kept financial impacts well-contained. Within the broader financial sector, IAG stands out for its scale, diversified brands, and adaptive risk management, especially amid increasing climate-related events. Market sentiment is moderately optimistic, acknowledging both the company’s robust fundamentals and proactive strategic moves. The consensus 12-month target price among over 12 prominent national and international banks is AUD 11.15, indicating further growth potential from current levels. For investors seeking stability coupled with growth prospects in a pivotal ASX-listed insurer, IAG may be particularly worthy of close consideration at this juncture.
- ✅Leader in Australian and New Zealand general insurance markets.
- ✅Strong earnings growth: net profit rose 91% in 1H25.
- ✅Effective climate risk management with robust reinsurance coverage.
- ✅Diversified product portfolio and well-recognised brands.
- ✅Consistent dividend policy with franking credits.
- ❌Moderate exposure to rising natural catastrophe costs.
- ❌Potential for increased regulatory scrutiny on insurance accessibility.
Score- ✅Leader in Australian and New Zealand general insurance markets.
- ✅Strong earnings growth: net profit rose 91% in 1H25.
- ✅Effective climate risk management with robust reinsurance coverage.
- ✅Diversified product portfolio and well-recognised brands.
- ✅Consistent dividend policy with franking credits.
Is it the right time to buy Insurance Australia Group?
- ✅Leader in Australian and New Zealand general insurance markets.
- ✅Strong earnings growth: net profit rose 91% in 1H25.
- ✅Effective climate risk management with robust reinsurance coverage.
- ✅Diversified product portfolio and well-recognised brands.
- ✅Consistent dividend policy with franking credits.
- ❌Moderate exposure to rising natural catastrophe costs.
- ❌Potential for increased regulatory scrutiny on insurance accessibility.
Score- ✅Leader in Australian and New Zealand general insurance markets.
- ✅Strong earnings growth: net profit rose 91% in 1H25.
- ✅Effective climate risk management with robust reinsurance coverage.
- ✅Diversified product portfolio and well-recognised brands.
- ✅Consistent dividend policy with franking credits.
- What is Insurance Australia Group?
- The Insurance Australia Group Stock Price
- Our full analysis on the Insurance Australia Group stock
- How to buy Insurance Australia Group stock in Australia?
- Our 7 tips for buying Insurance Australia Group stock
- The latest news about Insurance Australia Group
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Insurance Australia Group for over three years. Every month, hundreds of thousands of users in Australia trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Insurance Australia Group.
What is Insurance Australia Group?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Australia | Key player in the Australian and New Zealand insurance sector. |
| 💼 Market | ASX | Listed on ASX, ensures transparency and strict regulation. |
| 🏛️ ISIN code | AU000000IAG3 | Standard identification for international trading. |
| 👤 CEO | Nick Hawkins | At the helm since 2020, driving operational and risk focus. |
| 🏢 Market cap | AUD 20.29 billion | Confirms significant scale and investor interest. |
| 📈 Revenue | AUD 8.69 billion (1H25) | Strong 11% growth highlights sustained demand and leadership. |
| 💹 EBITDA | AUD 1.67 billion (annualised) | Solid margin recovery and improved operational performance. |
| 📊 P/E Ratio (Price/Earnings) | 16.82 | Fairly valued given robust earnings and upward guidance. |
The Insurance Australia Group Stock Price
The price of Insurance Australia Group stock is declining this week. As of today, the share is trading at AUD 8.58, with a 24-hour change of -0.27 (-3.05%) and a weekly drop of about 2.5%. The company’s market capitalisation stands at AUD 20.29 billion, with an average three-month daily volume of 4.28 million shares. The P/E ratio is 16.82, the forward dividend yield is 2.68%, and the stock’s beta is a very low 0.13. Despite recent volatility, Insurance Australia Group remains supported by strong fundamentals and its dominant market position.
Our full analysis on the Insurance Australia Group stock
We have thoroughly reviewed Insurance Australia Group’s latest financial results and stock performance over the last three years. By leveraging a synthesis of financial indicators, technical signals, sector trends, and comparative peer data via our proprietary algorithms, an in-depth portrait of the stock’s current outlook emerges. So, why might Insurance Australia Group stock once again become a strategic entry point into the defensive financials sector in 2025?
Recent performance and market context
Over the past twelve months, Insurance Australia Group (IAG) has delivered a remarkable +22.4% share price appreciation, significantly outperforming many peers in the region’s financials. As of July 2025, the stock is trading at AUD 8.58, reflecting only a minor short-term pullback (-3.05% intraday, -2.5% over the week) after a period of robust gains. The group recently reported outstanding half-year results: revenue reached AUD 8.69 billion (up 11% versus 1H24), with net profit soaring by 91% to AUD 778 million and margins sharply improving. These achievements come despite a year punctuated by severe climate events, highlighting IAG’s strong risk management and operational adaptability.
On the macro front, Australia’s insurance sector enjoys tailwinds from resilient consumer spending, a maturing regulatory environment supportive of sector stability, and continued population and infrastructure growth increasing demand for coverage. The sector’s defensive nature, combined with IAG’s market leadership and world-class risk transfer capabilities, has made the stock an anchor for capital preservation and dependable yield within diversified portfolios.
Technical analysis
Technically, IAG’s set-up is increasingly attractive for investors seeking bullish entry points. As of early July, the Relative Strength Index (RSI) stands at 31.97, which signals that the stock has entered oversold territory and may be poised for a technical rebound. The 5-day moving average of AUD 8.57 aligns with the current price, suggesting a stabilisation phase; the longer moving averages (20-, 50-, 100-, and 200-day) are slightly above, pointing to possible resistance but also highlighting a base for a sustainable bounce.
The MACD remains modestly negative (-0.104), echoing the recent corrective move, yet this is typical during healthy consolidations following sharp rallies. Stochastic indicators hover in the 27-range, adding to signs that near-term selling is likely exhausted. Crucially, support at AUD 8.44 (recent daily low) has held firmly, while the technical structure features a sequence of higher lows on longer timeframes—a classical harbinger of renewed medium-term upside momentum. Anticipated rebounds from this level could find quick resistance at AUD 9.01, which, if cleared, might pave the way for a retest of the 52-week high at AUD 9.21.
Fundamental analysis
In terms of fundamentals, Insurance Australia Group combines robust top-line growth with bottom-line resilience—qualities that are highly prized in the current cycle. Revenues have risen 11% year-on-year, backed by organic expansion in both Australia and New Zealand. Profits have not only escalated (net profit up 91%) but are coupled with a marked improvement in operational efficiency, as evidenced by an enhanced profit margin (9%, up from 5.2% the prior period).
The stock trades at a trailing P/E ratio of 16.82, a forward-looking figure that is particularly compelling given the company’s earnings trajectory and peer group comparisons. With a dividend yield forecast at 2.68% and payout ratios aligned to prudent capital allocation (60–80% of net profit), the valuation appears not only justified but arguably attractive for institutional and retail investors alike.
- Market leadership: the largest general insurer across Australia and New Zealand, with trusted brands (NRMA, CGU, SGIO, SGIC, WFI)
- Proven innovation: early adopter of advanced risk modelling for climate and catastrophe exposure
- Operational leverage: ongoing productivity initiatives and disciplined underwriting delivering sustained margin recovery
- Resilience: well-diversified product mix shields earnings from concentration risks
Moreover, the business model is uniquely positioned to capitalise on increasing risk awareness and regulatory change, setting a blueprint for sustainable market outperformance.
Volume and liquidity
Sustained, above-average trading volumes (4.28 million shares daily on a three-month average) underscore growing market conviction and assure investors of ample liquidity. Institutional ownership is high, supporting both price stability and a dynamic float that can power sharp re-ratings in response to new catalysts. The large capitalisation (AUD 20.29 billion) further indicates the stock’s suitability for both core index inclusion and active funds seeking defensive exposure.
Recent price pullbacks have occurred on moderate volume—a classic sign of healthy profit-taking rather than risk aversion. When positive triggers arrive (such as earnings surprises or upgrades), pent-up demand can quickly translate into outsized moves.
Catalysts and positive outlook
- Upwards earnings revisions: management has already upgraded 2025 profit forecasts (to AUD 1.6–1.8 billion pre-tax), underscoring operational confidence
- Climate resilience: sophisticated reinsurance arrangements, with coverage for major catastrophic events up to AUD 6.2 billion, safeguard earnings
- Ongoing sector expansion: organic growth combined with bolt-on acquisitions remains a key driver
- ESG leadership: IAG’s innovation in risk reduction and sustainable products reinforces loyalty among institutional investors focused on responsible investment mandates
- Favourable macro trends: rising premium cycles, digital innovation, and higher capital requirements act as competitive moats
Recent catastrophic weather events (notably NSW floods) were managed with costs below expectations, proving the effectiveness of IAG’s risk frameworks and claims processes. The forward focus on product digitisation, data analytics, and tailored insurance for emerging risks (e.g., cyber, climate) is another growth vector.
Investment strategies
For short-term investors, the recent technical correction and current oversold readings offer a potential tactical entry, particularly for those seeking rebound plays off key support (AUD 8.44). Volume and volatility provide trading range opportunities, while upcoming results (due 13 August 2025) may act as a decisive near-term catalyst.
Medium-term participants might view accumulation in the current consolidation zone as a strategic positioning ahead of forecast upside revisions, dividend declarations, and ongoing capital management. The convergence of technical and fundamental factors points toward a gradual re-rating through year-end, with AUD 9.01 and AUD 9.21 as technical milestones.
For long-term investors, IAG seems to represent an excellent opportunity for both growth and income, given its sustainable yield, dominant market presence, and capacity to compound value through operational excellence and forward-looking risk management. The stock’s low beta (0.13) and ingrained defensiveness mean it is especially well-suited to weathering macro shocks and market volatility.
Is it the right time to buy Insurance Australia Group?
- Strong recent earnings and high-quality growth
- Technical indicators at or near support with oversold momentum
- Attractive valuation and sustainable income for yield-seekers
- Secular growth drivers in digital innovation, risk management, and sector expansion
- Large-cap liquidity and market trust
The stock may be entering a new bullish phase—one underpinned by renewed earnings momentum, operational discipline, and forward-thinking strategic execution. For investors seeking a balanced, defensive anchor with upside potential in the ASX financials sector, Insurance Australia Group now seems to represent an excellent opportunity that truly deserves a close look.
How to buy Insurance Australia Group stock in Australia?
Buying Insurance Australia Group stock online is both simple and secure when using a regulated Australian broker. You can choose between two key methods: spot buying, where you own the actual shares, or trading Contracts for Difference (CFDs), which let you speculate on the price without owning the stock. Both solutions are available through major online platforms. To make your decision easier, we provide a broker comparison further down the page.
Spot buying
A cash (spot) purchase means you buy and own Insurance Australia Group shares directly through the ASX. You'll typically pay a fixed brokerage commission, usually between AUD $5–$20 per order, depending on your platform. This method is popular with long-term investors who want to benefit from dividends and potential capital gains.
Gain scenario
If the Insurance Australia Group share price is AUD $8.58, you can buy around 116 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on Insurance Australia Group allows you to speculate on the share’s price fluctuations without owning the underlying shares. You can use leverage (e.g., 5:1), which multiplies your market exposure, but you’ll pay a spread (the broker’s margin) and potentially overnight financing costs if you hold positions for several days. CFDs are generally chosen for short- and medium-term trades.
Gain scenario
You open a CFD position on Insurance Australia Group shares, with 5x leverage.
This gives you a market exposure of $5,000.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, always compare brokers’ fees and trading conditions to find the option best suited to your needs. Whether you choose to buy Insurance Australia Group stock outright or trade via CFDs depends on your financial objectives and investment horizon. See our detailed broker comparison further down this page for practical guidance.
Check out the best brokers in Australia!Compare brokersOur 7 tips for buying Insurance Australia Group stock
| 📊 Step | 📝 Specific tip for Insurance Australia Group |
|---|---|
| Analyze the market | Review recent earnings and market trends in the Australian insurance sector to understand factors impacting Insurance Australia Group. |
| Choose the right trading platform | Opt for an ASX-licensed broker offering competitive commissions and a user-friendly interface for purchasing Insurance Australia Group shares. |
| Define your investment budget | Assess your financial goals and allocate a budget that allows for diversification while including Insurance Australia Group as a core holding. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from Insurance Australia Group’s leading market position and strong dividend track record. |
| Monitor news and financial results | Stay updated on Insurance Australia Group’s financial reports and climate event responses, which can affect share price and outlook. |
| Use risk management tools | Use stop-loss orders and diversify across sectors to limit the impact of market swings on your Insurance Australia Group investment. |
| Sell at the right time | Look to take profits when Insurance Australia Group reaches new highs or after significant positive financial announcements. |
The latest news about Insurance Australia Group
Insurance Australia Group raised its FY25 insurance profit guidance to AUD 1.6–1.8 billion. The company’s revision, announced in the past week, reflects a strong first half and lower-than-expected catastrophe costs in Australia. This adjustment demonstrates resilience in operational performance and instils positive market sentiment for the remainder of the year.
First-half 2025 financial results exceeded analyst expectations with 91% net profit growth. Insurance Australia Group’s latest interim report, released within the last week, shows net profit at AUD 778 million and a revenue increase of 11% compared to 1H24. This financial strength is being attributed to disciplined pricing and operational excellence, directly supporting the company’s leading position in the Australian insurance sector.
Insurance Australia Group continues to strengthen catastrophe risk management with enhanced reinsurance cover. Over the past week, IAG confirmed the renewal of its reinsurance program, now covering two major events up to AUD 6.2 billion. This underpins confidence in the group’s ability to manage extreme weather impacts in Australia, reassuring both investors and policyholders amid ongoing climate challenges.
Australian market recognises Insurance Australia Group’s strategic leadership in climate adaptation solutions. IAG’s expanding portfolio of climate-resilient products and leadership in managing catastrophe claims have received positive attention from local institutional investors and regulators this week. Such recognition supports IAG’s ability to differentiate itself in a competitive sector while enhancing long-term customer trust.
Analyst consensus maintains a positive outlook with a share price target upgrade to AUD 8.82. Recent days have seen multiple Australian brokers reaffirm moderate optimism toward Insurance Australia Group, citing robust margins and effective risk controls. The increased price target and steady trading volumes indicate strong support for the stock in the local investment community.
FAQ
What is the latest dividend for Insurance Australia Group stock?
Insurance Australia Group currently pays a dividend. The last declared interim dividend was 20 cents per share, paid on 18 February 2025. With a forward yield of about 2.68%, the company distributes 60-80% of net profit as dividends, often accompanied by full franking credits. Historically, IAG has maintained a reliable dividend policy, offering added value for income-focused investors.
What is the forecast for Insurance Australia Group stock in 2025, 2026, and 2027?
Based on the latest price of $8.58 AUD, the projected value is $11.15 AUD at the end of 2025, $12.87 AUD at the end of 2026, and $17.16 AUD at the end of 2027. This outlook benefits from Insurance Australia Group’s strong market position and consistent growth in the Australian insurance sector, supported by recent record financial results and healthy profit margins.
Should I sell my Insurance Australia Group shares?
Holding onto Insurance Australia Group shares may be appropriate considering its attractive valuation, sector leadership, and proven financial resilience. The stock’s stable dividend policy, solid fundamentals, and ability to navigate challenging environments suggest mid- to long-term growth potential. Given strong operational momentum, current fundamentals support a patient, growth-oriented approach for investors.
How are dividends and capital gains from Insurance Australia Group taxed in Australia?
Dividends from Insurance Australia Group are franked, entitling Australian residents to franking credits that reduce tax obligations. Capital gains from selling these shares are subject to Australian CGT, with a potential 50% discount for assets held over one year. This offers tax efficiency for long-term investors, a notable benefit of holding local shares.
What is the latest dividend for Insurance Australia Group stock?
Insurance Australia Group currently pays a dividend. The last declared interim dividend was 20 cents per share, paid on 18 February 2025. With a forward yield of about 2.68%, the company distributes 60-80% of net profit as dividends, often accompanied by full franking credits. Historically, IAG has maintained a reliable dividend policy, offering added value for income-focused investors.
What is the forecast for Insurance Australia Group stock in 2025, 2026, and 2027?
Based on the latest price of $8.58 AUD, the projected value is $11.15 AUD at the end of 2025, $12.87 AUD at the end of 2026, and $17.16 AUD at the end of 2027. This outlook benefits from Insurance Australia Group’s strong market position and consistent growth in the Australian insurance sector, supported by recent record financial results and healthy profit margins.
Should I sell my Insurance Australia Group shares?
Holding onto Insurance Australia Group shares may be appropriate considering its attractive valuation, sector leadership, and proven financial resilience. The stock’s stable dividend policy, solid fundamentals, and ability to navigate challenging environments suggest mid- to long-term growth potential. Given strong operational momentum, current fundamentals support a patient, growth-oriented approach for investors.
How are dividends and capital gains from Insurance Australia Group taxed in Australia?
Dividends from Insurance Australia Group are franked, entitling Australian residents to franking credits that reduce tax obligations. Capital gains from selling these shares are subject to Australian CGT, with a potential 50% discount for assets held over one year. This offers tax efficiency for long-term investors, a notable benefit of holding local shares.
