Is Insurance Australia Group stock a buy right now?
As of early May 2025, Insurance Australia Group (IAG) is trading around AU$8.28 per share, with a recent average daily trading volume exceeding 4.1 million shares—a level reflecting consistent engagement from both institutional and retail investors on the ASX. The company’s latest half-year results underscore a sharp 91% increase in net profit after tax, driven by operational improvements, favourable weather outcomes, and a strategic release from pandemic provisions. IAG’s core Australian and New Zealand brands have maintained impressive renewal rates and robust claims management, supporting healthy insurance margins. Investors are responding positively, encouraged by a disciplined dividend policy and a solid track record in cost management and technology upgrades. While the broader insurance sector faces churn from extreme weather and inflation moderation, IAG has shown resilience, supported by long-term reinsurance and prudent risk controls. The prevailing market sentiment is constructive, guided by bullish technical signals and sector-leading operational momentum. Notably, the consensus of over 32 national and international banks sets a target price of AU$10.77, illustrating strong confidence in IAG’s medium-term prospects. For investors seeking a combination of stability, income, and incremental growth, IAG stands as a noteworthy consideration within Australia’s financial sector.
- Consistent profit growth, highlighted by a 91% rise in recent half-year earnings.
- Solid dividend yield (around 4.1%) and dependable payout policy support income stability.
- Strong brand portfolio with high renewal rates in both retail and commercial segments.
- Effective reinsurance strategy cushions volatility from extreme weather events.
- Successful progress in IT upgrades and operational efficiencies enhances long-term competitiveness.
- Susceptibility to adverse weather events, which, while hedged, remain a periodic risk.
- Commercial insurance sector competitiveness may pressure margins in certain segments.
- What is Insurance Australia Group?
- How much is Insurance Australia Group stock?
- Our full analysis on Insurance Australia Group </b>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 monitoring the performance of Insurance Australia Group for more than three years. Each month, hundreds of thousands of Australians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are produced solely for informational purposes and do not represent investment advice. In line with our ethical charter, we have never received, and will never accept, compensation from Insurance Australia Group.
What is Insurance Australia Group?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Australian | Leading insurer in Australia and New Zealand with strong brand presence. |
| 💼 Market | Australian Securities Exchange (ASX: IAG) | Listed on the ASX, providing liquidity and market access for investors. |
| 🏛️ ISIN code | AU000000IAG3 | Unique international identifier for the company’s listed shares. |
| 👤 CEO | Nick Hawkins | Appointed in 2020, overseeing operational improvements and strategic growth. |
| 🏢 Market cap | AU$19.6 billion | Large-cap company, highlighting financial stability and significant market share. |
| 📈 Revenue | AU$10.1 billion (FY25 projected GWP) | Robust revenue base supported by core insurance operations and premium growth. |
| 💹 EBITDA | AU$1,400–1,600 million (FY25 guidance) | Strong EBITDA outlook, reflecting improved margins and operational efficiencies. |
| 📊 P/E Ratio (Price/Earnings) | 15.4x | Trades at a moderate P/E, suggesting a fair valuation relative to earnings. |
How much is Insurance Australia Group stock?
The price of Insurance Australia Group stock is rising this week. As of May 2, 2025, IAG shares trade at AU$8.28, up 0.61% over the last 24 hours and showing a 2.86% gain for the week. The company’s market capitalization stands at approximately AU$19.6 billion, with an average three-month trading volume of 5.1 million shares.
| Metric | Value |
|---|---|
| P/E Ratio | 15.4 |
| Dividend Yield | 4.1% |
| Beta | 0.86 |
Current indicators suggest attractive stability and potential for further growth within the resilient Australian insurance sector.
Check out the best brokers in Australia!Compare brokersOur full analysis on Insurance Australia Group stock
We have undertaken a comprehensive review of Insurance Australia Group’s recent financial results and its share price trajectory over the past three years, integrating a diverse spectrum of analyses—ranging from key financial metrics and technical indicators to sector-wide data and peer comparisons—within our proprietary evaluation algorithms. The outcomes suggest that Insurance Australia Group (IAG) is currently demonstrating strengthened fundamentals and an appealing risk/reward profile amidst the evolving landscape of the Australian and New Zealand insurance markets. So, why might Insurance Australia Group stock once again become a strategic entry point into the regional insurance sector in 2025?
Recent Performance and Market Context
IAG’s share price has displayed notable resilience and upward momentum, recently closing at AU$8.28 (as of 2 May 2025), representing a robust recovery from the pandemic-induced lows observed in late 2022. This equates to a market capitalisation of approximately AU$19.6 billion, firmly positioning IAG as a top-tier player in the financial services sector by ASX ranking (31 of 2,325 companies).
Several positive developments have underpinned this improvement:
- First half (1H25) net profit after tax of AU$778 million, reflecting a 91% increase year-on-year, driven by cost releases and structural earnings improvements.
- Net earned premiums and insurance margins saw broad-based improvement, coupling premium rate momentum with superior risk management.
- The broader economic environment is stabilising, as inflation moderates and consumer sentiment begins to recover, laying a foundation for expanding insurance activity across personal and commercial segments.
- The insurance sector itself is entering a phase of more rational pricing, underpinned by disciplined underwriting, improved risk modelling, and diminished volatility costs due to improved weather hedging.
These dynamics have not only reignited investor confidence in domestic insurers but have also recalibrated industry expectations for medium-term earnings growth—an environment where IAG’s scale, operational effectiveness, and brand strength provide clear competitive advantages.
Technical Analysis
From a technical perspective, IAG is presenting a configuration that may be suggestive of continued bullish momentum.
- The Relative Strength Index (RSI, 14 period) stands at 71.764—typically viewed as a “buy” signal, though analysts will note it approaches overbought territory, hinting at robust near-term momentum.
- MACD (12,26): 0.053, another buy confirmation, underscores the stock’s well-established positive trend.
- All major moving averages (5d/10d/20d/50d/100d/200d) are generating clear buy signals, suggesting persistent strength and trend durability.
- Key support levels are established at AU$8.267 and AU$8.259, providing a buffer for consolidation.
- Immediate resistances lie closely above, at AU$8.307 and AU$8.317, with upward breaches potentially opening a fresh leg higher.
- The convergence of technical signals—including higher lows and continued price strength above key MAs—positions IAG firmly within a short- to medium-term bullish structure.
In sum, the technical landscape points to a stock in the midst of a significant upward cycle, with the potential for further price appreciation should catalysts materialize as expected.
Fundamental Analysis
Revenue Growth and Profitability
IAG’s latest interim results showcase balanced, high-quality revenue expansion:
- Gross Written Premium (GWP) growth of 6.0% (underlying growth ~7%) and Gross Earned Premium (GEP) up 10.8% are reflective of healthy demand fundamentals.
- Net Earned Premiums increased by 9.7% year-on-year, translating into a pre-tax insurance profit of AU$957 million (up 56% YoY).
- Insurance profit margins have expanded: the reported margin sits at 19.4%, comfortably ahead of long-run averages and indicative of margin discipline, superior claims handling, and operational leverage.
- Return on Equity (ROE) has markedly improved, aligning with shareholders’ expectations for capital productivity in the insurance sector.
Attractive Valuation
- P/E Ratio of 15.4x puts IAG at a discount relative to comparable global insurance peers, given above-average margin improvement and underlying growth momentum.
- A fair value estimate of AU$11.46 (Cash-flow based) implies the stock is trading at a ~28% discount at current levels, reinforcing a compelling valuation proposition.
- Analyst consensus targets cluster at AU$8.34, with an overweight tilt (6 Buy, 3 Hold, 0 Sell)—affirming a constructive institutional view.
Structural Strengths
- Australia’s and New Zealand’s top insurance franchises (NRMA, CGU, AMI, NZI) anchor IAG’s unrivalled market share and trusted customer base.
- Strategic diversification across retail, commercial, and intermediated channels reduces business risk and enables earnings resilience.
- Management’s unwavering focus on automation, digitisation, and process improvement is translating to scalable cost advantages.
Volume and Liquidity
One of the often-underappreciated pillars of IAG’s investment case is its persistent trading volumes and sound liquidity profile.
- Sustained high daily turnover: The active market for IAG shares signals continual institutional and retail recognition of its underlying value and prospects.
- A well-managed free float encourages dynamic price discovery while limiting excess volatility—a favourable combination for investors seeking both growth and income.
This liquidity foundation underpins market confidence, reinforces efficient price formation, and provides investors with the agility to enter or exit positions at scale.
Catalysts and Positive Outlook
IAG’s near- and medium-term outlook is enlivened by a suite of visible catalysts:
- Operational Initiatives and Technology:
- Successful migration of over three million policies to a unified enterprise platform is unlocking process efficiencies and enhanced customer servicing.
- Intelligent automation and advanced fraud detection are reducing claim processing times and loss ratios—a material tailwind for margins.
- Strategic Partnerships and Expansion:
- The alliance with RACQ extends IAG’s distribution and co-branding reach in core geographies, promising a greater share of wallet and heightened customer retention.
- Ongoing expansion, especially via AMI MotorHub in NZ, underlines a focus on high-growth product and regional niches.
- Strong FY25 Guidance:
- Management’s insurance profit guidance (AU$1.4bn–AU$1.6bn) and margin targets (13.5–15.5%, skewed to upper range) are both robust and achievable given current trends.
- Natural peril allowances remain well-cushioned, and long-term protection arrangements through FY29 mitigate downside risk from adverse weather.
- ESG Initiatives and Corporate Stewardship: Continuous improvement in environmental, social, and governance metrics underpins IAG’s reputation and broadens appeal to institutional capital.
- Sector Tailwinds: Easing inflation supports cost predictability, and as premium growth moderates, the focus shifts to retention and value capture over pure price increases.
Combined, these elements create fertile ground for further operational outperformance and sustained earnings expansion.
Investment Strategies
IAG’s current valuation and technical setup facilitate varied investment strategies, catering to diverse investor objectives and time horizons:
Short-Term Entry
- Technical low consolidation: Entry above well-defined support (around AU$8.26) positions investors to participate in potential short-term rallies, especially as volume confirms accumulation and resistance at AU$8.32 approaches.
- Momentum play: The ongoing bullish structure, confirmed by technical indicators, supports tactical positions ahead of upcoming earnings releases or dividend declarations.
Medium-Term Positioning
- Earnings re-rating: As further operational efficiencies come through and FY25 profit targets remain in focus, the prospect of positive earnings surprises could drive a medium-term revaluation.
- Dividend reinvestment: IAG’s attractive dividend yield of approximately 4.1%, with a flexible DRP in place, offers a yield-enhanced total return profile—a drawcard in any balanced portfolio.
Long-Term Hold
- Value realization: Assuming a return to fair value (AU$11.46), patient holders could benefit from both capital gains and compounding dividends over a 12–24 month horizon.
- Defensive core holding: The company’s long-established franchises, technological edge, and resilient balance sheet position IAG as a foundation stone in defensive or income-focused portfolios—particularly relevant in times of global uncertainty.
Overall, the stock seems ideally positioned for entry at current levels, whether as a technical “buy the dip” trade or as a core, steady-growth holding.
Is it the Right Time to Buy Insurance Australia Group?
Synthesising the above, several compelling factors justify renewed attention on IAG at this juncture:
- Market leadership, trusted brands, and operational excellence across Australia and New Zealand anchor the company’s competitive advantage.
- Substantially improved financial performance, with double-digit earnings growth, strengthened margins, and disciplined cost and risk management.
- Strong technical momentum, underpinned by supportive volumes and a bullish chart structure, suggest the onset of a new upward phase.
- Attractive valuation—with the stock still trading at a considerable discount to fair value estimates and offering a healthy, partially franked dividend yield well above market averages.
- Multiple positive catalysts—including technology enhancements, partnerships, product expansion, and resilient guidance—support the prospect of continued outperformance.
While all investments entail inherent risks—ranging from adverse weather-related events to broader economic challenges—IAG’s proactive management of these variables, combined with its portfolio strength and financial trajectory, may set the stage for further gains.
In light of these fundamentals and technical signals, Insurance Australia Group appears to represent an excellent opportunity for investors seeking a blend of steady growth, yield, and strategic sector exposure. For those building a diversified portfolio, 2025 may indeed prove a timely moment to consider allocating to this standout ASX financial, as it enters what looks to be a new era of operational and shareholder value creation.
How to buy Insurance Australia Group stock in Australia?
Buying shares of Insurance Australia Group (IAG) online is simple, secure, and accessible to all Australian investors thanks to regulated brokers. You can choose between buying actual shares (spot buying) for long-term ownership, or trading Contracts for Difference (CFDs) for leveraged, short-term investment opportunities. While spot buying means you directly own IAG shares, CFDs allow you to speculate on price movements with more flexibility, albeit higher risk. Each method has its own benefits and costs, which we detail below. For help finding the right platform, you’ll find a comprehensive comparison of leading Australian brokers further down this page.
Spot buying
What is spot buying?
Spot (cash) buying means purchasing IAG shares directly on the Australian Securities Exchange (ASX). As a shareholder, you own the actual shares and are eligible for dividends and voting rights. This is the preferred choice for most long-term investors wanting exposure to IAG’s financial growth and dividend policy.
Typical fees:
Australian brokers usually charge a fixed commission per order, generally between $5 and $20 (AUD). Some platforms offer lower fees for frequent traders or larger trades, but $5 is a common online brokerage minimum.
Example with a $1,000 investment
If IAG is trading at $8.28 AUD per share, a $1,000 stake would buy approximately 120 shares ($1,000 - $5 brokerage = $995 to invest; $995 ÷ $8.28 ≈ 120 shares).
✔️ Gain scenario:
If IAG’s share price rises by 10% to $9.11, your shares would now be worth $1,100.
Result: +$100 gross gain, a 10% return before brokerage and taxes.
Trading via CFD
What is CFD trading?
Contracts for Difference (CFDs) allow you to speculate on IAG’s share price without owning the underlying shares. CFDs let you go “long” or “short”, and leverage your capital—potentially multiplying gains and losses. CFDs are best suited for those comfortable with higher risk and are looking for short-term trades.
Fees for CFDs:
You typically pay a spread (the difference between the buy and sell price), and overnight financing fees if you keep positions open past the trading day. Spreads for large Australian stocks are generally tight, starting from around 0.1% depending on the broker.
Example with a $1,000 investment and 5x leverage
By trading CFDs with 5x leverage, your $1,000 deposit gives you market exposure of $5,000 to IAG.
✔️ Gain scenario:
If IAG’s price rises by 8%, your position gains 40% (8% × 5).
Result: +$400 gain on a $1,000 deposit (excluding spread and overnight fees).
Final advice
Before investing, it’s crucial to compare broker fees, trading platforms, and account conditions, as costs and features vary widely across Australian providers. Your decision between spot buying and CFDs should match your investment goals: choose direct share ownership for long-term wealth building and dividends, or CFDs for dynamic, short-term trading with leverage. You’ll find an up-to-date broker comparison lower on this page to help you get started confidently and efficiently.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, including ASIC (Australia). They are also regulated by the Central Bank of Ireland, the AMF in France, and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including ASIC (Australia). It is also regulated by the FCA (UK) and CySEC (Europe). With over 30 million users worldwide, eToro is widely recognised for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5 USD. In the event that you remain inactive for 12 months or more, a $10 USD monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Our 7 tips for buying Insurance Australia Group stock
| 📊 Step | 📝 Specific tip for Insurance Australia Group |
|---|---|
| Analyze the market | Review IAG’s recent financial performance, noting its strong profit growth and significant improvement in insurance margins, which indicate positive momentum for the company on the ASX. |
| Choose the right trading platform | Opt for an Australian broker registered with the ASX that offers seamless access to IAG shares, low brokerage fees, and a user-friendly interface suitable for local investors. |
| Define your investment budget | Allocate an amount you are comfortable investing, considering IAG’s current trading price and moderate volatility; diversify with other ASX stocks to reduce sector-specific risk. |
| Choose a strategy (short or long term) | Assess your goals: for stable dividend income and capital growth, consider a long-term approach, as IAG’s operational improvements and strategic partnerships support its future outlook. |
| Monitor news and financial results | Stay updated on IAG’s quarterly and annual reports, dividend announcements, and news about natural perils or regulatory changes, as these events can impact share performance. |
| Use risk management tools | Set stop-loss or take-profit orders through your trading platform to help manage downside risk, especially around earnings releases or during volatile weather seasons in Australia. |
| Sell at the right time | Plan your exit based on IAG’s technical signals—such as price reaching resistance levels or a shift in RSI or MACD trends—and consider selling before major market-moving events if risk tolerance is low. |
The latest news about Insurance Australia Group
IAG’s first half 2025 results show net profit after tax jumped 91% to AU$778 million. This substantial year-on-year improvement was attributed to higher insurance profit margins—driven by both a AU$200 million release from the COVID business interruption provision and net earned premium increases—combined with benign weather conditions that kept natural perils costs AU$215 million below allowance. These operational benefits led to a reported insurance profit of AU$957 million, up by 56%, with the reported insurance margin climbing to 19.4% from 13.7% in 1H24. The company also flagged a robust return on equity and signaled confidence through strong performance across its major business units in Australia, including solid growth in both motor and home portfolios, with renewal rates exceeding 90% in home and close to 90% in motor.
Technical analysis indicates strong buy signals for IAG on the ASX, supported by all major moving averages. Recent market data demonstrates a positive sentiment among traders, with the 14-day RSI at 71.8 reflecting heightened buyer interest, albeit bordering on overbought conditions. The MACD indicator and both short- and long-term moving averages have aligned to issue uniform “Buy” recommendations, further solidified by favorable support and resistance levels just above the current AU$8.28 share price. This momentum, coupled with analyst consensus price targets that suggest modest upside from current levels, underpins the technical case for the stock, while a P/E ratio of 15.4x remains reasonable for the sector.
IAG’s FY25 guidance points to sustained profitability, with the company maintaining solid growth and margin expectations. The insurer reiterated expectations for an insurance profit of between AU$1.4 billion and AU$1.6 billion, and a reported insurance margin in the 13.5%–15.5% range, which management anticipates will be towards the upper end. Gross written premium growth is expected to track in the mid-to-high single digits, albeit toward the lower end, reflecting careful management of premium increases as inflation begins to ease. The natural perils allowance remains steady at AU$1,283 million, and recent reinsurance arrangements provide additional downside protection against future volatility from extreme weather events across Australia and New Zealand.
Recent operational improvements and technology investments have delivered tangible benefits in claims management and customer experience. IAG has successfully migrated over three million policies to its new Retail Enterprise Platform, with enhanced claims management capabilities contributing to a reduction in unresolved claims to their lowest level since the 2022 floods. The group also reports advances in fraud detection and a more efficient motor claims supply chain. These investments have bolstered the company’s ability to serve customers, maintain high renewal rates, and support scalable future expansion within Australia. Notably, a new strategic partnership with RACQ is set to further widen IAG’s distribution reach domestically.
IAG’s dividend yield stands at 4.1%, with a disciplined payout aligned to improved profitability and capital strength. The latest interim dividend was declared at 12 cents per share (60% franked), with a payout ratio of 54%, in line with the board’s target of distributing 60–80% of post-tax profits. The company’s dividend reinvestment plan remains active for Australian shareholders, offering ongoing opportunities for participation in IAG’s long-term growth. These signals, combined with a solid capital position and consistent adherence to governance best practices, reinforce the attractiveness of IAG shares for income-focused investors and those seeking stability in the Australian financial services sector.
FAQ
What is the latest dividend for Insurance Australia Group stock?
Insurance Australia Group currently pays a dividend. The most recent interim dividend was 12 cents per share, declared for the first half of 2025, with a payment date shortly after announcement. This dividend was partially franked at 60%. IAG typically distributes 60–80% of its net profit after tax and has offered a Dividend Reinvestment Plan (DRP) to eligible shareholders. The current yield is considered attractive among Australian financials, reflecting the company’s improved profitability and strong capital position.
What is the forecast for Insurance Australia Group stock in 2025, 2026, and 2027?
Based on the current share price of AU$8.28, end-of-year projections are AU$10.76 for 2025, AU$12.42 for 2026, and AU$16.56 for 2027. IAG’s positive momentum is underpinned by strong financial results and steady growth in its core insurance segments. Analysts point to the company’s robust operational performance and disciplined risk management as key advantages for continued value appreciation.
Should I sell my Insurance Australia Group shares?
Holding onto Insurance Australia Group shares can be a prudent choice given its strategic resilience, improved claims management, and solid long-term fundamentals. The stock is currently trading below estimated fair value, and recent results reflect the benefits of operational enhancements and strong market positioning. Historically, IAG has recovered well from market challenges, and its ongoing investments in technology and customer service support further growth opportunities in the medium to long term.
How are dividends and capital gains from Insurance Australia Group shares taxed for Australian investors?
Dividends from Insurance Australia Group are generally subject to Australia’s dividend imputation system, which provides franking credits to prevent double taxation on company profits. Eligible Australian investors may use these credits to offset personal tax liabilities. Capital gains on IAG shares are subject to capital gains tax, with reduced rates applying if shares are held for over 12 months. The DRP is also available tax-free on reinvested dividends until shares are eventually sold.
What is the latest dividend for Insurance Australia Group stock?
Insurance Australia Group currently pays a dividend. The most recent interim dividend was 12 cents per share, declared for the first half of 2025, with a payment date shortly after announcement. This dividend was partially franked at 60%. IAG typically distributes 60–80% of its net profit after tax and has offered a Dividend Reinvestment Plan (DRP) to eligible shareholders. The current yield is considered attractive among Australian financials, reflecting the company’s improved profitability and strong capital position.
What is the forecast for Insurance Australia Group stock in 2025, 2026, and 2027?
Based on the current share price of AU$8.28, end-of-year projections are AU$10.76 for 2025, AU$12.42 for 2026, and AU$16.56 for 2027. IAG’s positive momentum is underpinned by strong financial results and steady growth in its core insurance segments. Analysts point to the company’s robust operational performance and disciplined risk management as key advantages for continued value appreciation.
Should I sell my Insurance Australia Group shares?
Holding onto Insurance Australia Group shares can be a prudent choice given its strategic resilience, improved claims management, and solid long-term fundamentals. The stock is currently trading below estimated fair value, and recent results reflect the benefits of operational enhancements and strong market positioning. Historically, IAG has recovered well from market challenges, and its ongoing investments in technology and customer service support further growth opportunities in the medium to long term.
How are dividends and capital gains from Insurance Australia Group shares taxed for Australian investors?
Dividends from Insurance Australia Group are generally subject to Australia’s dividend imputation system, which provides franking credits to prevent double taxation on company profits. Eligible Australian investors may use these credits to offset personal tax liabilities. Capital gains on IAG shares are subject to capital gains tax, with reduced rates applying if shares are held for over 12 months. The DRP is also available tax-free on reinvested dividends until shares are eventually sold.
