INSURANCE AUSTRALIA GROUP LIMITED (IAG)
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IAG

IAG - INSURANCE AUSTRALIA GROUP LIMITED

FNArena Sector : Insurance
Year End: June
GICS Industry Group : Insurance
Debt/EBITDA: N/A
Index: ASX50 | ASX100 | ASX200 | ASX300 | ALL-ORDS

Insurance Australia Group is an insurance company formed by the demutualisation of the NRMA Insurance business in July 2000. It is not a customer-facing brand, but an umbrella organisation that holds many well known insurance brands in Australia, NZ and Asia, incl NRMA Insurance and CGU.

LAST PRICE CHANGE +/- CHANGE % VOLUME

$8.65

23 May
2025

-0.100

OPEN

$8.59

-1.14%

HIGH

$8.73

4,214,646

LOW

$8.56

TARGET
$8.754 1.2% upside
Franking for last dividend paid out: 60%
OTHER COMPANIES IN THE SAME SECTOR
AUB . CVW . FCL . GDG . HLI . MPL . NHF . NOL . QBE . SDF . SUN . TWR .
FNARENA'S MARKET CONSENSUS FORECASTS
IAG: 1
Title FY23
Actual		 FY24
Actual		 FY25
Forecast		 FY26
Forecast
EPS (cps) xxx 37.3 46.0 xxx
DPS (cps) xxx 27.0 30.1 xxx
EPS Growth xxx 10.0% 23.2% xxx
DPS Growth xxx 80.0% 11.6% xxx
PE Ratio xxx N/A 18.8 xxx
Dividend Yield xxx N/A 3.5% xxx
Div Pay Ratio(%) xxx 72.4% 65.5% xxx

Dividend yield today if purchased 3 years ago: 6.04%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

 3.12

Estimated Dividend Growth
(Average Of Past Three Years)

  %

Amount Invested

 $ 

Tell Me The Dividend After This Many Years
Past performance is no guarantee for the future. Investors should take into account that heavy swings in share price or exceptional circumstances (a la 2009) can have a significant impact on short term calculations and averages

Last ex-div: 29/08 - ex-div 17c (franking 50%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2025 FactSet UK Limited. All rights reserved
Title 201920202021202220232024
EPS Basic xxxxxxxxxxxxxxx37.3
DPS All xxxxxxxxxxxxxxx27.0
Sales/Revenue xxxxxxxxxxxxxxx16,325.0 M
Book Value Per Share xxxxxxxxxxxxxxx281.0
Net Operating Cash Flow xxxxxxxxxxxxxxx1,800.0 M
Net Profit Margin xxxxxxxxxxxxxxx5.50 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201920202021202220232024
Return on Capital Employed xxxxxxxxxxxxxxx13.49 %
Return on Invested Capital xxxxxxxxxxxxxxx9.58 %
Return on Assets xxxxxxxxxxxxxxx2.96 %
Return on Equity xxxxxxxxxxxxxxx13.49 %
Return on Total Capital xxxxxxxxxxxxxxx16.98 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx703.0 M

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201920202021202220232024
Short-Term Debt xxxxxxxxxxxxxxx70 M
Long Term Debt xxxxxxxxxxxxxxx2,867 M
Total Debt xxxxxxxxxxxxxxx2,937 M
Goodwill - Gross xxxxxxxxxxxxxxx2,821 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1,841 M
Price To Book Value xxxxxxxxxxxxxxx2.54

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201920202021202220232024
Capex xxxxxxxxxxxxxxx637.0 M
Capex % of Sales xxxxxxxxxxxxxxx3.90 %
Cost of Goods Sold xxxxxxxxxxxxxxx-
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx1,873 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx11,695 M

Capex

Capex % of Sales

Cost of Goods Sold

Selling, General & Admin. Exp & Other

Research & Development

Investments - Total

EXPERT VIEWS
Display All Commentary

Sentiment Indicator

0.4

No. Of Recommendations

5
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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UBS

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Citi

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgan Stanley

16/05/2025

3

Equal-weight

$7.95

-8.09%

Insurance Australia Group is targeting over 10% EPS accretion from the proposed acquisitions of RACI (RAC Insurance in Western Australia) and RACQ (Royal Automobile Club of Queensland Insurance).

Morgan Stanley sees limited room for error in the plan, highlighting risks to dividend sustainability and the potential need for an equity raising.

While the RACI deal is financially compelling, with around 6.5% EPS accretion expected, execution risk remains high given regulatory hurdles and elevated gearing, caution the analysts.

Equal-weight. Target rises to $7.95 from $7.85. Industry View: In-Line.

FORECAST
Morgan Stanley forecasts a full year FY25 dividend of 33.00 cents and EPS of 47.50 cents.
Morgan Stanley forecasts a full year FY26 dividend of 30.00 cents and EPS of 42.90 cents.

Ord Minnett

xx/xx/xxxx

-1

xx xxxxxx

xx.xx%

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Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Access Stockbroker Research History >
EXTRA COVERAGE
Display All Commentary

No. Of Recommendations

2

Please note: unlike Broker Call Report, BC Extra is not updated daily. The info you see might not be the latest. FNArena does its best to update ASAP.

BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Goldman Sachs

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Jarden

20/05/2025

2

Overweight

$8.00

-7.51%

Jarden raises its target for Insurance Australia Group to $8.00 from $7.70, reflecting near-term earnings upside but increasing regulatory risk tied to the proposed RAC acquisition.  The broker's rating is also upgraded to Neutral from Overweight.

IAG will acquire RAC Insurance for -$1.35bn and enter a 20-year distribution agreement with RAC, creating a combined circa 60% share of the WA personal insurance market, observes the broker.

While the transaction is seen as strategically sound and EPS accretive by mid-to-high single digits post-synergies, Jarden highlights concerns about regulatory approval and market concentration.

The acquisition is expected to be funded organically and through modest capital initiatives, note the analysts.

FORECAST
Jarden forecasts a full year FY25 dividend of 35.00 cents and EPS of 47.50 cents.
Jarden forecasts a full year FY26 dividend of 31.00 cents and EPS of 42.20 cents.
Access Extra Coverage Research History >

IAG STOCK CHART

FNArena News on IAG

1
Next Week At A Glance – 26-30 May 2025

May 23 2025 - Weekly Reports
2
Australian Broker Call *Extra* Edition – May 20, 2025

May 20 2025 - Daily Market Reports
3
Next Week At A Glance – 19 – 23 May 2025

May 16 2025 - Weekly Reports
4
Australian Broker Call *Extra* Edition – Apr 22, 2025

Apr 23 2025 - Daily Market Reports
5
Australian Broker Call *Extra* Edition – Apr 20, 2025

Apr 22 2025 - Daily Market Reports

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