INSURANCE AUSTRALIA GROUP LIMITED (IAG)
Share Price Analysis and Chart

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

14/08/2026

1

Buy

$9.25

15.05%

While the FY26 result from Insurance Australia Group missed estimates slightly, on further review UBS notes the share price reaction and moves over the past week are overdone. This provides a more appealing entry point to the stock.

Several drivers combine to imply 11%  underlying ITR profit growth in FY27, with potential for further upside should the acquisition of RAC be completed. Buy rating. Target is reduced to $9.25 from $9.45.

****

UBS observes on first take, Insurance Australia Group's FY26 cash NPAT of $1.025bn was -2.8% below expectations, and -4.1% below consensus, reflecting higher minority interests, while underlying insurance profit also missed forecast by -4.8%.

The weaker underlying resulted from higher reinsurance costs and a 15.0% underlying insurance margin, with NZ Intermediated the main area of weakness, while RACQ remained below potential despite improving materially in 2H.

Positively, FY27 GWP growth guidance of 5%-8% is well ahead of consensus at 3.6%, supported by growth across Retail and Intermediated and a full-year contribution from RACQI, the analyst highlights.

Reported insurance margin guidance of 14.5%-16.5% also points to improvement, with UBS noting potential upside of around 1ppt if natural peril costs track below the company's allowance.

Buy. Target $9.45.

FORECAST
UBS forecasts a full year FY27 dividend of 33.00 cents and EPS of 48.00 cents.
UBS forecasts a full year FY28 dividend of 35.00 cents and EPS of 51.00 cents.

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

17/08/2026

3

Neutral

$7.85

-2.36%

Jarden retains a Neutral rating for Insurance Australia Group with its target price decreased to $7.85 from $8.00 following a slightly soft headline result featuring divergent trends across product lines and geographies.

During the second half of FY26, RIA ex-RACQ delivered top-line re-acceleration alongside margin expansion, whereas competitive intensity drove sharp declines across New Zealand top-line performance and margin erosion.

The analyst views FY27 gross written premium guidance of 5%-8% as optimistic, noting reliance on foreign exchange benefits or material improvements within New Zealand intermediated channels.

The broker's estimates consider the mid-point of margin guidance reasonable, largely underpinned by cost reductions and a stronger interest rate outlook.

The analyst suggests the final RACWA decision presents a positive catalyst by either supporting further expansion across personal lines or potentially underpinning a share buyback exceeding $1bn.