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

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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

$7.05

19 Jul
2024

-0.070

OPEN

$7.02

-0.98%

HIGH

$7.07

3,723,509

LOW

$7.00

TARGET
$7.342 4.1% upside
Franking for last dividend paid out: 40%
OTHER COMPANIES IN THE SAME SECTOR
AUB . CVW . FCL . GDG . HLI . MPL . NHF . NOL . PSI . QBE . SDF . SUN . TWR .
FNARENA'S MARKET CONSENSUS FORECASTS
IAG: 1
Title FY22
Actual
FY23
Actual
FY24
Forecast
FY25
Forecast
EPS (cps) xxx 33.9 36.7 xxx
DPS (cps) xxx 15.0 27.9 xxx
EPS Growth xxx 100.0% 8.2% xxx
DPS Growth xxx 36.4% 86.0% xxx
PE Ratio xxx N/A 19.2 xxx
Dividend Yield xxx N/A 4.0% xxx
Div Pay Ratio(%) xxx 44.2% 76.0% xxx

Dividend yield today if purchased 3 years ago: 3.09%

DIVIDEND YIELD CALCULATOR

Dividend Yield Today On Last Actual Payout :

2.13

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: 21/02 - ex-div 10c (franking 40%)

HISTORICAL DATA ARE ALL IN AUD
Copyright © 2024 FactSet UK Limited. All rights reserved
Title 201820192020202120222023
EPS Basic xxxxxxxxxxxxxxx33.9
DPS All xxxxxxxxxxxxxxx15.0
Sales/Revenue xxxxxxxxxxxxxxx8,926.0 M
Book Value Per Share xxxxxxxxxxxxxxx272.4
Net Operating Cash Flow xxxxxxxxxxxxxxx452.0 M
Net Profit Margin xxxxxxxxxxxxxxx9.32 %

EPS Basic

DPS All

Sales/Revenue

Book Value Per Share

Net Operating Cash Flow

Net Profit Margin

Title 201820192020202120222023
Return on Capital Employed xxxxxxxxxxxxxxx12.99 %
Return on Invested Capital xxxxxxxxxxxxxxx9.30 %
Return on Assets xxxxxxxxxxxxxxx2.41 %
Return on Equity xxxxxxxxxxxxxxx12.99 %
Return on Total Capital xxxxxxxxxxxxxxx16.11 %
Free Cash Flow ex dividends xxxxxxxxxxxxxxx-

Return on Capital Employed

Return on Invested Capital

Return on Assets

Return on Equity

Return on Total Capital

Free Cash Flow ex dividends

Title 201820192020202120222023
Short-Term Debt xxxxxxxxxxxxxxx74 M
Long Term Debt xxxxxxxxxxxxxxx2,562 M
Total Debt xxxxxxxxxxxxxxx2,636 M
Goodwill - Gross xxxxxxxxxxxxxxx2,830 M
Cash & Equivalents - Generic xxxxxxxxxxxxxxx1,353 M
Price To Book Value xxxxxxxxxxxxxxx2.09

Short-Term Debt

Long Term Debt

Total Debt

Goodwill - Gross

Cash & Equivalents - Generic

Price To Book Value

Title 201820192020202120222023
Capex xxxxxxxxxxxxxxx0.0 M
Capex % of Sales xxxxxxxxxxxxxxx0.00 %
Cost of Goods Sold xxxxxxxxxxxxxxx-
Selling, General & Admin. Exp & Other xxxxxxxxxxxxxxx2,108 M
Research & Development xxxxxxxxxxxxxxx-
Investments - Total xxxxxxxxxxxxxxx10,940 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

0.5

No. Of Recommendations

6
BROKER DATE RATING RECOMMENDATION TARGET PRICE % TO REACH TARGET COMMENTARY

Macquarie

xx/xx/xxxx

1

xxxxxxxxxx

$xx.xx

xx.xx%

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Ord Minnett

xx/xx/xxxx

1

xxx

$xx.xx

xx.xx%

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Morgans

xx/xx/xxxx

3

xxxx

$xx.xx

xx.xx%

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Citi

01/07/2024

1

Buy

$8.00

13.48%

Insurance Australia Group's new reinsurance deal is expected to lower earnings volatility and increase return on equity from FY26 onward, despite higher near-term costs, Citi highlights.

Some $350m in capital is freed up and this lifts the possibility of capital returns, such as a share buyback, the broker notes.

Favourable weather helps lift the broker's earnings estimates by 6% for FY24 and -5% for FY25 from the new reinsurance deal.

The target is raised to $8 from $6.75 and the Buy rating unchanged.

FORECAST
Citi forecasts a full year FY24 dividend of 28.00 cents and EPS of 38.90 cents.
Citi forecasts a full year FY25 dividend of 30.00 cents and EPS of 39.20 cents.

UBS

xx/xx/xxxx

3

xxxxxxx

$xx.xx

xx.xx%

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Morgan Stanley

xx/xx/xxxx

3

xxxxx-xxxxxx

$xx.xx

xx.xx%

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EXPERT VIEWS
Display All Commentary

No. Of Recommendations

2
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

04/07/2024

2

Downgrade to Overweight from Buy

$7.35

4.26%

Insurance Australia Group has announced two significant new reinsurance covers, in an attempt to deliver a higher return on equity (ROE) metric with greater downside protection, explains Jarden.

Underwriting profits from above-budget CAT costs and prior year reserve top-ups have eroded around -25% of underlying insurance trading ratio (ITR) profits over the past five years, points out the broker.

The broker's rating is downgraded to Overweight from Buy on valuation, but the target rises to $7.35 from $6.80 after incorporating a lower weighted average cost of capital (WACC) and a higher PE relative multiple.

FORECAST
Jarden forecasts a full year FY24 dividend of 28.00 cents and EPS of 37.70 cents.
Jarden forecasts a full year FY25 dividend of 31.00 cents and EPS of 40.90 cents.

IAG STOCK CHART