The Motley Fool

Warren Buffett-backed IAG shares flat on $640m sale of Indian business

The Insurance Australia Group Ltd (ASX: IAG) share price is marginally higher at $8.01 this morning after the insurance giant revealed a deal to sell its entire 26% interest in Indian insurer SBI General Insurance Company.

According to the announcement IAG is expecting to receive an FX-adjusted $640 million for the sale that will result in a net profit around $300 to be reflected in IAG’s bottom line over FY 2020. T

he insurer also reported that the deal will improve its regulatory capital adequacy position by more than $400 million. 

IAG is guiding for gross written premium (GWP) growth around 3% in FY 2020 with underlying margins (GWP – claims and other costs) across its Australian operations expected to tick marginally higher. 

The group has divested many of its Asian and overseas operations recently as it found it hard to maintain acceptable profit margins as risk was hard to price and claims costs and had a tendency to blow out in exotic markets. 

In a similar way to QBE Insurance Group Ltd (ASX: QBE) it’s now focusing on the more profitable and reliable home markets of Australia and New Zealand. 

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Insurance Australia Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!