The share price of ASX 200 financials giant Insurance Australia Group Ltd (ASX: IAG) is having a pretty ordinary year on the ASX.
So far, it’s gained just 4.03% since the start of 2021. IAG shares are currently trading for $4.91 apiece.
In the same time, the S&P/ASX 200 Index (ASX: XJO) has gained 12.18%. But even the ASX 200 has been beaten by the financial sector.
So, why is the ASX 200 insurance giant’s share price lagging behind? Let’s take a look.
What’s holding IAG back?
While the IAG share price has been showing some volatility this year, it’s been relatively restricted.
Its met resistance at $5.50, while its lowest point of support has been $4.38.
Yet, it’s been bouncing around in-between those points pretty much non-stop.
And the reason behind IAG’s furious stagnation? Likely, a lacklustre performance. IAG hasn’t released much in the way of jaw dropping news this year.
The company states, since it handed out its last franked dividend in early 2020, it hasn’t earned a profit.
Recently, IAG released slightly disappointing preliminary results for the 2021 financial year. While the results were within a bulls roar of what analysts had predicted, they didn’t quite hit the mark.
Additionally, IAG didn’t provide guidance for the 2022 financial year. However, it did forecast its reported insurance margin would be between 13.5% and 15.5% and it’s looking to increase its natural perils allowance to $765 million.