The Insurance Australia Group Ltd (ASX: IAG) share price may be flat today, but that hasn't been the case for September. The insurance giant has encountered some heavy selling of its shares, falling the past 6 consecutive trading days.
At the time of writing, IAG shares remain unchanged at $5 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.08% to 7,242 points.
What's affecting the IAG share price
There are two main catalysts that have been weighing down the IAG shares this month.
The first is the broader market weakness on the ASX 200, which has fallen almost 4% in the last 3 weeks. Yesterday, the index plunged to its biggest one-day fall in more than 6 months, shedding 2.1%.
This had a knock-on effect for IAG shares, dropping 0.99% on Monday to a monthly low of $5.
Rising COVID-19 cases in Australia, along with the iron ore rout impacting the economy are being blamed for the fall. Furthermore, overseas losses are being felt as investors eagerly await the United States' Federal Reserve policy meeting later this week.
While the macro factors appear to unsettle IAG shareholders, the company has been facing its own internal issues.
IAG recently announced that CMC Hospitality filed an application starting a representative proceeding in the Federal Court.
The company said it has not been served with the application and isn't aware of the detailed nature of the application. Although, it appears to relate to insureds who hold policies with CGU and business interruption losses related to COVID-19.
In addition, IAG's chief risk officer, David Watts announced his resignation from the company. No reason was given for the departure, and Mr Watts will leave the company sometime in the new calendar year.
IAG will conduct an executive search to replace its chief risk officer.
IAG share price summary
Despite being significantly lower this month, IAG shares are posting a 10% gain since this time last year. However, when looking at the last 2 years, its shares are down almost 40%.
Based on today's price, IAG presides a market capitalisation of roughly $12.3 billion and has approximately 2.4 billion shares outstanding.
