Key points
- IAG share price has fallen 0.94% today
- The company's shares are still outperforming the ASX 200 Financials Index
- The majority of brokers still rate the company as a buy
The Insurance Australia Group Ltd (ASX: IAG) share price is sliding again today despite no news from the company.
At market close on Monday the insurer's shares finished down 0.94%, at $4.24. However, in earlier trade they hit a low of $4.20.
Let's take a look at what's happening at the company.
What's happening at IAG?
The IAG share price may be in the red lately, but it is not alone. Since market close on Monday 24 January, the company's shares have fallen 3.19%.
IAG is the largest insurance company in Australia and New Zealand, insuring individuals and businesses.
The share price movement so far this year follows a tough 2021 when the company's shares fell 9%.
However, despite being down, the IAG share price is outperforming the S&P/ASX 200 Financials Index (ASX: XFJ) today. The financials index closed Monday down 1.84%.
Furthermore, since market close on 31 December, the financials index has fallen more than 6.5%. Meanwhile, the benchmark S&P/ASX 200 Index is down 6.35% year to date. Overall, IAG is outperforming both the financials index and broader ASX.
As my Motley Fool colleague Zach Bristow noted on Friday, most of the brokers covering the company rate it as a buy.
JP Morgan, for example, values the company at $5.45 per share and is bullish about its prospects:
IAG has a strong position in the Australian and NZ personal lines market, but has suffered in recent times from concerns around COVID-19 Business Interruption losses and concerns on market share losses in personal lines.
In early January, IAG finalised its catastrophe reinsurance program for 2022, maintaining its catastrophe cover for losses claims at up to $10 billion.
IAG Australia will be providing its half year results to the market in just under two weeks, on Friday 11 February.
IAG share price snapshot
The IAG share price has fallen 12.58% in a year and is down 0.47% this year to date.
In the past month, shares have fallen 1.85%, while they are down 2.75% the past week.
For perspective, the benchmark ASX 200 has returned 5.51% over the past year.
The company has a significant market capitalisation of $10.5 billion based on today's share price.
