The Insurance Australia Group Ltd (ASX: IAG) share price just capped off a year to remember.
Shares in the S&PASX 200 Index (ASX: XJO) insurance company closed out 2023 trading for $5.66. When the closing bell sounded on 31 December 2024, those same shares were changing hands for $8.46.
That put the IAG stock up a remarkable 49.5% over the year. For some context, the ASX 200 gained 7.5% in 2024.
And this is a company with a market cap north of $20 billion we're talking about, not some speculative ASX microcap stock. And we haven't even included the 27 cents a share in partly franked dividends IAG paid out over the year.
If we add those back in, the cumulative value of shares in the ASX 200 insurance stock leapt 54.2% in 2024.
Here's what went right for the IAG share price in the year just past.
Image source: Getty Images
How did the IAG share price rocket 50% in 2024?
As you can see on the chart up top, the IAG share price was in a pronounced uptrend throughout 2024 amid strong financial growth metrics posted over the year.
IAG reported its full FY 2024 results on 21 August.
Highlights included a 7.9% year-on-year increase in net profit after tax (NPAT) to $898 million. While IAG's reported insurance margin lifted by 6.0% from FY 2023 to 15.6%.
The insurance company's gross written premium (GWP) also grew strongly, coming in at $16.4 billion for the year, up 11%.
Likely stoking ASX 200 investor interest, IAG said it was aiming for FY 2025 GWP growth in the "mid-to-high single digits".
ASX 200 insurer roars to multi-year highs
The IAG share price received another big boost on 28 November,
That's when the company announced that it had entered into a 25-year exclusive strategic alliance to provide general insurance products and services for RACQ members and Queenslanders.
Under the agreement, IAG will acquire 90% of RACQ's existing insurance underwriting business for a consideration of $855 million. IAG has the option to acquire the remaining 10% in two years.
"IAG has a well-established presence in Queensland through our trusted insurance brands, and we are excited to now help protect and serve RACQ's members," IAG CEO Nick Hawkins said on the day.
Hawkins added:
RACQ will maintain brand and customer relationships, while leveraging IAG's scale and financial strength, best-in-class technology for claims, policies and pricing, customer orientated claims experience and underwriting expertise.
At the close of trade on Friday, the IAG share price was up 0.65% so far in 2025, with shares trading for $8.515 each.
