The Insurance Australia Group Ltd (ASX: IAG) share price is on a bit of a rollercoaster today.
Shares in the S&P/ASX 200 Index (ASX: XJO) insurance company closed yesterday trading for $9.03. In morning trade on Tuesday, shares are changing hands for $9.12 apiece, up 0.9% after earlier trading in the red.
For some context, the ASX 200 is up 0.3% at this same time.
Here's what investors are mulling over this morning.
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IAG share price slips on trading update
The IAG share price is back in the green following the release of a natural perils and financial guidance update before market open this morning.
Turning to the natural perils first, the ASX 200 insurer estimates that its FY 2025 natural perils costs will come in at approximately $1.08 billion.
That's some $200 million less than IAG's FY 2025 natural perils allowance. And it includes more than 4,000 claims that were lodged following the New South Wales Mid North Coast and Hunter Floods events in May. That estimated net cost was reported to be approximately $100 million.
The IAG share price is also getting some support today with the company upgrading its FY 2025 reported insurance profit and margin guidance.
Management noted that, "based on the natural perils cost favourability", IAG's FY 2025 reported insurance profit guidance range increased to $1.60 billion to $1.80 billion. That's up from the prior profit guidance of $1.40 billion to $1.60 billion.
IAG also increased its reported insurance margin guidance range towards the top end of the 15.5% to 17.5% range. Previous guidance was towards the top end of the 13.5% to 15.5% range.
How about gross written premium growth?
Also potentially impacting the IAG share price today is the divergence of the company's gross written premium (GWP) growth between its Australian and New Zealand segments.
The ASX 200 insurance company said it expects overall FY 2025 GWP growth to be between 4% and 4.5%.
IAG noted that this includes "the impact of the Coles Group Ltd (ASX: COL) exit, adverse currency effects and multi-year workers' compensation premiums".
According to the company:
Growth is around 8% in Retail Insurance Australia's direct business with positive customer and unit momentum.
As stated in the financial update on 15 May 2025, IAG is delivering solid GWP growth in direct home and motor segments in Australia, however the New Zealand commercial business is experiencing softer market conditions.
IAG New Zealand expects to report broadly flat GWP growth in A$ terms (up around 1% in NZ$).
IAG is scheduled to release its audited full-year FY 2025 results on 13 August.
With today's intraday lift factored in, the IAG share price is up 28% since this time last year.
