The Insurance Australia Group Ltd (ASX: IAG) share price is in focus today after IAG's 2025 AGM revealed a 4.3% lift in gross written premium to $17.1 billion and upgraded FY26 guidance, reflecting continued earnings strength and growth.
What did Insurance Australia Group report?
- Gross written premium (GWP) rose 4.3% to $17.1 billion in FY25
- Net profit after tax (NPAT) reached $1.36 billion, up from $898 million in FY24
- Reported insurance profit of $1.74 billion, with a margin of 17.5%
- Return on equity improved to 19.4%
- Full year dividend of 31.0 cents per share, up 14.8% on FY24
- Upgraded FY26 guidance: approx. 10% GWP growth and $1.55–$1.75 billion insurance profit
What else do investors need to know?
IAG highlighted its expanded partnerships, having completed the $855 million acquisition of RACQ's general insurance business in September. Another strategic alliance with RAC WA, valued at $1.3 billion, is awaiting regulatory approval, building IAG's position as a leader in Australian and New Zealand insurance.
Customer satisfaction remains strong, shown by a 98% settlement rate for Australian retail claims and robust renewal figures. IAG is investing heavily in digital platforms and sustainability initiatives, supporting future growth and community resilience.
What did Insurance Australia Group management say?
Nick Hawkins, Managing Director and CEO, said:
Today we are upgrading our FY26 guidance to include that [RACQ] transaction. We expect our premium growth to increase from 'low-to-mid-single-digit' to 'approximately 10%' reflecting the acquisition of RACQI for 10 months of the financial year. Additionally, the reported insurance profit guidance increases by $100 million from a range of '$1.45 billion to $1.65 billion' to a range of '$1.55 billion to $1.75 billion', which includes an increase in the perils allowance to reflect the addition of the RACQ portfolio. All of this equates to a reported insurance margin of 14% to 16% which has been maintained.
What's next for Insurance Australia Group?
Looking ahead, IAG aims to maintain strong capital and scale benefits from recent acquisitions while continuing to invest in new technology and customer service improvements, including a Commercial Enterprise Platform for its intermediated business.
The company expects premium growth and profits to accelerate in FY26, thanks to RACQ contributions and stable insurance margins. Management will keep focusing on long-term shareholder value and greater sustainability, alongside ongoing regulatory engagement for new ventures.
Insurance Australia Group share price snapshot
Over the past 12 months, the Insurance Australia Group share price has risen 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 8% over the same period.
