What did Insurance Australia Group report?

• Proposed acquisition of RAC Insurance enters Phase 2 review by the ACCC.
• ACCC says the deal could substantially lessen competition in WA's insurance market.
• No conclusion reached yet – review continues under the new formal merger regime.
• Submissions on the Phase 2 Notice are invited until 4 May 2026.

What else do investors need to know?

The ACCC's review focuses on the competitive impacts across both the motor vehicle and home and contents insurance markets in Western Australia. The regulator is also examining implications for related services like smash repairs, given the market share of both companies in the region.

IAG previously reapplied for approval under the new merger regime that started in January 2026, after the ACCC didn't clear the deal under the old informal process last year. The current review will take up to 90 business days unless extended, allowing the ACCC to explore competition impacts in detail.

What's next for Insurance Australia Group?

Investors can expect more updates as the ACCC's Phase 2 review progresses. The outcome will determine whether IAG can proceed with bringing RACI into its portfolio and underwriting its home and motor insurance products under the RAC brand.

For now, IAG continues to operate its existing brands across Australia and New Zealand, including partnerships and underwriting for third parties. The company's growth strategy depends partly on the outcome of this high-profile merger review.

Insurance Australia Group share price snapshot

Over the past 12 months, Insurance Australia Group shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Insurance Australia Group's RAC Insurance deal faces ACCC Phase 2 review appeared first on The Motley Fool Australia.

The market was closed on Monday as Australians celebrated Easter.

The S&P/ASX 200 Index (ASX: XJO) ripped 4.41% to 8,960.6 points over the four trading days.

The remarkable recovery followed news of a two-week ceasefire deal between the US and Iran.

ASX investors hope this will pave the way toward an end to the war in Iran.

Investors continued to buy the dip last week following the steep sell-off over the first three weeks of March.

ASX 200 shares fell 9.1% between 2 March and 23 March before a rebound began, with the index now up 7.1% since then.

James Gerrish from Shaw and Partners says "war fear" in the market is fading but "we're not out of the woods yet".

Businesses across multiple sectors are still assessing the impact of the oil shock, which is likely to reverberate for months to come.

Let's recap the week.

Financial shares led the ASX sectors last week

The ASX 200 financial sector incorporates bank shares, insurers, fund managers, financial services providers, and more.

Let's take a look at how some of these ASX financial stocks performed last week.

The Commonwealth Bank of Australia (ASX: CBA) share price rose 5.98% to close at $183.38 on Friday.

ANZ Group Holdings Ltd (ASX: ANZ) shares lifted 6.31% to $38.84.

Westpac Banking Corp (ASX: WBC) shares ascended 6.87% to $42.77.

The National Australia Bank Ltd (ASX: NAB) share price spiked 9.06% to $45.36.

The Macquarie Group Ltd (ASX: MQG) share price soared 9.3% to finish the week at $225.

Among the ASX 200 investment companies and fund managers, GQG Partners Inc (ASX: GQG) shares fell 0.28% to $1.78.

Magellan Financial Group Ltd (ASX: MFG) shares fell 0.84% to $9.45 amid a shareholder vote on the Barrenjoey merger on Friday.

Magellan announced it had received more than 90% approval from shareholders.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares lifted 3.92% to $42.98.

Among the financial services providers, AMP Ltd (ASX: AMP) shares lifted 6.06% to $1.37.

The Challenger Ltd (ASX: CGF) share price lost 2.6% to close at $8.07 on Friday.

ASX 200 buy now, pay later share Zip Co Ltd (ASX: ZIP) ripped 16.5% to $1.85.

Among the insurers, Insurance Australia Group Ltd (ASX: IAG) shares fell 1.03% to $7.21.

Medibank Private Ltd (ASX: MPL) shares lifted 1.92% to $4.52.

The QBE Insurance Group Ltd (ASX: QBE) share price ascended 4.13% to $22.46.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the four trading days:

Looking for inspiration after the March sell-off?

Check out these 7 ASX 200 shares just upgraded to strong buy consensus ratings after last month's turmoil.

The post ASX 200 shares rip with financials leading a remarkable recovery last week appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 5% to $3.63. This appears to have been driven by a de-escalation in Middle East tensions. Some investors may believe that this could mean less demand for counter-drone technology solutions than expected. Not even the release of an announcement has stopped its shares from falling. DroneShield announced new interoperability between its DroneSentry-C2 command-and-control software and optical sensing technologies from OpenWorks Engineering. DroneShield's chief product officer, Angus Bean, said: "Operators need clarity, not complexity. Expanding our ecosystem with additional optical sensing technologies from OpenWorks Engineering gives customers more options to tailor their deployments, while SensorFusionAI ensures all inputs are combined into a clear, operational picture."

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 3% to $16.75. This is despite there being no news out of the quick service restaurant operator. However, with its shares among the most shorted on the Australian share market, it is possible that short sellers have been increasing their positions and putting pressure on its share price.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 1.5% to $7.32. This may have been driven by a broker note out of Morgan Stanley this morning. It has downgraded the insurance giant's shares to an underweight rating with a $6.60 price target. Morgan Stanley has concerns over AI disruption, believing that AI agents could put pressure on premiums by finding consumers better prices.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is down almost 3% to 28.2 cents. This department store operator's shares were up as much as 17% today before taking an almighty U-turn. After initially responding positively to Myer's half-year results, the market appears to have seen something it didn't like. Myer reported total sales growth of 24.5% to $2,279.5 million including acquired businesses. On a pro forma basis, which adjusts for the inclusion of Apparel Brands in both periods, sales were up 2.1%. The company's underlying net profit after tax climbed 21.7% to $51.7 million, allowing the board to declare a fully franked interim dividend of 1.5 cents per share.

The post Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today appeared first on The Motley Fool Australia.

The RBA announced an increase of the cash rate target by 0.25%, bringing Australia's official interest rate to 4.10%.

The decision was largely due to rising inflation according to the board. 

Australia's benchmark index, the S&P/ASX 200 Index (ASX: XJO) crawled roughly 0.3% higher in Tuesday's trade following the news. 

How does the cash rate impact ASX shares?

The RBA Cash Rate plays a central role in shaping the performance of ASX-listed shares. 

When the cash rate rises, borrowing becomes more expensive for businesses and consumers, which can slow economic activity and reduce company profits, often putting downward pressure on share prices. 

Higher rates also make fixed-income investments like bonds more attractive relative to equities, leading some investors to shift money out of shares. 

Conversely, when the cash rate falls, borrowing is cheaper, encouraging spending and investment, which can boost corporate earnings and generally support higher share prices. 

In this way, changes in the cash rate influence both company fundamentals and investor behavior across the ASX.

For the everyday consumer, changes in the cash rate affect how much they pay on mortgages, loans, and credit cards, influencing their spending power and overall cost of living.

While past performance does not guarantee future returns, here are ASX shares that may benefit from a higher rate environment. 

Insurance companies

Insurers can benefit from interest rate rises because they invest premiums and earn more when yields rise. 

This could be ideal for ASX shares like: 

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Insurance Australia Group Ltd (ASX: IAG)

All three saw share price rises yesterday on the back of the RBA announcement. 

In simple terms, higher interest rates = higher investment returns on premiums, which directly lifts insurers' earnings.

QBE and IAG have also attracted positive analysis from brokers recently, indicating it could outperform markets in the short-term. 

Financial and cash-sensitive businesses

Two other ASX shares that could outperform due to rising interest rates are: 

• Macquarie Group Ltd (ASX: MQG)
• Computershare Ltd (ASX: CPU)

These companies directly earn more income from cash balances or client funds. 

For example, Computershare's profits can rise significantly as interest earned on client balances increases.

Meanwhile, Macquarie Group can benefit from higher interest rates because it earns more income on its large pools of client funds and investments, while also profiting from increased margins in its lending and financial services businesses.

The company also has a long track record of generating strong profits across market cycles.

The post 5 ASX shares that could benefit from rising interest rates appeared first on The Motley Fool Australia.

IAG shares are now 9.01% lower for the year-to-date and 3.2% lower than 12 months ago.

What has happened to IAG shares so far in 2026?

IAG shares have been volatile over the past 12 months, fluctuating between $6.39 and $9.18 per share. 

Most recently, the shares crashed nearly 18% last month. 

There was no price-sensitive news out of the company at the time, so it's possible the share price decline started with investors taking gains off the table ahead of the company's first-half FY26 results mid-month.

The company's half-year FY26 results showed a significant drop in profit. For the six months to 31st December 2025, IAG's revenue was up 23.3%, but its net profit after tax dropped 35.1%. 

Despite the decline, IAG maintains its FY26 profit guidance of between $1,550 million and $1,750 million. But investor sentiment had already been dented, and the share price continued tumbling to a two-year low of $6.44 in early March.

At the same time, extreme country-wide weather conditions such as bushfires and widespread flooding have created headwinds for the insurance business.

Many have raised concerns about the number of insurance claims and reinsurance costs. And investors are apprehensive about what this might mean for the business.

There isn't any more price-sensitive news out of IAG to explain the latest turnaround. But analysts reiterated their buy ratings on the stock following the results announcement last month, flagging that the shares are now undervalued and oversold. Perhaps investor sentiment is finally following suit?

And there could be a lot more to come…

Earlier this year, IAG successfully integrated its RACQ Insurance (RACQI) business into its main catastrophe cover and expanded its WAQS arrangements to cover 35% of the consolidated business. 

The company has maintained RACQI's separate, standalone reinsurance program, which includes quota share and catastrophe protections.

For 2026, IAG's total catastrophe reinsurance program provides main catastrophe cover for two events up to $10 billion, with an attachment point at $500 million.

And analysts expect that the combined impact of recent catastrophes and broader claims inflation will influence upcoming renewals as insurers manage loss ratios and capital requirements.

This means that if weather conditions normalise or decline, earnings could rebound quickly, potentially leading to higher dividends, a share buyback, and increased investor confidence in IAG shares.

TradingView data shows analysts are very bullish on IAG shares. Out of 11 analysts, 7 have a buy or strong buy rating. The maximum target price is $9.80, which implies a 36.36% upside at the time of writing. 

The post IAG shares jump 12%: Buy, sell or hold? appeared first on The Motley Fool Australia.

By the time the markets closed this Wednesday, the ASX 200 had risen by another 0.59% after staying in green territory all session, leaving the index at 8,743.5 points. 

This happy hump day for the local markets comes after a nervous morning over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was volatile, but ended up closing 0.072% lower.

Things were a bit better for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC), though, which overcame its own shakiness to finish 0.0051% higher.

But let's get back to the Australian share market now and see what was happening amongst the various ASX sectors today.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The ASX All Ords reached a new record of 9,436.1 points in earlier trading.

However, this rising market tide is not lifting all boats.

The following three ASX All Ords shares hit new 52-week lows this week.

Experts say they are a buying opportunity.

Here's why.

Insurance Australia Group Ltd (ASX: IAG)

This ASX All Ords financial share hit a 52-week low of $6.57 this week.

The IAG share price has fallen 15% over 12 months.

After poring over the insurance giant's 1H FY26 report, Jefferies maintained its buy rating on IAG shares.

The broker has a 12-month price target of $9.20, suggesting a possible 40% capital gain over the next year.

Seek Ltd (ASX: SEK)

This ASX All Ords communications share tumbled to a 52-week low of $15.63 this week.

The Seek share price has fallen 31% over 12 months.

After reviewing the company's 1H FY26 report, Morgans upgraded Seek shares to a buy rating.

Morgans said:

SEK's 1H26 result was largely as per expectations with net revenue (+12% on pcp), Adjusted EBITDA (+19% on pcp) and adjusted NPAT (+35% on pcp) all broadly in line with Visible Alpha consensus and MorgansF.

We make only marginal adjustments to our forecasts taking into account the updated guidance.

The broker added that Seek "still many questions to answer on the AI threat".

Morgans kept its 12-month share price target at $27.50.

This implies an attractive potential upside of 75% over the next year.

Suncorp Group Ltd (ASX: SUN)

Fellow insurance giant Suncorp also fell to a 52-week low this week.

The ASX All Ords financial share reached a low of $14.21 on Tuesday.

The Suncorp share price has declined by 27% over 12 months.

Morgans maintained its accumulate rating after seeing Suncorp's 1H FY26 numbers.

The broker said:

SUN's 1H26 NPAT (A$263m) was well down on the pcp ($1.1bn) due to bad weather, but it was only -2% below consensus ($268m).

Overall, we saw this as a reasonable result, albeit similar to key peer IAG, SUN did deliver a mild downgrade to FY26 top-line growth guidance.

We make relatively nominal changes to our SUN FY26F/FY27F EPS of -2%/+1% on a review of our earnings assumptions.

The broker slashed its 12-month share price target on Suncorp from $19.28 to $17.01.

This still suggests a possible 20% upside over the next year.

The post Experts say IAG shares and 2 other stocks are buys at 52-week lows this week appeared first on The Motley Fool Australia.

The S&P/ASX 200 Financials Index (ASX: XFJ) is currently up 0.2% while the S&P/ASX 200 Index (ASX: XJO) is down 0.16%.

As earnings season continues, the following two financial sector companies have revealed their latest reports.

The reports prompted experts to reassess their ratings and 12-month price targets on these ASX 200 financial shares.

Let's take a look.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is 2.2% higher at $7.11 on Friday.

Last week, the insurance giant reported a 23% revenue lift to $11.14 billion but a 35.1% decrease in net profit after tax (NPAT) for 1H FY26.

After reviewing the numbers, the experts have revised their ratings and 12-month targets.

Jarden reiterated its buy rating and shaved its share price target down from $8.20 to $8.10.

Jefferies also kept a buy rating with a price target of $9.20.

JP Morgan kept its buy rating on IAG shares with a price target of $7.70.

Macquarie reiterated its buy rating with a price target of $9.

UBS maintained its buy rating with a price target of $9.

Morgan Stanley kept its hold rating and reduced its price target from $8.45 to $7.50.

The IAG share price reached an all-time high of $9.18 in June 2025.

AMP Ltd (ASX: AMP)

The AMP share price is down 1% to $1.36 at the time of writing.

Last week, AMP reported its full-year FY25 results.

AMP reported a 20.8% lift in underlying NPAT to $285 million, but an 11.3% fall in statutory NPAT to $133 million.

The wealth manager said the statutory NPAT decline reflected legacy legal settlements.

The AMP share price tumbled 27% on the news and experienced its biggest intraday fall since 2003.

Brokers have reviewed the report and reassessed their ratings and targets.

Jarden upgraded AMP shares to a buy but reduced its 12-month price target from $1.85 to $1.65.

Morgan Stanley retained its buy rating on the ASX 200 financial share with a lowered price target of $1.90 (from $2.20).

Jefferies also kept a buy rating with a price target of $1.75.

Ord Minnett upgraded AMP shares to a buy but cut its target from $2.05 to $1.65.

Citi reiterated its buy rating but reduced its 12-month price target from $2.10 to $1.80.

UBS maintained its buy rating and lowered its target from $1.90 to $1.75.

Macquarie kept its buy rating with a price target of $1.80.

The AMP share price hit a 52-week high of $13.73 in August 2025.

The post Brokers re-rate IAG and AMP shares after earnings results appeared first on The Motley Fool Australia.

It's welcome news for investors after the insurance shares have dropped nearly 10% since the start of February. And the stock is now 11.92% lower than this time last year.

What happened to IAG shares this month?

IAG started dropping on Monday last week. There was no price-sensitive news out of the company at the time, so it's possible that investors were taking gains off the table ahead of the company's first half FY26 results. 

Extreme wet weather events, particularly in NSW and Queensland which would result in a surge of insurance claims and increased payouts, likely dented investor confidence too. A higher number of claims generally reduces profit margins for insurers like IAG.

Investors were right to be apprehensive. The company's half-year FY26 results, posted on Thursday, showed a significant drop in profit.

For the six months to 31st December 2025, IAG's revenue was up 23.3% but its net profit after tax dropped 35.1%.

Despite the decline, IAG maintains its FY26 profit guidance of between $1,550 million and $1,750 million.

Why I think the share price could jump higher

While IAG shares tumbled in February, I think there is potential for the stock to storm up to $10 per share this year. Here's why.

IAG is likely to hike its home and motor insurance premiums following high claims from several extreme weather events across the country over the past few months. 

According to a report by The Australian, market analysts expect the combined impact of recent catastrophes and broader claims inflation to flow through to upcoming renewals as insurers work to manage loss ratios and capital requirements.

This means that if weather conditions normalise (or at least the number of extreme events reduces, even slightly) earnings could rebound fast. This translates through to better dividends for investors and possible share buybacks. It could also drum up more investor confidence (or interest) in IAG shares, which would in turn drive the price higher. 

Analysts are very bullish on the outlook for IAG shares right now. Out of 11 analysts, 7 have a buy or strong buy rating. The maximum target price is $9.80, which implies a 42.65% upside at the time of writing. And I think, if the pieces of the puzzle fall into place, the shares could well break the $10 barrier this year.

The post Prediction: IAG shares could jump to $10 in 2026 appeared first on The Motley Fool Australia.

We've canvassed the views of two brokers, and it's fair to say they are broadly positive.

But first, let's look at the results.

Solid underlying performance

IAG reported an underlying insurance profit of $804 million, up 7.6% on the previous corresponding period, on $8.93 billion in premiums written, up 6%.

The company declared a steady dividend of 12 cents per share and also announced an on-market share buyback worth up to $200 million.

IAG Managing Director Nick Hawkins said the result demonstrated the strength of the business.

He went on to say:

Today's results show the work we've done to deliver a more stable earnings profile, maintain a strong underlying margin, and ensure Australia and New Zealand are well protected through our comprehensive reinsurance program which now includes RACQI. Various major hailstorms and severe weather events in October and November across south-east Queensland and northern NSW resulted in significant claims for insurers , including more than 35,000 for IAG as customers were supported through adversity. The severe weather was an opportunity to demonstrate the strength of IAG's customer support. Our response was faster and even more targeted as a result of our new, proprietary Situation Awareness Map, powered by AI, data, and satellite technology.

On the outlook, IAG slightly downgraded its forecast for full-year gross written premiums (GWP) to high single digits, down from 10% previously, and maintained its FY26 insurance profit guidance range of $1.55 to $1.75 billion.

Shares looking cheap

The analysts at Morgan Stanley looked at the results and said there could be some upside, with "some potential in the near-term for higher pricing to emerge or investment yields to rise or extra reinsurance deals to unlock capital, though these are not in our base case''.

They also added that insurance companies wouldn't be immune from fears around artificial intelligence.

As they wrote:

Given recent market debate about increasing competition from AI-powered price discovery in personal lines, we think the lower topline growth will be a point of concern for investors.

Morgan Stanley has a price target of $7.50 on IAG shares against the current price of $6.89.

Macquarie is more bullish on the stock with a price target of $9.

It said:

At current valuations we believe the stock is cheap, with earnings (and dividends) quarantined in 2H26 and reinsurance costs protected for the next three years.  

The post IAG shares could go how high? appeared first on The Motley Fool Australia.

What did Insurance Australia Group report?

• Revenue: $11.14 billion, up 23.3% from 1H25
• Net profit after tax (NPAT): $505 million, down 35.1%
• Gross written premium (GWP): $8.93 billion, up 6.0%
• Reported insurance margin: 13.5%, down from 19.4%
• Interim dividend: 12 cents per share, franked to 25%
• Return on equity (ROE): 13.8%, down from 22.7%

What else do investors need to know?

The result was impacted by severe weather events, particularly in the newly acquired RACQ Insurance Limited (RACQI) portfolio, contributing to higher than expected claim costs. Excluding RACQI, insurance profit was stronger, and the reported margin was 17.7%.

IAG completed its $855 million acquisition of 90% of RACQI in September 2025. The half-year results include four months of contribution from this business. IAG also announced an on-market share buy-back of up to $200 million, reflecting its strong capital position.

The board determined to pay an interim dividend of 12 cents per share, payable on 13 March 2026, with a 25% franking rate. The dividend reinvestment plan will apply.

What's next for Insurance Australia Group?

IAG is maintaining its FY26 profit guidance, expecting high single-digit GWP growth and an insurance profit between $1,550 million and $1,750 million. The integration of the RACQI business is expected to strengthen IAG's Queensland footprint, with further improvements in the reported insurance margin anticipated as RACQI is fully integrated into IAG's reinsurance program.

The company has announced a buy-back of up to $200 million in shares, and continues to invest in technology and claims transformation to help offset inflationary pressures and improve efficiency.

Insurance Australia Group share price snapshot

Over the pat 12 months, IAG shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post IAG FY26 half-year result: profit down, revenue up, dividend steady appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) closed 1.81% lower at 8,708.8 points as earnings season got underway.

The week began with a commodities rout that pummelled ASX 200 mining shares.

Investors took profits as metals, particularly gold and silver, plunged on news of the US President's Fed chair pick.

On Tuesday, a 0.25% interest rate hike in Australia benefitted the ASX 200 financial sector but created pain for tech.

ASX 200 tech shares fell almost 12% last week. The sector is now down almost 20% in the year to date.

Out of the 11 market sectors, only two finished the week in the green.

Let's review.

Financial shares led the ASX sectors last week

Share price performance varied across the ASX 200 financial sector, which incorporates bank shares, insurers, fund managers, and more.

The Commonwealth Bank of Australia (ASX: CBA) share price soared 6.39% to finish at $158.91 on Friday.

CBA will reveal its 1H FY26 results on Wednesday.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed the week at $37.01, up 0.84%.

Westpac Banking Corp (ASX: WBC) shares ascended 1.57% to $39.43.

National Australia Bank Ltd (ASX: NAB) shares fell 0.02% to $43.36.

The Macquarie Group Ltd (ASX: MQG) share price lost 2.05% to close at $207.83.

Among the investment companies and fund managers, Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares fell 4.09% to $37.01.

GQG Partners Inc (ASX: GQG) shares rose 7.96% to $1.70.

Shares in Argo Investments Ltd (ASX: ARG), which reports on Monday, descended 0.77% to $9.02 apiece.

Among the financial services providers, AMP Ltd (ASX: AMP) shares fell 2.94% to $1.65.

AMP will release its 1H FY26 results on Thursday.

The Challenger Ltd (ASX: CGF) share price dropped 3.15% to $8.92.

Buy now, pay later share Zip Co Ltd (ASX: ZIP) fell 10.19% to $2.38.

Among the ASX 200 insurers, Medibank Private Ltd (ASX: MPL) shares fell 1.08% to $4.57.

The QBE Insurance Group Ltd (ASX: QBE) share price ascended 2.23% to $20.18.

Insurance Australia Group Ltd (ASX: IAG) shares rose 1.71% to $7.73.

IAG will release its 1H FY26 results on Thursday.

See our earnings calendar to find out when the companies you're invested in will announce their dividends.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 financials flew but tech and mining shares faltered last week appeared first on The Motley Fool Australia.

To narrow things down, let's see what analysts are saying about three popular shares, courtesy of The Bull.

Here's what you need to know about them:

Insurance Australia Group Ltd (ASX: IAG)

The team at Baker Young thinks that investors should be selling this insurance giant's shares this week.

The broker highlights that IAG shares are trading above its estimate of fair value and feels investors should be taking profit. It explains:

The decision by competition regulator, the Australian Competition and Consumer Commission (ACCC), to block IAG's proposed acquisition of RAC Insurance (RACI) from the Royal Automobile Club of Western Australia highlights the rising barriers to inorganic growth for IAG. Further, the ACCC decision reflects a desire to stimulate greater competition in the general insurance market. With IAG trading above our valuation, we would be inclined to take profits around current levels.

Mineral Resources Ltd (ASX: MIN)

Analysts at Morgans highlight that this mining and mining services company's shares have risen very strongly since April. Unfortunately, the broker believes the run is now over and has rated Mineral Resources shares as a hold.

Commenting on the high-flying company, Morgans said:

MIN is a diversified resources company in Western Australia. It has extensive operations in lithium, iron ore, energy and mining services. Mineral Resources enters 2026 with improved stability after a volatile period, supported by progress at Onslow Iron. On January 29, 2026, the company upgraded lithium volume guidance and maintained cost guidance at both operations.

It reduced net debt to about $4.9 billion as at December 31, 2025. We remain confident management can successfully execute its strategy and expect strong earnings growth in the current commodity price environment. The shares have risen from $14.40 on April 9, 2025 to trade at $61.18 on January 29, 2026. At this point, we believe the stock is fully valued.

Westpac Banking Corp (ASX: WBC)

Morgans thinks that this banking giant's earnings growth could be challenging in the near term. As a result, it feels that investors should sell Westpac shares this week.

The broker believes there are better opportunities for investors elsewhere in the market. It said:

Weaker consumer sentiment in an uncertain policy environment cloud the earnings outlook. Recent economic commentary highlights creeping pessimism among Australian consumers. Uncertainty around interest rate expectations creates a challenging setting for major banks to profitably grow credit. Westpac's long term projections show acceptable returns.

However, in our view, near term momentum appears constrained by operational adjustments, margin pressure and a more cautious economic tone. Given limited earnings catalysts on the horizon, we see better opportunities elsewhere.

The post Buy, hold, sell: IAG, Mineral Resources, and Westpac shares appeared first on The Motley Fool Australia.

Today's decline means the IAG share price is now down 5.88% for the year-to-date and represents a 13.06% drop over the past year.

What happened to the IAG share price lower?

The IAG share price has been relatively volatile over the past 12 months, fluctuating anywhere between $7.10 a piece to $9.21 a piece. 

The shares crashed 15% in a week in February last year after investors were unhappy with its FY25 half-year result. 

The shares reached an annual low of $7.31 a piece in early April before climbing just over 20% to end the financial year at around $9 per share. 

The insurance company's share price tumbled constantly throughout the final quarter of the 2025 calendar year after IAG provided FY26 guidance for GWP growth of "low-to-mid single digit".

In 2026 so far the shares have tumbled even further after extreme weather conditions across the country. Recent weather events, such as bushfires and widespread flooding, raises concerns about the number of insurance claims and reinsurance costs. Investor concerns about what this might mean for the business has likely contributed to the pullback in the share price.

Buying opportunity or time to sell up?

While the IAG share price has tumbled recently, there has also been some positive news out of the business. 

Earlier this month, the insurance company announced that it has successfully integrated its RACQ Insurance (RACQI) business into its main catastrophe cover.

IAG also announced that it has expanded its WAQS arrangements to cover 35% of the consolidated business. The company has maintained RACQI's separate standalone reinsurance program that comprised quota share and catastrophe protections.

IAG's total 2026 catastrophe reinsurance program provides a main catastrophe cover for two events up to $10 billion, with an attachment at $500 million.

UBS recently said it predicts that the business could generate $1 billion of net profit in FY26.

The broker has a buy rating on IAG shares with a price target of $9.10. This implies a potential 21.01% upside for investors over the next 12 months, at the time of writing.

Some brokers are even more bullish. TradingView data shows that 7 out of 11 analysts have a buy or strong buy rating on the shares. The maximum target price is $9.90, which implies the shares could jump another 31.47% from the share price at the time of writing. 

There is no crystal ball to show exactly what will happen with the IAG share price. But with potential upsides as high as those noted above, the current price point could present a great opportunity for investors to get into the stock before it starts climbing again.

The post IAG share price drops 13 in a year: Buying opportunity or time to sell up? appeared first on The Motley Fool Australia.

Considering the broader S&P/ASX 200 Index (ASX: XJO) has risen by about 5.9% over the same period, we can conclude that it has been a lacklustre 12 months to own this stock.

But looking at this disappointing IAG share price today, some investors may get excited about what could be on offer when it comes to dividends. After all, a falling share price boosts the dividend yield one can theoretically obtain from an ASX share. And IAG has historically been known as a generous income payer.

So today, let's check out IAG shares from an income perspective and see what might be on offer from this stock going forward.

IAG share price: Show me the dividends

Starting off, IAG shares paid out two dividends last year, as is typical of an ASX income stock. The first was the March interim dividend worth 12 cents per share. This payout came partially franked at 60%. The second dividend was the September final dividend, worth 19 cents per share. This dividend was partially franked at 40%.

Both of these payments represented healthy increases over what investors enjoyed in 2024. That year saw IAG fork out an interim dividend worth 10 cents per share, and a final dividend of 17 cents per share. So IAG's income trajectory has been going in the right direction.

Together, this 31 cents per share in annual dividends for 2025 gives the IAG share price a trailing dividend yield of 4.11% at the current $7.54 share price.

Some ASX experts think 2026 might be even more fruitful. A few days ago, my Fool colleague reported that ASX broker UBS had given a 'buy' rating to the IAG share price.

UBS reckons the IAG share price could hit $9.25 over the next 12 months, thanks to a possible net profit of $1 billion. As IAG has a dividend policy of paying out 60% to 80% of net profit after tax as dividends on a full-year basis, this could potentially result in another dividend hike this year if accurate.

No doubt IAG investors would love to hear that. But let's see what happens in 2026.

The post Looking at the IAG share price? Here's how much this stock pays in dividends appeared first on The Motley Fool Australia.

Analysts are always on the lookout for businesses that seem undervalued relative to their prospects, which could happen to be the case with any company in the S&P/ASX 300 Index (ASX: XKO).

While the ASX shares below may not be the most popular investment ideas, analysts think they're buys and could rise from here.

News Corp (ASX: NWS)

News Corp is the business behind a number of newspapers, including The Wall Street Journal, The Australian, Herald Sun, The Daily Telegraph, The Times, and The Sun. It also owns News.com.au, HarperCollinsPublishers, MarketWatch, and Dow Jones, as well as stakes in REA Group Ltd (ASX: REA) and Realtor.com.

Broker UBS currently has a buy rating on News Corp, with a price target of $64.50, implying a solid rise over the next 12 months. The broker said the ASX share's FY26 first quarter was "good" with revenue and operating profit (EBITDA) slightly ahead of expectations, with "notable outperformance from Move and News Media", reflecting healthy operating conditions going into FY26.

In UBS' view, Dow Jones remains "the key to a meaningful NWS stub re-rate, more so than other segments like Move". The broker explained:

Key catalysts we are waiting for include: 1) acceleration in both rev and EBITDA growth at Move as we start to see first signs of green shoots, with further US rate cuts likely to support adjacency products and leads uptake; and 2) announcement of further AI deals.

We reiterate our Buy rating; with short- and medium-term drivers intact, we view NWS's fwd EBITDA of 12x and PE of 28x as attractive vs the past five-year average.

UBS predicts the company could generate US$1.08 of earnings per share (EPS) in FY26 and then $1.29 in FY27.

Insurance Australia Group Ltd (ASX: IAG)

IAG is one of Australia's largest insurance businesses with brands like NRMA, SGIO, SGIC, ROLLiN', and NZI.

UBS has a buy rating on the business, with a price target of $9.10. That also implies a rise of more than 10% in the next 12 months.

The broker noted that the ASX share has fully integrated its recently acquired RACQ Insurance business into its group reinsurance cover, confirming this will support targeted reinsurance synergies.

IAG's whole of account quota share has been expanded by 2.5% to 35% of gross earned premium (GEP) – IAG expects this to further reduce earnings volatility by sharing premiums and losses with reinsurers.

UBS predicts that the business could generate $1 billion of net profit in FY26.

Judo Capital Holdings Ltd (ASX: JDO)

Judo is a financial institution focused on providing loans to small and medium businesses. It also offers term deposits as a form of funding its loans.

UBS rates Judo as a buy, with a price target of $2.20, implying a strong return over the next year if the market agrees with the broker's optimism.

The broker thinks the ASX share is well placed to meet FY26 targets.

Judo's net interest margin (NIM) – the profit it makes on its lending in percentage terms – guidance of over 3% is based on funding mix improvements, mainly relating to its deposit offering. The business is offering more term deposit durations, including five, seven, and eight-month terms.

UBS also noted that new business origination "looks strong" for the company, with agriculture and regional lending doing a lot of the heavy lifting for its growth.

Judo is expecting operating leverage to be a "multiplier" as it continues to scale with capacity.

The broker forecasts that the ASX share could make a net profit of $131 million in FY26 and $166 million in FY27.

The post Brokers rate these 3 ASX shares as buys in January appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant closed yesterday trading for $7.85. In morning trade on Tuesday, shares are changing hands for $7.80 apiece, down 0.6%.

For some context, the ASX 200 is up 0.2% at this same time.

Here's what investors are mulling over today.

IAG shares dip on Queensland news

On 1 September 2025, IAG reported it had completed its acquisition of the Royal Automobile Club of Queensland (RACQ) for the tidy sum of $855 million, with IAG owning 90% of RACQ shares.

"Today is an exciting day as we begin our partnership with RACQ, supporting its member-first approach, welcoming around 840 new team members to IAG, and strengthening our commitment to Queensland," IAG CEO Nick Hawkins said at the time.

IAG shares closed up 0.6% on the day.

Today, the ASX 200 insurance company announced the successful integration of RACQ Insurance (RACQI) into its main catastrophe cover, whole of account quota share (WAQS) arrangements, and aggregate stop-loss protection.

IAG also revealed that it has expanded its WAQS arrangements to now cover 35% of the consolidated business. Management reiterated that they have maintained RACQI's separate standalone reinsurance program that comprised quota share and catastrophe protections.

Cutting to the chase, IAG shares could gain longer-term support with its RACQI branch now also covered by the catastrophe reinsurance program for the 2026 calendar year.

IAG's total 2026 catastrophe reinsurance program provides a main catastrophe cover for two events up to $10 billion, with an attachment at $500 million.

The company noted that RACQI's quota shares have now been replaced by IAG's WAQS arrangements, adding that the total proportion ceded has increased by 2.5% to now represent 35% of IAG's combined business.

What did management say?

Commenting on the reinsurance program integration that has yet to lift IAG shares today, chief financial officer William McDonnell said, "We are pleased to have integrated the RACQI business into the overall reinsurance program which will achieve the targeted synergies."

McDonnell added:

Global reinsurance markets have improved during 2025, allowing us to renew reinsurance protection favourably relative to expectations. In addition, IAG received strong support from reinsurance partners in expanding the overall program, resulting in a further reduction in the volatility of our earnings.

How have IAG shares been tracking?

With today's intraday dip factored in, IAG shares are down 8.5% over the past 12 months.

The ASX 200 insurance stock also trades on a 3.9% partly franked trailing dividend yield.

IAG is scheduled to announce its half-year results for the six months to 31 December on 12 February.

The post Why are IAG shares slipping today? appeared first on The Motley Fool Australia.

What did Insurance Australia Group report?

• RACQ Insurance (RACQI) now included in IAG's main catastrophe reinsurance cover and WAQS arrangements
• WAQS coverage expanded to 35% of IAG's consolidated business, up by 2.5%
• Catastrophe reinsurance program for 2026 placed, providing cover for two events up to $10 billion, with attachment at $500 million
• Aggregate stop-loss protection now covers RACQI, providing about $1 billion in natural peril downside protection per year through to FY29

What else do investors need to know?

Previously, after acquiring RACQI on 1 September 2025, IAG had maintained RACQI's own separate, standalone reinsurance program. Today's integration brings RACQI fully into the group's broader reinsurance protections, aiming for cost savings and risk reduction.

IAG's move comes as global reinsurance markets have improved in 2025, enabling the company to renew protection on more favourable terms. With broad support from reinsurance partners, IAG has further reduced the volatility of its earnings outlook.

The company will release its half-year results for the six months to 31 December 2025 on 12 February 2026.

What did Insurance Australia Group management say?

Chief Financial Officer William McDonnell said:

We are pleased to have integrated the RACQI business into the overall reinsurance program which will achieve the targeted synergies. Global reinsurance markets have improved during 2025, allowing us to renew reinsurance protection favourably relative to expectations. In addition, IAG received strong support from reinsurance partners in expanding the overall program, resulting in a further reduction in the volatility of our earnings.

What's next for Insurance Australia Group?

With RACQI now fully part of IAG's overall reinsurance structure, management expects significant operational synergies and greater resilience against large insurance events. The expanded WAQS and aggregate stop-loss protection are designed to reduce earnings volatility and better manage risk exposure from catastrophes into FY29.

Investors can look forward to a further update when IAG releases its financial results in February 2026, providing more colour on the benefits and financial impacts of this integration.

Insurance Australia Group share price snapshot

Over the past 12 months, IAG shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post IAG integrates RACQ Insurance into reinsurance appeared first on The Motley Fool Australia.

Suncorp is one of the largest insurance businesses in Australia, along with Insurance Australia Group Ltd (ASX: IAG). There are a few positives to like about the business, including its potential earnings.

Let's get into why the insurance business is attracting analyst attention.

Double-digit return potential

The broker UBS has a buy rating on Suncorp shares, with a price target of $20.85 on the business.

A price target is where the broker thinks the share price could get to in 12 months from the time of the investment call. Therefore, at the time of writing, UBS is suggesting the Suncorp share price could rise by 17% over the next 12 months. If that happened, it would very likely be a market-beating return.

After a painful five months to November 2025 due to large natural hazard costs, December was a calmer month for weather events. Even so, costs were well above its $885 million first-half allowance. UBS has forecast a catastrophe budget overrun of $420 million for Suncorp (down from $580 million).

UBS said that Suncorp is "benefitting from a more benign December for CATs."

Across the sector, it prefers domestic general insurance exposures reflecting:

(1) likelihood of sustained personal lines rate momentum post elevated Oct/Nov domestic CAT activity, (2) consensus upside from RI [reinsurance] profit commissions for IAG, (3) support from rising bond yields, and (4) scope for ongoing capital management given strong balance sheets.

With a large float portfolio and significant portion of money invested in bonds, higher bond yields can help the company generate stronger returns for Suncorp, helping its bottom line.

What is the Suncorp share price valuation?

The forecast on CMC Markets suggests the business could deliver growing earnings per share (EPS) between FY26 to FY28.

Currently, the forecast is that the business could generate $1.14 of EPS in the 2026 financial year. That means the Suncorp share price is valued at under 16x FY26's estimated earnings. The projections suggest EPS could rise by another 11% by FY28.

In terms of the dividend, the projection on CMC Markets suggests the business could deliver an annual dividend per share of 78.5 cents. At the current Suncorp share price, it could pay a grossed-up dividend yield of 6.3%, including franking credits.

Excitingly, the projections suggest the payout could rise to 88.5 cents per share in the 2027 financial year and 92 cents per share in the 2028 financial year.

The post Why these brokers are bullish on the Suncorp share price appeared first on The Motley Fool Australia.

There are 4 insurance stocks that sit above the rest:  

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Medibank Private Ltd (ASX: MPL)
• Insurance Australia Group Ltd (ASX: IAG)

These are the largest insurance companies listed on the ASX, ranking highest by market capitalisation and collectively serving millions of policyholders across Australia.

What's the difference?

Although these companies all operate as insurers, they target various parts of the market. 

QBE is a global insurer, focused largely on commercial, specialty, and reinsurance markets across multiple countries.

Suncorp focuses primarily on Australia and New Zealand, offering a broad mix of personal and business insurance alongside banking services.

IAG (Insurance Australia Group) focuses on general insurance, particularly personal and small business insurance, in Australia and New Zealand through well-known local brands.

Medibank is focused on health insurance, primarily serving Australian customers with private health and related services rather than general insurance.

How did they perform in 2025?

After a post-pandemic boom for insurance stocks, 2025 marked a turning point for this sector in terms of stock market performance. 

The worst-performing insurance stock amongst the four has been Suncorp. 

Suncorp shares began the year trading at roughly $22.72 each. 

With just a day left of trading this year, this insurance stock is trading close to $17.70 each. 

This represents a fall of approximately 22%. 

Also suffering a down year are Insurance Australia Group shares. 

This insurance stock has dropped more than 7% in 2025. 

Meanwhile, it was essentially a flat year of returns for QBE shares, which have risen a modest 1% in 2025. 

Finally, the clear winner this year amongst ASX insurance stocks has been Medibank Private shares, which are up almost 26%. 

What are experts tipping for insurance stocks in 2026?

Overall, it appears there is limited upside in the insurance sector moving into the new year. 

Despite their strong year of growth, it appears experts' views are mixed on Medibank shares in the near future. 

In a note out of Shaw and Partners last week, the broker placed a hold recommendation on this ASX insurance stock. 

Meanwhile, Bell Potter in late November said the insurer holds a dominant presence in the Australian health insurance market, with a 27% market share and 4.2 million members. 

"This scale provides a solid foundation for continued growth, supported by favourable demographics and negotiating leverage with private hospitals," the broker said.

According to TradingView, analysts view the stock as trading close to fair value, with an average one-year price target of $5.12 (approximately 5% upside). 

IAG shares are also trading close to value based on analyst ratings via TradingView. 

Elsewhere, Suncorp and QBE shares both received sell recommendations from experts (via The Bull). 

The post Which ASX insurance stocks performed best this year? appeared first on The Motley Fool Australia.