Insurance Australia Group Limited Analysis

Overview

IAG is the parent company of a general insurance group with controlled operations in Australia and New Zealand. Our businesses underwrite over $16 billion of premium per annum, selling insurance under many leading brands, including - NRMA Insurance, CGU, WFI and ROLLiN' (Australia) and NZI, State and AMI (New Zealand).

Performance

The following has been extracted from IAG’s FY25 Annual Report released,13 August 2025:

IAG delivered a strong FY25 result, demonstrating management’s success in building a stronger, more resilient business. Key outcomes include:

• Growth in GWP of 4.3% and continued high renewal rates of around 90% across Australian and New Zealand direct products

• Underlying insurance profit above target and approximately $200 million up on FY24. This was enabled through disciplined underwriting and improved claims performance, coupled with a focus on reducing outstanding claims across the Group

• ROE of 19.4%, an improvement on 13.5% in FY24, and a significant improvement in shareholder outcomes with a four year annualised TSR of 18.4%

• Additional reinsurance agreements providing lower volatility and improved Group financial performance quality

• Good progress against plan on the delivery of the Enterprise Platform for our retail businesses while protecting customer experience during transition and enhancing functionality for customers and partners. 69.8% of in-scope GWP is now enabled through the platform

• A similar technology transformation is underway to deliver efficiency and support growth in our intermediated businesses in Australia and New Zealand, through the modern, integrated Commercial Enterprise Platform. This will fundamentally reshape our operating model and how we underwrite and distribute products

• Successful negotiation by the management team of two material strategic alliances this year. The existing insurance businesses of RACQ and RAC (subject to regulatory approval and other conditions) will provide IAG with the opportunity to provide quality insurance products to an additional 3 million customers.