Insurance Australia Group Limited

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 full year results, released on 13 August 2026:

Results overview

IAG today announced its full-year 2026 financial results, reflecting momentum and progress towards its refreshed Ambition 2030 strategy.

Net profit after tax (NPAT) was $1,022m (FY25: $1,359m benefiting from a $330m pre-tax BI provision release and $195m favourable peril experience). Pre-tax insurance profit was $1,552m (FY25: $1,743m), primarily reflecting increased natural perils (FY25: $195m favourable, FY26: $114m unfavourable), with an improved performance in 2H26. The result was consistent with the guidance provided at the half-year results in February 2026.

The IAG Board declared an increased final dividend of 20.0 cents per share (cps) (FY25: 19.0cps) bringing the full year dividend to 32.0cps (FY25: 31.0cps). IAG's strong capital position remains above target ranges.

The underlying insurance profit of $1,578m (FY25: $1,542m) equates to an underlying insurance margin of 15.0%, 50bps lower than FY25. This reflects a combination of influences including an improvement in the underlying claims ratio and expense ratio, more than offset by a higher perils allowance, first year transitional impacts of RACQ Insurance (RACQI) and lower investment yield on technical reserves. Excluding the one-off impact of RACQI, the underlying insurance margin was 16.0%.

Reported gross written premium (GWP) increased by 7.6% to $18,412m. The Australian Retail business delivered GWP growth of 17.8% to $10,308m (FY25: $8,749m), including $1,272m from the acquired RACQI business. Underlying growth was approximately 4.5%, reflecting modest rate increases and improved volume momentum, with growth accelerating in 2H26 supported by higher new business in the direct motor and home portfolios.

The Australian Intermediated business achieved GWP growth of 1.1% to $4,600m (FY25: $4,550m). Underlying growth was approximately 2%, reflecting discipline in a competitive market. New Zealand’s GWP reduced by 8.0% to $3,504m (FY25: $3,807m), significantly impacted by a weakening New Zealand dollar. The results reflect different market conditions which are positive for retail and challenged for commercial segments. In local currency terms, GWP decreased by 2.7% to NZ$4,060m, reflecting solid growth and momentum in the direct home and motor portfolios, and continued discipline in Intermediated business.