Insurance Australia Group (IAG) investor relations material

Executive summary

• Achieved strong financial results, with net profit after tax up 51.3% to $1,359m and insurance profit rising 21.2% to $1.743B, meeting or exceeding expectations.

• Over $10.2B in claims paid, robust customer retention, and NPS metrics, with 66,000 net new retail customers added.

• Major technology upgrades completed, supporting scalable growth and migration of over 4M policies to a new platform.

• Strategic acquisitions of RACQ and RAC in WA funded through organic capital generation, expected to add ~$3B GWP and at least $300M insurance profit.

• Over $8.8M invested in community initiatives.

Financial highlights

• Insurance profit of $1.7B, margin at 17.5%, and underlying margin at 15.5%, both above targets.

• GWP grew 4.3% to $17.1B, with direct business up 7.7%; NEP up 8.7% to $9.98B.

• Dividend per share increased to $0.31 (up 12–14.8% YoY), with a 65% payout ratio and 40% franking.

• CET1 ratio at 1.47 pre-acquisitions, expected at 1.0x PCA post-acquisitions, within the 0.9–1.1x target range.

• Net claims from natural perils at $1.088B, $195M below allowance, due to benign NZ conditions.

Outlook and guidance

• FY26 guidance: GWP growth in low-to-mid single digits, with Retail Australia mid-single digit, Intermediator low single digit, NZ flat.

• Reported insurance profit expected at $1.45B–$1.65B, margin 14–16%, in line with 15% target.

• RACQ and RAC in WA acquisitions to add ~$3B premium and at least $300M insurance profit, with double-digit EPS accretion.

• Post-acquisition, annualized GWP expected to exceed $21B, supporting over 10M customers.

• FY26 perils allowance set at $1.316B, up 2.6–3% reflecting exposure growth.