Insurance Australia Group (IAG) H1 2025 earnings summary

Executive summary

• Net profit after tax for 1H25 rose 91.2% year-over-year to $778 million, driven by higher insurance profit, strong investment returns, and a $140–$200 million post-tax release from the business interruption provision.

• Gross written premium (GWP) increased 6.0% to $8,426 million, with strong growth across Retail Insurance Australia, Intermediated Insurance Australia, and New Zealand.

• Reported insurance margin improved to 19.4% from 13.7% in 1H24, reflecting improved claims experience and lower perils costs.

• Interim dividend of 12.0 cents per share, up 20% year-over-year, franked to 60%, with a payout ratio of 45% of NPAT (excluding provision release).

• Customer experience and renewal rates remain high in both Australia and New Zealand, supported by technology investments and improved claims management.

Financial highlights

• Net profit after tax: $778 million (up 91.2% year-over-year); insurance profit: $957 million (up 55.9%); reported insurance margin: 19.4% (1H24: 13.7%).

• GWP: $8,426 million, up 6.0% year-over-year; net earned premium: $4,930 million, up 9.7%.

• Underlying insurance margin: 15.1% (up from 13.7% in 1H24).

• CET1 capital at 1.42x PCA, well above the 0.9–1.1 target range.

• Interim dividend of 12cps declared; payout ratio 45% of NPAT (excluding provision release).

Outlook and guidance

• FY25 reported insurance profit guidance: $1,400–$1,600 million, assuming natural peril costs of $1,283 million.

• Reported insurance margin expected at 13.5%–15.5%, likely towards the top of the range.

• GWP growth forecast in the mid-to-high single digits, expected at the lower end due to moderating premium increases.

• Confident in delivering FY25 guidance with scalable technology and strong capital position.

• Targets: 15% reported insurance margin and 14–15% ROE through the cycle, subject to macroeconomic stability.