Insurance Australia Group (IAG) H2 2026 earnings summary

Executive summary

• Delivered strong FY26 results with 7.6% premium growth and net profit after tax of $1,022m, supported by strategic execution, RACQ Insurance integration, and technology transformation including AI adoption and OpenAI partnership.

• Managed 109 weather events in Australia and New Zealand, paying over $12.4bn in claims, while maintaining top quartile NPS scores (Australia: 55, NZ: 63).

• Launched Ambition 2030 strategy, targeting mid-single digit GWP growth, 15%+ ROE, and high single-digit EPS growth.

• RACQ Insurance contributed $1.3bn in premiums over 10 months, with positive member retention and annual synergies above $50m.

• Over 60% of staff use AI tools, driving efficiency and improved customer experience.

Financial highlights

• Gross written premium (GWP) rose 7.6% to $18,412m; underlying insurance profit up 2.3% to $1,578m; reported profit $1,552m.

• Net profit after tax was $1,022m, down 24.8% due to prior year one-off benefits.

• Final dividend increased to 20cps, full-year dividend 32cps (up 3%), with franking up to 80%.

• CET1 capital ratio at 1.14x, above target range, even after $200m buyback.

• Underlying claims ratio improved by 50bps to 51.6%; admin expense ratio at 11.6%, with further reductions targeted.

Outlook and guidance

• FY27 guidance: 5%-8% GWP growth, reported insurance margin 14.5%-16.5%, and perils allowance set at $1,491m.

• Ambition 2030 targets: mid-single digit GWP growth, 15%+ ROE, high single-digit EPS growth, and sustainable, growing dividends.

• Dividends expected to be 80%-100% franked going forward.

• FY27 guidance assumes no material reserve releases/strengthening or macroeconomic shocks.