Update shared on 03 Nov 2025
Fair value Increased 0.20%Analysts have slightly increased their price target for Insurance Australia Group, raising their fair value estimate from $8.93 to $8.95. This change is based on minor adjustments to revenue growth forecasts and profit margin expectations.
What's in the News
- Raised earnings guidance for fiscal year 2026, with projected gross written premium growth of approximately 10 percent, up from the previous low-to-mid single digit range. This reflects the inclusion of RACQ Insurance from 1 September 2025. Reported insurance profit is now expected to be in the range of AUD 1,550 million to AUD 1,750 million, which is an increase of AUD 100 million from the prior range (Company announcement).
- Buyback tranche update: As of August 20, 2025, the company completed the repurchase of 4,955,680 shares, representing 0.21 percent for AUD 36.98 million under the buyback announced on August 21, 2024 (Company disclosure).
- Declared an ordinary fully paid dividend of AUD 0.19 per security for the six months ended June 30, 2025. The record date is August 22, 2025, with payment on September 18, 2025 (Company announcement).
Valuation Changes
- Consensus Analyst Price Target has risen slightly to A$8.95, up from A$8.93.
- Discount Rate remains unchanged at 6.48%.
- Revenue Growth outlook has declined slightly, moving from -10.70% to -10.78%.
- Net Profit Margin expectation has increased marginally to 9.58%, up from 9.55%.
- Future P/E ratio forecast has edged up to 21.40x, up from 21.38x.
Disclaimer
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