Update shared on 18 Dec 2025
Fair value Decreased 1.24%Analysts have trimmed their price target for Insurance Australia Group by approximately A$0.11 per share, reflecting slightly softer assumptions for long term revenue growth and profit margins while keeping the discount rate and future valuation multiples broadly unchanged.
What's in the News
- Raised fiscal 2026 guidance for gross written premium growth to approximately 10%, up from a low to mid single digit range. This change is driven by the planned inclusion of RACQ Insurance from 1 September 2025 (Key Developments).
- Increased reported insurance profit guidance for fiscal 2026 to a range of AUD 1,550 million to AUD 1,750 million, up AUD 100 million from the prior range of AUD 1,450 million to AUD 1,650 million (Key Developments).
Valuation Changes
- The Fair Value Estimate has fallen slightly to A$8.72 per share from A$8.83 per share.
- The Discount Rate is unchanged at 6.67%.
- The Revenue Growth assumption has improved modestly, with the long term decline easing to around 10.82% from 10.93%.
- The Net Profit Margin forecast has been trimmed slightly to about 9.53% from 9.63%.
- The future P/E multiple has edged down marginally to about 21.12x from 21.24x.
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