Insufficient Growth At Insurance Australia Group Limited (ASX:IAG) Hampers Share Price
Mar 13
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Australian (ASX) Insurance Industry Analysis
UpdatedMar 21, 2025
DataAggregated Company Financials
Companies10
- 7D3.7%
- 3M2.2%
- 1Y13.9%
- YTD0.06%
The Insurance industry is up 2.7% in the last week, with QBE Insurance Group up 6.5%. During this same period, the ClearView Wealth underperformed, falling 7.1%. In the last 12 months, the industry was up 15%. Earnings are forecast to grow by 2.1% annually.
Industry Valuation and Performance
Has the Australian Insurance Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 21 Mar 2025 | AU$99.1b | AU$83.1b | AU$6.4b | 19.4x | 15.4x | 1.2x |
| Sun, 16 Feb 2025 | AU$99.4b | AU$81.2b | AU$6.3b | 20.6x | 15.7x | 1.2x |
| Tue, 14 Jan 2025 | AU$97.1b | AU$80.8b | AU$5.2b | 25.6x | 18.7x | 1.2x |
| Thu, 12 Dec 2024 | AU$97.2b | AU$79.6b | AU$5.1b | 25.9x | 19x | 1.2x |
| Sat, 09 Nov 2024 | AU$94.3b | AU$78.1b | AU$5.0b | 26.4x | 18.9x | 1.2x |
| Mon, 07 Oct 2024 | AU$89.1b | AU$77.3b | AU$4.9b | 25.2x | 18.1x | 1.2x |
| Wed, 04 Sep 2024 | AU$93.7b | AU$78.0b | AU$5.0b | 27x | 18.7x | 1.2x |
| Fri, 02 Aug 2024 | AU$96.1b | AU$77.8b | AU$5.2b | 23.4x | 18.3x | 1.2x |
| Sun, 30 Jun 2024 | AU$92.8b | AU$77.1b | AU$5.2b | 22.4x | 17.8x | 1.2x |
| Tue, 28 May 2024 | AU$88.5b | AU$77.2b | AU$5.2b | 20.3x | 17x | 1.1x |
| Thu, 25 Apr 2024 | AU$88.7b | AU$78.0b | AU$5.3b | 20.6x | 16.9x | 1.1x |
| Sat, 23 Mar 2024 | AU$88.8b | AU$84.0b | AU$5.2b | 20.1x | 16.9x | 1.1x |
| Mon, 19 Feb 2024 | AU$83.5b | AU$81.0b | AU$4.9b | 19.7x | 16.9x | 1x |
| Wed, 17 Jan 2024 | AU$79.4b | AU$64.4b | AU$4.7b | 19.9x | 17.1x | 1.2x |
| Fri, 15 Dec 2023 | AU$78.1b | AU$64.0b | AU$4.6b | 19.2x | 16.9x | 1.2x |
| Sun, 12 Nov 2023 | AU$78.3b | AU$65.3b | AU$4.7b | 18.6x | 16.6x | 1.2x |
| Tue, 10 Oct 2023 | AU$78.1b | AU$65.3b | AU$4.7b | 18.7x | 16.5x | 1.2x |
| Thu, 07 Sep 2023 | AU$79.2b | AU$65.2b | AU$4.7b | 19.4x | 16.8x | 1.2x |
| Sat, 05 Aug 2023 | AU$81.2b | AU$57.0b | AU$3.4b | 31.6x | 23.9x | 1.4x |
| Mon, 03 Jul 2023 | AU$79.9b | AU$56.6b | AU$3.4b | 32.1x | 23.6x | 1.4x |
| Wed, 31 May 2023 | AU$76.9b | AU$57.0b | AU$3.4b | 31.3x | 22.6x | 1.3x |
| Fri, 28 Apr 2023 | AU$74.6b | AU$56.7b | AU$3.4b | 34.9x | 22.1x | 1.3x |
| Sun, 26 Mar 2023 | AU$69.3b | AU$56.6b | AU$3.4b | 36.5x | 20.5x | 1.2x |
| Tue, 21 Feb 2023 | AU$72.2b | AU$55.2b | AU$3.3b | 32.4x | 21.6x | 1.3x |
| Thu, 19 Jan 2023 | AU$68.5b | AU$52.6b | AU$2.4b | 33.9x | 28.3x | 1.3x |
| Sat, 17 Dec 2022 | AU$67.1b | AU$53.5b | AU$2.5b | 31.9x | 27.4x | 1.3x |
| Mon, 14 Nov 2022 | AU$66.6b | AU$53.5b | AU$2.5b | 30.7x | 27.2x | 1.2x |
| Wed, 12 Oct 2022 | AU$64.0b | AU$54.7b | AU$2.5b | 28.4x | 25.7x | 1.2x |
| Fri, 09 Sep 2022 | AU$65.7b | AU$53.4b | AU$2.4b | 30.2x | 26.8x | 1.2x |
| Sun, 07 Aug 2022 | AU$65.7b | AU$53.3b | AU$3.1b | 27x | 21.4x | 1.2x |
| Tue, 05 Jul 2022 | AU$63.0b | AU$53.6b | AU$3.1b | 24.6x | 20.4x | 1.2x |
| Thu, 02 Jun 2022 | AU$63.7b | AU$52.6b | AU$3.0b | 24.1x | 21x | 1.2x |
| Sat, 30 Apr 2022 | AU$64.8b | AU$52.8b | AU$3.0b | 25.7x | 21.3x | 1.2x |
| Mon, 28 Mar 2022 | AU$61.7b | AU$51.7b | AU$3.0b | 24.2x | 20.6x | 1.2x |
Price to Earnings Ratio
20.6x
Current Industry PE
- Investors are pessimistic on the Australian Insurance industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 15.3x which is lower than its 3-year average PE of 20.4x.
- The industry is trading close to its 3-year average PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Insurance industry have grown 29% per year over the last three years.
- Revenues for these companies have grown 17% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Financials industry?
| AU Market | 2.33% | |
| Financials | 2.08% | |
| Insurance | 3.72% | |
| Insurance Brokers | 5.69% | |
| Property and Casualty Insurance | 3.73% | |
| Life and Health Insurance | 2.61% | |
Industry PE
- Investors are most optimistic about the Insurance Brokers industry even though it's trading below its 3-year average PE ratio of 33.3x.
- Analysts are expecting annual earnings growth of 13.5%, which is higher than its past year's earnings growth of 4.6% per year.
- Investors are most pessimistic about the Property and Casualty Insurance industry, which is trading below its 3-year average of 18.8x.
Forecasted Growth
- Analysts are most optimistic on the Insurance Brokers industry, expecting annual earnings growth of 14% over the next 5 years.
- This is better than its past earnings growth rate of 4.6% per year.
- In contrast, the Property and Casualty Insurance industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| QBE QBE Insurance Group | AU$21.93 | 6.5% +AU$2.0b | 24.0% | PE12x | |
| SDF Steadfast Group | AU$5.82 | 6.4% +AU$386.1m | 2.3% | PE27.4x | |
| MPL Medibank Private | AU$4.38 | 2.8% +AU$330.5m | 18.7% | PE24.6x | |
| SUN Suncorp Group | AU$19.06 | 1.6% +AU$324.9m | 0.4% | PE15.6x | |
| IAG Insurance Australia Group | AU$7.65 | 1.3% +AU$236.3m | 20.3% | PE14.2x |
