ASX:IAG

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Insurance Australia Group

Executive Summary

Insurance Australia Group Limited offers general insurance products in Australia and New Zealand. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Insurance Australia Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IAG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IAG's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

IAG

-0.1%

AU Insurance

-0.1%

AU Market


1 Year Return

-27.3%

IAG

-13.6%

AU Insurance

12.7%

AU Market

Return vs Industry: IAG underperformed the Australian Insurance industry which returned -13.6% over the past year.

Return vs Market: IAG underperformed the Australian Market which returned 12.7% over the past year.


Shareholder returns

IAGIndustryMarket
7 Day-3.4%-0.1%-0.1%
30 Day-2.4%1.6%-1.2%
90 Day-7.3%-2.5%1.8%
1 Year-26.3%-27.3%-11.8%-13.6%16.4%12.7%
3 Year-33.6%-41.9%-10.4%-21.3%27.7%12.2%
5 Year6.3%-15.2%18.1%-4.8%59.9%29.1%

Long-Term Price Volatility Vs. Market

How volatile is Insurance Australia Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Insurance Australia Group undervalued compared to its fair value and its price relative to the market?

1.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: IAG (A$4.82) is trading above our estimate of fair value (A$3.48)

Significantly Below Fair Value: IAG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IAG is unprofitable, so we can't compare its PE Ratio to the AU Insurance industry average.

PE vs Market: IAG is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IAG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IAG is good value based on its PB Ratio (1.8x) compared to the AU Insurance industry average (3x).


Next Steps

Future Growth

How is Insurance Australia Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

97.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: IAG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IAG's is expected to become profitable in the next 3 years.

Revenue vs Market: IAG's revenue (0.6% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: IAG's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IAG's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Insurance Australia Group performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAG is currently unprofitable.

Growing Profit Margin: IAG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IAG is unprofitable, and losses have increased over the past 5 years at a rate of 12.1% per year.

Accelerating Growth: Unable to compare IAG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IAG is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-19.2%).


Return on Equity

High ROE: IAG has a negative Return on Equity (-1.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Insurance Australia Group's financial position?


Financial Position Analysis

Short Term Liabilities: IAG's short term assets (A$23.5B) exceed its short term liabilities (A$21.8B).

Long Term Liabilities: IAG's short term assets (A$23.5B) exceed its long term liabilities (A$3.9B).


Debt to Equity History and Analysis

Debt Level: IAG's debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: IAG's debt to equity ratio has increased from 24.2% to 28.4% over the past 5 years.

Debt Coverage: IAG's debt is well covered by operating cash flow (52.7%).

Interest Coverage: Insufficient data to determine if IAG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Insurance Australia Group current dividend yield, its reliability and sustainability?

2.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IAG's dividend (2.9%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: IAG's dividend (2.9%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).


Stability and Growth of Payments

Stable Dividend: IAG's dividend payments have been volatile in the past 10 years.

Growing Dividend: IAG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: IAG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: IAG's dividends in 3 years are forecast to be covered by earnings (79.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Nick Hawkins (52 yo)

0.33

Tenure

AU$2,433,000

Compensation

Mr. Nicholas B. Hawkins, also known as Nick, BCom, CA, FCA, serves as Deputy Chief Executive Officer at Insurance Australia Group Ltd. since April 08, 2020. He served as Chief Financial Officer of Insuranc...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD1.86M) is about average for companies of similar size in the Australian market ($USD2.53M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Hawkins
MD, CEO & Director0.33yrAU$2.43m0.013%
A$ 1.6m
Michelle McPherson
Group Chief Financial Officer0.92yrAU$1.02m0.000020%
A$ 2.4k
Christine Stasi
Group Executive of People1.67yrsAU$1.08mno data
Julie Batch
Chief Strategy & Innovation Officer and Acting Group Executive Intermediated Insurance Australia5.25yrsAU$1.46m0.0097%
A$ 1.1m
Craig Olsen
Chief Executive of New Zealand5.25yrsAU$1.60m0.0078%
A$ 924.9k
David Watts
Chief Risk Officer2.5yrsAU$1.52m0.000010%
A$ 1.2k
Neil Morgan
Group Executive Technology & Operationsno datano datano data
Simon Phibbs
Senior Manage of Investor Relationsno datano datano data
Peter Horton
Group General Counsel & Company Secretary1.25yrsno datano data
Brent Smart
Chief Marketing Officer4.08yrsno datano data
Daniel Coman
Deputy Chief Financial Officer5.17yrsno datano data
Peter Bonney
Head of Disruptive Technology & Architecture for Iag Digital Labs6.17yrsno datano data

3.3yrs

Average Tenure

Experienced Management: IAG's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Hawkins
MD, CEO & Director0.33yrAU$2.43m0.013%
A$ 1.6m
Helen Nugent
Independent Non-Executive Director4.25yrsAU$243.00k0.0016%
A$ 184.3k
Duncan Boyle
Independent Non-Executive Director4.25yrsAU$292.00k0.0013%
A$ 153.6k
George Savvides
Independent Non-Executive Director1.75yrsAU$244.00k0.0014%
A$ 165.4k
Simon Allen
Independent Non Executive Director1.33yrsAU$242.00k0.00082%
A$ 96.9k
Elizabeth Bryan
Independent Chairman of the Board5yrsAU$755.00k0.0043%
A$ 502.0k
Thomas Pockett
Independent Non-Executive Director6.17yrsAU$267.00k0.0016%
A$ 184.3k
Sheila McGregor
Independent Non-Executive Director3yrsAU$230.00k0.0014%
A$ 159.5k
Jonathan Nicholson
Independent Non-Executive Director5.5yrsAU$267.00k0.0014%
A$ 163.0k
Michelle Tredenick
Independent Non-Executive Director3yrsAU$230.00k0.0014%
A$ 160.6k

3.6yrs

Average Tenure

63yo

Average Age

Experienced Board: IAG's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IAG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.7%.


Top Shareholders

Company Information

Insurance Australia Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Insurance Australia Group Limited
  • Ticker: IAG
  • Exchange: ASX
  • Founded: 1925
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: AU$11.812b
  • Shares outstanding: 2.45b
  • Website: https://www.iag.com.au

Number of Employees


Location

  • Insurance Australia Group Limited
  • Tower Two
  • Level 13
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAUG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2000
IAGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2000
NRMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2000
IAGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2000
IAUG.YOTCPK (Pink Sheets LLC)UNSPNSRD ADS NEWUSUSDOct 2008
IAGPDASX (Australian Securities Exchange)FRN CNV SUB PERP AUD100 'REGS'AUAUDFeb 2017

Biography

Insurance Australia Group Limited offers general insurance products in Australia and New Zealand. The company offers personal and commercial insurance products, including bicycle, comprehensive motor, comm...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 07:10
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.