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IAG

Insurance Australia GroupASX:IAG Stock Report

Last Price

AU$4.51

Market Cap

AU$11.1b

7D

2.5%

1Y

-11.0%

Updated

17 Jan, 2022

Data

Company Financials +
IAG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends4/6

IAG Stock Overview

Insurance Australia Group Limited operates as a general insurance company in Australia and New Zealand.

Insurance Australia Group Competitors

Suncorp Group

ASX:SUN

AU$14.8b

JPMorgan Chase

NYSE:JPM

US$464.8b

Bank of America

NYSE:BAC

US$392.1b

Industrial and Commercial Bank of China

SEHK:1398

HK$1.9t

Price History & Performance

Summary of all time highs, changes and price drops for Insurance Australia Group
Historical stock prices
Current Share PriceAU$4.51
52 Week HighAU$5.51
52 Week LowAU$4.19
Beta0.27
1 Month Change5.13%
3 Month Change-9.98%
1 Year Change-11.05%
3 Year Change-37.27%
5 Year Change-25.01%
Change since IPO46.24%

Recent News & Updates

Shareholder Returns

IAGAU InsuranceAU Market
7D2.5%-1.6%-0.5%
1Y-11.0%17.6%10.4%

Return vs Industry: IAG underperformed the Australian Insurance industry which returned 17.6% over the past year.

Return vs Market: IAG underperformed the Australian Market which returned 10.4% over the past year.

Price Volatility

Is IAG's price volatile compared to industry and market?
IAG volatility
IAG Average Weekly Movement4.2%
Insurance Industry Average Movement3.3%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

Stable Share Price: IAG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: IAG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1920n/aNick Hawkinshttps://www.iag.com.au

Insurance Australia Group Limited operates as a general insurance company in Australia and New Zealand. It offers personal and commercial insurance products, including bicycle, comprehensive motor, commercial and motor fleet, commercial property and liability, construction and engineering, consumer credit, compulsory third party, directors and officers, extended warranty, farm, crop, livestock, home and contents, income protection, marine, veteran, vintage and classic car, boat, caravan, travel, life, professional indemnity, public and product liability, security, workers' compensation, motor vehicle, business, and rural and horticultural, as well as reinsurance. The company sells its products through branches and agencies, call centers, online facilities, and intermediary channels; and third parties under the NRMA Insurance, SGIO, SGIC, CGU Insurance, WFI, Swann Insurance, NZI, State, AMI, Lumley, AmGeneral, and Kurnia brands.

Insurance Australia Group Fundamentals Summary

How do Insurance Australia Group's earnings and revenue compare to its market cap?
IAG fundamental statistics
Market CapAU$11.06b
Earnings (TTM)-AU$414.00m
Revenue (TTM)AU$7.88b

1.4x

P/S Ratio

-26.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IAG income statement (TTM)
RevenueAU$7.88b
Cost of RevenueAU$9.12b
Gross Profit-AU$1.24b
Expenses-AU$824.00m
Earnings-AU$414.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 11, 2022

Earnings per share (EPS)-0.17
Gross Margin-15.71%
Net Profit Margin-5.26%
Debt/Equity Ratio30.3%

How did IAG perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

-116%

Payout Ratio

Valuation

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

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAG (A$4.51) is trading below our estimate of fair value (A$5.86)

Significantly Below Fair Value: IAG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IAG is unprofitable, so we can't compare its PE Ratio to the Australian 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 (4.1x).


Future Growth

How is Insurance Australia Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

44.3%

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 (1.9%).

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 (2.1% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: IAG's revenue (2.1% 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 (12.3%).


Past Performance

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

-29.5%

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 29.5% 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 (57.5%).


Return on Equity

High ROE: IAG has a negative Return on Equity (-4.01%), as it is currently unprofitable.


Financial Health

How is Insurance Australia Group's financial position?


Financial Position Analysis

Short Term Liabilities: IAG's short term assets (A$14.0B) do not cover its short term liabilities (A$16.2B).

Long Term Liabilities: IAG's short term assets (A$14.0B) exceed its long term liabilities (A$10.7B).


Debt to Equity History and Analysis

Debt Level: IAG has more cash than its total debt.

Reducing Debt: IAG's debt to equity ratio has increased from 27.9% to 30.3% over the past 5 years.

Debt Coverage: IAG's debt is well covered by operating cash flow (81%).

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


Balance Sheet


Dividend

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

5.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IAG's dividend (5.76%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: IAG's dividend (5.76%) is in the top 25% of dividend payers in the Australian market (5.39%)


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 (79.1% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Nick Hawkins (53 yo)

1.17yrs

Tenure

AU$3,346,000

Compensation

Mr. Nicholas B. Hawkins, also known as Nick, BCom, CA, FCA, is Executive Director at IAG New Zealand Limited since November 18, 2020. He serves as Chief Executive Officer and Executive Director at Insuranc...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD2.42M) is about average for companies of similar size in the Australian market ($USD2.36M).

Compensation vs Earnings: Nick's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: IAG's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: IAG's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Insurance Australia Group Limited
  • Ticker: IAG
  • Exchange: ASX
  • Founded: 1920
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: AU$11.057b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:18
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.