IAG Stock Overview
Insurance Australia Group Limited underwrites general insurance products and provides investment management services in Australia and New Zealand.
IAG passed our risk checks.
Insurance Australia Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$4.64|
|52 Week High||AU$5.43|
|52 Week Low||AU$4.02|
|1 Month Change||-0.86%|
|3 Month Change||7.41%|
|1 Year Change||-7.57%|
|3 Year Change||-39.97%|
|5 Year Change||-29.35%|
|Change since IPO||50.45%|
Recent News & Updates
|IAG||AU Insurance||AU Market|
Return vs Industry: IAG underperformed the Australian Insurance industry which returned -5.6% over the past year.
Return vs Market: IAG exceeded the Australian Market which returned -10.8% over the past year.
|IAG Average Weekly Movement||3.2%|
|Insurance Industry Average Movement||3.8%|
|Market Average Movement||9.4%|
|10% most volatile stocks in AU Market||16.5%|
|10% least volatile stocks in AU Market||4.2%|
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.
About the Company
Insurance Australia Group Limited underwrites general insurance products and provides investment management services 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, brokers, agents, authorized representatives, and financial institutions; and third parties under the NRMA Insurance, SGIO, SGIC, RACV, CGU, ROLLiN, WFI, Swann Insurance, NZI, State, AMI, Lumley, and Coles Insurance brands.
Insurance Australia Group Fundamentals Summary
|IAG fundamental statistics|
Is IAG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|IAG income statement (TTM)|
|Cost of Revenue||AU$8.06b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Feb 13, 2023
|Earnings per share (EPS)||0.14|
|Net Profit Margin||4.58%|
How did IAG perform over the long term?See historical performance and comparison
2.4%Current Dividend Yield
Is IAG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for IAG?
Other financial metrics that can be useful for relative valuation.
|What is IAG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does IAG's PE Ratio compare to its peers?
|IAG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
SUN Suncorp Group
QBE QBE Insurance Group
MPL Medibank Private
SDF Steadfast Group
IAG Insurance Australia Group
Price-To-Earnings vs Peers: IAG is expensive based on its Price-To-Earnings Ratio (32.8x) compared to the peer average (24.2x).
Price to Earnings Ratio vs Industry
How does IAG's PE Ratio compare vs other companies in the Global Insurance Industry?
Price-To-Earnings vs Industry: IAG is expensive based on its Price-To-Earnings Ratio (32.8x) compared to the Global Insurance industry average (11.2x)
Price to Earnings Ratio vs Fair Ratio
What is IAG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||32.8x|
|Fair PE Ratio||33.6x|
Price-To-Earnings vs Fair Ratio: IAG is good value based on its Price-To-Earnings Ratio (32.8x) compared to the estimated Fair Price-To-Earnings Ratio (33.6x).
Share Price vs Fair Value
What is the Fair Price of IAG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: IAG (A$4.64) is trading below our estimate of fair value (A$9.19)
Significantly Below Fair Value: IAG is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Insurance Australia Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IAG's forecast earnings growth (19% per year) is above the savings rate (1.8%).
Earnings vs Market: IAG's earnings (19% per year) are forecast to grow faster than the Australian market (6.4% per year).
High Growth Earnings: IAG's earnings are forecast to grow, but not significantly.
Revenue vs Market: IAG's revenue (6% per year) is forecast to grow faster than the Australian market (3.6% per year).
High Growth Revenue: IAG's revenue (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 (13.5%).
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How has Insurance Australia Group performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IAG has high quality earnings.
Growing Profit Margin: IAG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: IAG's earnings have declined by 41.8% per year over the past 5 years.
Accelerating Growth: IAG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: IAG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (-20.4%).
Return on Equity
High ROE: IAG's Return on Equity (6.5%) is considered low.
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How is Insurance Australia Group's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: IAG's short term assets (A$13.8B) do not cover its short term liabilities (A$17.3B).
Long Term Liabilities: IAG's short term assets (A$13.8B) exceed its long term liabilities (A$10.3B).
Debt to Equity History and Analysis
Debt Level: IAG's net debt to equity ratio (17.2%) is considered satisfactory.
Reducing Debt: IAG's debt to equity ratio has increased from 23.2% to 31.6% over the past 5 years.
Debt Coverage: IAG's debt is well covered by operating cash flow (43.7%).
Interest Coverage: IAG's interest payments on its debt are well covered by EBIT (6.9x coverage).
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What is Insurance Australia Group current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Insurance Australia Group Dividend Yield vs Market|
|Company (Insurance Australia Group)||2.4%|
|Market Bottom 25% (AU)||2.8%|
|Market Top 25% (AU)||7.1%|
|Industry Average (Insurance)||3.0%|
|Analyst forecast in 3 Years (Insurance Australia Group)||5.8%|
Notable Dividend: IAG's dividend (2.37%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.8%).
High Dividend: IAG's dividend (2.37%) is low compared to the top 25% of dividend payers in the Australian market (7.15%).
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 fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (78%), IAG's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (30%), IAG's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nick Hawkins (54 yo)
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
|Nick Hawkins's Compensation vs Insurance Australia Group Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||AU$3m||AU$2m|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||AU$3m||AU$1m|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||n/a||n/a|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||AU$2m||AU$1m|
|Dec 31 2019||n/a||n/a|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||AU$3m||AU$1m|
|Dec 31 2018||n/a||n/a|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||AU$3m||AU$1m|
|Dec 31 2017||n/a||n/a|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||AU$3m||AU$1m|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||n/a||n/a|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||AU$3m||AU$996k|
Compensation vs Market: Nick's total compensation ($USD2.21M) is about average for companies of similar size in the Australian market ($USD2.91M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Experienced Management: IAG's management team is considered experienced (2.5 years average tenure).
Experienced Board: IAG's board of directors are considered experienced (3.3 years average tenure).
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
|30 Aug 22||BuyAU$46,456||George Sartorel||Individual||10,000||AU$4.65|
|25 Aug 22||BuyAU$22,735||Scott Pickering||Individual||5,000||AU$4.55|
|25 Aug 22||BuyAU$9,978||Jonathan Nicholson||Individual||2,200||AU$4.54|
|15 Aug 22||BuyAU$135,976||Simon Allen||Individual||30,000||AU$4.53|
|20 Jul 22||BuyAU$156,367,506||Perpetual Limited||Company||34,978,418||AU$4.86|
|20 Jul 22||SellAU$43,178,591||Perpetual Limited||Company||9,816,875||AU$4.85|
|21 Jun 22||BuyAU$28,099,926||The Vanguard Group, Inc.||Company||5,744,017||AU$4.92|
|20 Jun 22||SellAU$12,081,607||The Vanguard Group, Inc.||Company||2,464,801||AU$4.93|
|23 Mar 22||BuyAU$58,054,016||State Street Global Advisors, Inc.||Company||10,862,333||AU$5.45|
|23 Mar 22||SellAU$42,849,617||State Street Global Advisors, Inc.||Company||7,870,892||AU$5.45|
|15 Feb 22||BuyAU$60,125||George Savvides||Individual||12,644||AU$4.76|
|24 Jan 22||BuyAU$92,985,081||Perpetual Limited||Company||20,247,495||AU$4.59|
|08 Dec 21||SellAU$1,297,826||Perpetual Limited||Company||273,260||AU$4.75|
|30 Nov 21||BuyAU$1,266,766||Perpetual Limited||Company||283,687||AU$4.47|
|30 Nov 21||SellAU$12,475,795||Perpetual Limited||Company||2,816,207||AU$4.43|
|03 Nov 21||BuyAU$179,762,707||Perpetual Limited||Company||36,907,284||AU$5.24|
|02 Nov 21||BuyAU$49,469||David Armstrong||Individual||10,650||AU$4.64|
|01 Nov 21||BuyAU$120,000||Thomas Pockett||Individual||25,000||AU$4.80|
|29 Oct 21||BuyAU$48,100||George Sartorel||Individual||10,000||AU$4.81|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Insurance Australia Group Limited's employee growth, exchange listings and data sources
- Name: Insurance Australia Group Limited
- Ticker: IAG
- Exchange: ASX
- Founded: 1920
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Implied Market Cap: AU$11.371b
- Shares outstanding: 2.45b
- Website: https://www.iag.com.au
Number of Employees
- Insurance Australia Group Limited
- Tower Two
- Level 13
- New South Wales
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|IAUG.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Aug 2000|
|IAG||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Aug 2000|
|NRM||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Aug 2000|
|IAG||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Aug 2000|
|IAUG.Y||OTCPK (Pink Sheets LLC)||UNSPNSRD ADS NEW||US||USD||Oct 2008|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/03 00:00|
|End of Day Share Price||2022/10/03 00:00|
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.