Insurance Australia Group Limited underwrites general insurance products in Australia and New Zealand. More Details
Excellent balance sheet and slightly overvalued.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: IAG underperformed the Australian Insurance industry which returned -28.9% over the past year.
Return vs Market: IAG underperformed the Australian Market which returned -5.6% over the past year.
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
3 months ago | Simply Wall StSome Shareholders Feeling Restless Over Insurance Australia Group Limited's (ASX:IAG) P/E Ratio
4 months ago | Simply Wall StConsider This Before Buying Insurance Australia Group Limited (ASX:IAG) For The 5.0% Dividend
4 months ago | Simply Wall StThe Insurance Australia Group (ASX:IAG) Share Price Is Down 20% So Some Shareholders Are Getting Worried
Is Insurance Australia Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IAG (A$4.76) is trading below our estimate of fair value (A$5.38)
Significantly Below Fair Value: IAG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IAG is poor value based on its PE Ratio (25x) compared to the AU Insurance industry average (24.7x).
PE vs Market: IAG is poor value based on its PE Ratio (25x) compared to the Australian market (21.4x).
Price to Earnings Growth Ratio
PEG Ratio: IAG is poor value based on its PEG Ratio (1.4x)
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).
How is Insurance Australia Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IAG's forecast earnings growth (17.7% per year) is above the savings rate (2.3%).
Earnings vs Market: IAG's earnings (17.7% per year) are forecast to grow faster than the Australian market (17.5% per year).
High Growth Earnings: IAG's earnings are forecast to grow, but not significantly.
Revenue vs Market: IAG's revenue (4.2% per year) is forecast to grow slower than the Australian market (4.6% per year).
High Growth Revenue: IAG's revenue (4.2% 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 (12.5%).
How has Insurance Australia Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IAG has high quality earnings.
Growing Profit Margin: IAG's current net profit margins (6.1%) are lower than last year (11.2%).
Past Earnings Growth Analysis
Earnings Trend: IAG's earnings have grown by 3.3% per year over the past 5 years.
Accelerating Growth: IAG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IAG had negative earnings growth (-49.6%) over the past year, making it difficult to compare to the Insurance industry average (-33.8%).
Return on Equity
High ROE: IAG's Return on Equity (7.6%) is considered low.
How is Insurance Australia Group's financial position?
Financial Position Analysis
Short Term Liabilities: IAG's short term assets (A$13.0B) do not cover its short term liabilities (A$14.2B).
Long Term Liabilities: IAG's short term assets (A$13.0B) exceed its long term liabilities (A$8.8B).
Debt to Equity History and Analysis
Debt Level: IAG's debt to equity ratio (22.8%) is considered satisfactory.
Reducing Debt: IAG's debt to equity ratio has reduced from 24.4% to 22.8% over the past 5 years.
Debt Coverage: IAG's debt is well covered by operating cash flow (25%).
Interest Coverage: IAG's interest payments on its debt are well covered by EBIT (6.3x coverage).
What is Insurance Australia Group current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate IAG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate IAG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if IAG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if IAG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: IAG is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of IAG's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
PG Harmer (60 yo)
Mr. Peter G. Harmer, also known as PG, serves as Chief Executive Officer, Managing Director and Executive Director at Insurance Australia Group Limited since November 16, 2015. Mr. Harmer serves as an Exec ...
CEO Compensation Analysis
Compensation vs Market: PG's total compensation ($USD2.87M) is about average for companies of similar size in the Australian market ($USD2.50M).
Compensation vs Earnings: PG's compensation has been consistent with company performance over the past year.
|MD, CEO & Executive Director||4.92yrs||AU$4.05m||0.054% |
|Acting Group Chief Financial Officer||0.50yr||AU$1.02m||0.000020% |
|Group Executive of People||1.25yrs||AU$1.08m||no data|
|Deputy Chief Executive Officer||0.50yr||AU$2.43m||0.0075% |
|Chief Strategy & Innovation Officer||4.83yrs||AU$1.46m||0.010% |
|Chief Executive of New Zealand||4.83yrs||AU$1.60m||0.0084% |
|Chief Risk Officer||2.08yrs||AU$1.52m||0.000010% |
|Chief Executive of Australia||3.25yrs||AU$2.40m||0.0069% |
|Group Executive of Technology & Digital||2.67yrs||no data||no data|
|Senior Manage of Investor Relations||no data||no data||no data|
|Group General Counsel & Company Secretary||0.83yr||no data||no data|
|Chief Marketing Officer||3.67yrs||no data||no data|
Experienced Management: IAG's management team is considered experienced (2.7 years average tenure).
|MD, CEO & Executive Director||4.92yrs||AU$4.05m||0.054% |
|Independent Non-Executive Director||3.83yrs||AU$243.00k||0.0014% |
|Independent Non-Executive Director||3.83yrs||AU$292.00k||0.0014% |
|Independent Non-Executive Director||1.33yrs||AU$244.00k||0.0015% |
|Independent Non Executive Director||0.92yr||AU$242.00k||no data|
|Independent Chairman of the Board||4.58yrs||AU$755.00k||0.0043% |
|Independent Non-Executive Director||5.75yrs||AU$267.00k||0.0014% |
|Independent Non-Executive Director||2.58yrs||AU$230.00k||0.0012% |
|Independent Non-Executive Director||5.08yrs||AU$267.00k||0.0015% |
|Independent Non-Executive Director||2.58yrs||AU$230.00k||0.00079% |
Experienced Board: IAG's board of directors are considered experienced (3.8 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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Insurance Australia Group Limited's company bio, employee growth, exchange listings and data sources
- Name: Insurance Australia Group Limited
- Ticker: IAG
- Exchange: ASX
- Founded: 1925
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: AU$10.864b
- Shares outstanding: 2.28b
- 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|
|IAGPD||ASX (Australian Securities Exchange)||FRN CNV PERP AUD5000 'REGS'||AU||AUD||Feb 2017|
Insurance Australia Group Limited underwrites general insurance products in Australia and New Zealand. The company offers consumer insurance products, including motor vehicle, home and contents, business p ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/20 10:39|
|End of Day Share Price||2020/10/20 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.