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Insurance Australia Group

DB:NRM
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NRM
DB
A$19B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

Insurance Australia Group Limited underwrites general insurance products. The last earnings update was 160 days ago. More info.


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NRM Share Price and Events
7 Day Returns
0%
DB:NRM
-1%
DE Insurance
-1.8%
DE Market
1 Year Returns
0.5%
DB:NRM
20.6%
DE Insurance
-6.7%
DE Market
NRM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Insurance Australia Group (NRM) 0% 11.7% 10.1% 0.5% 29.8% 23.7%
DE Insurance -1% 3.2% 4% 20.6% 60.3% 60.2%
DE Market -1.8% 1.6% -1.6% -6.7% 10.1% 11%
1 Year Return vs Industry and Market
  • NRM underperformed the Insurance industry which returned 20.6% over the past year.
  • NRM outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
NRM
Industry
5yr Volatility vs Market

Value

 Is Insurance Australia Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Insurance Australia Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Insurance Australia Group.

DB:NRM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= A$2.80 * 15.8%
A$0.44
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. A$2.80
Discount Rate (Cost of Equity) See below 5.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:NRM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.686 (1 + (1- 30%) (10.27%))
0.823
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.823 * 5.96%)
5.13%

Discounted Cash Flow Calculation for DB:NRM using Excess Returns Model Model

The calculations below outline how an intrinsic value for Insurance Australia Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:NRM Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15.8% – 5.13%) * A$2.80)
A$0.30
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.30 / (5.13% - 0.23%)
A$6.09
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$2.80 + A$6.09
A$8.89
DB:NRM Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:NRM represents 0.61685x of ASX:IAG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.61685x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (AUD) x Listing Adjustment Factor
= A$ 8.89 x 0.61685
€5.48
Value per share (EUR) From above. €5.48
Current discount Discount to share price of €5.20
= -1 x (€5.20 - €5.48) / €5.48
5.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Insurance Australia Group is available for.
Intrinsic value
5%
Share price is €5.2 vs Future cash flow value of €5.48
Current Discount Checks
For Insurance Australia Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Insurance Australia Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Insurance Australia Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Insurance Australia Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Insurance Australia Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:NRM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.29
ASX:IAG Share Price ** ASX (2019-07-15) in AUD A$8.43
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.39x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Insurance Australia Group.

DB:NRM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:IAG Share Price ÷ EPS (both in AUD)

= 8.43 ÷ 0.29

28.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insurance Australia Group is overvalued based on earnings compared to the DE Insurance industry average.
  • Insurance Australia Group is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Insurance Australia Group's expected growth come at a high price?
Raw Data
DB:NRM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
3.4%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.1x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

DB:NRM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.8x ÷ 3.4%

8.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insurance Australia Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Insurance Australia Group's assets?
Raw Data
DB:NRM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$2.60
ASX:IAG Share Price * ASX (2019-07-15) in AUD A$8.43
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.07x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.74x
DB:NRM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:IAG Share Price ÷ Book Value per Share (both in AUD)

= 8.43 ÷ 2.60

3.24x

* Primary Listing of Insurance Australia Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Insurance Australia Group is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess Insurance Australia Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Insurance Australia Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Insurance Australia Group expected to grow at an attractive rate?
  • Insurance Australia Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Insurance Australia Group's earnings growth is positive but not above the Germany market average.
  • Insurance Australia Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:NRM Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:NRM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 3.4%
DB:NRM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 3.2%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:NRM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:NRM Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 8,274 1
2021-06-30 7,726 985 6
2020-06-30 7,603 985 7
2019-06-30 7,266 983 7
DB:NRM Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 7,366 289 681
2018-09-30 7,722 118 814
2018-06-30 8,078 -53 947
2017-12-31 8,730 190 1,051
2017-09-30 8,711 413 995
2017-06-30 8,692 636 938
2017-03-31 8,567 121 767
2016-12-31 8,166 -395 605
2016-09-30 8,135 -1,171 615
2016-06-30 8,104 -1,946 625
2016-03-31 8,916 -1,310 620

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Insurance Australia Group's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
  • Insurance Australia Group's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:NRM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Insurance Australia Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NRM Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 0.42 0.43 0.40 4.00
2020-06-30 0.42 0.44 0.40 6.00
2019-06-30 0.40 0.48 0.33 6.00
DB:NRM Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.29
2018-09-30 0.35
2018-06-30 0.41
2017-12-31 0.46
2017-09-30 0.43
2017-06-30 0.40
2017-03-31 0.33
2016-12-31 0.26
2016-09-30 0.26
2016-06-30 0.26
2016-03-31 0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Insurance Australia Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Insurance Australia Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Insurance Australia Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Insurance Australia Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insurance Australia Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Insurance Australia Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Insurance Australia Group's 1-year earnings growth is negative, it can't be compared to the DE Insurance industry average.
Earnings and Revenue History
Insurance Australia Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Insurance Australia Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NRM Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,366.00 681.00 210.00
2018-09-30 7,722.00 814.00 247.00
2018-06-30 8,078.00 947.00 284.00
2017-12-31 8,730.00 1,051.00 319.00
2017-09-30 8,711.00 994.50 304.50
2017-06-30 8,692.00 938.00 290.00
2017-03-31 8,567.00 767.00 288.50
2016-12-31 8,166.00 605.00 287.00
2016-09-30 8,135.00 615.00 286.00
2016-06-30 8,104.00 625.00 285.00
2016-03-31 8,915.50 620.00 356.50
2015-12-31 9,727.00 615.00 428.00
2015-09-30 10,424.50 671.50 446.50
2015-06-30 11,122.00 728.00 465.00
2015-03-31 10,839.50 949.00 401.00
2014-12-31 10,557.00 1,170.00 337.00
2014-09-30 10,020.00 1,201.50 296.50
2014-06-30 9,483.00 1,233.00 256.00
2013-12-31 9,105.00 1,062.00 216.00
2013-09-30 9,032.00 1,062.50 230.50
2013-06-30 8,959.00 1,063.00 245.00
2012-12-31 8,837.00 1,020.00 268.00
2012-09-30 8,599.00 774.00 248.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Insurance Australia Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Insurance Australia Group used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • Insurance Australia Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Insurance Australia Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Insurance Australia Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Insurance Australia Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Insurance Australia Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Insurance Australia Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Insurance Australia Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Insurance Australia Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 5.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Insurance Australia Group Company Filings, last reported 6 months ago.

DB:NRM Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,552.00 1,976.00 1,092.00
2018-09-30 6,552.00 1,976.00 1,092.00
2018-06-30 7,180.00 1,960.00 1,201.00
2017-12-31 7,054.00 1,608.00 1,189.00
2017-09-30 7,054.00 1,608.00 1,189.00
2017-06-30 7,011.00 1,624.00 1,480.00
2017-03-31 7,011.00 1,624.00 1,480.00
2016-12-31 6,816.00 1,790.00 378.00
2016-09-30 6,816.00 1,790.00 378.00
2016-06-30 7,032.00 1,962.00 1,104.00
2016-03-31 7,032.00 1,962.00 1,104.00
2015-12-31 7,399.00 1,781.00 310.00
2015-09-30 7,399.00 1,781.00 310.00
2015-06-30 7,216.00 1,762.00 1,433.00
2015-03-31 7,216.00 1,762.00 1,433.00
2014-12-31 7,011.00 1,772.00 250.00
2014-09-30 7,011.00 1,772.00 250.00
2014-06-30 6,984.00 1,760.00 3,001.00
2013-12-31 6,484.00 1,696.00 360.00
2013-09-30 6,484.00 1,696.00 360.00
2013-06-30 5,198.00 1,620.00 1,620.00
2012-12-31 4,988.00 1,572.00 458.00
2012-09-30 4,988.00 1,572.00 458.00
  • Insurance Australia Group's level of debt (30.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.2% vs 30.2% today).
  • Debt is not well covered by operating cash flow (14.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.4x coverage).
X
Financial health checks
We assess Insurance Australia Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Insurance Australia Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.8%
Current annual income from Insurance Australia Group dividends. Estimated to be 4.18% next year.
If you bought €2,000 of Insurance Australia Group shares you are expected to receive €76 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Insurance Australia Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).
  • Insurance Australia Group's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:NRM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:NRM Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.37 1.00
2021-06-30 0.35 10.00
2020-06-30 0.35 12.00
2019-06-30 0.35 12.00
DB:NRM Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-05 0.320 4.098
2018-08-14 0.348 4.780
2018-02-13 0.348 4.252
2017-08-22 0.410 5.859
2017-02-22 0.266 4.087
2017-02-21 0.266 4.396
2016-09-22 0.266 4.551
2016-03-23 0.297 5.097
2015-08-20 0.297 5.475
2015-02-17 0.400 6.722
2014-08-19 0.400 6.203
2013-08-21 0.369 6.227
2012-08-22 0.174 3.347
2012-02-23 0.123 3.469
2011-08-25 0.164 5.336
2011-02-24 0.154 4.401
2010-07-27 0.133 3.515
2010-02-24 0.149 3.957
2009-08-21 0.103 2.603
2009-02-26 0.082 2.289
2008-08-22 0.231 5.900

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Insurance Australia Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Insurance Australia Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Insurance Australia Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Insurance Australia Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Insurance Australia Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
PG Harmer
COMPENSATION A$4,889,000
AGE 59
TENURE AS CEO 3.7 years
CEO Bio

Mr. Peter G. Harmer, also known as PG, has been the Chief Executive Officer, Managing Director and Executive Director at Insurance Australia Group Limited since November 16, 2015. Mr. Harmer has been an Executive Director of IAG Finance New Zealand Ltd. since December 10, 2015. He served as the Chief Executive of Labs at Insurance Australia Group Limited (IAG) from July 31, 2015 to November 16, 2015, Chief Digital Officer from March 2015 July 31, 2015, Head of Group Digital Strategy since March 31, 2015, Chief Executive of Commercial Insurance since July 1, 2014 and Chief Executive Officer of CGU Insurance Australia Limited from November 8, 2010 to March 31, 2015. He was responsible for driving digital and innovation across IAG and its brands, and creating incubator areas to explore innovative opportunities across the fintech landscape. He joined IAG in 2010 and has held a number of senior roles. Mr. Harmer served as the Chief Executive Officer of Aon Limited. He served as the Chief Executive Officer of Aon UK Limited, a subsidiary of Aon Corporation and an affiliate of Aon Consulting Limited since January 2007. He served as the Chief Executive Officer of Aon Holdings Australia since 2000. He served as the Chief Executive Officer of Aon 020412 Limited. He was a member of Aon’s Global Executive Board. He has nearly 40 years experience in the insurance industry, having started as a claims officer in 1979. He held senior roles in underwriting, reinsurance broking and commercial insurance broking. Mr. Harmer served as the Chairman of Aon Re International since 1998 and served as its Chief Executive. He joined the Aon Group in 1987 and has spent that time building businesses, innovating products and services and developing high-performing teams. He has held various roles in Australia including Managing Director of John C. Lloyd Reinsurance Brokers since 1992, driving the merger of John C. Lloyd and Alexander Howden in 1996. Mr. Harmer served as the Chairman of the London Market Reform Group in 2008. He serves as a Director of Aon Re International. He served as a Director of ACORD Corporation. He served as a Director of Insurance Australia Group Services Pty Limited from November 21, 2012 to May 11, 2016. He served as a Director of CGU Insurance Australia Limited since March 7, 2011. His career has spanned underwriting, reinsurance broking and retail insurance broking. Mr. Harmer is a graduate of the Harvard Advanced Management Program.

CEO Compensation
  • PG's compensation has been consistent with company performance over the past year, both up more than 20%.
  • PG's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Insurance Australia Group management team in years:

2
Average Tenure
  • The tenure for the Insurance Australia Group management team is about average.
Management Team

PG Harmer

TITLE
MD, CEO & Executive Director
COMPENSATION
A$5M
AGE
59
TENURE
3.7 yrs

Nick Hawkins

TITLE
Chief Financial Officer
COMPENSATION
A$3M
AGE
51
TENURE
11 yrs

Julie Batch

TITLE
Chief Customer Officer
COMPENSATION
A$2M
TENURE
3.6 yrs

Craig Olsen

TITLE
Chief Executive of New Zealand
COMPENSATION
A$2M
TENURE
3.6 yrs

Mark Milliner

TITLE
Chief Executive of Australia
COMPENSATION
A$3M
TENURE
2 yrs

Ben Bessell

TITLE
Executive GM of Business Distribution & Group Executive
COMPENSATION
A$692K
TENURE
2 yrs

Neil Morgan

TITLE
Group Executive of Technology
TENURE
1.4 yrs

Simon Phibbs

TITLE
Senior Manage of Investor Relations

Rebecca Farrell

TITLE
Acting General Counsel & Company Secretary
TENURE
0.9 yrs

David Harrington

TITLE
Group Executive of Strategy & Corporate Development
COMPENSATION
A$1M
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Insurance Australia Group board of directors in years:

3
Average Tenure
65
Average Age
  • The average tenure for the Insurance Australia Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Elizabeth Bryan

TITLE
Chairman of the Board
COMPENSATION
A$788K
AGE
73
TENURE
3.3 yrs

PG Harmer

TITLE
MD, CEO & Executive Director
COMPENSATION
A$5M
AGE
59
TENURE
3.6 yrs

Tom Pockett

TITLE
Independent Non-Executive Director
COMPENSATION
A$267K
AGE
61
TENURE
4.5 yrs

Jon Nicholson

TITLE
Independent Non-Executive Director
COMPENSATION
A$253K
AGE
63
TENURE
3.8 yrs

Duncan Boyle

TITLE
Independent Non-Executive Director
COMPENSATION
A$262K
AGE
67
TENURE
2.6 yrs

HA Fletcher

TITLE
Independent Non-Executive Director
COMPENSATION
A$381K
AGE
72
TENURE
11.8 yrs

Helen Nugent

TITLE
Independent Non-Executive Director
COMPENSATION
A$257K
AGE
70
TENURE
2.6 yrs

Michelle Tredenick

TITLE
Independent Non-Executive Director
COMPENSATION
A$66K
AGE
58
TENURE
1.3 yrs

Sheila McGregor

TITLE
Independent Non-Executive Director
COMPENSATION
A$66K
TENURE
1.3 yrs

George Savvides

TITLE
Independent Non-Executive Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
12. Mar 19 Sell Peter Harmer Individual 06. Mar 19 06. Mar 19 -120,000 €4.79 €-575,085
22. Nov 18 Buy Helen Nugent Individual 20. Nov 18 20. Nov 18 7,000 €4.49 €31,410
26. Jul 18 Sell Capital Research and Management Company Company 07. Feb 18 25. Jul 18 -791,410 €5.22 €-4,127,793
X
Management checks
We assess Insurance Australia Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Insurance Australia Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Insurance Australia Group Limited underwrites general insurance products. The company operates through Australia, New Zealand, and Corporate and Other segments. It offers consumer insurance products, such as motor vehicle, home and contents, lifestyle and leisure, and compulsory third party, as well as travel insurance, life insurance, and income protection products; and business insurance products, including business package, farm and crop, commercial property, construction and engineering, commercial and fleet motor, marine, workers' compensation, professional indemnity, directors' and officers', and public and products liability. The company also provides pleasure craft, boat, and caravan insurance products; rural and horticultural, and personal and commercial liability insurance products. It sells its products directly to customers under the NRMA Insurance, SGIO, SGIC, RACV, Coles, and CGU brands; and through insurance brokers, authorized representatives, and distribution partners under the CGU and WFI brands in Australia. Insurance Australia Group Limited also sells its products directly to customers under the State and AMI brands; through insurance brokers and agents under the NZI and Lumley Insurance brands; and through corporate partners under third party brands in New Zealand. The company was formerly known as NRMA Insurance Group Limited and changed its name to Insurance Australia Group Limited in 2002. Insurance Australia Group Limited was founded in 1925 and is headquartered in Sydney, Australia.

Details
Name: Insurance Australia Group Limited
NRM
Exchange: DB
Founded: 1925
A$12,018,589,466
2,282,327,959
Website: http://www.iag.com.au
Address: Insurance Australia Group Limited
Tower Two,
Level 13,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX IAG Ordinary Shares Australian Securities Exchange AU AUD 08. Aug 2000
OTCPK IAUG.F Ordinary Shares Pink Sheets LLC US USD 08. Aug 2000
DB NRM Ordinary Shares Deutsche Boerse AG DE EUR 08. Aug 2000
OTCPK IAUG.Y UNSPNSRD ADS NEW Pink Sheets LLC US USD 06. Oct 2008
ASX IAGPD FRN CNV PERP AUD100 Australian Securities Exchange AU AUD 07. Feb 2017
Number of employees
Current staff
Staff numbers
0
Insurance Australia Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 21:01
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.