Insurance Australia Group Ltd

IAG: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$5.10	Vwqg	Pmrsnwz

Insurance Australia Group Earnings: Price Drives Premium Growth as Volume Treads Water

Nathan Zaia

Feb 16, 2024

We raise our fair value estimate for no-moat Insurance Australia Group by 4% to AUD 5.70 per share due to premium rate increases persisting for longer than we anticipated. Strong investment income, a function of higher interest rates, increases our fiscal 2024 insurance profit forecast by 6% to AUD 1.3 billion. This is 64% up on fiscal 2023 and within management’s reaffirmed guidance range of AUD 1.20 billion-AUD 1.45 billion.

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