- Insurance Australia‘s FY net income was A$898 million, which is an 8.8% increase year-over-year but missed the estimate of A$975.4 million.
- Cash profit doubled to A$905 million from A$452 million year-over-year.
- The final dividend per share announced is A$0.170.
- Gross written premiums increased by 11% year-over-year to A$16.40 billion.
- Net earned premium also rose by 11% year-over-year to A$9.24 billion.
- Insurance profit saw a 6.2% increase year-over-year, reaching A$1.44 billion.
- Reported insurance margin improved significantly to 15.6% from 9.6% year-over-year.
- Underlying insurance margin also increased, reaching 14.5% compared to last year’s 12.6%.
- Total revenue for the year was A$17.24 billion.
- The company forecasts a reported insurance margin of 13.5% to 15.5% for 2025.
- The forecast for FY gross written premiums growth is mid-to-high single digit percentages.
- Analyst recommendations are 5 buys, 5 holds, and 1 sell.
A look at Insurance Australia Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Insurance Australia Group Limited (IAG) has received a mixed bag of Smart Scores, indicating a nuanced long-term outlook for the company. With a strong Growth score of 5 and Momentum score of 5, IAG appears well-positioned for future expansion and market performance. The emphasis on growth suggests potential for increased market share and profitability over time.
However, the company’s Value, Dividend, and Resilience scores of 3, 3, and 2 respectively, point to some areas of concern. Investors may need to closely monitor the company’s ability to create value, pay dividends, and weather economic storms. Despite solid growth and momentum, maintaining resilience and ensuring sustained value creation could be key challenges for Insurance Australia in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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