- Insurance Australia maintains its FY24 reported insurance margin forecast at 13.5% to 15.5%.
- Expected GWP (gross written premium) growth for FY24 is in the low double digits.
- The GWP growth is rate-driven to cover:
- Claims inflation
- Higher reinsurance costs
- Increased natural peril allowance
- The company anticipates an improved performance in the second half of the year, benefiting from the strong GWP growth.
- Analyst recommendations:
- 4 buy
- 7 hold
- 1 sell
- All comparisons are based on values reported in the company’s original disclosures.
A look at Insurance Australia Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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 mix of Smart Scores, indicating a varied long-term outlook for the company. With a high Growth score of 5, IAG is poised for significant expansion opportunities in the future. This suggests that the company is on a strong growth trajectory. However, the Resilience score of 2 may raise some concerns about the company’s ability to weather unforeseen challenges effectively.
Moreover, the Momentum score of 4 suggests that IAG has positive short-term price performance. While the Value and Dividend scores both sit at 3, these factors indicate stability and average performance in terms of the company’s valuation and dividend payouts. Overall, IAG presents a solid growth potential but may face challenges in terms of resilience, making it a stock to monitor closely for future developments in the insurance industry.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
