- Insurance Australia maintains its forecast for FY insurance profit ranging from A$1.40 billion to A$1.60 billion.
- The company expects a reported insurance margin between 13.5% and 15.5%.
- Insurance Australia anticipates FY gross written premium (GWP) growth of ‘mid-to-high single digits’.
- The company aims to reduce its administration expense ratio, excluding levies, by at least 100 basis points to below 11% by FY27.
- FY25 guidance aligns with the company’s objectives of delivering a 15% reported insurance margin and a reported return on equity (ROE) of 14% to 15% over the cycle.
- FY25 financial trends highlight favorable perils experience year-to-date, especially in New Zealand.
- The company’s guidance includes a full-year allowance of A$1,283 million for perils.
- Premium rate increases are designed to cover inflation, with trends noted as stable or moderating.
- Analyst ratings for the company include 6 buys, 5 holds, and 1 sell.
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A look at Insurance Australia Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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) is set for a promising long-term future as indicated by its Smartkarma Smart Scores. With a strong score of 5 for Growth, the company is positioned for expansion and development in the insurance industry. This signifies positive outcomes for potential investors looking for a company with long-term growth prospects.
Additionally, Insurance Australia received solid scores across other factors including Momentum and Value, with scores of 4 and 3 respectively. This suggests that the company is performing well in terms of market trends and may be undervalued, providing a potentially lucrative opportunity for investors. Overall, Insurance Australia Group Limited presents a favorable outlook for the future based on its Smartkarma Smart Scores, making it a company worth monitoring for investment opportunities.
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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