Insurance Australia Group (IAG) H1 2025 earnings summary

Executive summary

• Net profit after tax for 1H25 rose 91.2% year-over-year to $778 million, driven by higher insurance profit, investment income, and a $140 million post-tax release from the business interruption provision.

• Gross written premium (GWP) increased 6.0% to $8.4 billion, with strong renewal rates and premium increases reflecting moderating claims inflation.

• Reported insurance margin improved to 19.4% from 13.7% in 1H24, reflecting improved claims experience and lower perils costs.

• Paid over $5 billion in claims, supported over 10,000 customers in financial hardship, and invested in community resilience initiatives.

• Customer experience and brand trust remain high, with ongoing digital transformation and technology investment.

Financial highlights

• NPAT up 91.2% year-over-year to $778 million, with EPS at 32.88 cents and insurance profit at $957 million.

• Underlying insurance margin improved to 15.1% (up from 13.7% in 1H24).

• Net earned premium (NEP) grew 9.7% to $4.93 billion.

• Interim dividend increased 20% to 12 cents per share, payout ratio 45%.

• CET1 ratio at 1.42, well above the 0.9–1.1 target range.

Outlook and guidance

• FY25 reported insurance profit guidance: $1.4–$1.6 billion, assuming natural peril costs of $1,283 million.

• Reported insurance margin expected at 13.5%–15.5%, likely towards the top of the range.

• GWP growth forecast in the mid-to-high single digits, expected at the lower end due to moderating premium increases.

• Underlying margin expected to remain around 15% in the second half, consistent with long-term targets.

• Confident in delivering FY25 guidance, with scalable technology and strong capital position supporting future growth.