Insurance Australia Group (IAG) H1 2026 earnings summary

Executive summary

• Net profit after tax for 1H26 was $505 million, down 35.1% year-over-year, with EPS at 21.37 cents and ROE at 13.8%.

• Gross written premium (GWP) rose 6.0% to $8,929 million, driven by the RACQI acquisition and underlying growth in key segments.

• Underlying insurance profit increased to $804 million, with a margin of 15.1%, while reported insurance margin was 13.5% due to higher perils, especially from RACQI.

• Integration of RACQI is progressing well, contributing ~$500 million GWP in four months and delivering reinsurance synergies.

• Announced an on-market share buyback of up to $200 million and maintained an interim dividend of 12.0 cents per share, payout ratio 56%.

Financial highlights

• GWP increased 6% year-over-year to $8,929 million; net earned premium rose 8.5% to $5,348 million.

• Underlying insurance profit was $804 million, up 7.6%, but reported profit fell 24.3% to $724 million due to higher perils and integration costs.

• Excluding RACQI, insurance profit was $898 million, with a margin of 17.7%.

• Administration expense ratio improved to 11.7%, with a 20 bps YoY improvement.

• Paid over $6 billion in claims, supporting customers through severe storms and loss events.

Outlook and guidance

• FY26 guidance maintained: high single-digit GWP growth, insurance profit of $1,550–$1,750 million, reported insurance margin of 14–16%, and ROE target of 15%.

• Double-digit GWP growth expected in 2H26, supported by RACQI and strong retail performance.

• FY26 reported insurance profit expected at the lower end of the range due to one-off RACQI impact.

• Assumptions include no material adverse macroeconomic developments or major disruptions.

• Targeting sustainable 15% insurance margin and ROE through the cycle.