Insurance Australia Group (IAG) H2 2024 earnings summary

Executive summary

• Net profit after tax rose 7.9% to AUD 898 million for FY24, with insurance profit up 79.1% to AUD 1,438 million and reported insurance margin at 15.6%.

• Gross written premium (GWP) increased 11.3% to AUD 16.4 billion, driven by premium increases and strong renewal rates.

• Declared a final dividend of AUD 0.17 per share (50% franked), full year dividend up 80% to AUD 0.27 per share, and announced a further on-market share buyback of up to AUD 350 million.

• Customer advocacy and retention remained high, with renewal rates near 90% in Australia and above 90% in New Zealand.

• Focused on operational efficiency, technology investment, and streamlined business to drive future growth.

Financial highlights

• Underlying insurance profit up 27.1% to AUD 1,337 million; underlying insurance margin improved to 14.5%.

• Cash earnings doubled year-over-year to AUD 905 million.

• Investment income on technical reserves was AUD 456 million at a 5.7% yield; shareholders' funds contributed AUD 286 million.

• Claims paid totaled AUD 10.7 billion.

• Actual net perils costs of AUD 983 million, AUD 115 million below allowance, mainly due to favorable NZ experience.

Outlook and guidance

• FY25 guidance: GWP growth in mid- to high-single digits, with reported insurance profit expected between AUD 1.4–1.6 billion and margin guidance of 13.5%–15.5%.

• GWP growth in FY25 expected to be split between 1–2% volume growth and the remainder from price increases.

• Perils allowance for FY25 set at AUD 1,283 million, with strong downside risk protection from reinsurance.

• Guidance assumes stable claims inflation, strong investment income, and no material reserve movements or macroeconomic shocks.

• Long-term targets include a 15% reported insurance margin and 14–15% ROE through the cycle.