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% to AUD 1,438 million and return on equity at 13.5%.

• Gross written premium 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), total FY24 dividend up 80% to AUD 0.27 per share.

• Announced a further on-market share buyback of up to AUD 350 million.

• Maintained strong capital position (CET1 1.27), with focus on customer support, operational efficiency, and technology investment.

Financial highlights

• Underlying insurance profit up 27.1% to AUD 1,337 million; underlying margin for FY24 was 14.5%, up from 12.6% last year.

• Cash earnings (excluding one-off impacts) roughly doubled year-over-year to AUD 905 million.

• GWP growth of 11.3%, driven mainly by rate increases.

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

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

Outlook and guidance

• FY25 guidance: premium growth in mid- to high-single digits, combining price and volume growth.

• Reported insurance profit expected between AUD 1.4–1.6 billion, margin guidance of 13.5%–15.5%.

• 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.

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