Latest news with #InsuranceAustraliaGroup
AU Financial Review
15-07-2025
- Business
- AU Financial Review
Suncorp and IAG's disaster profits come at taxpayer expense
There's been a flood of good news for investors in Australia's major listed insurers. Insurance Australia Group (IAG) and Suncorp got off very lightly from the impact of ex-tropical Cyclone Alfred, which delayed the federal election but did far less damage than feared. But therein lies the rub. Those citizens reeling from the impact of major disasters wouldn't like to see insurers crowing about their money-making. Celebrations of full-year profit figures will be muted. Meanwhile, industry lobby group the Insurance Council of Australia – chaired by Suncorp chief Steve Johnston – is doing what it can to smooth things along.
Yahoo
07-07-2025
- Business
- Yahoo
Is Insurance Australia Group Limited's (ASX:IAG) Recent Stock Performance Tethered To Its Strong Fundamentals?
Insurance Australia Group (ASX:IAG) has had a great run on the share market with its stock up by a significant 16% over the last three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. In this article, we decided to focus on Insurance Australia Group's ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Insurance Australia Group is: 20% = AU$1.5b ÷ AU$7.5b (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each A$1 of shareholders' capital it has, the company made A$0.20 in profit. See our latest analysis for Insurance Australia Group We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. To begin with, Insurance Australia Group seems to have a respectable ROE. On comparing with the average industry ROE of 16% the company's ROE looks pretty remarkable. Probably as a result of this, Insurance Australia Group was able to see an impressive net income growth of 39% over the last five years. However, there could also be other causes behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. We then compared Insurance Australia Group's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 19% in the same 5-year period. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is IAG worth today? The intrinsic value infographic in our free research report helps visualize whether IAG is currently mispriced by the market. The high three-year median payout ratio of 62% (implying that it keeps only 38% of profits) for Insurance Australia Group suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders. Moreover, Insurance Australia Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 75% over the next three years. Accordingly, the expected increase in the payout ratio explains the expected decline in the company's ROE to 15%, over the same period. In total, we are pretty happy with Insurance Australia Group's performance. In particular, its high ROE is quite noteworthy and also the probable explanation behind its considerable earnings growth. Yet, the company is retaining a small portion of its profits. Which means that the company has been able to grow its earnings in spite of it, so that's not too bad. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Is Now The Time To Put Insurance Australia Group (ASX:IAG) On Your Watchlist?
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Insurance Australia Group (ASX:IAG). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In the last three years Insurance Australia Group's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. Outstandingly, Insurance Australia Group's EPS shot from AU$0.30 to AU$0.54, over the last year. Year on year growth of 76% is certainly a sight to behold. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. The good news is that Insurance Australia Group is growing revenues, and EBIT margins improved by 4.1 percentage points to 14%, over the last year. Ticking those two boxes is a good sign of growth, in our book. In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers. View our latest analysis for Insurance Australia Group While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Insurance Australia Group? Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. The good news for Insurance Australia Group shareholders is that no insiders reported selling shares in the last year. So it's definitely nice that Independent Non-Executive Director George Sartorel bought AU$38k worth of shares at an average price of around AU$7.69. Purchases like this can help the investors understand the views of the management team; in which case they see some potential in Insurance Australia Group. Recent insider purchases of Insurance Australia Group stock is not the only way management has kept the interests of the general public shareholders in mind. Specifically, the CEO is paid quite reasonably for a company of this size. The median total compensation for CEOs of companies similar in size to Insurance Australia Group, with market caps over AU$12b, is around AU$6.5m. Insurance Australia Group offered total compensation worth AU$5.2m to its CEO in the year to June 2024. That is actually below the median for CEO's of similarly sized companies. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally. Insurance Australia Group's earnings per share have been soaring, with growth rates sky high. Not to mention the company's insiders have been adding to their portfolios and the CEO's remuneration policy looks to have had shareholders in mind seeing as it's quite modest for the company size. The strong EPS growth suggests Insurance Australia Group may be at an inflection point. For those attracted to fast growth, we'd suggest this stock merits monitoring. You should always think about risks though. Case in point, we've spotted 2 warning signs for Insurance Australia Group you should be aware of, and 1 of them is concerning. The good news is that Insurance Australia Group is not the only stock with insider buying. Here's a list of small cap, undervalued companies in AU with insider buying in the last three months! Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
NDTV
27-05-2025
- Business
- NDTV
Australia PM Says "Massive Challenges" Ahead In Recovery From Floods
Sydney: Australian Prime Minister Anthony Albanese said on Tuesday flooding in the southeast posed "massive challenges" and the recovery would take several months. Incessant rain over three days triggered major flooding in several rural towns in the Hunter and Mid North Coast regions of New South Wales, Australia's most populous state, as fast-rising rivers cut off more than 50,000 people last week. "There are still massive challenges ... this is not something that will go away in a matter of days or weeks or even months," Albanese told reporters from the flood-hit town of Taree, more than 300 km (186 miles) north of Sydney. "This will take some time, the recovery, but Australians are resilient." Taree received just over 600 mm (24 inches) of rain over four days from May 20, roughly half its annual average, official data showed. Australia has been hit with increasing extreme weather events that some experts say are the result of climate change. Following droughts and devastating bushfires at the end of last decade, frequent floods have caused damage since early 2021. Albanese said the flooding severely hurt the dairy industry, which "will have an impact right throughout Australia." Dead and lost livestock had washed up on the coast after the floods inundated several farms and homes. A one-off disaster recovery payment of A$1,000 ($648) for adults and A$400 for children will be rolled out from Wednesday, while the ongoing 13-week income support allowance will be expanded to cover more residents, Albanese said. Insurance Australia Group, the country's largest general insurer, said it had received around 2,500 claims as of Tuesday related to the floods, with most claims for property damage. Nearly 800 properties have been deemed uninhabitable after conducting more than 7,300 damage assessments, a spokesperson for the New South Wales state emergency services said.
Business Recorder
27-05-2025
- Business
- Business Recorder
Australia floods recovery could take several months, PM says
SYDNEY: Australian Prime Minister Anthony Albanese said on Tuesday flooding in the southeast posed 'massive challenges' and the recovery would take several months. Incessant rain over three days triggered major flooding in several rural towns in the Hunter and Mid North Coast regions of New South Wales, Australia's most populous state, as fast-rising rivers cut off more than 50,000 people last week. 'There are still massive challenges … this is not something that will go away in a matter of days or weeks or even months,' Albanese told reporters from the flood-hit town of Taree, more than 300 km (186 miles) north of Sydney. 'This will take some time, the recovery, but Australians are resilient.' Australian authorities airdrop supplies to farmers stranded by flood crisis Taree received just over 600 mm (24 inches) of rain over four days from May 20, roughly half its annual average, official data showed. Australia has been hit with increasing extreme weather events that some experts say are the result of climate change. Following droughts and devastating bushfires at the end of last decade, frequent floods have wreaked havoc since early 2021. Albanese said the flooding severely hurt the dairy industry, which 'will have an impact right throughout Australia.' Dead and lost livestock had washed up on the coast after the floods inundated several farms and homes. A one-off disaster recovery payment of A$1,000 ($648) for adults and A$400 for children will be rolled out from Wednesday, while the ongoing 13-week income support allowance will be expanded to cover more residents, Albanese said. Insurance Australia Group, the country's largest general insurer, said it had received around 2,500 claims as of Tuesday related to the floods, with most claims for property damage. Nearly 800 properties have been deemed uninhabitable after conducting more than 7,300 damage assessments, a spokesperson for the New South Wales state emergency services said.
