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Current Price Data+
Current Price
Open
High
Low
Last Close
Volume
Price Movement
$ 3.960
$ 3.960
$ 4.000
$ 3.910
$ 3.950
2,364,248
$ 0.010 0.253 %
Current Broker Consensus Recommendation
Recommendation :
Hold
Recommendation Date :
11th Mar 2010
12 Month Target Price (average) :
$4.339
Brokers Surveyed :
10
Market Statistics
% of Market:
0.7300
% of Sector:
1.5440
Sector:
Financials
Industry Group:
Insurance
Industry:
Insurance
Company Overview
Company Overview
IAG is the largest general insurance group in Australia and New Zealand. It also has interests in Asia and the UK, although it has announced the partial sale of its UK operations generating a A$90M loss. A significant portion of premium revenue is derived from Australian personal lines insurance business, with motor, home and contents the main product lines. IAG's insurance brands include NRMA (NSW), SGIO (WA), SGIC (SA) and CGU. Its New Zealand brands include State Insurance, NZI and Circle.
Company History
The National Roads Association was formed in 1920 to lobby government for better roads. In 1925, the association set up its insurance subsidiary, selling car insurance to members, and in 1926, was reconstituted as a separate mutual. Through the 1990s, the Insurance Group consolidated its market position in motor, CTP and home insurance. In July 2000, NRMA Insurance Group Ltd demutualised and listed on the ASX in Aug 2000. In Jan 2002, the group changed its name to Insurance Australia Group Ltd.
Differentiating Factor
IAG's affiliation with the NRMA Motoring Association provides the company with a strong brand name and ability to leverage from a large customer base.
Major Customers & Competitors
IAG's major customers are its millions of policyholders, the majority of whom hold motor, CTP and/or home and contents insurance policies. Major competitors include local Australian and overseas general insurance companies such as QBE, the merged Suncorp/Promina (GIO and AAMI) and Allianz.
Financial Summary
Year to Jun
NPAT Rep $M
NPAT1 Adj $M
EPS c
EPS chg %
PER x
PER rel All Ords x
PER rel Sector x
DPS c
Yield %
Franking %
ROE %
2007A
552
607
36.1
-24.9
11.0
0.6
0.5
29.5
7.4
100
14.4
2008A
(261)
146
8.0
-77.9
49.6
2.6
2.4
22.5
5.7
100
3.2
2009A
181
247
12.6
57.8
31.4
1.6
1.7
10.0
2.5
100
5.9
1NPAT is normalised by removing non-recurring items and goodwill. All the above statistics are derived from normalised earnings.
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$ 3.960
