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Insurance Australia Group Limited (ASX:IAG)

ALERT: Price-sensitive ASX Announcement for IAG
Current share price for IAG : $8.490 1.2 (16.46%)+
Announcement
Release
12 Feb 2026 7:52AM
Price at Release
$7.290
Full Release
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Summary
The IAG Half Year Report for the period ending 31 December 2025 demonstrates strong financial performance with a profit of $505 million attributable to shareholders. Despite facing higher-than-expected net natural perils claims costs of $870 million, IAG maintained a robust capital position with CET1 capital of $3,417 million. The report highlights the completion of IAG's acquisition of a 90% stake in RACQI and the announcement of an on-market share buy-back of up to $200 million. IAG's investment strategy remains conservative, focusing on fixed interest and cash, while a 25% franked interim dividend was declared. The report also reflects increased claims and expenses due to the inclusion of the RACQI business, and the group's investment assets totaled $13,532 million.
Key Points
  • IAG reported a profit of $505 million attributable to shareholders for the half year ended 31 December 2025.
  • The net natural perils claims costs in 1H26 were $870 million, significantly above the expected allowance.
  • IAG's capital position remained strong with a Common Equity Tier 1 (CET1) capital of $3,417 million.
  • The company announced an on-market share buy-back of up to $200 million in February 2026.
  • IAG completed the acquisition of 90% of RACQI shares for $855 million.
  • IAG's investment portfolio was defensively positioned with 88% in fixed interest and cash.
  • A 25% franked interim dividend of 12.0 cents per share was announced to be paid in March 2026.
  • The half year report included a significant increase in claims and other expenses, largely due to the inclusion of the RACQI business.
  • IAG's insurance profit for the period was $1,157 million.
  • The Group's total investments at 31 December 2025 were valued at $13,532 million.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.