08/08/2024 09:40

Insurance Australia Group (IAG) $6.95

We have been too cautious towards IAG over the last two years, but we currently see little upside for the stock above $7. IAG provided an FY24 trading update in late June with few surprises now expected when it reports on the 21st August - the markets will be scrutinizing its FY25 margin guidance, commentary around pricing, reinsurance and claims. Also, some capital management is anticipated, with a potential $350mn buyback on the cards.

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11/04/2024 09:25

Insurance Australia Group Ltd (IAG) $6.37

IAG slipped -1.9% on Wednesday, but it's still up +14.7 % so far this year, well ahead of the broader market. Moving forward, we remain concerned about affordability, volume loss and softening customer retention as premiums increase. IAG’s strong capital position enabled them to recently announce a $200mn buyback, which has helped support the stock, but we still believe it’s getting tired above $6 and would be sellers of strength as opposed to buyers into dips.

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07/03/2024 09:12

Insurance Australia Group (IAG) $6.22

On the surface, IAG’s February 1H24 result was below expectations; the market’s muted reaction suggests that the core result was solid on closer inspection. Stabilising claims is key to their margin outlook, helped by improving motor claims. Looking forward, we see some growing concerns around affordability, volume loss and softening customer retention as prices go up in the 2H. A $200mn buyback has helped support the stock, but we believe it's getting tired above $6 and would turn sellers rather than buyers into strength.

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16/02/2024 16:52

Insurance Australia (IAG) $6.08

IAG -3.80%: the local insurer hit two-year highs yesterday but fell away today on a soft 1H result. Profit at $415m was a 5% miss and the 10c interim dividend compared poorly to the 12c expected while margins of 13.7% was a decent drop from the 14.6% hit in 2H23.

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23/11/2023 09:12

Insurance Australia Group (IAG) $5.91

IAG, like most of the sector, has successfully increased prices post-COVID, exhibiting an excellent ability to accelerate revenue with many people forced to buy insurance, e.g. homes with a mortgage and cars that are leased. 

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19/09/2023 09:25

Insurance Australia Group Ltd (IAG) $5.76

IAG rallied strongly in June after demonstrating impressive pricing power, and I’m sure most subscribers have seen the increase across their insurance premiums in 2023. The stock has looked strong since the announcement and a push towards $6.50 seems possible over the coming months. Although it's not on our radar at this stage, we have revised our outlook from neutral to mildly bullish.

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20/06/2023 09:28

Insurance Australia Group (IAG) $5.57

As mentioned earlier IAG has exhibited some impressive and arguably ruthless pricing power this month but from a business/stock perspective it’s bullish if they can increase revenue so easily – remember many people simply have to buy insurance e.g. homes with a mortgage and cars that are leased. The current upside move by IAG is undoubtedly strong with a test of $6 looking likely but MM is not planning to add the stock to our portfolios.

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16/06/2023 09:18

Insurance Australia Group Ltd (IAG) $5.47

IAG has popped +7% this week after announcing home insurance would be hiked by +20% and car premiums by +14%, not great news for most Australians nor the RBA who are attempting to wrestle inflation back into its 2-3% target band.

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30/05/2023 09:15

Insurance Australia Group Ltd (IAG) $5.21

IAG has finally found some love this year rallying +9.7% even after downgrading guidance in February with a $350mn buyback announced in late 2022 has helped the stock’s performance, but we don't expect further capital management to follow.

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21/02/2023 09:25

National Australia Bank (NAB) v Insurance Australia Group (IAG)

IAG has downgraded already this year which has kept the stock firmly in the shadow of QBE whereas NAB doesn’t report until May along with ANZ and Westpac.

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