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MM thoughts on IAG

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MM thoughts on IAG

Hi MM - would it be prudent to make a quick exit from IAG before the implications of the floods/claims hit home? Thanks Dave.

Answer

Hi Dave,

Remember insurance companies re-insure and make provisions for such natural disasters, albeit within reason. We’ll also likely see higher premiums as a result of the floods which are good for insurance margins. The way IAG has absorbed the pending flood damage claims suggests to me its great value at current levels, remember “sell strength & buy weakness in 2021”. We continue to like IAG here.

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Insurance Australia Group (IAG)
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