Insurance Australia Group Limited (IAG)



Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today » it's FREE! Already a member? Login now!


General Information
Company Name: Insurance Australia Group Limited
Stock Code: IAG
Website: www.iag.com.au
GICS Sub-Industry: Property & Casualty Insurance
Market Cap ($M): 15,033
Equiv. Shares (M): 2,342

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 6.420 $ 6.380 $ 6.440 $ 6.360 $ 6.420 6,839,580 0%

Current Broker Consensus Recommendation more
Recommendation: Buy (1.75)
Recommendation Date: 12th Nov 2014
Brokers Surveyed: 4

Company Overview

Business Description:
Insurance Australia Group Ltd (IAG) is a general insurance group, with operations in Australia, New Zealand, and Asia. Its current business is to sell insurance under several brands including NRMA Insurance, CGU, SGIO, SGIC and Swann Insurance (Australia); NZI, State and AMI Insurance (NZ); and Safety and NZI (Thailand). IAG also has interest in general insurance joint ventures in Malaysia, India and China.

Strategy Analysis:
Insurance Australia Group reported NPAT of $461.0m for the half-year ended 31 December 2012. Revenues from ordinary activities were $5.38bn, down 4.3% from the same period last year. Diluted EPS was 21.54 cents compared to 6.91 cents last year. Net operating cash flow was $942.0m compared to $649.0m last year. The interim dividend declared was 11.0 cents compared with 5.0 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 1,487.7 63.5 8.4 10.1 44.0 6.8 100.0
2015  F 1,372.3 58.6 -1.3 11.0 40.0 6.2 100.0
2014  A 1,306.0 59.4 5.2 9.7 39.0 6.8 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Insurance Aust. Grp. (IAG) $14,776 M 0.1193 -0.1231 0.0743 11.2921 12.8776 11.9871 6.18 6.04 5.90
QBE (QBE) $14,946 M -- -- 0.2967 -- 13.7511 10.6043 3.27 3.70 4.72
Suncorp Group (SUN) $18,566 M 0.4864 0.7736 0.0772 25.2670 14.2462 13.2252 7.28 6.48 6.25

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
IAG 0.71 12.1 2.29 10.00
Market 0.91 15.3 1.20 1.77
Sector 0.83 17.2 1.83 0.54

Directors
Name Position Start Date
Mr Michael J Wilkins Chief Executive Officer,Managing Director 26 November 2007
Mr Brian Martin Schwartz Non-Executive Chairman 01 January 2005
Ms Catriona Alison Deans Non-Executive Director 01 February 2013
Mr Hugh Alasdair Fletcher Non-Executive Director 01 September 2007
Mr Peter Hallam Bush Non-Executive Director 07 December 2010
Ms Yasmin Anita Allen Non-Executive Director 10 November 2004
Mr Philip J Twyman Non-Executive Director 09 July 2008
Mr Siang (Raymond) Keat Lim Non-Executive Director 01 February 2013

Management
Name Position
Justin Breheny Chief Executive Officer, Asia
Andy Cornish Chief Executive Officer, Australia Direct
Peter Harmer Chief Executive Officer, CGU
Jacki Johnson Chief Executive Officer, New Zealand
Nicholas Hawkins Chief Financial Officer
Leona Murphy Chief Strategy Officer
Chris Bertuch Company Secretary

Substantial Shareholders
Holding Name
-- (5.01%) Perpetual Limited and subsidiaries

Calendar of Events
Date Event
18 August 2015 Report (Annual)
18 August 2015 Report (Prelim)
20 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

Advertisement

Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Investment Fees

An educational booklet to help you find out everything you must know about investment fees.

More details...

News

Australian Share Market - Close Up

CMC Markets 11/11/2014 | The Australian share market is in a decision zone - and trading from here may set the direction for the rest of the year.

Prices slashed - everything must go!

Nick Swales, Regional Director, Newcastle Office, Rathbones 27/10/2014 | “If you want to have a better performance than the crowd, you must do things differently from the crowd.” Sir John Templeton.

Aussie share market bulls now have company

Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 | Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.

The Importance of Ignoring the Noise of the Market

Carl Richards, director of investor education at the BAM Alliance 17/10/2014 | “As odd as it may sound, the sooner you start treating your investments like you treat life, the happier you’ll be with the outcome.”

You only dance twice

William H. Gross, Janus Capital Group 16/10/2014 | “Financial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding “minus” 10 basis points.”

The Big Picture - Australia 200 Index

CMC Markets 8/10/2014 | Share market indices around the globe are breaking down. While analysts cast around for reasons, it’s clear that a time factor is in play. Simply put, many investors “feel” a correction is overdue. How low could it go?

More...


Sponsored Links