IAG (ASX:IAG) Announces 1H25 Financial Results and Dividend Increase
Financial Performance
IAG reported a net profit after tax of $778 million for the half year ended 31 December 2024, up from the previous period. Insurance profit reached $957 million, with gross written premiums increasing by 6.0% to $8.4 billion. The underlying insurance margin improved to 15.1%, reflecting a 300 basis points enhancement in the claims ratio.
Operational Achievements
The company paid $5.2 billion in claims, supported 1.7 million RACQ members through a strategic alliance, and aided over 10,000 customers facing financial hardship. NRMA Insurance entered its centenary year, earning the title of Australia’s most trusted insurance brand for the third consecutive year. IAG also invested approximately $5 million in education and engagement programs to enhance resilience and preparedness.
Future Outlook
IAG provided guidance for FY25, expecting reported insurance profit between $1.4 billion and $1.6 billion, with gross written premium growth in the mid-to-high single digits. The company maintains a strong capital position with a CET1 ratio of 1.42, well above the target range of 0.9 to 1.1.
Dividend Declaration
IAG declared an interim dividend of 12 cents per share, representing a 20% increase from the previous period.
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