Insurance Australia Group Limited (ASX:IAG) Releases Strong Half-Year Results
Financial Performance
Insurance Australia Group Limited reported a 4.0% increase in revenue to $9,036 million for the half-year ended 31 December 2024. Net profit after tax attributable to shareholders rose by 91.2% to $778 million. The reported insurance profit was $957 million, equating to a 19.4% insurance margin, up from 13.7% in the prior period.
Dividend Declaration
The company declared a 17.0 cents final dividend for 2024 and a 12.0 cents interim dividend for 2025. The interim dividend, with a franked amount of 7.2 cents, will be recorded on 19 February 2025 and paid on 7 March 2025. IAG also announced a Dividend Reinvestment Plan (DRP) with no discount applied.
Share Buy-Back
As of 31 December 2024, IAG has repurchased approximately 5 million shares for a total consideration of $37 million.
Strategic Alliance with RACQ
On 28 November 2024, IAG entered into a 25-year exclusive strategic alliance with RACQ to provide general insurance products and services for RACQ members and Queenslanders. The deal involves acquiring 90% of RACQ’s insurance underwriting business for up to $855 million and is subject to regulatory approval, expected in Q3 2025.
Future Outlook
IAG remains confident in achieving its FY25 guidance, including an insurance profit of $1,400 to $1,600 million and gross written premium growth in the mid-to-high single digits.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.