The Aussie insurer’s shares are flying in August.
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The Insurance Australia Group Ltd (ASX: IAG) share price has been on fire in August. Shares in the Aussie insurer have climbed 12.4% higher since the start of the month to close at $5.45 on Thursday afternoon.
The IAG share price is soaring this month
The biggest news this month was IAG’s full-year results release on Wednesday.
Australia’s largest general insurance company reported a 170% jump in cash earnings to $747 million as its insurance profit climbed 35.9% to $1,007 million.
However, IAG reported a 130 basis point drop in its underlying insurance margin to 14.7% and a $427 million net loss after tax.
The IAG share price started Wednesday’s trade strongly following the result. It wasn’t a good day for investors though as IAG shares closed down 2.7% at $5.15 per share.
That indicates Wednesday’s earnings result was far from the only explanation for the recent share price gains.
Interestingly, the IAG share price shot 6.0% higher in Thursday’s trade. That was despite no further announcements from the Aussie insurer following the full-year result.
Yesterday’s strong gains may have something to do with a different Aussie insurer. The QBE Insurance Group Ltd (ASX: QBE) share price jumped 8.1% on Thursday to close at $12.51 per share – just shy of a 52-week high.
That came after the ASX insurer reported its half-year financial results with a stronger underwriting result and interim dividend. QBE reported an adjusted cash profit up US$463 million compared to a US$66 million loss in 1H 2020.
Investors appeared to also bid up the IAG share price as both Aussie insurance shares enjoyed a strong day in the markets.
The August reporting season is always an interesting time to watch ASX shares. The IAG share price saw a muted reaction to its own results before flying higher on the back of QBE’s increased dividends.
Investors will be hoping for further gains to close out a strong month for the Aussie insurer.
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Motley Fool contributor Ken Hall 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 owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.