Insights

IAG (ASX:IAG) share price rises following solid start to FY22

Here’s how IAG is performing in FY 2022…
The post IAG (ASX:IAG) share price rises following solid start to FY22 appeared first on The Motley Fool Australia. –

The Insurance Australia Group Ltd (ASX: IAG) share price is on the move on Friday morning.

At the time of writing, the insurance giant’s shares are up slightly to $5.06.

Why is the IAG share price rising?

The catalyst for the rise in the IAG share price today has been the release of a trading update at its annual general meeting.

According to the release, the insurance giant has started FY 2022 positively and remains on track to achieve its previously announced guidance of low single-digit gross written premium (GWP) growth.

IAG’s Managing Director and CEO, Nick Hawkins, commented: “The first quarter of the year has started well, and I affirm guidance for FY22 that we provided at the results in August. We recorded mid single-digit gross written premium growth in the quarter. GWP guidance remains ‘low single-digit growth’ for the full year.”

Mr Hawkins notes that this guidance factors in portfolio management in Intermediated Insurance Australia. He expects this to constrain volume growth over the balance of the year.

In addition, the CEO revealed that the company is on track to achieve its reported insurance margin guidance of 13.5 -15.5%.

He said: “IAG is also on track to meet reported insurance margin guidance of 13.5 -15.5%. We have observed lower motor vehicle claims frequency, driven by the lockdowns in Australia and New Zealand. This has been partly offset by inflationary pressure on claims costs and conservative reserving assumptions in our motor and home portfolios, and recognises increased uncertainty in claims inflation as lockdowns end.”

One thing that dragged slightly on its performance during the first quarter was its natural perils costs due partly to the Victorian earthquake. Though, positively, its natural perils allowance of $765 million for FY 2022 remains unchanged at this time.

The IAG share price is up almost 7% in 2021.

The post IAG (ASX:IAG) share price rises following solid start to FY22 appeared first on The Motley Fool Australia.

Should you invest $1,000 in IAG right now?

Before you consider IAG, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IAG wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

What is the current IAG (ASX:IAG) dividend payout ratio?

The IAG (ASX:IAG) share price has slumped 8% in a week. Here’s why

These were the worst performing ASX 200 shares last week

Why Harvey Norman, IAG, Pendal, and Treasury Wine are dropping

Here’s why the IAG (ASX: IAG) share price is down 3% on Friday

Motley Fool contributor James Mickleboro 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!