What moved the IAG (ASX:IAG) share price today?

The total costs for natural disasters have ballooned since the insurer’s last update.
The post What moved the IAG (ASX:IAG) share price today? appeared first on The Motley Fool Australia. –

The Insurance Australia Group Ltd (ASX: IAG) share price fell in intraday trade today, although still finished the day in the green.

Up around 2.5% in morning trade, IAG shares dipped after the company released an update on its response to recent flooding in Victoria. Shares rebounded slightly across the rest of the day and closed at a price of $5.17 each – up 1.17%.

Let’s take a closer look at today’s announcement.

Rising costs after flood devastation

In a statement to the ASX, IAG declared it has received more than 4,300 claims relating to the deadly flooding in Victoria’s Gippsland region. IAG says these claims primarily relate to property damage. It also expects the number of claims to rise in coming days as customers are able to assess damage on their properties.

IAG’s net costs for natural disasters this financial year, up to and including 31 May 2021, stand at approximately $660 million. By the end of the financial year, IAG expects this figure to increase to somewhere between $720 million and $743 million. IAG budgeted for only $658 million in natural disaster claims at the beginning of the financial year, then upped this to between $660 million to $700 million in a previous market update.

On Monday, the Insurance Council of Australia declared the Victorian flooding a “catastrophe”. reports this means insurers will now “escalate and prioritise” policyholders who have been impacted by the disaster.

The IAG share price is still sitting above yesterday’s close, however, despite these increased costs to the company.

Management commentary

IAG Executive General Manager Direct Claims Luke Gallagher urged customers to stay safe when inspecting property damage:

Floodwater is extremely dangerous, so please take every precaution. We have assessors and builders on the ground ready to ensure our customers’ properties are safe and secure. [IAG] will contact those impacted to book in property assessments, so repairs can begin as soon as possible. We can also arrange emergency accommodation and provide immediate financial assistance for customers in need.

IAG share price snapshot

Over the past 12 months the IAG share price has decreased by more than 12%. Over the past three months, however, IAG shares have seen a 10% increase.

IAG has a current market capitalisation of $12.7 billion.

The post What moved the IAG (ASX:IAG) share price today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

ASX 200 up 0.35%: SEEK upgraded, Afterpay lower

Why we love this cheap ASX 200 share: Wilson

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 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!