Insurance Australia Group (IAG) saw major growth in net profit and insurance profit last fiscal year with gross written premiums increasing in its Australia and New Zealand divisions.
Net profit after tax was A$1.36 billion, up 51.3% from the 2024 fiscal year and above Visible Alpha estimates of $1.15 billion. Insurance profit was $1.74 billion, rising 21.2%.
"We had strong momentum through FY25 and supported our customers when they needed us most,” said IAG CEO Nick Hawkins. “By delivering on our strategy and investing for growth, we can execute at scale and are set to protect significantly more Australians and New Zealanders.”
“IAG’s financial outcomes this year are a result of the positive financial and operational performance of all our divisions supported by favourable natural perils and investment markets.”
The company’s gross written premium was $17.11 billion, growing from $16.40 billion year-over-year. Net earned premium rose by 8% to $9.98 million.
Gross written premium growth in its Retail Insurance Australia segment was up 7.3%, while Intermediated Insurance Australia saw growth of 6.3%. New Zealand Retail gross written premiums increased by 5.3%, though New Zealand Intermediated insurance was down 2.6%.
Its insurance profit margin was 17.5%, up from 15.6% the previous fiscal year. IAG’s natural perils costs were $1.09 billion, $195 million below allowance, which the company said boosted its financial results.
IAG paid $10.2 billion in claims in the year to 30 June. Its policy renewal rate was around 90%, the company said.
IAG’s guidance expects gross written premium growth in the low to mid single digits in the 2026 fiscal year. Its final dividend is 19.0 cents per share, franked to 40%.
It has also entered into strategic alliances with the Royal Automobile Clubs of Queensland and Western Australia, which will close on 1 September. The company projects this will add around $3 billion to its gross written premium and at least $300 million to insurance profit.
IAG’s (ASX: IAG) share price closed at A$8.50, up from its previous close at $8.18. Its market capitalisation is $20.10 billion.
