IAG tracks higher after half year report
Stock
Insurance Australia Group (ASX: IAG) $7.64 as at 6/02/2019
Event
IAG printed their half year results before the market this morning, and investors seem impressed with the stock trading nearly 5% higher in the session. The insurance group managed a big beat at the top line, managing premium growth of 4%, well above expectations however this was nearly exclusively driven by rate increases and not adding customers.
A beat in underlying margin helped drive a beat at the profit line as well. The underlying margin came in at 16.2%, above the streets expectations of 15.9%
Always a messy presentation with IAG, and today is no different. Claims costs climbed over the allowance – although this was flagged following the Sydney hailstorms in December.
Guidance for the full year was maintained with gross written premium growth of 2-4%, and margins of 16-18%.
Insurance Australia Group (ASX: IAG) Chart
Market Matters Take/Outlook
