Insurance Australia Group (IAG) has reported a significant increase in its full-year financial results. The company posted a 51 per cent lift in net profit to $1.36 billion for FY25, a substantial rise from the $898 million reported in the previous year. This growth was largely driven by improvements in IAG’s Australian retail business, alongside strong revenue momentum. IAG is a general insurance company that provides a range of insurance products, including home, car, and business insurance. It operates primarily in Australia and New Zealand.
Net earned premiums experienced an 8 per cent increase, contributing to an insurance profit of $1.74 billion and a higher reported insurance margin of 17.5 per cent. The company also benefited from favourable natural peril costs, which were $195 million below the allocated allowance, further bolstering earnings. The board has declared a final dividend of 19¢ a share, an increase from the 17¢ paid out last year, bringing the total full-year dividend to 31¢.
According to IAG chief executive Nick Hawkins, strategic alliances with RACQ and RAC are projected to add approximately $3 billion in gross written premium. These alliances are also expected to increase insurance profit by a minimum of $300 million upon full integration.
Looking ahead, IAG is guiding for low-to-mid single-digit gross written premium growth and an insurance profit between $1.45 billion and $1.65 billion, with a margin of 14–16 per cent. It is important to note that these figures exclude the anticipated impact of the RACQ and RAC acquisitions. Post-completion of these acquisitions, gross written premium growth is expected to approach 10 per cent.
