IAG (ASX: IAG), a leading general insurance company offering a wide range of products and services across Australia and New Zealand, has reported its full-year 2026 results, highlighting a year of strategic execution and resilience. The company posted a net profit after tax (NPAT) of $1,022 million, down from FY25’s $1,359 million, which had benefited from significant one-off items. Despite elevated natural peril costs in FY26, IAG achieved a strong underlying insurance profit of $1,578 million, an increase from $1,542 million in the prior year, reflecting consistent core business strength. Gross Written Premium (GWP) grew 7.6% to $18,412 million.
IAG Managing Director and CEO, Nick Hawkins, underscored FY26 as a year of “strategic execution and evolution,” citing continued technology transformation, the completion of the RACQ Insurance acquisition, and the launch of its refreshed Ambition 2030 strategy. The underlying insurance margin was 15.0%, with improvements in underlying claims and expense ratios largely offsetting higher perils allowance and transitional impacts from the RACQ acquisition. The IAG Board declared an increased final dividend of 20.0 cents per share, bringing the full-year payout to 32.0 cents, up from 31.0 cents in FY25.
The Australian Retail business delivered substantial GWP growth to $10,308 million, boosted by the acquired RACQ business. Underlying growth in this segment was approximately 4.5%. New Zealand’s GWP saw an 8.0% reduction in reported terms due to a weaker New Zealand dollar, though local currency performance showed solid growth in direct portfolios. Looking ahead, IAG maintains confidence in its FY27 guidance, targeting GWP growth of 5% to 8% and a reported insurance margin of 14.5% to 16.5%, supported by ongoing investment in technology and AI adoption to meet its long-term Ambition 2030 targets.
