Insurance Australia Group (IAG) – Go west
May 30, 2025
Insurance Australia Group underwrites general insurance products and provides investment management services in Australia and New Zealand, whose brands include NRMA Insurance, CGU, ROLLiN, WFI, Swann Insurance, NZI, State, AMI, and Lumley Insurance. The company was formerly known as NRMA Insurance Group and changed its name to Insurance Australia Group in 2002. It was founded in 1920 and is based in Sydney.
Insurance Australia Group (IAG) has acquired the insurance business of the Royal Automobile Club (RAC) of Western Australia for $1.35billion, mimicking a deal it did last year with the Royal Automobile Club of Queensland (RACQ). The latest transaction, which will be funded by existing surplus capital and debt financing, is expected to boost gross written premium (GWP) by $1.5 billion and be EPS accretive in the first full year of ownership. In an accompanying trading update, IAG said GWP in the 10 months to April rose up 5%, confirming a further easing in GWP growth in the second half of FY25.
Post the announcement, we made no changes to our EPS forecasts. Note that we are currently on Restricted status for IAG and cannot provide a recommendation or target price.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
ResMed (RMD) – Out of the Matrix
ResMed designs and manufactures medical devices and cloud-based software applications for the sleep apnoea and respiratory care markets.
Orora (ORA) – Bottled up
Orora designs and manufactures aluminium cans and glass bottles, principally for beer, wine and spirits, in Australia, New Zealand, the US and Europe. Orora was incorporated in 1949 and is headquartered in Hawthorn in Melbourne.
Virgin Australia Holdings (VGN) – Keeping it simple
Virgin Australia is the nation’s No.2 airline and offers domestic air services under its own brand and overseas travel via its international partners, which include Qatar Airways, Singapore Airlines, United Airlines, Air Canada, Air New Zealand, Hawaiian Airlines, and All Nippon Airways, and owns the Velocity loyalty business.
.webp)