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.
Telstra Group (TLS) – Keeping the faith
Telstra Group is the largest telecommunications carrier in Australia.

Goodman Group (GMG) – Up the curve
Goodman Group owns, develops, and manages industrial, logistics, and data centre assets, and has operations in Australia, New Zealand, Asia, Europe, the UK, and the Americas.

Select Harvests (SHV) – Prices are trumps
Select Harvests engages in the growing, processing, packaging, and selling of almonds and its by-products in Australia.
