On Wednesday, Insurance Australia Group Limited (ASX: IAG) surprised the market with an increased profit forecast due to better than expected claims costs. The company said lower than anticipated claims costs predominantly related to compulsory third party (CTP), liability, professional risk and workers compensation. Following the announcement, IAG shares surged more than 6% to $6.97 a share. As previously discussed, we believe insurers are well-positioned to benefit from current market conditions and we expect further earnings upgrades from the sector. Shares in IAG closed up 4.5% for the week. We own IAG as a market-driven investment in WAM Leaders.
Matthew has more than 11 years’ experience in the investment industry working as both a portfolio manager and analyst. Matthew is the Portfolio Manager responsible for WAM Leaders and Century Australia.