INSURANCE AUSTRALIA GROUP (IAG) ahead of consensus. Bottom line ahead of consensus due to stronger NEP and better returns offsetting higher claims and lower...

INSURANCE AUSTRALIA GROUP (IAG) ahead of consensus. Bottom line ahead of consensus due to stronger NEP and better returns offsetting higher claims and lower reserve releases. However, results look very solid given the softness in the Commercial space, and with the integration of WES coming in full. More importantly, 2015 margin guidance was maintained at 13.5-15.5% while GWP growth is expected at the lower end of 17-20% range given soft Commercial conditions (but still within the previous guidance of 17-20%). Outlook: For FY15, the Group continues to expect to deliver a reported insurance margin in the range of 13.5-15.5%, and expects GWP growth to be at the lower end of its 17-20% guidance range. Today's share price reaction: Down 7.5% to $5.91 (12.57 pm). Recommendation: Buy rating likely to be retained. (VIEW LINK)