Insurance Australia Group (IAG) - FY15 result below consensus

Bell Potter


IAG had GWP growth of 17% (BP 18%, guidance at lower end of 17-20% range), reserve release 1.6% of NEP (BP 1.8%, guidance ~2%), reported margin 10.7% (BP 10.8%, guidance 10.5-12.5%), CET1 multiple 1.14 times (target 0.90-1.10 times); and PCA multiple 1.7 times (target 1.4-1.6 times). Another disappointing result having missed consensus by ~4% but final dividend in line (although overall closer to our numbers). They came in at the lower end of GWP and margin guidance, the latter impacted by lower reserve release. Personal insurance GWP growth was healthy while commercial insurance GWP growth was slightly negative due to lower rates. Read the full summary here: (VIEW LINK)

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Bell Potter

Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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