SYDNEY, June 10, 2026, 06:05 AEST
Insurance Australia Group Ltd shares head into Wednesday’s ASX session at Tuesday’s closing price of A$7.71, up 1.98%. The S&P/ASX 200 was down 0.24%. ASX trading is set to start around 09:59:45 Sydney time, so A$7.71 remains the key price level for IAG ahead of the open.
Investors are again sizing up whether premium hikes can keep pace with rising weather claims. On Wednesday, IAG’s New Zealand business pushed the question back onto the market, warning natural hazard risks are set to outstrip the country’s ability to adapt, and pressed for a better government strategy over the long term. “This problem is solvable,” IAG NZ chief Phil Gibson said. Co
Natural hazard risk covers losses from storms, floods, earthquakes and landslips. IAG NZ’s report set out a 15-year roadmap, listing 42 gaps in areas like planning, building rules, risk data, incentives, funding and governance. The report said the approach now is too fragmented to handle added climate and development pressure.
IAG calls itself the top general insurer across Australia and New Zealand, with brands such as NRMA Insurance, CGU and AMI. The move higher wasn’t limited to IAG. Suncorp climbed 1.48% and QBE Insurance was up 0.88% on Tuesday.
IAG isn’t treating the weather as an abstract risk. The company reported first-half cash earnings down 21% at A$507 million, hurt by a 15% jump in net claims expense to A$3.51 billion. CEO Nick Hawkins blamed “major hailstorms and severe weather events.” Global X ETFs strategist Marc Jocum said some investors are looking to see if “pricing power and margins” might have topped out. Reuters
IAG’s gross written premium, or GWP, rose 6% in the first half to A$8.93 billion. But the company cut its full-year GWP growth forecast to high single digits from the previous 10%, sticking to its full-year insurance profit target at the lower end of A$1.45 billion to A$1.65 billion. IAG also said it would buy back up to A$200 million.
IAG shares haven’t gotten back to their recent highs. The stock ended Tuesday 15.27% under its 52-week top of A$9.10, while still sitting 19.72% over its 52-week bottom at A$6.44. Investors looking at IAG have a recovery play here, not a full breakout.
IAG laid out its “Ambition 2030” targets in May, aiming for more than 11 million customers, GWP above A$25 billion by 2030, return on equity over 15%, and high single-digit EPS growth. Return on equity is profit over shareholder capital. CEO Hawkins said IAG is a “stronger, more resilient business.”
The upside case isn’t solid. More hail, floods, or storms could push up claims and eat into profits. Higher reinsurance costs would put more pressure on margins too. The RAC Insurance deal is still up in the air, after Australia’s competition regulator in April said the takeover could hurt competition and kicked it into a Phase 2 review. ACCC Chair Gina Cass-Gottlieb said the move would join “two of the biggest insurers in WA.” ACCC
IAG is set for a test at the open in Sydney after its gains on Tuesday. On Tuesday, the overall market dropped, with more decliners than gainers, so another day of buying would show more than just a single strong session.
