IAG profit slips 35.1% in half-year due to severe weather event
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The news: Insurance Australia Group reported a 35.1% fall in half-year net profit to $505 million, beating forecasts despite a major weather-related hit linked to its recent RACQ Insurance acquisition.
The numbers: Analysts had expected net profit of $462.4 million, according to Visible Alpha.
Underlying insurance profit was 7.6% lower to $804 million.
Net earned premiums were up 7.6% to $804 million, compared to $747 million the year prior.
The company declared an interim dividend of 12 cents per share, unchanged from the year earlier, and above consensus estimates of 11 cents per share.
The context: The drop in net profit was due to a one-off RACQI impact of $174 million from severe seasonal weather that occurred immediately following the acquisition, and before the business was integrated into IAG's comprehensive reinsurance program in January 2026.
IAG said it expects “high single-digit” growth in gross written premiums in FY26 and maintained its insurance profit guidance of between $1.55 to $1.75 billion
Despite the one-off RACQI impact, the company said it expects reported insurance profit in FY26 to be toward the lower end of the guidance range.
The source: ASX
