Insurance Australia Group reports $1.02B profit in FY26

• Insurance Australia Group reported a net profit after tax of $1.02 billion for FY26.
• The company generated $18.41 billion in gross written premium and paid a 32-cent full-year dividend.
• Executives stated the business is positioned for growth with an FY27 insurance margin target of 14.5% to 16.5%.

Insurance Australia Group (ASX:IAG) reported a lower FY26 net profit of $1.02 billion due to elevated natural peril costs.

The result represents a decrease from the $1.36 billion profit recorded last year, which benefited from a $330 million provision release.

Underlying insurance profit came to $1.58 billion, up from $1.54 billion in FY25.

"FY26 was a year of strategic execution and evolution for IAG, including continued technology platform transformation, completion of the landmark RACQ Insurance acquisition, and the launch of Ambition 2030," said IAG Managing Director and CEO Nick Hawkins.

The company generated $18.41 billion in gross written premium and stated it expects an insurance margin of 14.5% to 16.5% for 2027.

The IAG board declared a final dividend of 20 cents per share, up from 19 cents per share a year earlier. This brings the total dividend to 32 cents per share.

Following the announcement, the IAG share price was down at $8.23.

During the year, the business executed its Ambition 2030 strategy and completed the RACQ Insurance acquisition.