IAG delivers lower H1 FY26 results with $505M net profit

Insurance Australia Group (ASX:IAG) announced its half-year financial results for the period ended Dec. 31, 2025, demonstrating a resilient performance despite a period marked by significant seasonal weather events.

CEO Nick Hawkins highlighted the company’s "stable earnings profile," noting that the results reflect a strategic focus on maintaining strong underlying margins while supporting customers through natural disasters.

IAG reported a net profit after tax of $505 million, a decrease from the $778 million recorded in H1 FY25.

However, the company’s underlying insurance profit rose by 7.6% to $804 million, signaling robust core operational health.

Gross written premium saw a healthy climb of 6%, reaching $8.93 billion, while net earned premiums grew 8.5% to $5,348 million.

Based on this solid capital position, IAG maintained its reported insurance margin guidance of 14–16% and announced an interim dividend of 12 cents per share, alongside an on-market share buy-back of up to $200 million.

A primary focus of the half-year was claims processing, with approximately $6.0 billion paid out to help customers recover from severe storms.

Customer loyalty remains high, with a policy renewal rate of ~90% and improved "customer experience" scores in both Australia (+52) and New Zealand (+57).

IAG expanded its reach by completing the acquisition of 90% of RACQI shares, bringing its retail insurance products to 1.7 million members.