FY25 natural perils and financial guidance update

• FY25 natural perils costs estimated at $1,080 million, $200 million lower than allowance
• FY25 reported insurance profit guidance range increased to $1,600 million to $1,800 million
• FY25 reported insurance margin guidance range increased to towards the top end of 15.5% to 17.5%

IAG has provided an update on its estimated natural perils costs for the financial year ending 30 June 2025 (FY25) and updated its FY25 financial guidance. The company's FY25 natural perils costs are estimated to be approximately $1,080 million, around $200 million lower than the FY25 natural perils allowance. This includes over 4,000 claims lodged from the NSW Mid North Coast and Hunter Floods event during May, with an estimated net cost of approximately $100 million. Based on the natural perils cost favorability, IAG's FY25 reported insurance profit guidance range has increased to '$1,600 million to $1,800 million', from '$1,400 million to $1,600 million'. Similarly, the reported insurance margin guidance range has increased to 'towards the top end of the 15.5% to 17.5% range', from 'towards the top end of the 13.5% to 15.5% range'. IAG's FY25 Gross Written Premium (GWP) growth is expected to be between 4% and 4.5%, which includes the impact of the Coles exit, adverse currency effects and multi-year workers' compensation premiums. Growth is around 8% in Retail Insurance Australia's direct business with positive customer and unit momentum. The New Zealand commercial business is experiencing softer market conditions, with IAG New Zealand expecting to report broadly flat GWP growth in A$ terms (up around 1% in NZ$).

IAG's FY25 reported insurance profit guidance range increases to '$1,600 million to $1,800 million', from '$1,400 million to $1,600 million'. The reported insurance margin guidance range increases to 'towards the top end of the 15.5% to 17.5% range', from 'towards the top end of the 13.5% to 15.5% range'.