• Disciplined execution of strategy with strong financial outcomes
• Direct customer growth momentum in Australia and New Zealand
• Improved underlying insurance margin driven by favourable claims experience

IAG reported strong financial results for the full year ended 30 June 2025, with GWP growth of 4.3% to $17,106m, insurance profit of $1,743m (up 21.2%), and NPAT of $1,359m (up 51.3%). The company saw direct customer growth momentum in Australia and New Zealand, with the Retail Enterprise Platform now supporting over 5 million customer policies. In Australia, the Retail business delivered 7.3% underlying GWP growth, with the Direct business growing 7.7%. In New Zealand, the Retail business saw 5.3% NZ$ GWP growth. The Intermediated businesses also performed well, with 6.3% GWP growth in Australia and a focus on underwriting discipline in the softening New Zealand commercial market. The underlying insurance margin improved to 15.5%, driven by a 260bps improvement in the underlying claims ratio, partially offset by a higher expense ratio. IAG maintained a strong capital position, with a CET1 ratio of 1.47 at 30 June 2025. Looking ahead, IAG provided FY26 guidance for reported insurance profit of $1,450m to $1,650m, and GWP growth of 'low-to-mid single digit', excluding the benefit of the RACQ Insurance and RAC Insurance acquisitions.

Excluding the benefit of RACQ Insurance and RAC Insurance acquisitions, IAG expects reported insurance profit of $1,450m to $1,650m, roughly equating to a reported insurance margin of 14.0% to 16.0% in FY26, assuming natural peril costs of $1,316 million, no material prior period reserve releases or strengthening, and no material movement in macro-economic conditions. IAG expects GWP growth of 'low-to-mid single digit' in FY26.

IAG's FY26 guidance, and the RACQ Insurance and RAC Insurance acquisitions, align to the targets to deliver a 15% reported insurance margin and 15% reported ROE on a 'through the cycle' basis.