IAG 1H26 Results ASX Announcement
| Stock | Insurance Australia Group Ltd (IAG.ASX) |
|---|---|
| Release Time | 12 Feb 2026, 7:53 a.m. |
| Price Sensitive | Yes |
IAG Reports 1H26 Results, Maintains Guidance
- Reported net profit after tax of $505m, down 35.1% due to one-off RACQI impact
- Underlying insurance profit up 7.6% to $804m, with reported margin of 13.5%
- Announced up to $200m on-market share buyback, reflecting strong capital position
IAG today announced its first-half results for FY26, reporting a net profit after tax of $505m (1H25: $778m). The result includes a one-off RACQI impact of $174m from severe seasonal weather immediately following the acquisition, before the business was integrated into IAG's comprehensive reinsurance program in January 2026. The underlying insurance profit was $804m (1H25: $747m), equating to an underlying insurance margin of 15.1%, in line with the prior corresponding period. Reported GWP grew 6% including four months' contribution from RACQI, with retail businesses in Australia and New Zealand delivering around 4% underlying growth and strong margins. IAG maintained its FY26 insurance profit guidance range of $1,550m to $1,750m, which aligns to its targets to deliver a 15% reported insurance margin and a reported ROE of 15% on a 'through the cycle' basis. Despite absorbing the one-off RACQI impact in 1H26, IAG expects its FY26 reported insurance profit to be around the bottom end of the reported profit range. The company also declared an interim dividend of 12.0cps and announced an on-market share buyback of up to $200m, reflecting its strong capital position.
IAG expects 'high single-digit' GWP growth in FY26 (previously 'approximately 10%') with double-digit growth in the second half. IAG maintains its FY26 insurance profit guidance range of $1,550m to $1,750m, which aligns to its targets to deliver a 15% reported insurance margin and a reported ROE of 15% on a 'through the cycle' basis.
IAG's business model and strategic investments are building momentum, with the completion of the RACQI acquisition and the integration of its portfolio underway. The company is also preparing to lodge an application for assessment under the ACCC's new mandatory merger regime for its proposed partnership with the Royal Automobile Club of Western Australia (RAC).