• Strength and resilience reflect disciplined execution of strategy
• Positive underlying retail growth and strong underlying insurance margin
• Reinsurance program integrated, delivering target synergies
• Confidence in earnings supports buyback of up to $200m

IAG reported solid 1H26 results, with strength and resilience reflecting disciplined execution of strategy. The company paid ~$6.0bn in claims, maintained its position as the most trusted insurance brand, and integrated its RACQI acquisition on-track. Gross claims from severe spring storms were ~$800m, but IAG's comprehensive reinsurance program provided confidence in the sustainable delivery of a 15% insurance margin and ROE. IAG reported a 6% increase in Gross Written Premium to $8,929m, with ~$500m in additional GWP from the RACQI acquisition. Underlying insurance profit grew 7.6% to $804m, with the underlying insurance margin maintained at 15.1%. The company announced an on-market share buyback of up to $200m, reflecting confidence in its earnings outlook. IAG's Retail Insurance Australia business delivered 14.4% GWP growth and a 13.8% underlying insurance margin, while New Zealand Retail achieved a 26.0% underlying insurance margin. Intermediated Insurance Australia reported a strong 17.5% reported insurance margin, including $86m of prior period reserve releases. The company's disciplined and strategic approach to M&A was demonstrated through the RACQI acquisition, which is expected to be completed in 1H27 following regulatory approvals. IAG maintained its FY26 profit and margin guidance range.

IAG maintained its FY26 profit and margin guidance range, with a perils allowance of $1,465m and an expectation of $1,617m in perils costs, or $152m above allowance. The company expects its administration ratio ex-levies to reduce to under 11% in FY27.