IAG - Insurance Australia Group

[divs4ever]

IAG provides update on business interruption policyholder class action

IAG notes the judgment of the Federal Court of Australia (the “Court”) delivered on 20 September 2024 in which the Court stated an intention to declass the representative proceeding filed against Insurance Australia Limited (“IAL”) relating to policyholders with business interruption policies.

The Court proposes to hold a further case management hearing to make orders declassing the representative proceeding subject to conditions which include the prior provision of notices to group members informing them of their rights to pursue any claim they may have and the making of certain orders to reflect the Court’s earlier findings in the business interruption test cases.

A further update will be provided at the appropriate time, noting that there is to be a further case management hearing before the Court, the date for which has not been set, and the representative applicant may seek leave to appeal the judgment and any further orders made.
IAG welcomes the judgment and continues to encourage its customers with business interruption cover who may have been impacted by COVID-19 to lodge a claim which will be assessed as efficiently as possible under our standard claims process

This release has been authorised by IAG’s Group General Counsel.

i hold IAG

i doubt this will dip enough to tempt me into adding more

 

[divs4ever]

IAG and RACQ enter long-term strategic allianceI AG and RACQ have today announced they will enter a 25-year exclusive strategic alliance to provide RACQ general insurance products and services for RACQ members and Queenslanders.
Under the strategic alliance, IAG will acquire 90% of RACQ’s existing insurance underwriting business, with an option to acquire the remaining 10% in two years on consistent terms.
The consideration of $855 million1 comprises net tangible asset value and entry into the exclusive 25-year distribution agreement.
RACQ Chief Executive Officer David Carter said, "RACQ is pleased to partner with IAG, a leading general insurance company in Australia, to help our 1.7 million members live and move safely,securely and sustainably into the future.

“IAG has made a major commitment to Queensland and RACQ and brings a deep understanding of member-focused organisations.
I am delighted to announce the beginning of our long-term strategic partnership today.“

The partnership with IAG contributes to our goal of building a truly resilient state, leaving no Queenslander behind.

And we will invest together to ensure RACQ members, employees and all Queenslanders continue to have access to leading insurance products serviced locally, to keep them safe in the long term,” Mr Carter said.
IAG Managing Director and CEO Nick Hawkins said the new alliance with RACQ builds on IAG’sability to provide leading insurance products to Queenslanders.
“IAG has a well-established presence in Queensland through our trusted insurance brands, and we are excited to now help protect and serve RACQ’s members.“

The transaction is a true partnership between IAG and RACQ.
It builds on our proven track record of working collaboratively with leading member motoring organisations that share our values.
“RACQ will maintain brand and customer relationships, while leveraging IAG’s scale and financial strength, best-in-class technology for claims, policies and pricing, customer orientated claims experience and underwriting expertise,” Mr Hawkins said.
IAG CEO of Retail Insurance Australia Julie Batch said: “IAG will provide Queenslanders with the confidence to feel safe and well protected through our commitment to community resilience and climate action, nation-wide supply chain and global long-term reinsurance relationships.
“We look forward to welcoming all RACQ people and members into this exciting new partnership,”she said.1 Subject to customary completion adjustments IAG and RACQ enter long-term strategic alliance 2IAG will fund the transaction from surplus capital.

The transaction is expected to be EPS accretive in the first full year of ownership and consistent with IAG’s investment targets of a 15% insurance margin and ROE of between 14% and 15% on a ‘through the cycle’ basis.

Transaction details

Key terms of the agreement:
 IAG’s consideration for 90% of the shares of RACQ Insurance and the entry into a strategic alliance for $855 million2 comprises:
• payment for the shares equivalent to the expected net tangible asset value at time ofcompletion of ~$522m2; and
upfront payment of ~$333m2 for entry into an exclusive 25-year distribution agreement.
 IAG has an option to acquire the remaining 10% from two years after completion on consistentterms.
RACQ can choose to receive cash or equity in IAG as consideration upon exercise of the option.
 On completion, the RACQ portfolio3 is expected to add ~$1.3 billion to IAG’s Gross Written Premiums.
 In Queensland, there will be no change to IAG’s existing insurance business and brands, or RACQ’s brand, as a result of the alliance.
 The consideration will be funded from surplus capital.
 The transaction is expected to be EPS accretive in the first full year of ownership.
 IAG expects to incur customary one-off transaction and integration costs of ~$70m over two years, which includes capitalised software integration costs.
 Synergies, predominantly by adopting IAG's reinsurance strategy for the RACQ portfolio, are expected to exceed $50m per annum.
 The transaction is subject to conditions including Australian Competition and Consumer Commission clearance and approval under the Financial Sector (Shareholdings) Act 1998.
 Subject to regulatory approvals and other conditions, the transaction is expected to complete in the third quarter of 2025.

This release has been authorised by the IAG Continuous Disclosure Committee.

i hold IAG

 

[rcw1]

Good morning
Nice SP gain, all time high on Friday (24/01/25)

Must be happy with this @divs4ever, nice paper profit for you. rcw1 hasn't followed this stock before, but have placed on a watchlist.

Kind regards
rcw1

IAG and RACQ enter long-term strategic allianceI AG and RACQ have today announced they will enter a 25-year exclusive strategic alliance to provide RACQ general insurance products and services for RACQ members and Queenslanders.
Under the strategic alliance, IAG will acquire 90% of RACQ’s existing insurance underwriting business, with an option to acquire the remaining 10% in two years on consistent terms.
The consideration of $855 million1 comprises net tangible asset value and entry into the exclusive 25-year distribution agreement.
RACQ Chief Executive Officer David Carter said, "RACQ is pleased to partner with IAG, a leading general insurance company in Australia, to help our 1.7 million members live and move safely,securely and sustainably into the future.

“IAG has made a major commitment to Queensland and RACQ and brings a deep understanding of member-focused organisations.
I am delighted to announce the beginning of our long-term strategic partnership today.“

The partnership with IAG contributes to our goal of building a truly resilient state, leaving no Queenslander behind.

And we will invest together to ensure RACQ members, employees and all Queenslanders continue to have access to leading insurance products serviced locally, to keep them safe in the long term,” Mr Carter said.
IAG Managing Director and CEO Nick Hawkins said the new alliance with RACQ builds on IAG’sability to provide leading insurance products to Queenslanders.
“IAG has a well-established presence in Queensland through our trusted insurance brands, and we are excited to now help protect and serve RACQ’s members.“

The transaction is a true partnership between IAG and RACQ.
It builds on our proven track record of working collaboratively with leading member motoring organisations that share our values.
“RACQ will maintain brand and customer relationships, while leveraging IAG’s scale and financial strength, best-in-class technology for claims, policies and pricing, customer orientated claims experience and underwriting expertise,” Mr Hawkins said.
IAG CEO of Retail Insurance Australia Julie Batch said: “IAG will provide Queenslanders with the confidence to feel safe and well protected through our commitment to community resilience and climate action, nation-wide supply chain and global long-term reinsurance relationships.
“We look forward to welcoming all RACQ people and members into this exciting new partnership,”she said.1 Subject to customary completion adjustments IAG and RACQ enter long-term strategic alliance 2IAG will fund the transaction from surplus capital.

The transaction is expected to be EPS accretive in the first full year of ownership and consistent with IAG’s investment targets of a 15% insurance margin and ROE of between 14% and 15% on a ‘through the cycle’ basis.

Transaction details

Key terms of the agreement:
 IAG’s consideration for 90% of the shares of RACQ Insurance and the entry into a strategic alliance for $855 million2 comprises:
• payment for the shares equivalent to the expected net tangible asset value at time ofcompletion of ~$522m2; and
upfront payment of ~$333m2 for entry into an exclusive 25-year distribution agreement.
 IAG has an option to acquire the remaining 10% from two years after completion on consistentterms.
RACQ can choose to receive cash or equity in IAG as consideration upon exercise of the option.
 On completion, the RACQ portfolio3 is expected to add ~$1.3 billion to IAG’s Gross Written Premiums.
 In Queensland, there will be no change to IAG’s existing insurance business and brands, or RACQ’s brand, as a result of the alliance.
 The consideration will be funded from surplus capital.
 The transaction is expected to be EPS accretive in the first full year of ownership.
 IAG expects to incur customary one-off transaction and integration costs of ~$70m over two years, which includes capitalised software integration costs.
 Synergies, predominantly by adopting IAG's reinsurance strategy for the RACQ portfolio, are expected to exceed $50m per annum.
 The transaction is subject to conditions including Australian Competition and Consumer Commission clearance and approval under the Financial Sector (Shareholdings) Act 1998.
 Subject to regulatory approvals and other conditions, the transaction is expected to complete in the third quarter of 2025.

This release has been authorised by the IAG Continuous Disclosure Committee.

i hold IAG

 

[rcw1]

@divs4ever retrace, ex dividend explain it bloke??

Kind regards
rcw1

 

[divs4ever]

Dividend Type	Dividend Amount ($)	Franked	Ex-Div Date	Pay Date
Interim	0.120	60.00%	18/02/2025	07/03/2025

so div. payment day tomorrow ( so not the 'normal ex-div. dip )

HOWEVER apparently the weather forecasts are throwing out warnings of a Cyclone hit ( on or near ) Brisbane Friday ( ish )

given all the 'interesting ' building structures ( and land developments ) in Brisbane and surrounds , since 1974 the last fair dinkum cyclone to his the area ( 2011/Goodna was mostly dam mismanagement )

MOST of the insurers ( TWR operates mostly in NZ ) are looking at a flood of claims ( NOT just homes but commercial buildings as well )

now i am looking for an entry into SDF ( i already hold QBE 'free-carried' , IAG , TWR and SUN )

please remember these insurance folks use a complicated derivative/swap system so when things go BAD they only pick up part of the tab

in reality Queenslanders will have to watch and wait on the cyclone

BTW the 'big buck ' areas are the North and South Coast with Springfield ( west of Brisbane reeling in some wealthy folks too ) a 'near miss ' of Brisbane could be worse than flooding the main street ( again )

OR it can just wander down towards NSW ( or out to sea ) like they sometimes do

now i hold IAG @ $5.54 ( ish ) MAYBE i will add more below $5.25

normally i would be ready to buy more QBE but my current target price is something like $8 ( and i don't feel that lucky )

the absolute wildcard in this cyclone ( IF it hits ) is REPAIR costs

the incident ( a HEAVY downpour NOT a flood ) in 2016 ( and dodgy repairs in 2014 ) resulted in a three year hotel stay and a bill ( for the insurer of over $1 million ) .. a one step forward three steps back and fall on the butt scenario .. they even lost the three containers of restored goods ( furniture and clothes and stuff for another year )

i suppose if worst comes to the worst i should start checking out hotels to stay at in this area ( the local pub has accommodation , but say 200 people in a 12 room hotel ? )

skilled TRADESMEN ( not clowns with a certificate ) are really hard to find .. in fact the final painter/decorator .. was a Polish migrant with a civil engineering degree ( but at least the fricking paint stuck that time )

but then i always class insurance stocks as gambling stocks ( always one disaster away from a BIG dip )

 

[qldfrog]

Dividend Type	Dividend Amount ($)	Franked	Ex-Div Date	Pay Date
Interim	0.120	60.00%	18/02/2025	07/03/2025

so div. payment day tomorrow ( so not the 'normal ex-div. dip )

HOWEVER apparently the weather forecasts are throwing out warnings of a Cyclone hit ( on or near ) Brisbane Friday ( ish )

given all the 'interesting ' building structures ( and land developments ) in Brisbane and surrounds , since 1974 the last fair dinkum cyclone to his the area ( 2011/Goodna was mostly dam mismanagement )

MOST of the insurers ( TWR operates mostly in NZ ) are looking at a flood of claims ( NOT just homes but commercial buildings as well )

now i am looking for an entry into SDF ( i already hold QBE 'free-carried' , IAG , TWR and SUN )

please remember these insurance folks use a complicated derivative/swap system so when things go BAD they only pick up part of the tab

in reality Queenslanders will have to watch and wait on the cyclone

BTW the 'big buck ' areas are the North and South Coast with Springfield ( west of Brisbane reeling in some wealthy folks too ) a 'near miss ' of Brisbane could be worse than flooding the main street ( again )

OR it can just wander down towards NSW ( or out to sea ) like they sometimes do

now i hold IAG @ $5.54 ( ish ) MAYBE i will add more below $5.25

normally i would be ready to buy more QBE but my current target price is something like $8 ( and i don't feel that lucky )

the absolute wildcard in this cyclone ( IF it hits ) is REPAIR costs

the incident ( a HEAVY downpour NOT a flood ) in 2016 ( and dodgy repairs in 2014 ) resulted in a three year hotel stay and a bill ( for the insurer of over $1 million ) .. a one step forward three steps back and fall on the butt scenario .. they even lost the three containers of restored goods ( furniture and clothes and stuff for another year )

i suppose if worst comes to the worst i should start checking out hotels to stay at in this area ( the local pub has accommodation , but say 200 people in a 12 room hotel ? )

skilled TRADESMEN ( not clowns with a certificate ) are really hard to find .. in fact the final painter/decorator .. was a Polish migrant with a civil engineering degree ( but at least the fricking paint stuck that time )

but then i always class insurance stocks as gambling stocks ( always one disaster away from a BIG dip )

saw that:
IAG down but QBE going up , whereas if **** hits the wall with Alfred, IAG will just send the bill to qbe as the reinsurer..

As mr Wayne said, average IQ of 100 (if that) means half population are below..and not so sure traders are that high up the ladder when I see that...

 

[divs4ever]

saw that:
IAG down but QBE going up , whereas if **** hits the wall with Alfred, IAG will just send the bill to qbe as the reinsurer..

As mr Wayne said, average IQ of 100 (if that) means half population are below..and not so sure traders are that high up the ladder when I see that...

as i read it that bill gets passed around through several hands everyone paying out a little and getting a commission for taking that bet first , they invest the commission and hedge ( even further ) so they don't payout as much as they brought in

go back to the GFC , the lynch-pin back then was a greedy AIG ( who soaked up most of the reinsurance bets ) when AIG looked like imploding ( and all those greedy banks and insurers looked like their hedges were worthless , the US Fed had to step in )

the same would happen now IF say two top global insurers looked like failing .. the whole web would unravel

so as i see it have exposure to the insurers BUT get that cash out as soon as sensible

given the restructure at SUN ( and the share price ) that opportunity may have arrived ( just not the way i planned it )

QBE the plan is complete ,100% profit running , TWR and IAG will need more effort ( from me )

think of insurers as bookmakers on a race-track , they calculate the odds to win ( almost every time ) no matter who wins the race

 

[divs4ever]

IAG down but QBE going up , whereas if **** hits the wall with Alfred, IAG will just send the bill to qbe as the reinsurer..

now the other tiny detail here .. is the ability of the insurance company to invest those premiums ( very ) profitably , until a claim is made , ( in real life they delay , dilly-dally , cut corners so the claim is usually paid out later rather than sooner )

 

[qldfrog]

now the other tiny detail here .. is the ability of the insurance company to invest those premiums ( very ) profitably , until a claim is made , ( in real life they delay , dilly-dally , cut corners so the claim is usually paid out later rather than sooner )

They all do but in case of major disaster, qbe should be hit much more than iag.
I am aware that insurance business profit is linked to interest returns but still, this is not a cyclone in the pilbara: brisbane,/ gold coast, sunny coast and northern river nsw, there are billions at stake.. anyway

 

[divs4ever]

They all do but in case of major disaster, qbe should be hit much more than iag.
I am aware that insurance business profit is linked to interest returns but still, this is not a cyclone in the pilbara: brisbane,/ gold coast, sunny coast and northern river nsw, there are billions at stake.. anyway

but traditionally that area is SUN territory ( through SUN itself and the other brands ) ALTHOUGH i note some that i know are switching to IAG brands , after premium hikes ,

also QBE has a much wider global exposure allowing it to spread out the risk across continents

my guess is IF the cyclone hits Brisbane ( the city and inner suburbs ) most will have Suncorp insurance on something ( house , car , boat , or business premises ,) , IAG will have it's share of claims , but QBE will probably have more commercial claims . ( and don't ignore SDF which will has some reinsurance fingers in the mess , THEY might be the surprise packet , either positive or negative )

but of course the cyclone has to do some damage first before folks need to worry about claims and solvency

what WILL be the game-changer will be premium hikes ( on top of recent rises ) if the damage claims are substantial ( and more customers will seek to cut their bills or seek a better coverage for their $$$ )

 

[qldfrog]

but traditionally that area is SUN territory ( through SUN itself and the other brands ) ALTHOUGH i note some that i know are switching to IAG brands , after premium hikes ,

also QBE has a much wider global exposure allowing it to spread out the risk across continents

my guess is IF the cyclone hits Brisbane ( the city and inner suburbs ) most will have Suncorp insurance on something ( house , car , boat , or business premises ,) , IAG will have it's share of claims , but QBE will probably have more commercial claims . ( and don't ignore SDF which will has some reinsurance fingers in the mess , THEY might be the surprise packet , either positive or negative )

but of course the cyclone has to do some damage first before folks need to worry about claims and solvency

what WILL be the game-changer will be premium hikes ( on top of recent rises ) if the damage claims are substantial ( and more customers will seek to cut their bills or seek a better coverage for their $$$ )

Basically my point is,while QBE is providing retail and business insurance, they are critically a reinsurer, the ultimate pay the bill in case of serious drama, this is true gere but also for the billions in smoke in California fires.
So am i wrong technically/financially or is the market living in fairy land when i see these moves IAG vs QBE yesterday?

 

[divs4ever]

Basically my point is,while QBE is providing retail and business insurance, they are critically a reinsurer, the ultimate pay the bill in case of serious drama, this is true gere but also for the billions in smoke in California fires.
So am i wrong technically/financially or is the market living in fairy land when i see these moves IAG vs QBE yesterday?

QBE over $20 has been in fairy land for a while ( imo ) regardless of the current cyclone risk , ( as is IMO SUN )

i buy QBE under $8 and sell ( half the previous buy ) over $14

however public perception drives share prices , all i can do is make personal decisions

there are several over-valued shares listed on the ASX but the fund-managers keep buying them

 

[divs4ever]

IAG update on Tropical Cyclone Alfred

IAG today provided an update on its response and support for customers who may be impacted by Tropical Cyclone Alfred.
The cyclone is currently expected to make landfall between Brisbane and the Sunshine Coast, with communities across South East Queensland and Northern New South Wales expected to be impacted by very strong winds, intense rainfall, potential flooding and large swells.
IAG’s 24/7 Major Event Response and Natural Perils teams have been tracking Tropical Cyclone Alfred over the past week to ensure its Claims teams, Assessors and partner builders are on the ground ready to help customers as needed.
IAG Managing Director and CEO Nick Hawkins urged everyone in the potential path of the cyclone to make safety their priority.
“Cyclones, severe storms and flooding pose significant risks to people and property and it’s critical everyone follows the directions and advice of the emergency authorities,” Mr Hawkins said.
Many people across these communities have been impacted by extreme weather and natural disasters over the past few years, and we know this is an anxious time.
“We’re coordinating our response through our Major Event Command Centre and our call centres across Australia and New Zealand are well prepared to support all our customers who may be impacted.
We have already contacted many customers to let them know the range of ways they can reach us immediately to lodge any claims and access support such as temporary accommodation and emergency financial assistance.”
IAG notes the Federal Government’s Cyclone Reinsurance Pool which provides protection for damage caused by cyclonic wind and any cyclone-related water damage occurring for 48 hours after the cyclone is downgraded by the Bureau of Meteorology.
In addition IAG has a comprehensive reinsurance program that includes:
 Quota share reinsurance that covers 32.5% of all losses
 Catastrophe cover that provides cover for 67.5% of all losses above $500 million up to$10 billion
 Perils volatility cover of $680 million, which provides strong downside protection against retained natural perils costs exceeding the FY25 allowance of $1,283 million.
IAG indicated at its 1H25 results announcement on 13 February that, as at that date, year-to-date natural perils costs were running around $100 million favourable to expectation.

This release has been authorised by IAG’s Managing Director and CEO.

i hold IAG