Insurance Australia Group’s (IAG) share price has experienced a boost following the group’s investor day.
IAG’s share price hit a 52-week high of $5.29 following updates from IAG CEO Nick Hawkins, Motley Fool reported.
Addressing investors, Hawkins tackled the current operating environment, medium-term targets, and strategic initiatives.
IAG is on track to achieve around 10% gross written premium (GWP) growth in FY 2023 and a 10% reported insurance margin for the full year, he said.
The group’s Australian divisions, Direct Insurance Australia and Intermediated Insurance Australia, are expected to have undergone significant improvement in reported and underlying margins in the second half of FY 2023.
Natural disaster losses and elevated inflation affecting motor and home claims costs posed greater challenges for IAG’s New Zealand business.
IAG anticipates positive net reserve releases and favourable credit spread impacts in the second half of the year.
The company has also increased its medium-term return on equity (ROE) target to 13%-14% based on a medium-term insurance margin target of 15%. The optimistic outlook and strong performance have likely contributed to the rise in the IAG share price, Motley Fool said.
IAG plans to release its full-year results for the year ended 30 June 2023 on 21 August 2023.
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