These targets are subject to assumptions and dependencies, including that there are no material adverse developments in macro-economic conditions and disruptions or events beyond IAG's control. As they span a number of years, these assumptions and dependencies have a greater level of uncertainty than the FY26 guidance. Refer to the forward-looking statements and other representations disclaimer on page 5 of this document.
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IAG expects 'high single-digit' GWP growth in FY26 (previously 'approximately 10%') with double-digit growth in the second half reflecting:
- retail growth in Australia and New Zealand above the 4% underlying 1H26 levels;
- the addition of the RACQI portfolio;
- continued discipline in soft commercial markets; and
- a weaker New Zealand currency.
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.
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. This assumes FY26 net natural peril costs of $1,617m and corresponds with a reported insurance margin range of 14% to 16%.
"Maintaining our reported profit and margin ranges reflects the strength and resilience of our businesses, and further demonstrates our momentum," Mr Hawkins said.
These targets are subject to assumptions and dependencies, including that there are no material adverse developments in macro-economic conditions and disruptions or events beyond IAG's control. As they span a number of years, these assumptions and dependencies have a greater level of uncertainty than the FY26 guidance. Refer to the forward-looking statements and other representations disclaimer on page 5 of this document.
