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Insurance Australia Group (IAG) Fair Value & Analysis

Financial Services · AU · Market cap A$17.7B

IA Insurance Australia Group IAG · AU
PriceA$8.21
Fair ValueA$7.56
Upside-7.9%
Quality93/100
Evidence: High Range A$5.67 – A$9.45

Fair value as of: Jun 26, 2026

From 25 valuation models · updated 3 days ago

Fair value updated Jun 26, 2026 — revised from A$9.88 to A$7.56 (−23.5%) since Jun 24, 2026. Share price +4.7% over the past month.

Price vs Fair Value (12 months)

A$8.93 A$6.57 Fair Value A$7.56 Jun 2025 Jun 2026

12‑month range A$6.57 – A$8.93 · fair‑value band A$5.67 – A$9.45 · the A$8.21 price screens above the A$7.56 fair value. As of Jun 26, 2026.

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Analysis

Insurance Australia Group (IAG) currently trades at A$8.21, while our model-based Fair Value estimate is A$7.56 — implying the stock looks roughly 7.9% overvalued today. We read business quality at 93/100 (high quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Insurance Australia Group generated revenue of A$18.3B at a net margin of 6.0%. Revenue grew 10.3% year over year. It earns a return on equity of 15.7%. Net debt stands at A$2.3B. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) A$18.3B
Revenue growth (YoY) +10.3%
Net margin 6.0%
Return on equity 15.7%
Free cash flow A$1.4B FY2025
P/E ratio 16.4
More key figures
Operating margin 9.4%
EPS (TTM) A$0.4600
Dividend yield 4.1%
EPS growth (YoY) -32.7%
Net debt A$2.3B FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

Insurance Australia Group Limited underwrites general insurance products and provides investment management services in Australia and New Zealand. The company's short-tail insurance products include motor vehicle; home and contents; lifestyle and leisure, including boat, veteran and classic car, and caravan; business packages; farm; commercial motor; commercial property; fleet motor; construction and engineering; rural; marine; and niche insurance, such as pleasure craft, boat, and caravan. It also provides long-tail insurance products, including professional indemnity; compulsory third party, including motor injury liability; workers' compensation; directors' and officers' liability; public and products liability; and commercial liability insurance. It sells its products through branches and agencies, call centers, online, insurance brokers, authorized representatives, motor dealerships, and financial institutions under the NRMA Insurance, CGU, ROLLiN, WFI, Swann Insurance, NZI, St…

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Insurance Australia Group reported revenue of A$14.8B in FY2025 versus A$7.9B in FY2021, a compound +17.0%/yr. Reported net income was A$1.4B in FY2025.

Revenue +17.0%/yr
FY21 A$7.9B
FY22 A$7.6B
FY23 A$409M
FY24 A$16.0B
FY25 A$14.8B
Net income
FY21 −A$427M
FY22 A$347M
FY23 A$832M
FY24 A$898M
FY25 A$1.4B

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The Progressive Corporation PGR $204.20 $316.22 +55%
Tokio Marine Holdings TKOMF $42.16 $41.60 -1%
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Frequently asked questions

Is Insurance Australia Group (IAG) undervalued?
As of Jun 26, 2026, our model estimates a fair value of A$7.56 versus a price of A$8.21 — about −8% (overvalued). Model-based estimate, not financial advice.
What is the fair value of IAG?
Our 21-model fair value for Insurance Australia Group is A$7.56 (as of Jun 26, 2026), built from audited fundamentals. The current price is A$8.21.
What is the quality score of IAG?
Insurance Australia Group has a Quality Score of 93/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Insurance Australia Group (IAG)?
Insurance Australia Group reported trailing-twelve-month revenue of about A$18.3B (latest available figure, as of Jun 26, 2026).
What is the net profit margin of IAG?
The net profit margin of Insurance Australia Group is about 6.0%, meaning it keeps roughly 6.0% of revenue as net income. Based on the latest reported figures.
Does Insurance Australia Group pay a dividend?
Insurance Australia Group currently shows a dividend yield of about 4.11% relative to its recent price (as of Jun 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.