Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — 1H26 Earnings Presentation
34 slides from Insurance Australia's earnings presentation, Feb 12, 2026
Slide 1: Financial Results
Financial Results Half year ended 31 December 2025 12 February 2026 This release has been authorised by the IAG Board IAG
Slide 2: Important information
Important information This presentation contains general information current as at 12 February 2026 (unless otherwise stated) circumstances to differ materially from those expressed, anticipated or implied in such statements. For and is not a recommendation or advice in relation to any product or se
Slide 3: Introduction
Nick Hawkins Managing Director and Chief Executive Officer Introduction IAG
Slide 4: Acknowledgement of Country
Acknowledgement of Country IAG acknowledges Traditional Owners of of Country Country throughout throughout Australia Australia and and recognises the continuing connection to to lands, lands, waters waters and and communities. communities. We pay our respect to Aboriginal and Torres Strait Islander
Slide 5: 1H26 summary – Strength and resilience reflect disciplined execution of strategy
1H26 summary – Strength and resilience reflect disciplined execution of strategy Financial strength and RACQI integration Confidence in earnings Supported customers resilience on-track supports buyback & communities Net Profit After Tax Reinsurance program FY26 profit and ~$6.0bn $505m integrated del
Slide 6: A stronger, more resilient IAG delivering stable earnings
A stronger, more resilient IAG delivering stable earnings Reported & Underlying Insurance Profit (FY20 – 1H26) Improved business performance and strengthened reinsurance program delivering Underlying Insurance Profit Reported Insurance Profit 15% reported and underlying margins on a through the cycl
Slide 7: Positive underlying retail growth
Positive underlying retail growth Reported 1H26 GWP growth of 6.0%: Underlying Group GWP growth (%) • ~$500m four-month contribution from RACQI 0.4 • Ongoing rate increases in personal & commercial lines in Australia, with disciplined approach to increased motor 1.5 competition 6.0 0.3 • Positive pr
Slide 8: Strong underlying insurance margin despite one-off RACQI impacts
Strong underlying insurance margin despite one-off RACQI impacts Underlying insurance margin (%) Underlying insurance margin ex-RACQI improving to 16.3% (1H25: 15.1%): +120bps • Increased perils allowance to $718m (1H25: $641m) 1.1 1.4 16.3 • 120bps underlying claims ratio improvement driven by 15.1
Slide 9: Retail Insurance Australia
Retail Insurance Australia GWP ($m) Underlying insurance profit ($m) Reported insurance profit ($m) Financial highlights • Underlying GWP growth of ~4% driven +14.4% by strong growth in the home portfolio 476 4,923 4,923 • Reported insurance margin of 7.4% 502 RACQI 422 -18.3% reflecting natural per
Slide 10: New Zealand Retail
New Zealand Retail Financial highlights GWP (NZ$m) Underlying insurance profit ($m) Reported insurance profit ($m) • GWP up 1.3%, with NZ$ GWP growth of +3.4% -5.2% 3.4% 1,214 192 190 • Continued strong reported insurance 1,174 +23.0% 182 margin of 28.6% (1H25: 30.5%) 166 • Underlying insurance marg
Slide 11: Intermediated Insurance Australia
Intermediated Insurance Australia Financial highlights GWP ($m) Underlying insurance profit ($m) Reported insurance profit ($m) Underlying growth ~3.5% • Underlying GWP growth, excluding multi- +40.9% year workers’ compensation, ~3.5% -1.2% 241 • Strong reported insurance margin of 2,233 2,206 17.5%
Slide 12: New Zealand Intermediated
New Zealand Intermediated Financial highlights GWP (NZ$m) Underlying insurance profit ($m) Reported insurance profit ($m) • GWP down 12.3%, with NZ$ GWP -10.4% -27.7% decline of 10.4%, maintaining discipline in a softening commercial 902 119 market 808 105 • Strong reported insurance margin of 20.0%
Slide 13: Disciplined and strategic approach to M&A
Disciplined and strategic approach to M&A Leading member organisations Timeline Integration phases & expected timing Members FY25 GWP (~m) (~$bn) 1H26 2H26 1H27 Transaction completed on Start roll out of IAG Transition to IAG’s Enterprise 1 Sept 2025 technology including Risk Platform commences mana
Slide 14: Financials
William McDonnell Chief Financial Officer Financials IAG
Slide 15: Financial summary
Financial summary 1H25 1H26 Change GWP ($m) 8,426 8,929 6.0% GWP ex-RACQI ($m) 8,426 8,427 - NEP ($m) 4,930 5,348 8.5% Administration expense ratio ex-levies (%) 11.9 11.7 20bps Reported insurance profit ($m) 957 724 (24.3%) Reported insurance profit ex-RACQI ($m) 957 898 (6.2%) Reported insurance m
Slide 16: Net perils, ex-RACQI, in line with allowance
Net perils, ex-RACQI, in line with allowance Net perils expense ($m) 870 152 646 72 Net perils costs of $870m • RACQI net perils costs of $224m, $152m above allowance • Ex-RACQI, net perils costs in line with allowance FY26 perils allowance of $1,465m • FY26 perils expectation of $1,617m, or $152m a
Slide 17: Improvement in underlying claims ratio
Improvement in underlying claims ratio Underlying claims ratio (%) Drivers of 70bps improvement in underlying claims ratio -70bps • Includes one-off negative impact from RACQI of 50bps 52.6 51.6 51.9 0.5 • ~$115m reinsurance profit commission (1H25: $~40m) • Claims handling, supply chain and fraud r
Slide 18: Investment in growth and transformation
Investment in growth and transformation Improvement in admin ratio ex-levies to Administration ratio ex-levies (%) 11.7% in 1H26 -20bps • 20bps improvement relative to 1H25 and 80bps 12.5 improvement relative to 2H25 11.9 12.2 11.7 ~11.6 <11.0 • Administration expenses ex-levies up 6.8% includes imp
Slide 19: Strong investment result across all asset classes
Strong investment result across all asset classes Technical reserves income ($m) Shareholders’ funds income Technical reserves (~$7.9bn portfolio) (~$5.6bn portfolio) • $90m investment income included the $98m 237 217 negative impact from increased risk-free rate 227 186 • Underlying yield 4.6% (1H2
Slide 20: Strong CET1 capital position supports dividend and buyback
Strong CET1 capital position supports dividend and buyback 1.47 Strong capital position above target -0.17 0.19 -0.21 range provides capacity for up to $200m -0.05 1.18 buy-back -0.05 • Solid 1H26 NPAT more than offsets FY25 final dividend 0.9 to 1.1 CET1 target range • Reflects completion of RACQI
Slide 21: Indicative pro-forma CET1 ratio reflecting buyback and RAC Insurance acquisition
Indicative pro-forma CET1 ratio reflecting buyback and RAC Insurance acquisition 1.37 0.05 1.18 0.23 0.40 0.10 0.07 1.01 0.08 0.97 0.9 to 1.1 CET1 target range Dec-25 FY26 interim $200m on- Dec-25 Timing & 2026 consensus Other movements Dec-26 RACI Dec-26 dividend market buy-back (post-buyback WOAQS
Slide 22: Guidance & Outlook
Nick Hawkins Managing Director and Chief Executive Officer Guidance & Outlook IAG
Slide 23: FY26 insurance profit and margin guidance range maintained with GWP growth 'high single-digit'
FY26 insurance profit and margin guidance range maintained with GWP growth ʻhigh single-digitʼ GWP growth of: Reported insurance profit IAG’s FY26 guidance aligns to the targets to deliver a High single-digit Despite the one-off RACQI impact in 1H26, in FY26 (previously ‘approximately 10%’) expected
Slide 24: IAG supporting ~10m customers with leading brands across Australia & New Zealand
IAG supporting ~10m customers with leading brands across Australia & New Zealand Retail Intermediated Direct Partner Australia New Zealand Australia New Zealand Australia New Zealand Building connected customers (NRMA Road & Motoring Providing leading insurance products Services, MotorServe, AMI Hom
Slide 25: Slide 25
Slide 26: Investor Relations / Media
Investor Relations Media Insurance Australia Group Limited Mark Ley Amanda Wallace ABN 60 090 739 923 M: +61 (0)411 139 134 M: +61 (0)422 379 964 Level 9, Tower Two, 201 Sussex Street E: mark.ley@iag.com.au E: amanda.wallace@iag.com.au Sydney NSW 2000 Australia Ph: +61 (0)2 9292 9222 Nigel Menezes M
Slide 27: Appendix 1. Group Profit & Loss
Appendix 1. Group Profit & Loss 1H25 2H25 FY25 1H26 GROUP RESULTS A$m A$m A$m A$m Gross written premium 8,426 8,680 17,106 8,929 Gross earned premium 8,366 8,408 16,774 9,063 Reinsurance expense (3,436) (3,354) (6,790) (3,715) Net earned premium 4,930 5,054 9,984 5,348 Net claims expense (3,039) (3,2
Slide 28: Appendix 2. Group Insurance Ratios
Appendix 2. Group Insurance Ratios Insurance Ratios 1H25 2H25 FY25 1H26 Loss ratio 61.6% 65.0% 63.4% 65.6% Immunised loss ratio 61.3% 64.1% 62.7% 66.8% Expense ratio 23.6% 24.1% 23.8% 22.6% Commission ratio 9.2% 9.0% 9.1% 8.9% Administration ratio 14.4% 15.1% 14.7% 13.7% Administration ex-levies rat
Slide 29: Appendix 3. RIA Profit & Loss and Insurance Ratios
Appendix 3. RIA Profit & Loss and Insurance Ratios 1H25 2H25 FY25 1H26 RETAIL INSURANCE AUSTRALIA A$m A$m A$m A$m Gross written premium 4,305 4,444 8,749 4,923 Gross earned premium 4,242 4,302 8,544 4,912 Reinsurance expense (1,729) (1,731) (3,460) (2,008) Net earned premium 2,513 2,571 5,084 2,904 N
Slide 30: Appendix 4. RIA ex-RACQI Profit & Loss and Insurance Ratios
Appendix 4. RIA ex-RACQI Profit & Loss and Insurance Ratios 1H25 2H25 FY25 1H26 RETAIL INSURANCE AUSTRALIA EX- RACQI A$m A$m A$m A$m Gross written premium 4,305 4,444 8,749 4,421 Gross earned premium 4,242 4,302 8,544 4,426 Reinsurance expense (1,729) (1,731) (3,460) (1,786) Net earned premium 2,513
Slide 31: Appendix 5. IIA Profit & Loss and Insurance Ratios
Appendix 5. IIA Profit & Loss and Insurance Ratios 1H25 2H25 FY25 1H26 INTERMEDIATED INSURANCE AUSTRALIA A$m A$m A$m A$m Gross written premium 2,233 2,317 4,550 2,206 Gross earned premium 2,225 2,189 4,414 2,297 Reinsurance expense (895) (834) (1,729) (919) Net earned premium 1,330 1,355 2,685 1,378
Slide 32: Appendix 6. NZ Profit & Loss and Insurance Ratios
Appendix 6. NZ Profit & Loss and Insurance Ratios 1H25 2H25 FY25 1H26 NEW ZEALAND A$m A$m A$m A$m Gross written premium 1,887 1,920 3,807 1,800 Gross earned premium 1,898 1,918 3,816 1,854 Reinsurance expense (812) (789) (1,601) (788) Net earned premium 1,086 1,129 2,215 1,066 Net claims expense (533
Slide 33: Appendix 7. NZ Retail Profit & Loss and Insurance Ratios
Appendix 7. NZ Retail Profit & Loss and Insurance Ratios 1H25 2H25 FY25 1H26 NEW ZEALAND RETAIL A$m A$m A$m A$m Gross written premium 1,067 1,087 2,154 1,081 Gross earned premium 1,057 1,080 2,137 1,071 Reinsurance expense (428) (417) (845) (435) Net earned premium 629 663 1,292 636 Net claims expens
Slide 34: Appendix 8. NZ Intermediated Profit & Loss and Insurance Ratios
Appendix 8. NZ Intermediated Profit & Loss and Insurance Ratios 1H25 2H25 FY25 1H26 NEW ZEALAND INTERMEDIATED A$m A$m A$m A$m Gross written premium 820 833 1,653 719 Gross earned premium 841 838 1,679 783 Reinsurance expense (384) (372) (756) (353) Net earned premium 457 466 923 430 Net claims expens
Insurance Australia Group — 1H26 Earnings Presentation on 6ix