Insurance Australia Group 2026 Investor Day: Ambition 2030 is a margin story, not a growth story

Research evidence excerpt

Insurance Australia Group 2026 Investor Day: Ambition 2030 is a margin story, not a growth story

J P M O R G A N Asia Pacific Equity Research

13 May 2026

Insurance Australia Group Overweight

IAG.AX, IAG AU

2026 Investor Day: Ambition 2030 is a margin story, not Price (12 May 26):A$7.46

a growth story Price Target (Dec-26):A$7.70

IAG hosted their FY26 Investor Day yesterday (May 12). The overriding message Australia

was that IAG is prioritising margin maintenance — with some possibility of upside

Insurance and Diversified Financials

— rather than pursuing aggressive growth. IAG articulated a through-the-cycle

reported margin of “at least 15%”, supported by profit commission and perils Siddharth Parameswaran AC

buffers that could add 1-2% above this floor. Our current FY30 insurance profit (61-2) 9003-8629

siddharth.x.parameswaran@jpmorgan.com

estimate sits ~10% below IAG’s aspirational target of $2,200m+, reflecting both J.P. Morgan Securities Australia Limited

the aspirational nature of these targets and our decision not to assume the full run- Tharan Jeyathasan

rate benefit of profit commissions on a forward basis given prior market share (61-2) 9003-6098

difficulties, and possible need to invest to defend their turf. On growth, IAG’s GWP tharan.jeyathasan@jpmorgan.com

in RIA has historically tracked ~1.2% p.a. below system over the past five years J.P. Morgan Securities Australia Limited

— and the $25bn FY30 target implies a similar ~1% underperformance vs IAG’s Rishi S Parihar

own 6% market growth forecast going forward — although management made the (91-22) 6157-3775

point during the presentation that they broadly aspire to hold share. We have left rishi.parihar@jpmchase.com

J.P. Morgan India Private Limited