Australian General Insurance

Research evidence excerpt

Australian General Insurance

Macquarie Equity Research

13 May 2026

Insurance

AustraliaAustralian General Insurance

Read-through from Allianz's Mar-2026 quarterly

results Andrew Harry

Buncombe, CFA Peng

Key Points Insurance Australia Group (IAG AU)

Recommendation Outperform• Allianz is the fourth-largest insurer in Australia and has a very similar Price (CLOSE, 12 May '26)

product mix to IAG and SUN, thus should be a strong read-through. Target Price $7.46$9.00

Valuation methodology DCF• Allianz Australia’s Underlying GWP growth in the Mar-2026 quarter WACC (Beta 0.9x, ERP 5.65%, RFR 4.60%, TGR 4.60%) 9.7%

(+5.8%) included +4.8% premium rate increases. Suncorp Group Limited (SUN AU)

Recommendation Outperform• Allianz’s Underlying CoR in the Mar-2026 quarter was ~2.9% better than Price (CLOSE, 12 May '26)

seasonal averages. Target Price $16.63$20.30

Valuation methodology Sum of parts

WACC (Beta 1.3x, ERP 5.44%, RFR 4.63%, TGR 4.63%) 11.7%

• Allianz released its Mar-2026 quarterly group accounts. As the fourth- Source: FactSet, Macquarie Research, May 2026.

largest general insurer in the Australian market (by GWP) with a

diversified product and geography base, Allianz is the best read-through Allianz premium rate change (vs.

for IAG and SUN’s pricing, margins, and catastrophe experience. pcp)

• GWP Growth: Allianz Australia's Underlying GWP growth in the Mar-2026 15%

quarter was +5.8% vs pcp, of which premium rate rises were +4.8% vs. 12%

pcp.

Þ Allianz's quarterly result identified strong underlying volume growth 9%6%

in Personal Motor and MidCorp.

Þ As a reminder, Allianz began a strategic partnership with RAA from 3%0%

July-2025. We estimate this added ~7.0% to Allianz's Australian

GWP growth in the period but note Allianz remove M&A from their -3%

"internal", i.e.