Investor Day and 2030 Ambition

研报英文原文证据摘录

Investor Day and 2030 Ambition

Insurance Australia Group Ltd (IAG AU)

Equity Research

May 12, 2026

Company Description

Insurance Australia Group Ltd

Insurance Australia Group Ltd underwrites general insurance products and provides investment management services in Australia and New

Zealand. It offers personal and commercial insurance products. The company sells its products through branches, agencies, and owned third

parties such as NRMA Insurance, SGIO, RACV, CGU, Rollin, WFI, etc.

Company Valuation/Risks

We value IAG based on a blended approach, incorporating our NPV of Distributable Earnings and P/BV methodologies. In terms of our upside

scenario, we assume lower natural peril events reducing claims, improved investment earnings, market share growth, lower reinsurance costs,

and improved efficiency through the claims handling process. For our downside scenario, we assume IAG faces higher reinsurance costs with

less capacity, a spike in claims leading to poor underwriting performance, a loss of market share, reduced investment income due to lower

interest rates and climate-related risk leading to higher natural perils. Risks include climate change and catastrophic events, reinsurance risks,

competition, changes in customer preferences and market practices, escalation in claims costs, litigation and social inflation, investment assets

not performing in line with expectations, changes in government policy, and regulatory requirements.

Aon plc

Our valuation methodology consists of a 75% weighting to EV/Adj. EBITDA NTM and a 25% weighting to Price/Cash EPS NTM. For EV/EBITDA, our

price target is established by applying a target multiple of 13.5x our Q5-Q8 Adj. EBITDA estimate. For Price/Cash EPS, we apply a target multiple

of 19.0x our Q5-Q8 Cash EPS estimate.