Insurance Australia Group shares fell 7.3 per cent on Thursday after the release of its FY26 results. The stock opened at $7.96 against the previous close of $8.23 and reached an intraday low of $7.63, making it the third-worst performer in the ASX 200 that session.
Net profit after tax came in at $1,022 million, down 24.8 per cent on FY25. The insurer noted the prior year had been assisted by a $330 million pre-tax business interruption provision release and a $195 million favourable peril experience.
Underlying insurance profit rose to $1,578 million from $1,542 million. Gross written premium reached $18,412 million, up from $17,106 million, representing growth of 7.6 per cent.
Claims costs grew faster than premium. IAG paid $12.4 billion in claims during FY26, up from $10.2 billion in FY25, an increase of roughly $2.2 billion against premium growth of around $1.3 billion.
Management pointed to progress on the RACQI acquisition integration, improved customer experience measures and efficiency gains under its Ambition 2030 strategy. Investors remained cautious on claims inflation and weather-related volatility.
The stock closed well below its 52-week high of $9.17. Shares have now given back the gains built through the first half of the calendar year.
The result landed on one of the busiest single days of the reporting period. Telstra, Origin Energy, ASX Ltd and Treasury Wine Estates all reported on the same morning.
The combination pushed the broader market lower. The ASX 200 fell 68 points to an intraday low of 9,141.3 before recovering to trade 21.5 points lower at 9,187 by mid-afternoon, a fourth decline in five sessions, with Origin Energy and ANZ among the few positive contributors.
