IAG (ASX:IAG) reaffirms FY22 guidance

Insurance Australia Group (ASX:IAG) has used a strategy update to reaffirm its FY22 guidance for gross written premium growth in the low single digits and an insurance margin of 10-12 per cent.

IAG’s leadership team outlines the initiatives being implemented in their three operating businesses to achieve the company’s objective of creating a “stronger and more resilient IAG.”

“We haven’t changed our value proposition since we presented it in February this year. Over the medium-term, we are aiming to deliver a targeted cash ROE of 12-13 per cent, an insurance margin of 15-17 per cent, and a growth profile. Our aspiration is to deliver these financial goals on a sustainable basis,” said managing director and CEO Nick Hawkins.

“We are driving enterprise-wide efficiency, by simplifying the processes and technology that support our business. We are well on the way to establishing an enterprise platform that will simplify our back office, improve our risk processes, and reduce our costs to serve.”

“We are focused on where our scale can deliver operating or structural advantages that can differentiate our company, particularly in areas of supply chain, claims handling and underwriting.”

Shares in Insurance Australia Group (ASX:IAG) are trading 1.6 per cent higher at $4.37.