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early birds
post Posted: Nov 30 2020, 07:55 AM
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Citi assesses the company is now conservatively provisioned after its capital raising. The perception that Insurance Australia is a quality play in the sector is somewhat dented, in the broker’s view.

Estimates for earnings per share are reduced for FY21 by -102% to allow for new business interruption provisioning and the equity raising. Citi downgrades to Neutral from Buy and lowers the target to $5.70 from $6.25.

Sector: Insurance.

Target price is $5.70.Current Price is $5.46. Difference: $0.24 – (brackets indicate current price is over target). If IAG meets the Citi target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).


from our own sharecafe...

early birds
post Posted: Nov 20 2020, 07:28 AM
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In Reply To: early birds's post @ Aug 23 2017, 10:07 AM

The general insurance sector has been dealt a major blow with a NSW Court of Appeal decision that, if not overturned in the High Court, will see a surge in losses caused by payouts to policyholders who made claims due to the impact of the pandemic under business interruption policies held with insurers.

Suncorp reckons its maximum claims total was $195 million, QBE says it has liabilities and Insurance Australian Group had its shares suspended and hinted that it might need a capital raising to handle the impact.

IAG shares didn’t trade yesterday after closing at $5.46 on Wednesday.

IAG is expected to update its statement sometime today. The suspension lasts to Monday.

QBE shares fell nearly 4% to $10 and Suncorp shares lost 3% at $9.43.

Public-facing businesses forced to close due to coronavirus related lockdown restrictions, including restaurants, bars, and gyms, are among those likely to have Business Interruption (BI) policies.

The NSW Court of Appeal court found pandemic exclusions in business interruption policies were not valid, due to the botched policy wording used by major insurers.

The court found business policies that reference an outdated Act of Parliament must be compensated.

Major insurers all use the outdated Act in their BI policies which could mean the insurers are on the hook for hundreds of millions in payments.

Insurance giant QBE yesterday acknowledged its loss in the NSW Supreme Court of Appeals, after the shock judgement was handed down on Wednesday night.

QBE said in its statement that each business interruption claim would likely be limited to $5 million.

“Notwithstanding the ruling, QBE notes that the particular wording of QBE business interruption policies require a number of policy triggers to be met in order for policyholders to be entitled to indemnity for business interruption,” QBE said in a statement to the ASX on Thursday morning.

The Insurance Council of Australia ran the test case with confidence the court would rule in the insurance industry’s favour.

QBE says the ICA was now looking at launching another case.

The second test case would seek to “provide clarity on whether policy coverage triggers in certain business interruption policies, including QBE business interruption policies, are satisfied in the unprecedented circumstances of COVID-19″, QBE said.

it's getting ridiculous!!

early birds
post Posted: Aug 23 2017, 10:07 AM
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Insurance Australia Group's annual profit climbed almost 50 per cent to hit $929 million, but underlying margins felt the sting of higher motor claims and an increase to natural peril allowance.

On Wednesday IAG said that full-year profit attributable to shareholders for the period ended June 30, 2017, soared 48.6 per cent to $925 million.

But the $16 billion insurer's underlying insurance margin fell short of expectations, dropping 2.1 per cent to 11.9 per cent, which included the impact of higher claim costs in its short tail motor businesses in Australia and New Zealand, and elevated large losses in its commercial classes.

An increase of $80 million to the general insurer's full year 2017 natural peril allowance had an adverse impact of around 70 basis points.

Revenue from ordinary activities was down 1.6 per cent to $16.50 billion, while insurance profit was $1.3 billion, up from $1.2 billion in 2016.

For the full year 2017 gross written premium was up $11.81 billion versus $11.37 billion the year before.

"This improvement was driven by higher than expected prior period reserve releases, partially offset by a natural peril claim cost increase which resulted in an allowance overrun of over $140 million.," IAG said in a statement.

The insurer produced a headline insurance margin of 14.9 per cent in the current financial year, towards the upper end of the revised guidance of 13.5-15.5 per cent provided on 28 June 2017.

IAG declared a full year fully franked dividend 33 cents per share

down about 8% atm............ another high PE stock got shot down,, thumbdown.gif

post Posted: Jun 15 2016, 01:14 PM
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In Reply To: early birds's post @ Jun 16 2015, 10:29 AM

Insurance Australia Group Ltd. (IAG) estimated the cost of claims for damages caused by recent storms that struck Australia's east cost at between A$60 million and A$80 million. To date received about 10,000 claims related to the storms

That will push up the insurer's net natural-disaster claim cost for the financial year through June to about its A$600 million perils allowance, it said Thursday. It added that was consistent with assumptions built into its target for an insurance margin at the lower end of a 14%-16% range for the year.

The company said it has a comprehensive reinsurance program for 2016, plus separate natural-disaster cover that expires on June 30.

- scheduled to release its full-year results on Aug. 19.

"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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early birds
post Posted: Jun 16 2015, 10:29 AM
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Shares have opened lower, putting them on track for a ninth day in the red among the past 11 sessions, as Greek wobbles ensure investors remain cautious, but IAG is a clear winner after scoring Warren Buffett as an investor.

The ASX200 has dropped 0.2 per cent to 5527.8, the broader All Ords is down 0.2 per cent at 5530.7.

IAG is the biggest winner among the top 200, jumping 4 per cent after it announced a strategic relationship with Warren Buffett's Berkshire Hathaway, which will see the US investment giant taking a 3.7 per cent stake in the insurer.

The big miners are leading the losses after commodity prices slipped overnight, with BHP down 1.1 per cent and Rio falling 1 per cent.

The big banks are mixed, as CBA loses 0.2 per cent, but the other three are flat to slightly higher.

wow, a magical touch by the investment god!! blush.gif

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post Posted: Jul 27 2010, 09:03 AM
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In Reply To: blueice's post @ Jul 23 2010, 03:11 PM

Big downgrade issued today. 50% to 91 million for FY 2010.

Day Trader: Lowest form of life in the known universe.
Shorter: Can limbo under a day trader.
Investor: Salt of the Earth.Sits to the right of God (Warren Buffet)
Share prices are only ever manipulated down.
Paper losses are not really losses.
Chat site posters always know better & know more than anyone about anything.
I'm 29.
The cheque is in the mail.

post Posted: Jul 23 2010, 03:11 PM
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It has been stuck on the 3.49 - 3.50 all IAG being capped at $3.50 or is this a fair value for it???????????

post Posted: May 1 2010, 11:30 PM
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I believe IAG have a bag full of franking credits opening up the possibility of a special div this year.

I am trying to get more info but if anyone has anything to share it might be helpful for those looking for a potential income play particularly in superfunds.


post Posted: Nov 20 2009, 10:45 AM
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In Reply To: alonso's post @ Nov 19 2009, 09:02 AM

KICK!!! should have sold on the rumour, only joy likely to come from this in a while.

"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
post Posted: Nov 19 2009, 09:02 AM
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In Reply To: blueice's post @ Nov 19 2009, 08:19 AM

just a media rumour imo

"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith

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