Insurance Australia Group Limited (IAG.AX) stock analysis

In our weekly check, Insurance Australia Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 6, red flags: 3.

About Insurance Australia Group Limited

Insurance Australia Group Limited is a Financial Services company (Insurance - Property & Casualty) based in Australia, listed on ASX as IAG.AX.

What our checks show for IAG.AX

Red flags

• The gross margin fell by 81.2 points, to 18.8%: costs are rising faster than prices.
• The dividend takes 102% of profit: little cushion if profit falls.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 2.8% a year of growth in revenue.
• The net margin is only 5.3%: little room if costs rise.
• Free cash flow is only 0% of revenue.
• The stock has fallen as much as 57% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 2.7 years.
• Return on capital (ROCE) is only 6.3%.

Strengths

• The net margin rose by 0.7 points over 5 years, to 5.3%.
• Revenue grew 262% a year over the last 3 years.
• A large company: market value $14.62 billion.
• Beta -0.01: the stock usually moves less than the market.
• Actively traded: about 4.9 million shares a day.

Similar companies

SUN.AX · CINF · WRB · AIZ · AFG

Questions

What grade does Insurance Australia Group Limited (IAG.AX) have?

In our weekly check, Insurance Australia Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 6, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of IAG.AX stock?

This week's biggest flags for Insurance Australia Group Limited: Gross margin falling, Dividend stretched, Heavy stock pay. In total 9 of 25 checks show a warning or a red flag.

What does Insurance Australia Group Limited do?

Insurance Australia Group Limited is a Financial Services company (Insurance - Property & Casualty) based in Australia, listed on ASX as IAG.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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