Australian insurer IAG has upgraded its FY26 guidance following the successful acquisition of the Royal Automobile Club of Queensland’s (RACQ) insurance business.
Insurance profit is projected to be between $1,550 million and $1,750 million, an increase of $100 million from the prior range of $1,450 million to $1,650 million.
This equates to a reported insurance margin range of 14% to 16% and assumes an FY26 natural peril allowance of $1,470 million, adjusted to include RACQI. It also assumes no material prior-period reserve releases or strengthening, and no significant changes in macroeconomic conditions, including foreign exchange rates or investment markets.
Commenting at IAG’s Annual General Meeting, Nick Hawkins, Managing Director and CEO of IAG, said, “We’re pleased to confirm that the RACQI business is performing slightly ahead of our expectations.
“The internally funded acquisition is strategically aligned with our growth ambitions, and the integration process is progressing smoothly. It strengthens our position in the Queensland market and supports our ‘through the cycle’ targets of a 15% reported insurance margin and 15% return on equity.”
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