Insurance Australia Group (IAG) has delivered a strong full-year performance, with motor insurance playing a key role in lifting earnings.
For the 12 months to 30 June 2025, IAG reported a net profit after tax of $1.36 billion, a 51 per cent increase on FY24’s $898 million. Insurance profit rose 21 per cent to $1.74 billion, while the group’s margin strengthened to 17.5 per cent. Gross written premium climbed 4.3 per cent to $17.1 billion, driven by growth across motor and home portfolios.
Chief executive Nick Hawkins said the results reflected disciplined pricing, strong underwriting and operational improvements, particularly in automotive insurance.
“We supported customers when they needed us most and invested in platforms that improve how we manage claims and underwriting. Our motor insurance operations, in particular, have shown real momentum,” he said.
Motor cover remained a standout performer, with IAG citing supply chain improvements, faster repair processes and stronger fraud detection as key drivers of profitability. Hawkins also highlighted the role of new technology, with more than five million policies now migrated to IAG’s enterprise platform, streamlining pricing, policy management and claims.
The company paid $10.2 billion in claims during the year, responding to severe weather events including Tropical Cyclone Alfred and major flooding in Queensland and New South Wales. More than 15,000 customers were supported with financial hardship assistance.
The board declared a final dividend of 19 cents per share, taking the full-year payout to 31 cents, up nearly 15 per cent on last year.
Looking ahead, Hawkins said IAG is well placed to expand its automotive insurance reach through proposed alliances with motoring clubs RACQ in Queensland and RAC in Western Australia. While both transactions remain subject to Australian Competition and Consumer Commission (ACCC), they would extend IAG’s customer base substantially if completed.
“Our focus remains on strengthening our core business while positioning for growth. These results show the benefits of disciplined execution and continued investment in the motor insurance segment,” Hawkins said.