IAG has announced an upgrade to its FY26 guidance following the successful completion of the acquisition of the Royal Automobile Club of Queensland’s (RACQ) insurance business.
IAG says it expects FY26 gross written premium (GWP) growth of approximately 10 per cent, up from the previous ‘low-to-mid single digit’ range, reflecting the inclusion of RACQ Insurance (RACQI) from September 1, 2025.
Reported insurance profit is now expected to be in the range of $1,550m to $1,750m, up $100m from the previous range of $1,450m to $1,650m.
This broadly equates to a reported insurance margin range of 14 per cent to 16 per cent and assumes the following:
- FY26 natural peril allowance of $1,470m, which has been adjusted to include RACQI;
- no material prior period reserve releases or strengthening; and
- no material movement in macro-economic conditions including foreign exchange rates or investment markets.
“We’re pleased to confirm that the RACQI business is performing slightly ahead of our expectations.” IAG managing director and CEO of IAG, Nick Hawkins, said at IAG’s Annual General Meeting while commenting on the acquisition of RACQI and guidance upgrade.
“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 per cent reported insurance margin and 15 per cent return on equity.”