INSURANCE AUSTRALIA GROUP (IAG) Shares

ABOUT INSURANCE AUSTRALIA GROUP

Insurance Australia Group Limited (IAG) is a multinational insurance company headquartered in Sydney, Australia with 3 500+ employees.

Insurance Australia Group Limited started when NRMA Insurance Business decided in 2000 to change the business and return the shares to its members. Two years later in 2002, NRMA changed its name to Insurance Australia Group Limited. The new group represents the umbrella organization that holds many well-known insurance brands.

Over the next couple of years, some takeover bids were on the table but none of them came to par. In 2008, QBE proposed a takeover and increased its proposal a couple of times. Each time the board rejected it and finally QBT withdrew the proposal.

In 2013, IAG purchased Wesfarmers Insurance underwriting business. This comprises companies that traded under the WFI and Lumley brands, as well as a distribution agreement with Coles.

In 2015, a jump in natural disaster claims and a disastrous hailstorm that hit Brisbane exceeded the company’s expectations and its share price fell with 9%.

Its New Zealand business had to raise it premiums with 26% and added the Wesfarmers’ New Zealand-based operation to its portfolio.

Berkshire Hathaway bought a 3.7% stake in the group in 2015, aimed at reducing IAG’s capital requirements.

OVERVIEW OF INSURANCE AUSTRALIA GROUP

• Insurance Australia Group Limited is engaged in the underwriting of general insurance and related corporate services and investing activities.
• The company’s divisions are Consumer (Australia); Business (Australia); New Zealand; Asia; Corporate and Other. The different divisions provide general insurance to individuals and businesses in the various countries.
• Subsidiaries in Thailand, Vietnam and Indonesia underwrite those in Asia. Corporate and other, include corporate services, capital management activity and others.
• The consumer insurance products sell under the brands NRMA Insurance, SGIO, SGIC and CGU. It also includes travel insurance, life insurance and funeral products.

VISION & VALUES OF INSURANCE AUSTRALIA GROUP

• Insurance Australia Group Limited work closely with government, industry bodies and Australian and international organizations on a range of topics and issues that relates to its customers, its people and the community.
• This include climate change, disaster response and resilience, diversity, inclusion and belonging.
• The company believes its purpose will enable it to become and more sustainable business in the long term and deliver stronger and more consistent returns for its shareholders.
• Its strategy is to optimize its core insurance business while creating future growth options. Shareholders who purchase company shares can rest assured of superior value.

MARKET PERFORMANCE OF INSURANCE AUSTRALIA GROUP

• Insurance Australia Group Limited trades on Australian Securities Exchange (ASX) and lists under the stock symbol IAG. The company is a constituent of the S&P/ ASX 50 index.
• The company’s profit after tax for the year 2019 is US Dollar 1,173 million. After adjusting for non-controlling interests in the company’s result, net profit attributable to the shareholders is US Dollar 1,076 million, 16.6% higher than the prior year.
• Total GWP of US Dollar 12,005 million represents a 3.1% increase. The board has determined to pay a final dividend of 20.0 cents per ordinary share franked to 70%.

Buy INSURANCE AUSTRALIA GROUP stocks / shares – A Step by Step Guide how to Buy / Purchase INSURANCE AUSTRALIA GROUP Stocks or Shares online.

Before buying any stock or share one has to consider a few factors.

STEP 1: PROPER RESEARCH IS ESSENTIAL

Upon deciding you want to buy INSURANCE AUSTRALIA GROUP Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.

Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.

STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN INSURANCE AUSTRALIA GROUP STOCKS / SHARES

It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.

STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE

Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.

STEP 4: OPEN A BROKERAGE ACCOUNT

A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.

STEP 5: COMMIT AND PURCHASE INSURANCE AUSTRALIA GROUP STOCKS / SHARES

Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out.  Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of INSURANCE AUSTRALIA GROUP stocks / shares.

5 Questions to ask yourself before purchasing any stocks or shares.

1. Is it the best time to buy this stock / share?
2. Should I buy INSURANCE AUSTRALIA GROUP stocks / shares in the current economic climate?
3. Can I afford to buy this stock / share?
4. What is the forecast of the stock / share growth?
5. What is the current price per earning ration on the stock / share?