Insurance Australia Group (IAG) shares – Company Profile

Insurance Australia Group (IAG) was formed from the old NSW-based NRMA. For this reason, the company’s customer base has always been focused on customers located in NSW.

IAG was demutalised and its shares were listed on the ASX in 2000 and changed its name to IAG at the same time.

IAG shares have a market capitalisation of around $8 billion.

Market leader

The company is now Australia and New Zealand’s largest provider of general insurance services.

The main services that the company provides include motor, CTP and home and contents insurance.

IAG operates policies under a number of brands, including CGU, SGIO, SGIC and Swann Insurance.

In addition, IAG also underwrites insurance services for RACV in Victoria. The company also has operations in Thailand, the UK, Malaysia and China.

The company’s main competitors included QBE Insurance (QBE) and Suncorp-Metway (especially there Promina acquisition.)

The numbers

Turning to the company’s financials, IAG produced an earning per share (EPS) of 5.2 in the 2010 financial year. The company is trading on a yield of around 4.7 per cent.

On a P/E basis, the stock is one of the more expensive in the sector. At the end of February 2011, IAG was trading at a forward price-to-earnings ratio of 13 times.