Australian Insurance Group stock rises 9%, secures reinsurance deals with two firms

TraderKnows
TraderKnows
06-28

Recently, Insurance Australia Group announced reinsurance protection agreements with two other companies, leading to a 9% increase in its stock price due to reduced financial volatility.

On Friday, shares of Insurance Australia Group rose by 9% after the company secured reinsurance protection from subsidiaries of Berkshire Hathaway and Canada Life Reinsurance to reduce financial volatility over the next five years.

The insurer's shares surged as much as 9.3%, reaching AUD 7.280 at 0049 GMT, the highest level since January 24, 2020. Its stock became the top performer in the benchmark S&P/ASX 200 index.

The Sydney-based insurance company stated that these agreements would provide up to AUD 680 million (USD 451.86 million) in additional protection annually, totaling up to AUD 2.8 billion over five years.

IAG noted that this reinsurance would effectively help cap the fiscal year 2025 natural disaster costs at AUD 1.28 billion.

Nick Hawkins, Managing Director and CEO of IAG, stated that these agreements would "provide customers with more certain natural disaster insurance costs, stabilize earnings, and reduce capital requirements."

The comprehensive insurance company confirmed its full-year insurance profit and margin targets, and expects to reach the upper end of its forecast range.

SKYPE TU

公众号2

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Dividend

A dividend is a cash payment or stock distribution by a listed company to its shareholders, representing a portion of its profits.

Organization

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Contact Us

Social Media

Region

Region

Contact