While the stock is by no means cheap, it is a bit surprising that it got dealt with quite heavily despite the result being relatively strong and clean, with the Insurance Margin coming it at 18.3%, above management's 16% to 18% guidance range. And the capital management discipline being demonstrated.
I strongly suspect that the conniption that the market threw was due to the muted Insurance Margin guidance for FY2019 of 16% to 18%.
In this light, some context might be helpful:
For FY2017, IAG's Reported Insurance Margin was 14.9%
As the time of the announcement of the FY2017 result, management gave guidance for a Reported Insurance Margin of 12.5% to 14.5%.
As we know, the actual result came in well above than that range.
So, I am not sure one should put too much store of value in that Insurance Margin guidance given the ongoing strength in the premium rate environment and the $100m Pre-Tax benefit from the optimisation program.
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Ann: IAG FY18 Market Presentation, page-7
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Last
$7.12 |
Change
0.010(0.14%) |
Mkt cap ! $16.87B |
Open | High | Low | Value | Volume |
$7.15 | $7.19 | $7.10 | $24.77M | 3.479M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 9837 | $7.12 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$7.13 | 3117 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 956 | 7.090 |
1 | 100 | 7.050 |
1 | 699 | 7.030 |
3 | 615 | 7.000 |
1 | 1445 | 6.990 |
Price($) | Vol. | No. |
---|---|---|
6.750 | 3884 | 1 |
6.770 | 777 | 1 |
7.100 | 200 | 2 |
7.150 | 1763 | 3 |
7.160 | 10905 | 2 |
Last trade - 16.10pm 18/07/2024 (20 minute delay) ? |
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IAG (ASX) Chart |