Ann: IAG FY18 Market Presentation, page-7

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.