How hard is IAG going to run?, page-10

From my research - IAG had one of its better performance in 2019.

Hopefully, IAG can start to recover from a disastrous year in 2020 and hopefully see SP increase back up again.

Now with the likely increase in interest rates, IAG can gain from better investment returns from their pooled premium investment in asset.

Also, IAG needs to capture more of the personal insurance market as the margins are better there.

I would like to see IAG share price back up to $8 plus within 12 months to 18 months - if we dont have any more disaster and extreme bad weather condition.

IAG is the better business. They have a much simpler business model and good management. Their strategy has been to increasingly farm out its unpredictable business in return for predictable fees. The result has been better margins with lower earnings volatility than otherwise, with lower capital needs. At the same time, IAG is pulling out of Asia to focus on its more profitable domestic operations.

IAG has also been returning capital to shareholders - nearly $600m since November 2018. The mooted sale of its Indian operations would add to that amount. It's a good result for shareholders when there is little business growth.