The only problem has been that IAG have been pricing the risk (premium) well below any rate of return. And the time has come where reserve releases are running on low to keep profit at levels expected.
When you continue to be competitive in premiums by undercutting competitors just to stay in the game, it does no one no good.
And another thing, reserve releases cannot be carried forward to the next year (as a bucket for a rainy day). With QBE in such a strong position, they will continue to underprice and dab into IAG's turf because they can. They can because they have a fatter wallet to do so. Being complacent and lax during the boom insurance cycle only hurts future years in the insurance game.
The only problem has been that IAG have been pricing the risk...
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Last
$7.77 |
Change
-0.030(0.38%) |
Mkt cap ! $18.41B | |||
| Open | High | Low | Value | Volume |
| $7.88 | $7.88 | $7.73 | $46.11M | 5.935M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 7539 | $7.76 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.80 | 9592 | 3 |
View Market Depth
| Last trade - 16.10pm 12/09/2024 (20 minute delay) ? |
| IAG (ASX) Chart |