This morning Insurance Australia Group Ltd [ASX:IAG] grew by 0.81%
They are trading at $7.51 a share, and currently have a market cap valued at $17.559 billion.
IAG is an insurance underwriting company that operates in insurance services. They started back in 1925 and are based in Sydney, Australia.
State of the franchise and butting heads with QEB
IAG has focused on its business quality and investor diversification for quite some time. The franchise primarily deals with households on a direct basis who trust brands that work under IAG.
Its direct competitor QBE mainly works with companies through big brokers. QBE has writhed to distinguish itself to its customers and preserve their earnings.
Whereas IAG has a quota share treaty with the company Berkshire Hathaway, lowering the instability of their earnings.
IAG has since startled the market during the latest reporting season, displaying solid earnings across motor and home lines.
Last year in October IAG confirmed their plans to place the Asian growth strategy on hold in order to concentrate on their Australian and New Zealand markets.
They have since re-evaluated their Asian branch, as restricted opportunities could result in IAG selling the business.
The massive insurance brand has further increased its reported margin guidance, after properly adjusting its range during December last year.
For Money Morning
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