Why is the IAG share price lifting 6% higher today?

This ASX insurance share is catching a bid today.

| More on:
a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • IAG shares have lifted in today's session
  • Investors have bid the share up on no news while the financial sector is relatively flat today
  • The IAG share price is down 8% in the past 12 months

The Insurance Australia Group Ltd (ASX: IAG) share price is trading higher today.

At the time of writing, investors have bid the IAG share price 6.41% into the green to $4.48 on no news.

In broader market moves the S&P/ASX 200 Financials Index (ASX: XFJ) is trading 0.2% lower.

Both the index and the IAG share price have whipsawed this year to date, as seen on the chart below.

TradingView Chart

What's up with the IAG share price?

The ASX insurance share has caught a bid today despite finishing the week in the red last Friday. It closed at $4.21 a share, not too shy of its 52-week low of $4.14 a month earlier.

Fast forward and investors have bought in at the lows today. The company has caught buyers all the way across the session at the time of writing.

It certainly wasn't the same sentiment last week when IAG released its preliminary FY22 results.

The company revealed it expects an insurance profit of $586 million, resulting in a margin of 7.4%. That was below the guided range of 10-12%.

It also said that gross written premium (GWP) is set to increase this financial year. At the same time, it increased natural peril allowance by around 19% to $909 million in its FY23 guidance.

Not only that, but the prospect of rising interest rates could bode well for the IAG share price, according to CIO at Atlas Funds Management Hugh Dive.

"[R]ising interest rates don't impact all companies…" he told Livewire. "I think the insurance companies will do well particularly."

The IAG share price is down 8% in the past 12 months but is up 6% this year to date.

Should you invest $1,000 in Insurance Australia Group Limited right now?

Before you buy Insurance Australia Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Insurance Australia Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors sent the market higher once again today.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

3 reasons to buy this surging ASX All Ords gold stock today

The ASX All Ords gold stock has doubled investors’ money in 12 months, and this leading expert forecasts more outperformance…

Read more »

Two colleagues at work looking at a tablet and smiling at a rising share price.
Share Gainers

Why Generation Development, Orica, Pro Medicus, and Zip shares are storming higher today

These shares are having a strong session on Thursday. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Up 114% in a year, why is the Pro Medicus share price leaping higher again on Thursday?

Pro Medicus shares are back in form today and leaping ahead. Here’s why.

Read more »

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 finally had a green session this hump day.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 17%!

Investors are sending the ASX 300 stock soaring higher on Wednesday. But why?

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Firefly, Kelsian, NAB, and Zip shares are roaring higher today

These shares are having a good time on hump day. Let's find out why.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another tough day for investors this Tuesday.

Read more »