Those invested in Insurance Australia Group Ltd (ASX: IAG) shares likely jumped for joy in May, with the stock outperforming the broader market by a decent margin.
Shares in the ASX insurance provider lifted 4.2% over the course of last month to finish May trading at $5.19.
In contrast, the S&P/ASX 200 Index (ASX: XJO) slipped 3% over the same period.
So, what went right for the IAG share price over the month just been? Let's take a look.
Image source: Getty Images
What went right for the insurance stock last month?
Interestingly, there was no price-sensitive news to explain the stock's May gains. Also of interest, the performances of other ASX 200 insurers throughout the month were pretty mixed.
Take a look at how shares in some of IAG's peers performed in that time:
- The share price of QBE Insurance Group Ltd (ASX: QBE) fell 5.6% in May
- Suncorp Group Ltd (ASX: SUN) shares gained 6.6%
- Shares in Steadfast Group Ltd (ASX: SDF) lifted just 0.4% last month
While there was no price-sensitive news to drive IAG shares higher in May, the market did hear one update.
The company announced its chief financial officer Michelle McPherson will retire by the end of 2023, after more than three years at IAG. A search to find her successor is underway.
IAG chief insurance and strategy officer Tim Plant is also stepping from his role as the company consolidates its group functions.
Commenting on the change, IAG managing director and CEO Nick Hawkins said:
Our plans are clear. We want to accelerate the delivery of our plans and ensure our three operating businesses [Direct Insurance Australia, Intermediated Insurance Australia, and New Zealand] can continue to meet customer needs in this rapidly changing environment.
Meanwhile, IAG continued to buy back its own shares on the market, having snapped up more than $110 million worth as of 31 May. The company announced a $350 million on-market buyback in October.
IAG share price snapshot
The IAG share price's May gains bolstered the stock further into the longer-term green.
It has gained almost 11% since the start of 2023. It's also 20% higher than it was this time last year.
For comparison, the ASX 200 has lifted 3% year to date and is trading 1% lower than it was 12 months ago.
