In a trading update, Insurance Australia Group has left guidance unchanged for gross written premium growth (GWP) and margins. Morgan Stanley estimates gross savings in Q1 of around $130m, which could increase the H1 insurance margin uplift of around 3.5%.
While Q1 GWP growth was a slight improvement, management cautioned there will portfolio remediation in broker lines.The Equal-weight rating and target price of $4.80 are retained. Industry view: In-line.
Sector: Insurance.
Target price is $4.80.Current Price is $5.11. Difference: ($0.31) - (brackets indicate current price is over target). If IAG meets the Morgan Stanley target it will return approximately -6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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