Insurance Australia Group (IAG), known for its NRMA Insurance brand, has reported a 91% increase in net profit after tax to $778 million for the first half of the 2025 financial year, ending 31 December 2024. This significant rise is attributed to favourable weather conditions, robust investment markets, and the release of $200 million from its COVID-19 business interruption provision.
The company’s net earned premium reached $4.9 billion, meeting market expectations. CEO Nick Hawkins stated, “Today’s result reflects the quality of our business as we continue to see consistent, reliable performance across our portfolios and steady progress against our strategic priorities.”
In addition, IAG has announced a 25-year exclusive strategic alliance with the Royal Automobile Club of Queensland (RACQ). Under this agreement, IAG will acquire 90% of RACQ’s existing insurance underwriting business for $855 million, with an option to purchase the remaining 10% after two years. This partnership is expected to add approximately $1.3 billion to IAG’s Gross Written Premiums and expand its retail insurance offerings through trusted brands in the industry.
The transaction is subject to regulatory approvals, including clearance from the Australian Competition and Consumer Commission (ACCC), which is currently reviewing the proposed acquisition.
IAG anticipates that this strategic alliance will strengthen its presence in Queensland and enhance its ability to provide leading insurance products to a broader customer base.
