Insurance Australia Group shares plunge on surging claims costs and lower investment returns
IAG shares hit a 19-month low today as rising claims costs and lower investment income hit earnings. The insurer also announced a 200 million dollar buyback.
Insurance Australia Group (IAG) reported its first-half results today, February 12, 2026, revealing a 21% decline in cash earnings to A$507 million. The results were primarily driven by a 15% rise in net claims expense, which reached A$3.51 billion, and a 14% drop in investment income. Following the announcement, the company’s share price fell to a 19-month low, as Australia 
AU’s top general insurer faced significant pressure on its profitability.
AU’s top general insurer faced significant pressure on its profitability.
