IAG just announced a $300 million issuance of Capital Notes 3, focusing on new money. The distribution rate, determined by the 3-month BBSW Rate + Margin (expected between 3.2% and 3.4%), aims to provide fully franked distributions. The first optional exchange date is set for 15 December 2030.

Financially, IAG reported a strong first half of 2024, with gross written premium reaching $7.9 billion, insurance profit at $614 million, and a reported insurance margin of 13.7%. Despite a dip in net profit after tax to $407 million, the company reaffirmed its FY24 guidance.

In terms of investments and reinsurance, IAG saw a doubling of net investment income to $415 million. The company maintains solid reinsurance coverage against natural hazards.

IAG’s capital position remains robust, with a Common Equity Tier 1 ratio of 1.16x the Prescribed Capital Amount. An interim dividend of 10 cents per share was declared, coupled with a $200 million on-market buyback.

While S&P upgraded IAG’s credit ratings in December 2023, the company did not provide FY24 profit guidance. Potential risks include claims inflation, natural hazards exceeding allowance, and lower reinvestment yields due to changing market conditions. Despite these considerations, IAG seems to remain in a stable position.