Insurance Australia Group (FRA:NRM) Beneish M-Score: -5.69 (As of Jun. 27, 2026)


FRA:NRM Insurance Australia Group Ltd FRA:NRM
79 GF Score
Price €4.80
GF Value €4.51
Valuation Fairly Valued
! 2 Warning Signs
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What is Insurance Australia Group Beneish M-Score?

Insurance Australia Group FRA:NRM -2.04% 79 Beneish M-Score is -5.69 as of Jun. 27, 2026. GuruFocus rates FRA:NRM with a GF Score™ of 79/100 and a GF Value™ of €4.51 (Fairly Valued). The stock has 2 warning signs investors should review. Among 397 Insurance companies, Insurance Australia Group ranks better than 97.23% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -5.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Insurance Australia Group's Beneish M-Score or its related term are showing as below:

FRA:NRM' s Beneish M-Score Range Over the Past 10 Years
Min: -13.25   Med: -2.35   Max: -2.15
Current: -5.69

During the past 13 years, the highest Beneish M-Score of Insurance Australia Group was -2.15. The lowest was -13.25. And the median was -2.35.

FRA:NRM
79GF Score
Insurance Australia Group Ltd FRA:NRM
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Insurance Australia Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Insurance Australia Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.6541+0.528 * 1+0.404 * 1.0007+0.892 * 0.9973+0.115 * 0.9306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9274+4.679 * -0.637386-0.327 * 0.9768
=-5.77

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun25) TTM:Last Year (Jun24) TTM:
Total Receivables was €331 Mil.
Revenue was €8,411 Mil.
Gross Profit was €8,411 Mil.
Total Current Assets was €0 Mil.
Total Assets was €14,850 Mil.
Property, Plant and Equipment(Net PPE) was €292 Mil.
Depreciation, Depletion and Amortization(DDA) was €124 Mil.
Selling, General, & Admin. Expense(SGA) was €7,407 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,623 Mil.
Net Income was €767 Mil.
Gross Profit was €9,469 Mil.
Cash Flow from Operations was €763 Mil.
 Total Receivables was €507 Mil.
Revenue was €8,434 Mil.
Gross Profit was €8,434 Mil.
Total Current Assets was €0 Mil.
Total Assets was €15,802 Mil.
Property, Plant and Equipment(Net PPE) was €321 Mil.
Depreciation, Depletion and Amortization(DDA) was €123 Mil.
Selling, General, & Admin. Expense(SGA) was €8,008 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €1,769 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(330.77 / 8411.48) / (507.064 / 8434.407)
=0.039324 / 0.060119
=0.6541

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(8434.407 / 8434.407) / (8411.48 / 8411.48)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 291.822) / 14850.197) / (1 - (0 + 320.77) / 15802.253)
=0.980349 / 0.979701
=1.0007

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=8411.48 / 8434.407
=0.9973

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(123.373 / (123.373 + 320.77)) / (124.18 / (124.18 + 291.822))
=0.277778 / 0.298508
=0.9306

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(7406.754 / 8411.48) / (8008.153 / 8434.407)
=0.880553 / 0.949462
=0.9274

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1623.367 + 0) / 14850.197) / ((1768.554 + 0) / 15802.253)
=0.109316 / 0.111918
=0.9768

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(767.092 - 9469.266 - 763.141) / 14850.197
=-0.637386

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Insurance Australia Group has a M-score of -5.77 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -5.69 mean?
Insurance Australia Group (FRA:NRM) has a Beneish M-Score of -5.69 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Insurance Australia Group and its competitors. According to the industry distribution chart, Insurance Australia Group ranks #11 out of 397 companies in the Insurance industry, placing it in the top 2.8%.
Is Insurance Australia Group's Beneish M-Score too high?
Insurance Australia Group's current Beneish M-Score is -5.69. Based on the distribution chart, Insurance Australia Group ranks #11 out of 397 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Insurance Australia Group has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Insurance Australia Group's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, Insurance Australia Group ranks #11 out of 397 companies for Beneish M-Score. This places Insurance Australia Group in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Insurance Australia Group and its competitors. Insurance Australia Group's current Beneish M-Score is -5.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Insurance Australia Group stock overvalued right now?
Based on GuruFocus' analysis, Insurance Australia Group (FRA:NRM) is currently considered Fairly Valued. The stock's GF Value™ is €4.51, compared to a current price of €4.80 — trading 6.4% above its estimated fair value. The current Beneish M-Score is -5.69. Insurance Australia Group's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Insurance Australia Group (FRA:NRM), the current Beneish M-Score is -5.69 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Insurance Australia Group (FRA:NRM) Overvalued in 2026?

Based on GuruFocus' analysis, Insurance Australia Group stock appears to be overvalued. The current stock price of €4.80 is trading 6.4% above its estimated GF Value™ of €4.51. GuruFocus considers Insurance Australia Group to be Fairly Valued.

Key valuation signals for FRA:NRM:

  • Beneish M-Score: -5.69
  • GF Value™: €4.51 vs. price of €4.80 (6.4% above fair value)
  • GF Score™: 79/100 with 2 warning signs

No single metric tells the full story. See the FRA:NRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Insurance Australia Group Business Description

Address Darling Park, 201 Sussex Street, Level 13, Tower Two, Level 9, Sydney, NSW, AUS, 2000
Insurance Australia Group is the biggest domestic general insurer by gross written premiums, operating in Australia and New Zealand. The key general insurance markets in which the company operates are home and contents, motor vehicle and compulsory third party, and short-tail commercial. Insurance Australia Group sells insurance under several brands, including NRMA, CGU, SGIO, SGIC, WFI, and Swann in Australia and NZI, State, AMI, and Lumley in New Zealand.
79GF Score

Get the complete analysis for FRA:NRM

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€4.80
Price
€4.51
GF Value