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Insurance Australia Group has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Insurance Australia Group's Interest Coverage for the quarter that ended in Jun. 2026 was 10.24.
Insurance Australia Group's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.20.
Altman Z-Score does not apply to banks and insurance companies.
Insurance Australia Group (ASX:IAG) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Insurance Australia Group has the Financial Strength Rank of 4.
Insurance Australia Group Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
Insurance Australia Group (ASX:IAG) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Insurance Australia Group and its competitors. This is near median its historical median of 4.00. Over the past decade, Insurance Australia Group's Financial Strength has ranged from 1.00 to 6.00.
Is Insurance Australia Group's Financial Strength too high?
Insurance Australia Group's current Financial Strength of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 6.00. Overall, Insurance Australia Group has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Insurance Australia Group's Financial Strength compare to CB and PGR?
Insurance Australia Group's Financial Strength of 4 can be compared against companies in the Insurance industry. Historically, Insurance Australia Group's own Financial Strength has ranged from 1.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Insurance company?
A good Financial Strength depends on the Insurance industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Insurance Australia Group and its competitors. Insurance Australia Group's current Financial Strength is 4, which is near median its own 10-year median of 4.00. 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 (ASX:IAG) is currently considered Modestly Undervalued. The stock's GF Value™ is A$10.17, compared to a current price of A$7.86 — trading 22.7% below its estimated fair value. The current Financial Strength is 4, which is near median its 10-year median of 4.00. Insurance Australia Group's overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Insurance Australia Group (ASX:IAG), the current Financial Strength is 4 as of Jun. 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 (ASX:IAG) Overvalued in 2026?
Based on GuruFocus' analysis, Insurance Australia Group stock appears to be undervalued.
The current stock price of A$7.86 is trading 22.7% below its estimated GF Value™ of A$10.17.
GuruFocus considers Insurance Australia Group to be Modestly Undervalued.
Key valuation signals for ASX:IAG:
Financial Strength: 4 (near median its 10-year median of 4.00)
GF Value™: A$10.17 vs. price of A$7.86 (22.7% below fair value)
No single metric tells the full story. See the ASX:IAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
65GF Score
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