Morgan Stanley rates IAG as Equal-weight

Published: 2025-06-24 20:29:07 ET MS

Published on 06/24/2025 at 20:29

Morgan Stanley notes Insurance Australia Group is one of the largest purchasers of reinsurance globally and stands to benefit from improving margins and enhanced earnings quality amid recent global shifts.

The analysts explain the reinsurance cycle is turning, with aggregate covers re-emerging in the market. It's felt the general direction ofreinsurance pricing will likely be negative from here, favouring the primary insurers.

The target for Insurance Australia Group rises to $8.40 from $7.95. Equal-weight rating. Industry View: In-Line.

Sector: Insurance.

Target price is $7.95.Current Price is $9.09. Difference: ($1.14) - (brackets indicate current price is over target). If IAG meets the Morgan Stanley target it will return approximately -14% (excluding dividends, fees and charges - negative figures indicate an expected loss).