2314 GMT - Insurance Australia Group's share price tumbled to two-month lows following a disappointing FY26 result. Citi thinks that reaction is overdone. "In our view, it still has a solid outlook with growth momentum seemingly beginning to improve and IAG slightly tilting toward growth," analyst Nigel Pittaway says. Citi remains a little skeptical about the extent to which this growth can build and thinks its New Zealand Intermediated business could continue to disappoint. Yet it says "even a cautious view of this still suggests reasonable prospects." IAG forecasts a reported insurance margin of 14.5-16.5% in FY27. Citi expect as a margin around the middle of this range, with no allowance for any upside from favorable weather. It upgrades IAG to buy.
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