The Insurance Australia Group Ltd (ASX: IAG) share price edged lower in November, striking pain again for shareholders.
The company kept relatively quiet over the month with the last price-sensitive release coming at the beginning of November.
The insurance giant’s shares travelled around 8% lower for the month. However, on Friday, the company clawed back some of those losses to post a 1.59% gain. As at market close on Friday, the IAG share price is $4.47.
What’s the latest with IAG?
With the company not making any new announcements since its trading update, investors have continued to weigh down IAG shares.
The company revealed that it is expecting a significant rise in net natural perils claim costs for FY22. Severe storm and hail activity experienced in South Australia and Victoria during October were being blamed for the increased costs.
In total, net natural perils claim costs for the current financial year is forecast to be around $1,045 million. This is a hefty amount from the company’s previous estimates of $765 million. It is worth noting that this includes $510 million for perils events for the remainder of the financial year.
The seasonally unexpected claims made year to date has forced IAG to downgrade its FY22 insurance margin guidance.
As such the company is forecasting an insurance margin guidance range of between 10% to 12%. Previously, the insurance margin level stood in the 13.5% to 15.5% range. Inflationary pressure on claims costs in the company’s motor and home portfolios were partly offset by lower vehicle claims.
Undoubtedly, the concerning update affected IAG shares, falling 7% on the day of the release alone. And since 9 November, its shares have mostly featured in the red, with a number of days recording consecutive losses.
While still trying to navigate its way through the tough trading conditions, IAG shares at trading at near multi-year lows.
IAG share price recap
Over the last 12 months, the IAG share price has lost around 15%, with year to date down 5%. The company’s shares have fallen 60% since July 2019, with heavy losses attributed to the COVID-19 pandemic.
Based on today’s price, IAG presides a market capitalisation of roughly $10.84 billion, with approximately 2.47 billion shares on issue.
The post What happened to the IAG (ASX:IAG) share price last month? appeared first on The Motley Fool Australia.
Should you invest $1,000 in IAG right now?
Before you consider IAG, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IAG wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Own IAG (ASX: IAG) shares? Here’s why the company is facing a shareholder class action
- With the IAG (ASX:IAG) share price trading around decade-lows, is now the time to buy?
- November hasn’t been a great month so far for the IAG (ASX:IAG) share price
- Is the IAG (ASX:IAG) share price set to outperform? Here’s what Motley Fool Australia analyst Drew Flowers says
- Why is the IAG (ASX:IAG) share price rising for the first time in 7 days?
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3IjD892