The Insurance Australia Group Ltd (ASX: IAG) share price performed strongly in February, gaining 8.49%.
For comparison, the S&P/ASX 200 Index (ASX: XJO) gained just 1.11% over the same period.
As of the final close of February, the IAG share price was $4.60.
Let’s take a closer look at how the insurer’s stock performed last month.
What boosted the IAG share price in February?
The IAG share price gained 4.18% on the release of the company’s results for the first half of financial year 2022.
The gain came despite the company reporting a 4.4% decrease in revenue – coming to around $9.2 billion – and a 62% decrease in cash earnings – falling to $176 million.
That likely resulted in IAG’s decision to cut its dividend to 6 cents per share – a 14.3% drop.
However, the insurer showed confidence in its future performance, upgrading its guidance on gross written premium growth from low single-digit growth to mid-single digit growth.
It also stuck by its insurance margin guidance of between 10% and 12%.
There was more good news from the company later that month.
On 22 February, it released news of a favourable appeal judgement handed down by the Full Court of the Federal Court of Australia regarding business interruption insurance policies.
The Full Court agreed with previous conclusions that generally found that business interruption policies weren’t intended to provide coverage for pandemic-related losses.
Unfortunately, the IAG share price ended the month with a sizeable tumble.
It slipped 6.5% over the final 3 sessions of February despite the company’s silence. Though, the drop coincided with major flooding in south-east Queensland and northern New South Wales.
Since the end of last month, the IAG share price has slipped to trade at $4.45.
That’s 0.2% lower than it was at the start of 2022. It is also 7.4% lower than it was this time last year.
The post The IAG (ASX:IAG) share price managed to gain 8% in February. Here’s how appeared first on The Motley Fool Australia.
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More reading
- Top brokers name 3 ASX shares to sell next week
- ‘$2 billion cost’: How are the floods impacting ASX 200 insurance shares this week?
- IAG (ASX:IAG) share price slumps amid $300m Greensill hit
- Why is the IAG (ASX:IAG) share price sliding this week?
- 4 ASX shares that love rising interest rates: report
Motley Fool contributor Brooke Cooper 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 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.
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