What does Insurance Australia Group Ltd do?
Insurance Australia Group Ltd [ASX:IAG], Australia’s largest insurer underwrites over $11 billion of premiums per annum, selling insurance under many leading brands including NRMA Insurance, CGU and SGIO among others. The company also has footprints in Malaysia, India and China. Standard & Poor’s has assigned a ‘Very Strong’ Insurer Financial Strength Rating of ‘AA-’ to the Group’s core operating subsidiaries.
That’s all interesting; but what is the chart telling us?
What does the chart look like?
I find it helpful to bring up a chart. Here’s the monthly chart of IAG.
The company was hit by claims associated with tropical cyclone Marcia in February and more recently by the damaging storms that tore through parts of NSW a couple of weeks ago, which now has the company facing a $300 million bill after receiving close to 30,000 claims.
What now for IAG shares?
The thing to look for now is whether the monthly low from early 2014 holds. Long or short, that monthly low is where you could be applying your risk management.
It is often so, that when monthly lows from previous years are broken, things can move very quickly. You can get some more insights on chart reading here.
Research Analyst, Cycles, Trends and Forecasts