What does Insurance Australia Group Ltd do?
First, this is a follow up to a post I wrote on IAG on 12 May 2015, which you can see here.
Insurance Australia Group Ltd [ASX:IAG] is Australia’s largest insurer, selling insurance under many leading brands including NRMA Insurance, CGU and SGIO among others.
he company also has footprints in Malaysia, India and China.
In fact, a key focus for the company going forward is China. It’s a market that remains under penetrated and with significant growth potential, according to the company.
The full year results, announced on August 21, showed a $1.1 billion profit, despite the significant increase in natural peril claims such as flooding.
That’s all interesting, but what is the chart telling us now?
What does the chart look like?
I find it helpful to bring up a chart. Here’s the updated chart of IAG, the weekly chart this time.
Notice how this stock found support around $5.30 during middle and late 2013, then again early 2014 and again also in June this year.
That significant low has now been broken through. That’s something you should be aware of if you are studying this company.
What now for IAG shares?
We could perhaps expect further bad news to come from this company. Let’s wait and see. The recent storms and flooding are perhaps a factor. But the share price gapped down before the recent NSW storms on the 24th of last month.
When significant lows from previous years are broken, things can move very quickly. That’s not a place you want to be if you are long on IAG.
This is where a bit of chart reading knowledge can be really helpful in guiding your risk management decisions. You can get some more insights on chart reading here.
Research Analyst, Cycles, Trends and Forecasts