Insurance Australia Group's stock fell 5.08% during intraday trading on Thursday, following the release of its half-year financial results.

The decline comes despite the company announcing a share buyback of up to AUD 200 million. The insurer reported a 21% drop in first-half cash earnings to AUD 507 million and a 35% decline in net profit after tax to AUD 505 million. The results were negatively impacted by a 15% rise in net claims expense and a 14% decrease in investment income.

Furthermore, the company noted a one-off AUD 174 million impact from severe weather events related to its recently acquired RACQI business. While maintaining its full-year insurance profit guidance, IAG indicated that the reported profit is expected to be around the bottom end of its forecast range, contributing to investor concerns.