Insurance Australia Group
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| Insurance Australia Group Limited | |
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| Type | Public (ASX:IAG) |
| Founded | 2000 (renamed from NRMA Insurance Group in 2002) |
| Headquarters |  Sydney, Australia |
| Area served | Australia New Zealand United Kingdom Thailand Malaysia China |
| Key people | James Strong AO, Chairman Michael Wilkins, CEO |
| Industry | Insurance |
| Products | General, commercial, vehicle, home and contents insurance, roadside assistance |
| Revenue | ▲ A$7,381 million (2007) |
| Operating income | ▼ A$963 million (2007) |
| Profit | ▼ A$552 million (2007) |
| Employees | 16,500+ |
| Subsidiaries | NRMA Insurance, CGU Insurance, SGIO, SGIC, Swann Insurance, NZI, State Insurance, CAA, NZI Thailand, Safety Insurance, AmAssurance, Hastings Insurance, Equity Insurance Group |
| Website | www.iag.com.au |
Insurance Australia Group Limited (IAG) is an Australian publicly-listed company with its shares traded on the Australian Stock Exchange as ASX:IAG.
The company was formed by the demutualisation of the NRMA Insurance business in July 2000 and a return of shares to the members of NRMA. According to its website, NRMA Insurance Group Limited changed its name to Insurance Australia Group Limited on 15 January 2002. IAG is the name of the listed entity; it is not a customer-facing retail name, however it represents the holding company that holds the many retail brands together.
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[edit] Insurance business
Insurance Australia Group operates a number of different insurance brands in Australia, Asia and the UK including:
[edit] Australia
- NRMA Insurance
- SGIO, acquired in 1998
- SGIC, acquired in 1998
- CGU Insurance, acquired in 2003
- Swann Insurance, acquired in 2003
IAG has a 70% shareholding in Insurance Manufacturers of Australia Limited (the other 30% being held by RACV), which issues insurance under the RACV Insurance name that is sold by RACV.
IAG's biggest competitor in Australia is Suncorp-Metway Limited, who operates the Suncorp, GIO, AAMI, Vero, Just Car and other insurance brands.
[edit] New Zealand
- State Insurance, acquired in 2001
- NZI (Insurance NZ), acquired in 2003
[edit] United Kingdom
- Hastings Direct, acquired in 2006
- Equity Insurance Group, acquired in 2006
- Open+Direct Insurance, acquired in 2007 (Northern Ireland Insurer)
[edit] Asia
- Safety Insurance, Thailand, held a stake in 1998, now holds 96% voting rights
- NZI Thailand, acquired in 2003
- AmAssurance, Malaysia, acquired in 2006
[edit] Other business
In China, Insurance Australia Group owns CAA, the China Automobile Association, the largest roadside assistance provider in the country. IAG held a stake in CAA since 1999, increasing to full ownership in 2003.
[edit] Executive structure
[edit] Board of Directors
- James Strong AO, Chairman. Also chairman of Woolworths Limited, Rip Curl and Australian Council for the Arts. Also on the board of QANTAS.
- Michael Wilkins, CEO
- Hugh Fletcher[1], Non-executive director
- Anna Hynes[1], Non-executive director
- Phillip Colebatch, Non-executive director
- Geoffrey Cousins, Non-executive director
- Neil Hamilton, Non-executive director
- Rowan Ross, Non-executive director
- Brian Schwartz, Non-executive director
[edit] Executive team
- Michael Wilkins, CEO Insurance Australia Group
- Justin Breheny, CEO IAG Asia
- Tony Coleman, Chief Risk Officer and Group Actuary
- Nicholas Hawkins, CEO IAG New Zealand
- David Issa, CEO Direct Insurance (Announced Resignation in April 2008 effective May 5)
- Jacki Johnson, CEO eVentures
- Christine McLoughlin, Group Executive - Strategy, People and Reputation
- Duncan West, CEO CGU Insurance
- Neil Utley, CEO IAG United Kingdom
- Jan Van Der Schalk, CEO Asset Management and Reinsurance
- George Venardos, Group Chief Financial Officer
- Leona Murphy, Group Executive, Business Services
Peter Connell served on the executive team until mid 2007, however a restructure of the executive team saw Mr. Connell now reporting to Neil Utley. Neil Utley's position now stands as CEO IAG UK Operations with Peter Connell as Deputy CEO UK. Peter Connell continues to run the Hastings Insurance business in the UK.
In mid October, 2007 Sam Mostyn left the IAG executive team. Christine McLoughlin has taken responsibility of the Culture and Reputation portfolio along with Group Strategy. The combined divisions have named Strategy, People and Reputation.
Ms Mostyn will continue to report to Mike Hawker as an Executive Advisor to the Executive Team of IAG on issues such as Climate Change, Flexible Work Practices and People Strategy.
On December 14th 2007 it was announced that Mario Pirone would be leaving CGU and his position of CEO, to be replaced by Duncan West, the previous CEO of Vero Australia, part of the Promina Group.[2]
In April 2008, Chief Operating Officer - Michael Wilkins announced the merger of the CGU and Business Partnerships divisions. This will creating one division focusing on Commercial Lines business with Intermediated markets. Former Business Partnerships CEO, Jacki Johnson will continue to serve on the executive team as the CEO eVentures. This new division will focus on strategy and implementation on the IAG brands marketing to an internet focused customer group.
News of the merger of CGU and Business Partnerships saw the resignation of long serving Business CEO - David Issa. Mr. Issa announced his resignation from IAG effective 5th May to pursue other interests. A suitable replacement is being sourced for the role of CEO Direct Insurance. (formally Personal Insurance).
[edit] Organisational Transformation and Change
It is reported that the organisation is currently undertaking a restructure due to massive profit losses. Mike Hawker has employed Leona Murphy formally of Promina (now Suncorp) to reshape and transform the organisation from one that has been siloed across geographical regions to an organisation that can leverage scale, add value to all customers and become an organisation with one balance sheet.
The result of the restructure was announced on 4th March by Leona at the Capitol Theatre. All employees from Business Services were invited to attend the annoucement. Many positions have been made redundant or moved reporting lines. Phase two of the restructure has commenced to be announced by the end of April 2008.
The sub divisions of Business Services include:
- Human Resources and Internal Communications (People and Culture) headed by Christine Sherwy
- Technology Services - headed by Larry Howard
- Asset, People and Safety Support - headed by Stuart Ulhorn
- Australian Financial Services - headed by David Hosking
- Acturial and Risk - headed by Brett Ward
- Business Improvement and Innovation - headed by TBA
The functions within Business Services are to be viewed as shared functions throughout the organiations and should not be replicated in the Business Divisions such as Personal Insurance or CGU Insurance to avoid duplication.
[edit] Executive Advisory
- Sam Mostyn, IAG Executive Advisor
Ms Mostyn will have responsibility for providing advice to the IAG Executive, on issues such as climate change, sustainable people and business practices.
[edit] Sustainability
On 31 August 2006, IAG was placed on the Dow Jones Sustainability Index[3]. IAG is the first Australian insurance company to achieve this recognition.
On 15 November 2006, IAG announced it intended to become carbon neutral within five years across all of its operations.[4]
[edit] QBE merger speculation
Visit www.iag.com.au for more information on recent events of the speculation of a merger between IAG and QBE Insurance.
[edit] References
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This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (December 2006) |
- ^ a b Media release: IAG board appointments. Insurance Australia Group (30 August 2007). Retrieved on 2007-09-06.
- ^ Announcement from ASX. ASX Website. Retrieved on 2007-12-14.
- ^ Dow Jones Sustainability Index 2006 [1]
- ^ Carbon Neutral Announcement Media Release. IAG Website. Retrieved on 2007-02-25.
