About IAG

IAG has a portfolio of general insurance businesses with leading and established brands across its home markets of Australia and New Zealand, and a growing presence in Asia.

IAG underwrites around $9 billion of insurance premiums each year and employs over 13,000 people.

We have been assigned a ‘Very Strong’ Insurer Financial Strength Rating of ‘AA-’ by Standard & Poor’s for our key wholly-owned insurance companies.

Our group strategy

The Group’s strategy is to manage a portfolio of high performing, customer-focused diverse operations that provide general insurance in a manner that delivers superior experiences for stakeholders and creates value for shareholders.

The concept of a portfolio should enable the Group to deliver a more consistent performance, despite owning a group of general insurance businesses operating at different stages in both the economic and the insurance cycle.

Our strategic priorities

• accelerate growth in Australia and New Zealand by stepping up initiatives to drive profitable organic growth, while remaining open to acquisitive opportunities that may arise; and
• boost its Asian footprint so the Asia division delivers 10% of the Group’s gross written premium by 2016. Asia remains a priority region for the Group, and is vital to its medium to long-term growth. IAG is now focused on accelerating its expansion plans beyond the countries in which it has an existing presence, into other target markets, and on delivering on the enormous potential attached to its Indian joint venture which is now up and running.

Our financial targets

• Top quartile total shareholder return (TSR); and
• ROE greater than 1.5 times the weighted average cost of capital (WACC).

The aim is to achieve these targets through the cycle, given the nature and volatility of insurance. The clear focus is on margin and profitability.

Our major brands and operating model

IAG has a portfolio of end-to-end businesses aligned around customers, brands and markets. We have a devolved model that puts accountability and responsibility close to the end customer.

1. RACV is via a distribution relationship and underwriting joint venture with RACV Limited.
2. 98% voting rights in Safety Insurance, based in Thailand.
3. 49% ownership of the general insurance arm of AmBank Group, AmGeneral Insurance Berhad, trading under the AmAssurance and Kurnia brands.
4. 49% ownership of the general insurance arm of AmBank Group, AmGeneral Insurance Berhad, trading under the AmAssurance and Kurnia brands.
5. 26% ownership of SBI General Insurance Company, a joint venture with the State Bank of India.
6. 30% interest in AAA Assurance Corporation in Vietnam.
7. 20% interest in Bohai Property Insurance Company Ltd.

Australian operations

IAG’s Australian operations distribute a range of personal and commercial insurance products, both directly to the customer and indirectly through a network of intermediaries. There are two businesses in IAG’s Australian operations: Australia Direct Insurance, the Group’s largest business, distributes products through a network of branches, franchises and country service centres throughout metropolitan, regional and rural Australia, as well as through call centres and online. Products are distributed under the NRMA Insurance brand in NSW, Queensland, ACT and Tasmania; SGIC in South Australia; SGIO in Western Australia; and RACV in Victoria. Australia Intermediated Insurance (CGU) sells products nationally, through intermediary channels, including a network of more than 1,000 insurance brokers and authorised representatives, as well as through motor dealerships and financial institutions.

New Zealand operations

IAG is the leading general insurance provider in New Zealand across both direct and intermediated channels. Insurance products are predominantly sold directly to customers under the State and AMI brands and through intermediaries (insurance brokers and authorised representatives) under the NZI brand. Personal lines and commercial products are also distributed under third party brands by IAG’s corporate partners, including large financial institutions.

Asian operations

IAG has a growing presence in Asia: In Thailand, it owns commercial insurer NZI Thailand and personal insurer Safety Insurance. In Malaysia, IAG has a 49% interest in the general insurance arm of AmBank Group, AmGeneral Insurance Berhad (AmG), which trades under the AmAssurance and Kurnia brands. AmG's September 2012 acquisition of Kurnia Insurans (Malaysia) Berhad, made it the largest general insurer in Malaysia, with 13% of Malaysia's general insurance market and a clear number one position in motor insurance. In India, IAG has established a general insurance joint venture with the State Bank of India (SBI), known as SBI General Insurance. SBI has over 100 million customers and 11,000 branches across the country and access to an additional 46 million customers and 4,500 branches when including its subsidiaries. In China, IAG has acquired a strategic partnership with general insurer, Bohai Property Insurance Company Ltd, gaining a foothold in a region that contributes almost 30% to China’s annual insurance premium pool of around US$60 billion. In Vietnam, IAG has 30% of Vietnam-based AAA Assurance Corporation (AAA).