Our Strategic Direction
In June 2011, IAG announced it had reset its strategic priorities. While we remain committed to our overall ambition, strategy and targets, our strategic priorities have been reset to build on the solid platform we have created over the past three years.
To be the world’s most respected group of general insurance companies.
To manage a portfolio of high-performing, customer-focused, diverse general insurance operations in a way that delivers superior experience for our customers and creates shareholder value. We believe that by actively managing our portfolio we can deliver a more consistent underlying performance, even though our businesses operate at different stages of both the economic and insurance cycles.
To deliver, over the cycle:
- a return on equity of more than 1.5 times our weighted average cost of capital, which equates to a return of about 15% per annum; and
- top quartile total shareholder return as benchmarked against the S&P/ASX Top 50 Industrials.
Accelerate growth in Australia and New Zealand
- In Australia Direct, increase the value of our existing customer base and attract new customers by using insights to meet evolving customer needs. This includes enhanced products, consistent service delivery, and making it easy for people to deal with us.
- Continue the turnaround in CGU by focusing on sales-led, relationship-based account management, customer and market insights, active portfolio management, and underwriting expertise.
- In New Zealand, continue to build disciplined insurance skills across our business; make it easier for customers to buy our products via electronic platforms; strengthen our customer advocacy; and use customer insights to drive innovative systems and processes.
Boost our Asian footprint to deliver 10% of the Group’s gross written premium by 2016
- Grow our Indian joint venture, SBI General, to a top five position in the market with $1 billion revenue by 2016.
- Grow our Malaysian business, AmG Insurance, to a number one position in motor, through organic growth and acquisitions; and rebalance our portfolio to lead in niche commercial and non-motor personal lines.
- Grow our business in Thailand to be top two in motor, through organic branch expansion and acquisitions.
- Commence a general insurance joint venture in China.
- Pursue general insurance joint ventures in Indonesia and Vietnam.
Restore profitability to our UK business
- Continue to exit unprofitable parts of the market; accelerate our repricing; and focus on specialist classes, such as classic car, agriculture, specialist vehicle and kit cars, where we have competitive advantage.
- Have focused accounts in fleet, motorbike and haulage, where we have leading market shares and knowledge and sound relationships with our distributors.
- Develop our retail business, appointing dedicated broker relationship managers, and linking our underwriting closely to our claims management.
- Continue to build our key insurance and management capabilities and deepen our existing broker relationships.