CGU has informed the NSW government insurer icare of its decision and will seek to withdraw from the NSW Workers Compensation scheme by 31 December 2017 when the current contract ends. 

IAG Chief Executive Australian Business Division Ben Bessell said the company made the decision based on changes to the design and distribution of the new model, adding it was not commercially viable to continue as an agent in the future.

In his new position, Mr Smart will be responsible for the brand portfolio management and marketing strategy for IAG. The insurer’s stable of brands includes NRMA Insurance, CGU, SGIO, SGIC and WFI in Australia, as well as NZI and AMI in New Zealand.

Pacific Indemnity is a boutique underwriting agency specialising in professional risk insurance products.

The partnership is highly complementary to the Agencies business and presents a great opportunity for growth.

IAG Commercial Insurance will also continue to work with existing broker partners in the same way it always has and actively participate in offering professional risk products in the market through its CGU brand offering.

IAG’s 2015 catastrophe reinsurance has been constructed in a similar manner to prior years.  The higher level of cover than 2014 reflects the increased size of IAG following the acquisition of the former Wesfarmers business, whose previous standalone cover has been cancelled.

Following completion of the 2015 catastrophe cover, all expected reinsurance synergies as part of the integration of the Wesfarmers business have been realised and will be recognised in IAG’s earnings up to 31 December 2015.

This has been a year of significant achievement. 

Our business performed strongly, reflecting the benefits of having a clear strategy, and pursuing it consistently. This year:

• our gross written premium increased by 3% to nearly $10 billion, and  
• our net profit after tax increased by nearly 60% to $1.2 billion.

We continued to achieve our strategic objectives of pursuing profitable growth in Australia and maintaining our market-leading position in New Zealand when we acquired the insurance underwriting business of Wesfarmers Limited. 

Michael Wilkins presentation and speech to the 2014 Annual General Meeting.

“In the opening months of the 2015 financial year, we have seen a continuation of the Group’s strong operating performance and we believe we are well-placed to deliver on our full year guidance.  

“We anticipate GWP growth in the range of 17–20%, with the vast majority of this sourced from the addition of the former Wesfarmers business.  We also expect to deliver a reported insurance margin in the range of 13.5–15.5%,” Mr Wilkins said.