Insurance Australia Group
|Traded as||ASX: IAG|
|Founded||2000 (renamed from NRMA Insurance Group in 2002)|
|Headquarters||388 George Street
|Brian Schwartz (Chairman)
Michael Wilkins (CEO)
|Products||General, commercial, vehicle, home and contents insurance, roadside assistance|
Number of employees
|Subsidiaries||NRMA Insurance, CGU Insurance, SGIO, SGIC, Swann Insurance, NZI, State Insurance, China Automobile AssociationNZI Thailand, Safety Insurance, AmAssurance, Lumley Insurance, WFI, Coles Insurance, Lumley Retail Warranty|
IAG 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 brand, however it represents the umbrella organization that holds many well known insurance brands.
Insurance Australia Group has operations in Australia and New Zealand and a growing presence in Asia. Its businesses include:
- NRMA Insurance
- SGIO, acquired in 1998
- SGIC, acquired in 1998
- CGU Insurance, acquired in 2003
- Swann Insurance, acquired in 2003
- WFI , acquired in 2014
- Lumley Insurance , acquired in 2014
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.
In 2014, IAG signed a ten-year agreement to distribute home and car policies for Coles Insurance.
- State Insurance, acquired in 2001
- NZI (New Zealand Insurance), acquired in 2003
- AMI Insurance, acquired in 2012
- NAC (National Auto Club)
- Mike Henry Travel
- Lantern Insurance
- Swann Insurance
- Lumley General Insurance (NZ), acquired in 2014
- Thailand - IAG holds a 98.6% beneficial interest in Safety Insurance, based in Thailand, which trades under the Safety and NZI brands
- Malaysia - IAG owns 49% of the general insurance arm of Malaysian-based AmBank Group, AmGeneral Holdings Berhad, which trades under the AmAssurance and Kurnia brands
- India - IAG owns 26% of SBI General Insurance Company, a joint venture with State Bank of India, India's largest and most recognised financial services organisation
- China - IAG owns 20% of Bohai Property Insurance Company
- Vietnam - IAG owns 63.17% of AAA Assurance Corporation
Board of Directors
- Brian Schwartz AO, Chairman. Also chairman of the Insurance Manufacturers of Australia Pty Limited and on the board of the Westfield Group.
- Michael Wilkins, CEO
- Yasmin Allen, Non-executive director
- Elizabeth Bryan AM, Non-executive director
- Alison Deans, Non-executive director
- Hugh Fletcher, Non-executive director
- Raymond Lim, Non-executive director
- Tom Pockett, Non-executive director
- Philip Twyman, Non-executive director
- Michael Wilkins, CEO Insurance Australia Group
- Andy Cornish, CEO Personal Insurance
- Peter Harmer, CEO Commercial Insurance
- Jacki Johnson, CEO New Zealand
- Duncan Brain, CEO Asia
- Leona Murphy, Chief Transformation Officer
- Justin Breheny, Group Chief Risk Officer
- Nicholas Hawkins, Group Chief Financial Officer
- Alex Harrison, Chief Executive Enterprise Operations
- Clayton Whipp, Chief Strategy Officer
On 31 August 2006, IAG was placed on the Dow Jones Sustainability Index. IAG is the first Australian insurance company to achieve this recognition.
QBE Merger Speculation
In 2004, speculation emerged that IAG would merge with Australia's largest insurer QBE Insurance however IAG denied the merger at the time. Speculation again emerged in 2006 only to be again denied.
On 10 April 2008, QBE proposed a takeover with each IAG share being exchanged for 0.135 QBE shares plus 50 cents cash (an effective value of $3.75 per IAG share at the time). This proposal was rejected by the IAG board the next day. QBE responded by increasing its proposal to 0.142 QBE shares plus 70 cents per IAG share. On 14 April 2008, IAG also rejected this proposal. On 16 May 2008, QBE increased its proposal to 0.145 QBE shares plus 90 cents per IAG share (an effective value of $4.60 per IAG share at the time). This was rejected by IAG four days later and on 21 May 2008 QBE confirmed talks had collapsed and withdrew its proposal.
Important items that were considered when QBE made its proposal : IAG’s short tail personal insurance products are distributed in Victoria under the RACV brand, via a distribution relationship and underwriting joint venture with RACV Limited. These products are distributed by RACV and manufactured by Insurance Manufacturers of Australia Pty Limited (IMA), which is 70% owned by IAG and 30% by RACV. If one of IMA’s shareholders were to experience a change of control, the other has a pre-emptive right to acquire that shareholder’s interest in IMA at market value. The duration of the arrangements governing RACV’s distribution of RACV-branded products in Victoria would be a relevant factor in determining this market value (as would the duration of the arrangements governing IMA’s reinsurance of NRMA-branded products in NSW and the ACT).
Wesfarmers Insurance Acquisition
On Monday, 16 December 2013 IAG announced that it had agreed to purchase Wesfarmers Insurance underwriting businesses.
The acquisition comprises companies trading under the WFI and Lumley brands, as well as a ten-year distribution agreement with Coles.
This acquisition meets the Group’s strategic priority of accelerating profitable growth in Australia and represents a major step for CGU toward their ambition to be the most admired insurer in their chosen markets. IAG will increase their GWP base by more than 40%, meaning that IAG will overtake QBE and become the leading intermediated insurer in Australia.
|This article needs additional citations for verification. (December 2006)|
- Dow Jones Sustainability Index 2006
- "Carbon Neutral Announcement Media Release" (PDF). IAG Website. Retrieved 2007-02-25.[dead link]
- Hoyle, Simon (6 October 2004). "Insurance duo tipped to tie the knot". The Age.
- "QBE, IAG hose down takeover rumour". The Age. 13 January 2006.
- "Public offers and proposals (FAQ)". IAG. Retrieved 8 February 2008.
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