Insurance Australia Group
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| Type | Public |
|---|---|
| Traded as | ASX:IAG |
| Industry | Insurance |
| Founded | 2000 (renamed from NRMA Insurance Group in 2002) |
| Headquarters | Sydney, Australia |
| Area served | Australia New Zealand United Kingdom Thailand Malaysia China |
| Key people | Brian Schwartz (Chairman) Michael Wilkins (CEO) |
| Products | General, commercial, vehicle, home and contents insurance, roadside assistance |
| Revenue |  A$7,782 million (2010) |
| Operating income |  A$402 million (2010) |
| Profit | A$91 million (2010) |
| Employees | 12,700 |
| Subsidiaries | NRMA Insurance, CGU Insurance, SGIO, SGIC, Swann Insurance, NZI, State Insurance, China Automobile Association[1]NZI Thailand, Safety Insurance, AmAssurance, Equity Red Star, Equity Direct Broking |
| Website | iag.com.au |
Insurance Australia Group Limited (informally IAG) is a multinational insurance company headquartered in Sydney, Australia.
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.
IAG is listed on the Australian Stock Exchange and is a constituent of the S&P/ASX 50 index.
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[edit] Operations
Insurance Australia Group has operations in Australasia, 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
- The Buzz Car Insurance, formed in 2009
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.
[edit] New Zealand
- State Insurance, acquired in 2001
- NZI (New Zealand Insurance), acquired in 2003
- NAC (National Auto Club)
- Mike Henry Travel
- Driveright
- Lantern Insurance
- Swann Insurance
[edit] United Kingdom
- Equity Insurance Group, acquired in 2006
- Barnett & Barnett
[edit] Asia
- Safety Insurance, Thailand, held a stake in 1998, now holds 96% voting rights
- NZI Thailand, acquired in 2003
- AmAssurance, Malaysia, (49% ownership of AmG Insurance, which is part of AmAssurance)
- India - Insurance Australia Group has a joint venture with the State Bank of India, India's largest and most recognised financial services organisation.
- 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
- Brian Schwartz AO, Chairman. Also chairman of the Insurance Manufacturers of Australia Pty Limited and on the board of Brambles Limited and the Westfield Group.
- Michael Wilkins, CEO
- Hugh Fletcher,[1] Non-executive director
- Anna Hynes,[1] Non-executive director
- Phillip Colebatch, Non-executive director
- Yasmin Allen, Non-executive director
- Phillip Twyman, Non-executive director
[edit] Executive team
- Michael Wilkins, CEO Insurance Australia Group
- Justin Breheny, CEO IAG Asia
- Nicholas Hawkins, Group Chief Financial Officer
- Andy Cornish, CEO Direct Insurance
- Peter Harmer, CEO CGU Insurance
- Ian Foy, CEO IAG United Kingdom
- Jacki Johnson, CEO IAG New Zealand
- Leona Murphy, Group Executive, Corporate Office
- Kellie Davies and Germaine D'Cruze, The Senior Consultants and Stars of the Insurance Team
[edit] Sustainability
On 31 August 2006, IAG was placed on the Dow Jones Sustainability Index.[2] 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.[3]
[edit] 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.[4] Speculation again emerged in 2006 only to be again denied.[5]
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.[6]
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).
[edit] See also
[edit] References
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This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (December 2006) |
- ^ a b "Media release: IAG board appointments" (PDF). Insurance Australia Group. 30 August 2007. http://www.iag.com.au/news/shareholder/docs/20070830-Board_Appointments_two_directors.pdf. Retrieved 2007-09-06.
- ^ Dow Jones Sustainability Index 2006
- ^ "Carbon Neutral Announcement Media Release" (PDF). IAG Website. http://www.iag.com.au/pub/iag/sustainability/media/carbon_neutral.pdf. Retrieved 2007-02-25.[dead link]
- ^ Hoyle, Simon (6 October 2004). "Insurance duo tipped to tie the knot". The Age. http://www.theage.com.au/articles/2004/10/05/1096949514339.html.
- ^ "QBE, IAG hose down takeover rumour". The Age. 13 January 2006. http://www.theage.com.au/news/Business/QBE-IAG-hose-down-takeover-rumour/2006/01/13/1137118962951.html.
- ^ "Public offers and proposals (FAQ)". IAG. http://www.iag.com.au/shareholder/offers/index.shtml. Retrieved 8 February 2008.
[edit] External links
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