STRATEGY
IAG's strategic intent is to create a portfolio of high performing, customer focussed, diverse operations providing general insurance in a manner that delivers superior experiences for our stakeholders and creates shareholder value.
As part of this, IAG has created end to end businesses aligned around customers, brands and markets, putting accountability and responsibility closer to the end consumer.
This puts control of performance and accountability for results, in the hands of the operating businesses, and is designed to deliver superior experiences for stakeholders and create value for shareholders.
The Group’s strategic priorities are to:- Continue to improve the performance of Australian and NZ businesses;
- Pursue selective general insurance growth opportunities; and
- Drive operational performance and accountability.
Supporting these priorities are two key financial targets:
| Top quartile total shareholder return; and |
| Return on equity greater than 1.5x the weighted average cost of capital. |
Top quartile total shareholder return
The Group aims to achieve top quartile total shareholder returns (TSR), benchmarked against the S&P/ASX Top 50 Industrials (excluding property trusts) over the long term.
Return on equity greater than 1.5x the weighted average cost of capital
The Group aims to achieve a return for ordinary shareholders that is a multiple of at least 1.5 times the Group's weighted average cost of capital (WACC) on a normalised basis. Return on equity (ROE) is the simple measure of the earnings the Group is achieving on the capital provided by its shareholders (equity). The return on the shareholders' funds portfolio are normalised when measuring performance against this goal.
