What we do
IAG's businesses underwrite over $11 billion of premium per annum, selling insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC, Swann Insurance and WFI (Australia); NZI, State, AMI and Lumley Insurance (New Zealand); Safety and NZI (Thailand); AAA Assurance (Vietnam); and Asuransi Parolamas (Indonesia). IAG also has interests in general insurance joint ventures in Malaysia and India. Standard & Poor’s has assigned a ‘Very Strong’ Insurer Financial Strength Rating of ‘AA-’ to the Group’s core operating subsidiaries.
Business operations and brands
1 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. 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.
2 IAG owns 100% of WFI Insurance Limited (WFI), the underwriter of general insurance products under the Coles Insurance brand. These products are distributed by Coles under an authorised representative agreement with WFI.
3 IAG holds a 98.6% beneficial interest in Safety Insurance, based in Thailand, which trades under the Safety and NZI brands.
4 IAG owns 49% of the general insurance arm of Malaysian-based AmBank Group, AmGeneral Holdings Berhad (AmGeneral), which trades under the AmAssurance and Kurnia brands.
5 IAG owns 26% of SBI General Insurance Company, a joint venture with State Bank of India.
6 IAG owns 63.17% of AAA Assurance Corporation, based in Vietnam.
7 IAG owns 80% of PT Asuransi Parolamas, based in Indonesia.
All ownership percentages as at 30 December 2015.
In July 2017, IAG announced the creation of a single Australian division, which simplifies IAG’s operating model by bringing together the Australian Consumer, Australian Business, Operations and Satellite Divisions. It centralises accountability for the customer, product, distribution and operations functions for IAG’s Australian brands, which include NRMA Insurance, CGU, WFI, SGIO and SGIC.
Before this development, we operated two Australian divisions, and our most recent financial results (for the half year ended 31 December 2016) were in these divisions:
- Australian Consumer Division distributes general insurance products directly to customers throughout Australia under the NRMA Insurance, SGIO, SGIC, and RACV (in Victoria, via a distribution and underwriting relationship with RACV) brands and indirectly through intermediaries including financial institutions and affinity groups. Consumer Division generated GWP of approximately $3 billion for the half year to 31 December 2016 and accounted for 53% of IAG's gross written premium for the half year.
- Australian Business Division provides insurance to business customers, predominantly under the CGU, Swann Insurance and WFI brands. Business Division generated GWP of approximately $1.4 billion for the half year to 31 December 2016 and accounted for 25% of gross written premium.
New Zealand operations
IAG is the leading general insurance provider in New Zealand across both the direct and intermediated channels. Insurance products are sold directly to customers predominantly under the State and AMI brands, and through intermediaries (insurance brokers and authorised representatives) predominantly under the NZI and Lumley Insurance brands. Personal lines and commercial products are also distributed under third party brands by IAG’s corporate partners, including large financial institutions.
New Zealand generated GWP of approximately $1.1 billion for the half year to 31 December 2016, representing approximately 19% of Group GWP.
At 31 December 2016, IAG’s net investment in Asia was $797 million. The Group has a presence in five target markets:
- Thailand – IAG has a 98.6% beneficial interest in Safety Insurance, a predominantly motor insurer. The business operates under a single licence, using two brands: Safety (personal lines) and NZI (commercial lines). Thailand generated GWP of $173 million for the half year ended 31 December 2016.
- Malaysia – IAG has a 49% interest in the general insurance arm of AmBank Group, AmGeneral Holdings Berhad (AmGeneral), whose wholly-owned subsidiary trades under the AmAssurance and Kurnia brands. The joint venture was established in 2006, and became one of the leading motor insurers in Malaysia following its acquisition of Kurnia Insurans (Malaysia) Berhad (Kurnia) in September 2012. GWP for the first half of the 2017 financial year was $245 million, with IAG's share being $120 million.
- India – IAG has established a general insurance joint venture with the State Bank of India (SBI), known as SBI General Insurance Company (SBI General), which commenced operations in 2010. IAG owns 26% of SBI General. SBI General is growing strongly and reported GWP of close to $254 million for the half year ended 31 December 2016 with IAG's share being approximately $66 million.
- Vietnam – IAG has a 63.17% interest in AAA Assurance Corporation. In the half year ended 31 December 2016, AAA Assurance recorded GWP of $8 million.
- Indonesia – IAG owns an 80% interest in PT Asuransi Parolamas (Parolamas), a small general insurance company based in Jakarta. This acquisition was completed at the end of April 2015 and provides IAG with the necessary insurance licence to compete in this market. Parolamas reported GWP of $1 million for the first half of the 2017 financial year.
At 31 December 2016, IAG's overall investment allocation remained conservatively positioned, with 84% of total investments in fixed interest and cash (71% rates of 'AA' or higher). At that date, IAG had:
- total investments of $12.3 billion;
- technical reserves of $8.3 billion backing insurance liabilities, invested in fixed interest and cash; and
- shareholders’ funds of $4.0 billion.