What we do
IAG is the parent company of a general insurance group with controlled operations in Australia and New Zealand.
It is listed on the Australian Securities Exchange (ASX) with ordinary shares trading under the ticker “IAG.” References in the remainder of this profile to IAG and to “the Group” are to IAG and its subsidiaries on a consolidated basis. Financial data for the 12-month period ended 30 June 2020 and a more comprehensive review of IAG and its operations is contained in the 2020 annual report and the FY20 Investor Report dated 7 August 2020, available in the Results & Reports section of this website.
IAG's businesses underwrite over $12 billion of premium per annum, selling insurance under many leading brands including NRMA Insurance, CGU Insurance, SGIO, SGIC, Swann Insurance and WFI (Australia); and NZI, State, AMI and Lumley (New Zealand).
IAG also has an interest in a general insurance joint venture in Malaysia. Standard & Poor’s has assigned a ‘Very Strong’ Insurer Financial Strength Rating of ‘AA-’ to the Group’s core operating subsidiaries.
Brief history
From its beginnings as a motor vehicle insurer in New South Wales (“NSW”), Australia, IAG has grown to become a general insurance group diversified by product, distribution channel and geography.
The Group’s heritage dates back to 1920 when the National Roads and Motorists’ Association (“NRMA”) was established and subsequently offered motor insurance to its members. Following demutualisation in 2000, the insurance arm of NRMA was listed on the ASX as NRMA Insurance Group Limited, and renamed Insurance Australia Group Limited in 2002.
The Group grew organically and through acquisitions primarily in its home market of Australia, and in New Zealand.
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 owns 49% of the general insurance arm of Malaysian-based AmBank Group, AmGeneral Holdings Berhad (AmGeneral), which trades under the AmAssurance and Kurnia brands.
All ownership percentages as at 30 June 2020
Business structure
In Australia, IAG is the largest personal lines insurer, offering short tail motor and home products across the country under a range of brands, as well as long tail Compulsory Third Party insurance (CTP) offerings in NSW, the Australian Capital Territory and South Australia. IAG also sells a range of commercial insurance products across Australia, with a strong small-to-medium enterprise emphasis, and a leading market share in rural areas. The Australian business operates as Direct Insurance Australia and Intermediated Insurance Australia.
In New Zealand, IAG is the leading general insurance provider across both the direct and intermediated channels. Insurance products are sold directly to customers, and through intermediaries (insurance brokers and authorised representatives). Personal lines and commercial products are also distributed under third party brands by IAG’s corporate partners, including large financial institutions.
IAG’s focus is on its core Australian and New Zealand businesses. As a consequence, IAG continues to weigh up options for its remaining Asian general insurance interests, including divestments where appropriate. IAG’s remaining Asian interests are a 49% interest in AmGeneral Holdings Berhad in Malaysia, a 80.4% interest in AAA Assurance Corporation in Vietnam and a 16.9% interest in Bohai Property Insurance Company Ltd in China.
Business portfolio
IAG’s business portfolio comprises leading and established brands across its home markets of Australia and New Zealand. Exposure to concentrations of insurance risk is mitigated by a portfolio diversified into many classes of business and by the use of reinsurance.
