What we do
IAG's businesses underwrite over $11.4 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.
Our business structure
In Australia, IAG has two customer-facing divisions responsible for sales, service, and brand and marketing execution. The Australian Consumer Division focuses on individuals and families, and the Australian Business Division focuses on businesses of all sizes.
The customer-facing divisions are supported by two divisions that focus on the customer experience, technology and operations:
- Customer Labs is responsible for the customer experience strategy and driving product innovation through data and insights, brand architecture across the Group, and new business incubations and venturing.
- Operations Division is responsible for claims and operational functions such as procurement and supply chain management.
IAG’s Asia and New Zealand businesses sit within the International Division which focuses on maintaining our market-leading presence in the mature New Zealand market and growing our established presence in Malaysia, Thailand, India, Indonesia and Vietnam.
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.
IAG’s businesses in Australia distribute a range of personal and commercial insurance products, both directly to the customer and indirectly through a network of intermediaries.
- 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 $2.8 billion for the half year to 31 December 2016.
- 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 2015.
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 2015, representing approximately 19% of Group GWP.
At 31 December 2015, IAG’s net investment in Asia was $776 million and Asia represented approximately 6.4% of Group GWP on a proportional basis.
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 $184 million for the half year ended 31 December 2015.
- 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 2016 financial year was $252 million, with IAG's share being $123 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 $197 million for the half year ended 31 December 2015 with IAG's share being approximately $51million.
- Vietnam – IAG has a 63.17% interest in AAA Assurance Corporation, which is a predominantly motor insurer, selling directly to customers through a network of regional and city-based branches. In the half year ended 31 December 2015, AAA Assurance recorded GWP of $9 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 $4 million for the first half of the 2016 financial year.
At 31 December 2015, the Group's overall investment allocation remained conservatively positioned, with 80% of total investments in fixed interest and cash (rates of 'AA' or higher). At that date, the Group had:
- total investments of $14 billion;
- technical reserves of $9.7 billion backing insurance liabilities, invested in fixed interest and cash; and
- shareholders’ funds of $4.3 billion.