Key relationships



Berkshire Hathaway Inc. is one of the ten largest listed companies in the world, by market capitalisation.  It owns a diversified portfolio of businesses and investments, of which interests in the insurance and reinsurance industries form a significant part.

IAG has had a transactional relationship with Berkshire Hathaway since 2000, primarily in the area of reinsurance.  That relationship has developed and deepened over the years, including a growing presence on IAG’s catastrophe program.

In June 2015, IAG formed a strategic partnership with Berkshire Hathaway, in a logical development of the relationship between the two parties.  It comprises:

  • An exclusive operating relationship in Australia and New Zealand;
  • A ten-year, 20% whole-of-account quota share arrangement, commencing 1 July 2015; and
  • A $500m equity placement to Berkshire Hathaway, representing approximately 3.7% of IAG's expanded issued capital at the point of issue.

Expected benefits to IAG include the harnessing of complementary operating capabilities, reduced earnings volatility via the quota share and significant capital flexibility.



National Roads and Motorists’ Association Limited was established in 1920 and is a mutual organisation with over 2.6 million members. Until August 2000 it owned the NRMA Insurance business.  At that time National Roads and Motorists’ Association Limited and its members received IAG shares as consideration for the NRMA Insurance business to demutualise. The NRMA Insurance business now forms the majority of IAG’s Consumer Division. 

Under the terms of the demutualisation agreements, from that date National Roads and Motorists’ Association Limited and IAG co-own the NRMA brand, with the respective parties having the following exclusive rights to its use:

  • National Roads and Motorists’ Association Limited – roadside assistance and other motoring services (except smash repairs), motoring products, transportation and travel.
  • IAG (NRMA Insurance) – insurance and financial services and any other good or service not specifically reserved for National Roads and Motorists’ Association Limited.

In addition, both parties cannot, under any brand, carry out activities engaged in by the other at the point of demutualisation.

IAG continues to provide certain services to National Roads and Motorists’ Association Limited, notably those in respect of the NRMA branch network which is operated and managed by IAG. In 2016, National Roads and Motorists’ Association Limited started selling NRMA Insurance’s motor insurance products.  The two organisations retain a strong and closely aligned relationship, with a focus on delivering a consistent NRMA brand customer experience.



RACV is a mutual organisation founded in 1903. It provides a diverse range of services to more than two million members. These services include: insurance; finance; roadside assistance; general mobility, road safety and vehicle design advocacy; and leisure, which includes club and resorts, touring and travel products and services.

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 established in 1999. These products are distributed by RACV and manufactured by Insurance Manufacturers of Australia Pty Limited (IMA), which is owned 70% 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 fair 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 Insurance-branded products in NSW and the ACT.


Coles Insurance is part of the Coles Financial Services offering affiliated with the Coles supermarket chain in Australia, itself a wholly-owned operation of Wesfarmers Limited, a major diversified listed Australian company.

IAG established a ten-year distribution agreement with Coles Insurance as part of the transaction which saw it acquire the former Wesfarmers Insurance underwriting operations, effective 30 June 2014.

Under this agreement, Personal Insurance underwrites car and home products for Coles Insurance.



AmBank Group is one of Malaysia’s premier financial solutions groups with nearly 40 years of legacy in understanding Malaysian customers. It provides a wide range of both conventional and Islamic financial products and services, including retail and wholesale banking, as well as the underwriting of general insurance, life assurance and family takaful.

IAG has a general insurance joint venture in Malaysia with AmBank Group, AmGeneral Holdings Berhad (AmGeneral), which was established in 2006. AmBank Group owns 51% of AmGeneral and IAG 49%. AmGeneral became Malaysia’s largest motor insurer following the purchase of Kurnia Insurans (Malaysia) Berhad in September 2012.

State Bank of India logo

State Bank of India

State  Bank of India (SBI) is India’s largest and oldest bank, with origins that can be traced back to 1806.  It offers a broad range of banking and financial services, and has a footprint which spans over 270 million customers and in excess of 16,000 branches across all states of India, excluding associate banks.

SBI General Insurance Company (SBI General), a joint venture between SBI and IAG, was established in late 2009.  SBI General commenced operations in 2010 and is building a portfolio in the corporate, retail and SME markets across India, with the majority in the retail segment through SBI’s bancassurance channel.  SBI General has an exclusive corporate agency agreement with SBI and all of its five associate banks for general insurance business.

SBI owns 74% of SBI General and IAG 26%.  IAG has an option to increase its shareholding to 49% and has commenced the process to lift it to this level, following the change in the Indian foreign direct investment limit.


Last updated