Purpose and Strategy
Our purpose is to make your world a safer place.
We recognise that our role extends beyond transferring risk and paying claims. Our purpose drives our business to work collaboratively with the community to understand, reduce and avoid risk, and to build resilience and preparedness. This results in better outcomes for the community and means fewer claims and lower costs for our business.
IAG is the largest general insurance company in Australia and New Zealand, with leading brands in Australia including NRMA Insurance, CGU, WFI, SGIO, SGIC and Swann Insurance. With more than 8.5 million customers and information on the majority of motor vehicles and domestic residences in our markets, we use our leadership position to understand and provide world-leading customer experiences, making communities safer and more resilient for the future.
We work collaboratively with government, industry bodies and Australian and international organisations on a range of topics and issues that relate to our customers, our people and the community. These include climate change, disaster response and resilience, and diversity, inclusion and belonging.
We believe our purpose will enable us to become a more sustainable business over the long term, and deliver stronger and more consistent returns for our shareholders.
Our strategy is to optimise our core insurance business while creating future growth options.
Our strategic priorities
We have three key strategic priorities, supported by organisational capabilities, to deliver our strategy. These are:
I. Customer – World-leading customer experiences:
- Create a delivery platform that transforms customer experiences;
- Better connect customers and automate processes, enabling IAG to reach more customers in a timely manner;
- Develop an innovation approach which provides the ability to think differently and deliver quickly;
- Embed cognitive capabilities and artificial intelligence that anticipate customers’ needs; and
- Use data to power decision-making, allowing IAG to better understand its customers.
II. Simplification – Simplified, modular and lower cost operating model:
- Reduce organisational complexity by consolidating technology platforms, harmonising products, simplifying processes and systems, and executing the technology strategy;
- Leverage operational partners to optimise the operating model and drive scale economies across the value chain; and
- Improve allocation and maximise utilisation of the preferred repairer network to reduce average claim size.
III. Agility – An agile organisation distinguished by innovation, speed and execution skills:
- Create a disciplined approach to IAG’s management and leadership, including building stronger role clarity and introducing agile ways of working;
- Build a talent pipeline based on the skills required to deliver IAG’s strategy and help IAG people transition to the future of work; and
- Be recognised as a purpose-led organisation that shapes its internal and external environment.
Our strategic priorities and organisational capabilities are captured in the following graphic format:
We also have financial targets that capture our focus on delivering through the cycle targets of:
- Cash return on equity (ROE) 1.5x weighted average cost of capital (WACC);
- A dividend payout of 60 80% of cash earnings;
- Top quartile total shareholder return (TSR); and
- Approximately 10% compound earnings per share (EPS) growth.