Purpose and Strategy
IAG’s purpose is: We make your world a safer place.
This means, whether you are a customer, partner, employee, shareholder or part of the communities that IAG serves across Australia, New Zealand or Asia, IAG exists to make your world a safer place.
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
IAG is focused 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.
IAG has identified three key strategic priorities, supported by organisational capabilities, to deliver its strategy:
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.