Insurance Australia Group
From IntFX
See also: IAG for realtime information.
Insurance Australia Group Limited is has range of activities in general insurance sector. It is engaged in underwriting and related corporate services and investing activities. The company develops business and underwrites personal insurance products and manages assessment and claims.
The Company's business is segregated based on region as follows:-
- The Australian commercial insurance business develops and underwrites insurance for businesses in Australia and New Zealand.
- International insurance comprises all direct insurance business underwritten outside Australia with help of foreign subsidiaries in New Zealand, United Kingdom and Asia.
- Corporate and investments comprises activities, like corporate services, investment management and investment of the equity holders’ funds.
The Company is present in following regions:-
- Australia : Common brands of company are NRMA Insurance, CGU, SGIO, SGIC and Swann Insurance
- New Zealand : Common brands in region are NZI and State Insurance
- UK : Brands include Equity Red Star, Equity Insurance Broker and Hastings Direct
- Asia : Brands include CAA, NZI Thailand, Safety Insurance & AmAssurance
- Non-regional : Brands include Alba & Diagonal Underwriting Agency
Some of key features of company in 2007 had been:-
- Group has retained strong capital position with “AA” insurer financial strength rating by Standard & Poors
- Company entered UK general insurance market by acquisition of Equity Insurance Group and Hastings.
- Company entered into agreement with their Malaysian partner to increase ownership in general insurance business of AmAssurance from 30% to 49%
- Company also acquired Lloyd’s syndicate and its managing agency Diagonal Underwriting Agency Limited and established IAG Re Labuan (L) Berhad
The Company is headquartered at Sydney in Australia. It is one of the top 50 companies in Australian Stock Exchange with ticker of “IAG”. IAG’s businesses underwrite approximately $7.5 billion of premium per annum, insure more than $900 billion worth of property and employ around 16,000 people
[edit] History
The Company started as a motor vehicle insurer in New South Wales and the Australian Capital Territory. However company’s genesis dates back to 1925 when the National Roads and Motorists' Association (NRMA) started providing insurance to its members in NSW and the ACT. Through series of acquisitions and mergers company has become leading in insurance market
[edit] Strategy
IAG is aiming for 10 – 12% GWP growth. Its strategy is to focus on cost control and enhance productivity to increase profitability. This will help to consolidate leadership position in core markets. Also they would like to focus on regional market which have different economic & social influences, weather pattern etc and hence to increase portfolio of services through route of General Insurance. It has planned to maintain 80:20 ratio of small to long tail premium.
The Company is also willing to consider opportunities to have inorganic growth by acquisitions both in Australia and international. In order to maintain risk company is willing to follow approach of prudent reserves, low risk investment portfolio and reinsurance coverage of high quality. IAG has overall strategy of fast claim processing, reduce risk of investment, control cost and price risk accurately and fairly. IAG's strategy is to diversify risks and double the size of the business between 2006 and 2012 while maintaining a rating of AA for the Group
[edit] Financial and operational performance
The company has registered 15% growth in Gross Written Premium (GWP) in FY 2007 by reaching $ 7.4 billion. The growth has primarily been driven by strong contributions from Australian Personal Lines and UK business. There has been insurance margin of 11.4% after having negative 3% impact due to storm in Australia and UK. Motor and home insurance cover more than 50% of GWP while Australia continues to be huge market for company’s GWP.
