Insurance Australia Group (IAG) has unveiled a long-term growth strategy targeting more than $25 billion in gross written premiums and more than 11 million customers by 2030, as the company seeks to capitalise on technology investments and strategic alliances built over the past five years.
The plan, called Ambition 2030, was announced Tuesday at the company’s Investor Day in Sydney, where IAG’s leadership team presented financial targets and divisional strategies to investors.
According to the company’s release, IAG is targeting a return on equity of 15% or more, high single-digit earnings per share growth per annum, and top-quartile total shareholder returns. The group also aims to grow reported insurance profit to more than $2.2 billion by fiscal year 2030, up from $1.743 billion in FY25.
The strategy builds on targets set in 2021, which IAG said it had exceeded. Gross written premium rose 36% from FY21 to $17.1 billion in FY25, while return on equity reached 14.9% – well above the previous target range of 12% to 13%.
A significant portion of the strategy centres on the group’s technology transformation. According to the company’s investor presentation, IAG has consolidated its pricing platforms from eight to one and its claims platforms from 16 to one, while migrating more than six million policies to strategic platforms across 27 brands in three years.
The company said it had deployed 92 generative AI applications into production and that 60% of its workforce now has access to AI tools. IAG chief operating officer Neil Morgan outlined three tiers of AI adoption – deployment for general staff, configuration by trained “activators”, and deep process redesign by technical builders – with more than 2,000 people involved in reimagining end-to-end insurance processes.
IAG’s Australian retail division, led by CEO Julie Batch, set a goal of serving about eight million customers and growing to around $15 billion in gross written premium while maintaining margins above 15%. The division reported a digital channel share of 65% for new business sales and a tNPS score of 61.5 for motor insurance.
The intermediated business, which operates under the CGU and WFI brands, is targeting an insurance margin of 13% or more by 2030. CEO Jarrod Hill acknowledged a softening commercial market but said the group’s earlier platform investments and AI-driven process redesign positioned it to outperform peers through the cycle.
IAG managing director and chief executive officer Nick Hawkins said strategic alliances with RACQ and RAC, subject to regulatory approvals in the case of RAC Insurance, have the potential to deliver up to $3 billion in gross written premium and double-digit EPS accretion.
“In the last 12 months, we have strengthened our unique member-based culture through strategic alliances with RACQ and RAC. These partnerships build on our customer-focused, mutual heritage, and provide new sources of growth,” Hawkins said.
The company’s reinsurance program, which includes long-term quota share arrangements covering 35% of all premiums with partners including Berkshire Hathaway, was described as central to IAG’s strategy of delivering low-volatility earnings through a capital-light balance sheet.
