Aussie insurer prioritises its NZ positioning

by Maryvonne Gray 16 Apr 2014

Aussie insurer prioritises its NZ positioning

Insurance Australia Group has announced its strategic priorities, one of which is to sustain its leading position in the New Zealand market.

The announcement comes just two weeks before the New Zealand Commerce Commission is due to make its decision whether or not to allow IAG to acquire Lumley.

If the deal is allowed to go ahead it will mean the number one market leader buying the number three.

Other priorities asserted in the report outlined at an investor briefing for Australia Direct yesterday include accelerating profitable growth in Australia, realising the potential of its Asian platform, ensuring customer focused delivery and execution and leveraging its cultural strengths.

Managing director and CEO Mike Wilkins stated in the report: “Our ambition is to be the world’s most respected group of general insurance companies.”

He said the strategy for doing this was to: “Deliver superior performance by actively managing our portfolio and driving operational performance and accountability.”

The report was specifically an update about IAG company Australia Direct and its significance to the group – in the most recent reported results Australia Direct represented 48% of the group’s GWP and 54% of insurance profit for the period.

A decision from the NZCC on whether IAG gets the go ahead to purchase Lumley is expected on April 30.