Insurance Australia Group (IAG)

Shares / Stock Code

IAG

Stock Exchange / Sharemarket

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Insurance Australia Group Limited (IAG) is an Australia-based company engaged in the provision of general insurance services including and wide variety of both commercial and personal products. IAG was listed on the Australian Stock Exchange on the 8th of August. Its average annual revenue reaches approximately $7 billion out of its issued capital of $2 billion. Its headquarters is located in Sydney, New South Wales and to date; around 13,000 people are employed in the company. Insurance Australia Group Limited operates mainly in four business segments: Australian commercial insurance, Australian personal insurance, corporate and investments and international insurance.

The Australian commercial insurance segment of Insurance Australia Group Limited is engaged in developing and underwriting insurances for businesses. Included in the products under this segment are the fleet motor and commercial motor, commercial property, construction and engineering, crop, livestock and farm, marine, home warranty, public and product liability, directors and officers, professional indemnity and worker's compensation.

The Australian personal insurance segment of IAG is in charged of developing and underwriting personal insurance products as well as assessing services and managing claims. Included in this segment's underwriting activities are home and contents, motor vehicle, consumer credit, compulsory third party and niche insurance products like veteran, classic car, caravan, boat, and travel insurance.

The corporate and investment business segment focuses on other activities of IAG including investment management and corporate services to name a few. The international insurance segment of IAG is comprised of direct insurance business including the underwriting which is carried outside the country through the company's foreign subsidiaries in Thailand and New Zealand and the company's associate in Malaysia.

Insurance Australia Group Company History

NRMA Group which was the company's name in 1925 was established as an automobile insurer in New South Wales. NRMA Group’s insurance was converted to a separate and independent company in 200 and joined as NRMA Insurance Group the Australian Stock Exchange. Its name was altered to Insurance Australian Group (IAG) in 2002.

IAG got general insurance businesses of NZI in New Zealand from Aviva and CGU in Australia in 2003. The health insurance operation (NRMA Health) was traded to Medical Benefits Fund of Australia Limited. ClearView was also sold to MBF Australia. ClearView was retirement solutions and investment planning businesses.

Business unit was formed by Commercial Insurer CGU to provide marine products insurance in 2004. 50% of Mike Henry Travel Insurance (MHTI) was taken by IAG through one of the branches in New Zealand. Stake in Royal & SunAlliance which is a general insurer found in Thailand was taken by IAG in 2005. 30% stake in AmAssurance Bernard was obtained by the group. AmAssurance Bernard was a motor insurance company in Malaysia.

A contract was signed by the group for it to attain a 25% stake in China Pacific Property Insurance (CPIC) in February 2006. CPIC used to be a leading insurer in China. NHCT which is IAG’s holding company took 98% stake in Safety Insurance, motor insurance and general company in Thailand.

In May 2006, 51% of the Drive Right which is mechanical warranty company was acquired to improve its motor business through Janssens and Swann Insurance. Managing agency of Lloyd and specialist Asian syndicate were obtained to improve its Asian business under Alba Group (Alba). Leading motor insurance broker in UK which is Hastings Insurance Services was taken by IAG in September 2006. It also took Advantage Insurance, motor insurance and personal company in UK. Motor underwriter and broker Equity Insurance Group in UK was attained by the company in January 2007.