While IAG's direct heritage dates back to 1925 when the National Roads and Motorists' Association (NRMA) started providing insurance to its members in NSW and the ACT, through our CGU business, we have been providing insurance services in Australia for almost 160 years.
Key dates in our history are set out below:
NRMA Insurance had grown to be the largest non-government home and contents insurer in NSW and the ACT.
NRMA expanded interstate, with eight offices in Victoria, and a move into Queensland.
NRMA acquired the SGIO Group, including SGIO Insurance, the largest fire and general insurer in Western Australia, and SGIC, the largest general insurer in South Australia. It also entered the Asian market, acquiring an interest in Thailand's Safety Insurance.
A joint venture was formed between the insurance businesses of NRMA and Royal Automobile Club of Victoria (RACV).
NRMA demutualised in 2000, separating its road services and insurance operations. The new NRMA Insurance Group Limited was listed on the ASX.
The Group acquired New Zealand’s largest general insurance company, State Insurance, and the policies and renewal rights to HIH's Australian workers' compensation business.
NRMA Insurance Group Limited became Insurance Australia Group Limited (IAG).
IAG acquired CGU in Australia (including Swann Insurance), NZI in New Zealand, and Zurich Insurance's NSW workers' compensation business.
IAG expanded its presence in Asia, increasing its business in Thailand and moving into Malaysia.
IAG acquired UK insurer, Equity Insurance Group.
IAG established a joint venture with the State Bank of India to offer general insurance products.
In March 2012, IAG completed the purchase of AMI insurance, the second largest direct personal lines insurer in New Zealand.
In April 2012, we completed our acquisition of a 20% strategic interest in Bohai Property Insurance Company Ltd, headquartered in Tianjin in Northern China.
In September 2012, IAG’s 49%-owned Malaysian associate, AmG completed the acquisition of Kurnia Insurans (Malaysia) Berhad, making AmG the largest general insurer in Malaysia, with 13% of Malaysia's general insurance market and a clear number one position in motor insurance.
In May 2012, IAG completed the acquisition of 30% of Vietnam-based AAA Assurance Corporation (AAA), delivering exposure to the rapidly growing Vietnamese insurance market via an established participant.
In April, IAG completed the sale of the Equity Red Star business to Aquiline Capital Partners, a private equity investment firm specialising in financial services, for £87 million (approximately $130 million).
In December, IAG announced an agreement to purchase the insurance underwriting businesses of Wesfarmers Limited for $1.845 billion, strengthening its position in its home markets of Australia and New Zealand. The acquisition comprises Wesfarmers' underwriting companies trading under the WFI and Lumley Insurance brands, as well as a ten-year distribution agreement with Coles.
On 30 June 2014, IAG completed the acquisition of Wesfarmers’ insurance underwriting businesses in Australia and New Zealand.
On 16 June 2015, IAG announced a strategic relationship agreement to establish a long-term partnership with Berkshire Hathaway Inc, one of the world’s largest and most successful companies. The agreement enables both parties to draw on each other’s strengths to better meet customer needs and deliver superior business outcomes. The strategic partnership is underpinned by a 10-year 20% quota share arrangement across IAG’s consolidated insurance business and an approximately 3.7% investment in IAG by Berkshire Hathaway via a share placement.
IAG launched Firemark Ventures a $75-million fund to invest in, and partner with, both start-ups and established businesses that have the potential to disrupt the value chain.
In February, IAG announced the launch of Firemark Labs, an InsurTech innovation hub in Singapore, in a move that will connect the insurer to Singapore's global innovation network and vibrant entrepreneurial community. The hub will act as an incubator for IAG to work with top talent, start-up, research and technology partners to co-create new products and services that will improve customer experience across Australia, New Zealand and Asia.
In July, IAG announced the creation of a single Australian division, the Australia Division, to simplify IAG’s operating model by bringing together the former Australian Consumer, Australian Business, Operations and Satellite Divisions. The new division centralises accountability for the customer, product, distribution and operations functions for IAG’s Australian brands, which include NRMA Insurance, CGU, WFI, SGIO and SGIC.
Also in July, IAG opened the doors to its new innovation incubator - Firemark Labs Sydney - as part of its continued strategy to generate customer-led and data-driven business growth. The incubator will play a central role in connecting IAG talent, insights and capabilities with external partners who can help IAG design new customer experiences for today – and tomorrow.
On 1 August, IAG consolidated its nine Australian general insurance licences into two licenced Australian entities: Insurance Australia Limited ABN 11 000 016 722 (IAL) and Insurance Manufacturers of Australia Pty Limited ABN 93 004 208 084 (IMA). IAL became the insurer of all policies issued by CGU Insurance Limited, Swann Insurance (Aust) Pty Ltd, WFI Insurance Limited, IAG Re Australia Limited, Mutual Community General Insurance Pty Ltd, CGU-VACC Insurance Limited and HBF Insurance Pty Ltd. The licence consolidation was a key project in IAG’s work to become a simpler, more efficient and agile business. The reduction in insurance licences will free up resources to be used to further improve operations and customer service. The Federal Court of Australia granted approval for the licence consolidation on 20 July 2017.
June 2018, IAG announced the sale of its controlled operations in Thailand, Indonesia and Vietnam. The sale of the Thailand business was completed in August 2018.
Today, IAG is a diversified insurance group operating throughout Australia and in New Zealand and Asia. We continue to focus on our strategic intent of creating a portfolio of high performing, customer-focused, diverse operations that provide general insurance in a manner that delivers superior experiences for our stakeholders and creates shareholder value.