Money & Banking

Insurance Australia Group to expand in Asia

PTI Melbourne | Updated on July 10, 2012 Published on July 10, 2012

Insurance Australia Group is increasing presence in Asia including India to generate 10 per cent of its business from the region within four years.

IAG aims to generate 10 per cent of its gross written premiums in Asia by 2016, according to the group’s CEO, Mr Mike Wilkins.

The company underwrites around A$8 billion of insurance premiums each year and employs around 13,000 people.

IAG, which owns major Australian brands such as NRMA and CGU, has invested about A$720 million in five Asian countries, Mr Wilkins was quoted by AAP report.

Through acquisitions and investments, IAG now has established businesses in Thailand and Malaysia, and is building its presence in India, China and Vietnam, he said.

In India, IAG has a joint venture with State Bank of India, SBI General Insurance Company Ltd. SBI owns 74 per cent of the total capital and IAG the remaining 26 per cent.

SBI General is in the process of setting up a unique multi-distribution model encompassing Bancassurance, Agency, Broking & Retail Direct channels. Bancassurance will be the major channel during the initial years, according to the information on the joint venture’s website.

“The Asian opportunity is here and now,” Mr Wilkins said.

“Over the past couple of years, we’ve quietly gone about our Asian strategy and are now getting real traction. We are entering an exciting phase of our Asian ambitions as we shift from a market entry focus to one of driving operational performance from our enlarged regional presence,” he added.

Published on July 10, 2012
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