The company's positive outlook is largely attributed to strategic acquisitions, notably the $855 million purchase of RACQ's general insurance business completed in September. Additionally, IAG is awaiting regulatory approval for a proposed $1.3 billion alliance with RAC WA, which would further solidify its market position in Australia and New Zealand.
Beyond acquisitions, IAG is investing heavily in digital platforms and sustainability initiatives. These efforts aim to enhance customer service and operational efficiency, positioning the company for sustained growth. Notably, IAG achieved a 98% settlement rate for Australian retail claims, reflecting its commitment to customer satisfaction.
Nick Hawkins, Managing Director and CEO of IAG, emphasized the company's strategic direction, stating, "We expect our premium growth to increase from 'low-to-mid-single-digit' to 'approximately 10%' reflecting the acquisition of RACQI for 10 months of the financial year." He also highlighted the anticipated increase in the perils allowance due to the expanded portfolio.
Looking ahead, IAG plans to leverage the scale benefits from recent acquisitions while continuing to invest in technology and customer service improvements. These initiatives are expected to drive accelerated premium growth and strong insurance margins, ultimately enhancing shareholder value and supporting sustainability goals.
