IAG will split its Australian business into direct and intermediated divisions in a shake-up that will see the departure of senior executive Mark Milliner, while the insurer has also confirmed the appointment of Michelle McPherson as CFO.

“The changes announced today will set us up well for success as we continue to focus on delivering a simpler stronger and more resilient IAG that meets the evolving needs of our customers and communities we service,” CEO Nick Hawkins said.

Mr Milliner moved from Suncorp to IAG in 2016 as COO and was appointed to lead the newly created Australia division in July the following year. He was considered a top contender for the CEO role along with former CFO Mr Hawkins, who was confirmed in the position in September and took over from the retiring Peter Harmer today.

“Mark has enjoyed a long career in insurance and is highly respected in our industry,” Mr Hawkins said. “We have been peers on the executive team for the past four years and I’ve seen first-hand the significant contribution he’s made to our company.”

An external and internal search is underway for leaders of the new Australian divisions. In the interim, EGM Consumer Distribution Amanda Whiting will be acting Group Executive Direct Insurance Australia and Julie Batch will act as Group Executive Intermediated Insurance, in addition to her current responsibilities heading the strategy & innovation division.

Ms McPherson, who has more than 30 years’ finance experience across multiple industries, has been acting Group CFO since April, when it was announced that Mr Harmer would be retiring before the end of the year.

Mr Milliner will leave IAG at the end of the month.

More details in our afternoon bulletin.