The No 1 general insurer has shed 40 people in the first step of its major restructure. NRMA Insurance Acting CEO Ian Brown, who isn’t waiting to be confirmed in the top job before he puts new strategies in place, is understood to be looking at between 130 and 500 redundancies in the company’s sales and marketing departments.

The job cuts mark the company’s decision to concentrate on general insurance and retirement services – a move that has brought it into conflict with its motoring service “cousin”.

The two parties will enter into formal mediation this week, with sources saying its likely the court action initiated by the motoring arm will be dropped and a suitable arrangement found following the insurer’s decision to close 21 shared branch offices.