IAG is targeting growth in Malaysia and Thailand after last year tightening its regional focus and deciding against investing further in China.

“We are particularly keen to build on the sound businesses and good markets we have in Malaysia and Thailand,” CEO Peter Harmer told the annual general meeting in Sydney on Friday.

“These are very attractive to us, and we are interested in pursuing growth through industry consolidation or increased ownership where this makes sense.”

Mr Harmer says IAG is putting in “an enormous amount of work” to determine the company’s path and to lay foundations for the next 3-5 years.

More details will be provided to the market at a strategy day on December 8.

“We have developed a number of initiatives to improve customers’ experiences and reduce the operating expense base,” he told the meeting.

The insurer is on course to meet guidance for a reported margin of 12.5-14.5% this financial year, Mr Harmer says.

Chairman Elizabeth Bryan told the meeting IAG is also focusing on climate change and helping people become more resilient to disaster, particularly natural catastrophes.

“This is becoming more and more important as climate change is resulting in greater frequency and severity of natural disasters,” she said. “Through the work of our own specialist teams and in collaboration with other organisations, we are building the concept of creating resilient communities into all our work.”

Ms Bryan says climate change is a factor in decisions on the business’ investment and insurance sides.

“In our investment portfolio we estimate that high-emission-intensive industries are less than half 1% of our investment assets,” she said.

“On the insurance side of our business, our underwriting exposure to emissions-intensive industries is modest.

“Within this, the main product line we underwrite is workers’ compensation, because we believe workers in high-risk environments should be fully protected.”

IAG non-executive director Raymond Lim will retire this financial year and will attend his last board meeting in February.

“I hope to announce soon some new members to the board, so we ensure smooth succession,” Ms Bryan said.