IAG eyes growth markets
IAG CEO Mike Wilkins says the insurer will use “selective acquisitions” to help propel growth after the company completes the restructure of its Australian operations.
He told last week’s AGM in Sydney that IAG still intends to improve performance in Australia and NZ and pursue international growth options, mostly in Asia.
“I have said that we were interested in undertaking selected bolt-on and other joint venture acquisitions,” Mr Wilkins said. “I think consolidation can occur, and it will.”
The Asian focus follows a forgettable foray into the ultra-competitive UK market, but Mr Wilkins indicated IAG could be among those to consider local targets.
“There could be further consolidation, internationally and in this market, although we’re not seeing any great pressure one way or another for that to occur, but you don’t rule it out,” he told a media conference after the AGM.
The group is currently occupied with establishing its Indian insurance joint venture with the State Bank of India. It has also announced its joint venture in Malaysia has signed a memorandum of understanding to acquire a smaller player in that market.
Mr Wilkins expects better things from the insurer in coming months after the company this year recorded a $261 million loss. The group has forecast an insurance margin above 10%, against 6.1% previously.
He told last week’s AGM in Sydney that IAG still intends to improve performance in Australia and NZ and pursue international growth options, mostly in Asia.
“I have said that we were interested in undertaking selected bolt-on and other joint venture acquisitions,” Mr Wilkins said. “I think consolidation can occur, and it will.”
The Asian focus follows a forgettable foray into the ultra-competitive UK market, but Mr Wilkins indicated IAG could be among those to consider local targets.
“There could be further consolidation, internationally and in this market, although we’re not seeing any great pressure one way or another for that to occur, but you don’t rule it out,” he told a media conference after the AGM.
The group is currently occupied with establishing its Indian insurance joint venture with the State Bank of India. It has also announced its joint venture in Malaysia has signed a memorandum of understanding to acquire a smaller player in that market.
Mr Wilkins expects better things from the insurer in coming months after the company this year recorded a $261 million loss. The group has forecast an insurance margin above 10%, against 6.1% previously.