IAG will consolidate its nine Australian general insurance licences into two after receiving approval from the Federal Court of Australia.

From August 1 it will have two licensed Australian entities: Insurance Australia Limited (IAL) and Insurance Manufacturers of Australia Pty Limited.

IAL will become the insurer of policies issued by CGU, Swann Insurance, WFI, IAG Re, Mutual Community General Insurance, CGU-VACC Insurance and HBF Insurance.

IAG says the consolidation will help make it a simpler, more efficient and agile business.

“Reducing the number of insurance licences in Australia from nine to two… will free up resources that can be used to improve operations and customer service,” it said.

“There will be no impact on IAG’s consolidated regulatory capital.”

The insurer says customers will not be affected, but all have been informed of the changes.

“The terms of the policies will not change after the transfer, other than IAL will become the insurer under each transferred policy,” it said. “There will be no impact on claims and policies will continue to operate and be renewed in the same way.”