IAG intends to carve out a bigger footprint in the Australian, New Zealand and Asian markets, CEO Mike Wilkins told an investor strategy briefing today.

He says the group’s “significant underlying improvement” supports further expansion, with collective insurance margins in Australia and NZ increasing from 5.5% in the first half of 2009 to 17.8% in the first half this year.

Although IAG’s UK business needs to improve, Mr Wilkins says it now has a strong foundation to grow from.

However, he sees most growth coming from the region. “Our focus is to accelerate growth in Australia and New Zealand and to boost our Asian footprint so that it represents 10% of the group’s GWP by 2016.”

This expansion includes growing IAG’s existing markets in Malaysia, Thailand and India while identifying target markets in China, Indonesia and Vietnam.

“We’ve successfully launched our Indian joint venture and have made substantial progress in discussions with a potential joint venture partner in China,” Mr Wilkins said.

Asia CEO Justin Breheny says IAG is carefully considering the markets it wants to work in, and analysing what models work best in each different market.

“We are looking at what products profit, how to play in that market and which partner best suits that model,” he said. “We are very disciplined in our approach. In going forward we will say no to many more deals than we say yes.”

Mr Wilkins says the group also plans to build on the momentum of its Australia Direct business by focusing on customers, and that CGU will continue to rebuild its business fundamentals while returning to profitable growth.

CGU CEO Peter Harmer told the briefing says that improving claims processes and building on underwriting expertise will be key factors in driving the business forward.

He says it will also be vital to “keep in front of the curve” by improving CGU’s systems and processes.

“After six months in the job, I am more convinced than ever that we have a strong business in a rapidly changing environment,” Mr Harmer said.

“It’s fair to say we have some significant opportunities to improve our technology, and we are reviewing a number of our platforms. Further announcements will be made at our full-term results.”

IAG NZ CEO Jacki Johnson says although the insurer holds a 33% market share there are a number of challenges facing the local market, especially following another spate of aftershocks and earthquakes in Christchurch yesterday.

She says IAG is also still considering whether the New Zealand Government’s proposal to open up the Accident Compensation Corporation’s work account will be a “viable step” for the insurer.