IAG looks to turn corner
The last financial year was “difficult” for IAG and the company has no qualms about describing its 2007/08 result as “disappointing”. But Chairman James Strong has reiterated his optimism for the company’s future in IAG’s latest trading update, saying the company expects to achieve an insurance margin of at least 10% this financial year.
The company’s annual report was released on October 3 and clearly outlines the impacts of severe weather events, a competitive insurance market, falling investment markets and a comprehensive corporate restructure.
As reported earlier, insurance profits fell to $438 million, down 43% on the $767 million earned in 2006/07. Factoring in the investment side, the company ended the year with an overall loss of $261 million.
Mr Strong is happy to shoulder at least part of the blame. “The board accepts responsibility for those factors within its control,” he said. “It has initiated a program of decisive changes.”
IAG is already in the process of selling off its under-performing UK assets while new CEO Mike Wilkins has outlined a strategy based on significant cost reductions across the group.
In line with new legislation, investors will need to specifically request a copy of the annual report. IAG has also produced a shortened document, its inaugural “annual review” that condenses the report into 28 pages.
The company’s annual report was released on October 3 and clearly outlines the impacts of severe weather events, a competitive insurance market, falling investment markets and a comprehensive corporate restructure.
As reported earlier, insurance profits fell to $438 million, down 43% on the $767 million earned in 2006/07. Factoring in the investment side, the company ended the year with an overall loss of $261 million.
Mr Strong is happy to shoulder at least part of the blame. “The board accepts responsibility for those factors within its control,” he said. “It has initiated a program of decisive changes.”
IAG is already in the process of selling off its under-performing UK assets while new CEO Mike Wilkins has outlined a strategy based on significant cost reductions across the group.
In line with new legislation, investors will need to specifically request a copy of the annual report. IAG has also produced a shortened document, its inaugural “annual review” that condenses the report into 28 pages.