IAG says it is unlikely to make major investments in Asia in the short-term and is focusing on its core Australia and New Zealand markets.

“Over the past 12-18 months, we have been looking for opportunities to increase our investment in our key markets of Thailand, Malaysia and India,” CEO Peter Harmer told group’s AGM in Sydney on Friday. “We have not been able to find the right circumstances, however, so it is unlikely we will make further investments in Asia in the short term.”

Asia business earnings declined to $10 million last financial year from $26 million the previous year amid increased competitive pressures and adverse claim cost trends in Thailand and Malaysia.

Asia accounts for 3% of IAG’s gross written premium.

Thailand and Malaysia represent about 80% of its investment of about $800 million in the region. It also has interests in Vietnam, Indonesia and India.

Last year IAG said it had tightened its focus in Asia and was particularly interested in consolidation or increased ownership opportunities in Malaysia and Thailand.

No mention was made of China, after institutional shareholders lobbied the group in October 2015 to cancel plans to expand into that market.

Mr Harmer also told the meeting the group’s simplification program, including creation of a single Australian division, is well on track. The shift to a single Guidewire platform under the claims component of system consolidation is also advanced.

“When this is completed later next year we will be able to provide an even better service to our customers – because our people will be able to handle claims and offer support when and where it is needed, no matter where they are based,” he said.

IAG has substantially upgraded its customers’ digital experience, with 24% of NRMA Insurance’s new business and 32% of renewals transacted online.

“We have established five NRMA Insurance kiosks in retail centres so we can maintain the face-to-face contact our customers value, and cater for customers who want to use our self-service and digital options,” Mr Harmer said.

“In the year ahead we are extending our customer model to New Zealand and Asia, and we will be more closely aligning our products to our customers’ needs in these markets.”

IAG opened Firemark Labs innovation hubs in Australia and Singapore this year, and says it is now supporting five start-ups in Sydney.

The company has reaffirmed its earnings guidance for the financial year.