IAG will split its Australian business into direct and intermediated divisions as Australia Division CEO Mark Milliner exits the business.

New Group MD and CEO Nick Hawkins marked his first day in the role by telling employees that the restructure will allow a dedicated focus on the distinct needs of direct and intermediated customers to drive growth and profitability in the core insurance businesses.

“I’m particularly excited by the opportunity we have to grow our partner and broker businesses,” he says in a message to staff. “CGU has a long and proud history and will continue to be our main intermediated brand within our Australia business with a dedicated focus on intermediated insurance.

“This is just one area of our business where we see real potential. Our intermediated business in Australia represents a third of our revenue, and I look forward to seeing it further develop.”

Mr Hawkins was given responsibility in April for IAG’s day-to-day operations during a transition period, after retiring MD Peter Harmer announced he would be leaving the company. His appointment to the top role was announced last month.

As reported in a Breaking News bulletin earlier today, the changes will see the departure of Mr Milliner at the end of the month.

Mr Milliner moved from Suncorp to IAG in 2016 as COO and was appointed to lead the newly created Australia division in July the following year. He was considered a top contender for the CEO role along with Mr Hawkins, who was CFO.

An external and internal search is underway for leaders of the new divisions. In the interim, EGM Consumer Distribution Amanda Whiting will be acting Group Executive Direct Insurance Australia and Julie Batch will act as Group Executive Intermediated Insurance, in addition to her current responsibilities heading the strategy & innovation division.

The insurer has also confirmed the appointment of Michelle McPherson as CFO after she took on the position in an acting capacity in April.

Ms McPherson, who has more than 30 years’ finance experience across multiple industries, joined IAG as CFO Australia.