Promina resurrected in IAG rebuild: analysts
IAG’s reorganisation into two operating divisions with a new division added to get serious about online business has earned praise from the investment community.
The reorganisation – reported by insuranceNEWS.com.au shortly after the announcement was made public on Thursday – has been identified as the first sign of the emergence of COO Mike Wilkins at the top of the IAG heap. CEO Mike Hawker was not mentioned in Thursday’s IAG statement to the Australian Stock Exchange.
Most media and analyst reports on the changes have highlighted the fact that the changes were announced by Mr Wilkins, the former Promina CEO who was appointed by Mr Hawker in December to get the ailing IAG organisation back on the rails.
Mr Wilkins has essentially reformed IAG’s operations in the Promina mould. The operating divisions have been set up to run their own race with few, if any, overlaps of responsibility.
On Friday The Australian quoted Credit Suisse analyst Arjan van Heen as saying Mr Wilkins is now “asserting his authority”.
“It’s all about Michael Wilkins making a stand,” he said. “He’s definitely the man in charge if you read between the lines.”
CGU CEO Duncan West – the former CEO of Promina’s Vero division – is the major beneficiary of the changes, taking responsibility for the Business Partnerships division within IAG’s new Intermediated Insurance Division. His counterpart in direct lines, David Issa, has chosen to leave the group, and now speculation will switch to who his replacement might be.
While Mr Wilkins has made it clear Mr Issa’s replacement will be the subject of an internal and external global search, industry scuttlebutt suggests he may already have his eye on former Promina executives who left Suncorp following the acquisition of Promina.
One outstanding example is Michael Kay, the former CEO of AAMI, who quit Suncorp in October last year over contract differences. Mr Kay worked at AAMI for 14 years, and has an intimate knowledge of Australia’s direct market – and AAMI’s strategic direction.
The reorganisation – reported by insuranceNEWS.com.au shortly after the announcement was made public on Thursday – has been identified as the first sign of the emergence of COO Mike Wilkins at the top of the IAG heap. CEO Mike Hawker was not mentioned in Thursday’s IAG statement to the Australian Stock Exchange.
Most media and analyst reports on the changes have highlighted the fact that the changes were announced by Mr Wilkins, the former Promina CEO who was appointed by Mr Hawker in December to get the ailing IAG organisation back on the rails.
Mr Wilkins has essentially reformed IAG’s operations in the Promina mould. The operating divisions have been set up to run their own race with few, if any, overlaps of responsibility.
On Friday The Australian quoted Credit Suisse analyst Arjan van Heen as saying Mr Wilkins is now “asserting his authority”.
“It’s all about Michael Wilkins making a stand,” he said. “He’s definitely the man in charge if you read between the lines.”
CGU CEO Duncan West – the former CEO of Promina’s Vero division – is the major beneficiary of the changes, taking responsibility for the Business Partnerships division within IAG’s new Intermediated Insurance Division. His counterpart in direct lines, David Issa, has chosen to leave the group, and now speculation will switch to who his replacement might be.
While Mr Wilkins has made it clear Mr Issa’s replacement will be the subject of an internal and external global search, industry scuttlebutt suggests he may already have his eye on former Promina executives who left Suncorp following the acquisition of Promina.
One outstanding example is Michael Kay, the former CEO of AAMI, who quit Suncorp in October last year over contract differences. Mr Kay worked at AAMI for 14 years, and has an intimate knowledge of Australia’s direct market – and AAMI’s strategic direction.