The IAG (Insurance Australia Group), has recently implemented a bold, new saving exercise plan. Part of this bold, $250 million cost saving endeavour is the simplification of the company’s operation model.
Owner of several major insurance brands that provide accountant insurance, among other options, such as the National Roads and Motorists’ Association and Swann, the IAG released a statement regarding its plans for cost reduction. The company made a statement on the 19th of July, Wednesday that it will be creating a new Australian division as part of the new optimization program that the company is hoping will reduce operational costs by $250M (before taxes) by the end of 2019.
The accountant insurance providing insurer says that the restructuring will consolidate it Australian consumer, operations, business, and satellite divisions, as well as helping IAG run smoother.
IAG’s Chief Executive, Peter Harmer made a statement on the changes, saying that creating a streamlined Australian Division will take advantage of the scale of IAG’s operations and the skills of their employees, allowing the company to put both to good use, which will allow it to respond more effectively to their customer’s demands and needs.
The new Australia Division will be run by Mark Milliner, IAG’s current Chief Operating Officer, while Ben Bessell, currently the Chief Executive of the Australian Business Division, will be the Executive General Manager of Business Distribution.
Anthony Justice, the current Chief Executive for the Australian Consumer Division of IAG, has opted to leave the company prior to the changes. Mr. Harmer says that Mr. Justice was a major player for the company, having contributed a great deal during his six-year tenure in the company. He adds that IAG wishes Mr. Justice the best, and that his passion and commitment will be missed.
IAG says that it will now be reporting on financial results in Australia, to add to its coverage of the financial situation across New Zealand and Asia. The insurer says that they have schedule the release of their full year results on the 23rd of August.
The company’s shares have improved recently, trading up 1.5 cents higher, totalling to $6.75 at 10:41 AEST.