IAG reveal restructure

INSURANCE Australia Group says it is simplifying its operating model as part of a drive to cut its annual expense bill by $250 million.

The owner of major insurance brands including CGU, NRMA Insurance and Swann, has revealed it will create a single Australian business as part of a previously announced “optimisation program”.

IAG said yesterday that the restructure would bring together its former Australian consumer, business, operations and satellite divisions, and help the group run more smoothly.

IAG chief Peter Harmer said the new Australian division will be run by the company’s chief operating officer, Mark Milliner.

IAG says it will now report financial results for Australia, New Zealand and Asia.