Executive reshuffle at IAG

Big general insurer Insurance Australia Group (IAG ) has forecast a net profit after tax in the order of $91 million for the year ended 30 June, down from $181 million the previous year. The downward forecast is mainly driven by storm claims in Perth and Melbourne and the substantial full-year loss recorded by the company’s UK businesses.

At the same time, IAG has announced key executive changes. IAG will have a new chief executive in the UK with the role being filled by the current chief executive of the New Zealand business, Ian Foy — while the chief executive of the company’s online business, Jacki Johnson, will succeed Foy in the New Zealand role.

Foy replaces Neil Utley as chief executive of the UK business, with IAG managing director and chief executive Mike Wilkins saying he and Utley had “mutually agreed that now was the appropriate time to introduce new leadership to take the UK business forward”.

Commenting on the company’s broader financial result, Wilkins said that while they did not reflect the expectations held at the beginning of the year, he was encouraged by the clear and ongoing improvement in the operational performance of the businesses. He said he was confident the company’s performance would improve significantly during the current financial year with guidance remaining unchanged.