One of the final formal changes related to IAG’s purchase last year of Lumley General Insurance Ltd in New Zealand is pending, with IAG applying to the industry’s regulator, the Reserve Bank of New Zealand (RBNZ), to transfer Lumley customers’ policies to the legal underwriting entity IAG New Zealand Ltd (IAG).
At the same time IAG is looking to transfer AMI customer policies from the legal entity AMI New Zealand Ltd also to IAG New Zealand Ltd, a move foreshadowed at the time of IAG purchasing AMI in 2011.
If the transfer is approved, IAG will become the insurer under AMI and Lumley customers’ policies, however their policies will remain AMI or Lumley branded and the terms and conditions stay the same.
The proposal is being communicated to customers via advertising in a number of media outlets starting today.
IAG’s Chief Risk Officer Karl Armstrong said that the transfers would have no impact on how customers interact with their insurance brands, but will allow IAG to consolidate the insurance licences it holds in New Zealand from three to one.
“Customers will continue to be able to do business with the IAG brands as they currently do, however the proposal, which requires RBNZ approval, will streamline our interactions with the regulator,” Mr Armstrong said.
“IAG expects to achieve cost savings through the removal of duplicated activity as well as through the consolidation of reinsurance programmes.
“The re-organisation of our legal structure is something we identified at the time of both the AMI and Lumley acquisitions as offering synergy benefits, and we think the time is now right to move forward with this logical step,” Mr Armstrong said.
IAG’s New Zealand Chief Executive, Jacki Johnson, said that consolidating the insurance licences is important for customers and shareholders as it contributes to IAG operating efficiently and effectively on their behalf.
“Having a streamlined structure and consolidated reinsurance programme will ensure that the insurance products, service and support we offer across our brands continue to be compelling and competitively priced for all New Zealanders,” she said.
Customers of IAG brands are being offered the opportunity to provide feedback on the proposal:
By email: email@example.com
By phone: 0800 424 586
In writing: The Company Secretary, IAG, Private Bag 92130, Auckland 1142
Feedback is required by Friday, 28 August 2015 and a summary of all feedback will be provided to the RBNZ for review as part of its consideration of the proposed transfer.