IAG’s Jon Nicholson to retire as profit soars in strong FY24 performance

IAG’s Jon Nicholson to retire as profit soars in strong FY24 performance | Insurance Business Australia

Insurance News

IAG’s Jon Nicholson to retire as profit soars in strong FY24 performance

Board highlights seasoned leader’s contributions

Insurance News

By
Roxanne Libatique

Insurance Australia Group (IAG) has announced that Jon Nicholson will retire from its board of directors, effective Oct. 9.

Nicholson (pictured) has been a member of IAG’s board since September 2015, contributing to various committees, including the People and Remuneration Committee, the Nomination Committee, and the Risk Committee. During his tenure, he chaired both the People and Remuneration Committee and the Risk Committee.

Nicholson, re-elected to the board at the 2023 Annual General Meeting, had indicated that this term would be his last as a director.

“During his time on the board, Jon helped oversee IAG’s response to very significant natural disasters in Australia and in New Zealand, including some of the largest earthquakes, bushfires, and floods ever experienced,” he said.

He added that Nicholson played a key part in enhancing the company’s risk management processes and providing valuable insights on strategic and reinsurance matters.

Pockett also noted Nicholson’s contributions beyond the boardroom, highlighting his involvement with Indigenous communities in Cape York and his participation in the Social Change Fellows program of the Westpac Scholars Trust.

The latest announcement coincides with the company’s release of its 2024 full-year financial results, which indicate significant profit growth.

IAG CEO Nick Hawkins, in an announcement to the Australian Securities Exchange (ASX), highlighted several factors contributing to the improved financial performance, including operational enhancements and increased customer retention across the company’s retail businesses in Australia and New Zealand.

“We have also improved our claims management capability to ensure we are well placed to support our customers when they need us the most,” Hawkins said.

The company also reported an 11% increase in gross written premium (GWP), which reached A$16.4 billion for the year.

Intermediated Insurance and New Zealand division lead growth

IAG’s Intermediated Insurance Australia (IIA) division posted a 6.4% rise in GWP, delivering insurance profits of AU$328 million. This exceeded the company’s target of A$250 million and marked a significant improvement from the previous year.

IAG’s New Zealand operations also demonstrated strong recovery. GWP growth of 15.6% resulted in A$457 million in insurance profits, up from A$44 million in FY23, which had been impacted by floods and cyclones. The insurance margin in New Zealand rose to 22.5%, due in part to a lower number of catastrophic events during the year.