ASX-listed insurer IAG will stop investing in its underperforming Asian arm, but chief executive Peter Harmer says there are no plans yet to sel its core operations in the region.

Mr Harmer said IAG would focus on its Australia and New Zealand markets after a fruitless 18-month search for investment opportunities in Thailand, India and Malaysia, where IAG earnings fell by more than 50 per cent in the year to June 30.