Insurance giant IAG cuts 214 jobs

A job cull is sweeping through one of Australia’s biggest insurance companies, even as the company rakes in big profits.

A job cull is sweeping through ASX-listed insurance giant IAG.

The $17.3 billion company has told the Finance Sector Union it will cut 214 jobs from its Direct Insurance Australia and Intermediated Insurance Australia divisions, including roles that support digital business, direct claims, distribution and underwriting, the union said.

FSU national secretary Julia Angrisano said there was “no business need” for the cuts after the company reported handsome profits for the 2024 financial year.

“The IAG Board have chosen to put profits ahead of their workers and in doing so are disrespecting loyal IAG staff who’ve stuck by the insurer in tough times,” she said.

“Whether it was during Covid, or to assist customers during times of natural disasters, IAG workers have consistently stood by the company, taking on extra hours and being more productive.

“To reward that loyalty by cutting jobs is disgraceful.

“Last month when IAG CEO Nick Hawkins reflected on the strength the IAG business, he acknowledged that those strong results came off the back of the hard work of IAG staff.

IAG CEO Nick Hawkins has credited the company’s rise in 2024 profits with ‘operational improvements’. Picture: NewsWire / Nikki Short

“How is showing staff the door an appropriate way to repay their loyalty, and their contribution to the profitability of the business?

“We’re calling on the IAG Board to reconsider this decision and think of the impacted workers who are facing an uncertain future.”

In a statement to NewsWire, an IAG spokesman said the cuts had flowed from planned restructure changes at the company.

“The restructure changes we’ve proposed are a result of bringing together our Customer Growth and Distribution business units in March this year, as well as our Partners and Platforms team moving into Retail Insurance Australia in August,” the spokesman said.

“The proposed changes are designed to align teams under the new structure to ensure we have in place the most effective processes for our business to serve and support our customers.

“We understand any change can be a challenging experience for people, and our focus is supporting our employees through the consultation process which is currently underway and redeployment opportunities.

“No frontline customer claims roles are impacted.”

Mr Hawkins speaks at IAG’s 2022 AGM in Sydney. Picture: Dan Gray

IAG reported a full-year net profit of $898 million in August, a 7.9 per cent bump of the previous financial year.

Insurance profits hit $1.43 billion, the company’s annual earnings report said, a 79.1 per cent increase on the prior year.

Mr Hawkins credited the strong results with “operational improvements” at the company.

“The trust our customers have in our brands is reflected in continued high customer advocacy and retention in our retail businesses in Australia and New Zealand,” he said.

“We are well positioned to continue supporting our customers and the broader economy.

“The strategic measures we have put in place over the past few years have created a stronger and more resilient IAG.

“We’ve streamlined our Australian business, established a clear brand strategy and launched NRMA Insurance nationally, outside of Victoria.”

IAG has some 14,000 employees.

The company sells insurance through several brands including NRMA, CGU and Swann Insurance.

Year-to-date, shares in IAG have jumped 32 per cent and now sit at $7.33.

Originally published as Insurance giant IAG cuts 214 jobs