IAG slashes jobs after reporting high profits

IAG said the job cuts are part of a restructuring plan that began in March.

Insurance giant Insurance Australia Group (IAG) has announced it will cut 214 jobs from its Direct Insurance Australia and Intermediated Insurance Australia divisions, despite reporting strong financial results for 2024, reported Yahoo Finance.

The $11.66b A$17.3b) ASX-listed company informed the Finance Sector Union (FSU) that roles supporting digital business, direct claims, distribution, and underwriting will be affected.

FSU national secretary Julia Angrisano criticised the decision, saying there was no business need for the cuts, especially after IAG reported a full-year net profit of $605.10 (A$898m), up 7.9% from the previous year. Insurance profits reached $0.96b (A$1.43b), marking a 79.1% increase. 

Angrisano called the move disrespectful to loyal staff who had supported the company during challenging times, including the COVID-19 pandemic and natural disasters.

IAG CEO Nick Hawkins had previously credited the company’s profitability to operational improvements and acknowledged the contributions of IAG staff to its success. 

However, the job cuts are part of a restructuring plan that began in March, consolidating IAG's Customer Growth and Distribution business units and transitioning its Partners and Platforms team into Retail Insurance Australia.

An IAG spokesperson stated the changes were intended to align teams and improve operational processes, adding that no frontline customer claims roles would be affected. 

The company is currently consulting with impacted employees and offering redeployment opportunities. 

($1.00 = A$1.48)