Company Interview / AI fuels IAG's growth gameplan

Key points:

Ambition 2030 targets margin of 15%+, mid-single digit growth and high single digit EPS growthAI and technology already delivering material admin and claims cost efficienciesStrategy assumes holding market share, with improved growth in New Zealand and Australian retail

Insurance Australia Group’s refreshed ‘Ambition 2030’ strategy is set to drive sustained margin and earnings growth, according to William McDonnell from IAG. McDonnell sets out targets for an insurance trading result margin of at least 15%, mid-single digit gross written premium growth and high single digit earnings per share growth, underpinned by stable brands across Australia and New Zealand and recent club acquisitions.

McDonnell highlights how AI and data are central to IAG’s plans. He points to substantial progress already made towards FY27 cost-efficiency targets, with around $130 million in administration savings and about $300 million in claims handling efficiencies attributed to technology and AI initiatives. These measures are viewed as supporting competitiveness on pricing while cost-of-living pressures remain elevated, and as reinforcing the long‑term value of the organisation.

Retaining market share rather than aggressive expansion is described as a key assumption behind the financial ambitions. McDonnell cites improving growth in New Zealand and a return to positive growth in Australian retail, supported by a modernised retail tech stack and better digital conversion. The RACQ acquisition is already integrated, while the proposed Western Australia club deal remains subject to competition approvals, with McDonnell indicating IAG is prepared to pursue a tribunal route if required, while focusing on disciplined execution of its strategy.