insurance company IAG has called time on plans to expand in Asia, with unfavourable market conditions there seeing the group return its focus to its core markets of Australia and New Zealand.
IAG spent 18 months looking for ways to establish itself and expand in Southeast Asian countries including Thailand, Malaysia and India, but such opportunities did not present themselves according to CEO Peter Harmer.
IAG had originally predicted that in the space of one year, from 2015 to 2016, 10 percent of total revenue would come to be derived from operations in Asia. However, this proved to be optimistic, with revenue from Asia only making up four percent of total income in 2016 and three percent this year.
Earnings this financial year fell from $26 million to $10 million, with the company blaming increasing competition and more stringent regulatory rules for the drop.
Harmer said that the company isn’t likely to make any further investment into Asia in the short term, with the company looking at its main markets of Australia and New Zealand for further growth.