Under the terms of the partnership, IAG will acquire Berkshire Hathaway’s local personal and SME business lines. In return, Berkshire Hathaway will acquire the renewal rights to IAG’s large corporate property and liability insurance business in Australia.What does this mean for our CGU partners and customers?
With the exception of our large corporate property and liability portfolio for ASX 250 companies and some other business, CGU business insurance transactions will not be affected in any way.
CGU will continue to offer personal lines, SME and mid-market products in the same way it always has.
From July 1, CGU will begin to transfer its large corporate property and liability renewal portfolio for ASX 250 companies as well as some other business outside of this to Berkshire Hathaway. We are working closely with Berkshire Hathaway to ensure a smooth transition plan for these portfolios.
The transfer of CGU’s large corporate property and liability register will take place on renewal, and we’re and working hard to make sure we provide a seamless claims, underwriting and risk management experience for our partners and customers.
We want to make the transfer of CGU Insurance corporate property and liability customers as easy as possible for you – please don’t hesitate to contact your CGU State Manager or Relationship Manager if you have any questions.
Importantly, CGU will continue to provide a full-service offering and continue to actively participate in the corporate and liability markets outside of ASX250 companies. We will also continue to underwrite SME and participate in classes outside of property and liability markets including Workers Compensation, Construction and Engineering, Professional Risks and Marine.
If you would like more information about our partnership with Berkshire Hathaway, please refer to our IAG media release
As you may be aware, CGU’s parent company Insurance Australia Group recently announced a long-term strategic relationship with Berkshire Hathaway, one of the world’s largest and most respected investment companies. The agreement enables both businesses to draw on each other’s strengths to better meet customer needs and deliver superior business outcomes. The partnership is underpinned by a 10-year 20% quota share arrangement across IAG’s consolidated insurance business and an approximately 3.7% shareholding in IAG by Berkshire Hathaway.