IAG cuts jobs in move south

Wellington is the loser in the latest restructuring by insurer IAG New Zealand, which is cutting 50 jobs and moving 60 positions to Christchurch.

IAG NZ plans to reorganise its State and New Zealand Insurance businesses, which employ 1800 staff throughout the country, by the end of the year.

IAG NZ chief executive David Smith said the net result of the changes would be about 70 fewer positions in Wellington, 40 fewer positions in Auckland, and 60 new positions in Christchurch.

The positions are back-office and national office jobs.

IAG bought State Insurance in February 2001, and acquired NZI last year as part of its parent IAG Australia's A$1.86 billion ($2.15 billion) purchase of the Australasian insurance arms of British rival Aviva.

Smith said the proposals were designed to keep job rationalisation to a minimum and make the most of the company's increased capacity in areas such as property and technology.

Staff morale was "very good" amid the second reorganisation in about 18 months, he said. "It's inevitable there will be some redundancies, and to say there wouldn't be would be foolish."

IAG has the largest share of the $2.3 billion general insurance market.

- NZPA