IAG and Qantas Gain Momentum: Qantas Board Announces Renewal Plans and IAGs Resilience Amid Challenges

Qantas Chairman to Retire in Board Renewal Plan

In a move aimed at addressing the Group's reputational issues and regaining trust, the Qantas Board has announced a significant board renewal plan. Chairman Richard Goyder will retire before the Annual General Meeting (AGM) in late 2024, aligning with the company's goal of measured succession. Michael L'Estrange, a non-executive director, will retire at this year's AGM on November 3, 2023. Jacqueline Hey and Maxine Brenner will follow, retiring in February 2024 after a decade of service. The AGM this year will see three new directors nominated for election, ushering in fresh leadership.

IAG's Resilience Amidst Challenging Environments

Over the past two years, Insurance Australia Group (ASX: IAG) has weathered a challenging environment characterized by increased peril events, including natural disasters in Australia and New Zealand. IAG processed over 377,000 claims related to these events, alongside rising costs due to post-COVID inflation and increased reinsurance expenses. Despite these challenges, IAG reported a solid financial performance. Gross written premiums increased by 10.6% to AU$14.7 billion, and net profit after tax rose by nearly 140% from FY22 to AU$832 million.

IAG's Strong Dividend and Strategy

IAG's robust capital position allowed the Board to raise the final dividend to 9.0 cents per share, franked to 30%, resulting in a full-year dividend of 15.0 cents per share, a 36% increase from FY22. This exceeded IAG's stated dividend policy, showcasing the company's sound financial footing. IAG's leadership team, led by CEO Nick Hawkins, continues to focus on their strategy to create a more resilient and stronger company.

Commitment to Sustainability and Governance

Both companies emphasize their commitment to sustainability, acknowledging the importance of addressing climate change and disaster resilience. IAG has set a goal to achieve net-zero emissions by 2050 and has made revisions to its science-based targets for emissions reduction. In addition, the company has diversity employment targets and a comprehensive ESG focus that extends to its supply chain.

The boards of both Qantas and IAG are dedicated to governance, with Qantas introducing sustainability metrics and enhancing its Social and Environmental Framework. IAG has refreshed its Responsible Investment Policy, aligning its investment portfolio with a commitment to reduce exposure to fossil fuel production or extraction companies.

In conclusion, the Qantas board's renewal plan and IAG's financial resilience in the face of challenges demonstrate their commitment to navigating a changing and demanding business landscape while maintaining a strong focus on sustainability and governance.

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