IAG’s move to transfer its intermediated business to subsidiary CGU Australia was approved this morning by the Federal Court.

On October 1, the CGU and WFI brands will move to the subsidiary, which in May secured a licence for general insurance operations.

Policies issued under the two brands are currently written by IAG’s Insurance Australia Limited. 

“We are pleased to have gained approval ... to transfer our intermediated division into the newly established entity – CGUA,” CGU and WFI Insurance CEO Jarrod Hill said.

“Operating under an independent insurance licence strategically positions CGU and WFI for future growth and will enable us to manage capital more flexibly, improve our competitive agility and better service the unique needs of our brokers, distribution partners and customers.”