Move will reduce duplication, company claims

IAG UK has confirmed it will cut up to 200 jobs as it looks to save £20m following its acquisition of Equity and Hastings.

But the company could not say how many staff would be made redundant.

A spokesman said the job cuts were necessary to reduce the duplication of certain roles following the integration of the two insurance groups into IAG’s UK operations.

Equity and Hastings employ about 3,000 people.

Equity was bought in 2006 and Hastings in 2007 as a way for the Australian insurer to expand into the UK market.

The spokesman said: “We are committed to seamlessly integrating IAG’s UK businesses and making cost savings in the region of £20m.

“Some of the cost savings will be made through reducing roles.”

He said the company was trying to cut the majority of positions through natural wastage, such as not replacing staff who leave or retire.

The cuts will be across the board, but many will affect the group’s call centres.

The integration of the two companies will be completed by the end of the year.

Hastings is the UK’s fifth largest motor insurance broker, while Equity Red Star, Equity’s Lloyd’s operation, is the fifth largest UK motor insurer.