Insurance Australia Group's new boss expects to maintain the company's focus on Asia for growth.
After more than seven years in charge of Australia's biggest domestic insurer, Mike Wilkins will retire as chief executive in November, and be replaced by Peter Harmer.
Mr Harmer has been leading IAG's digital innovation efforts, most recently as chief executive of IAG Labs.
The 54-year-old joined IAG in 2010 as chief executive of subsidiary CGU, and will work with Mr Wilkins up until March 31 to transition into the top job.
"There won't be any huge change. You will see a continuation of the work that Mike has put in," Mr Harmer said.
Mr Wilkins has overseen a period of strong growth in premium income and profits at IAG, the owner of the NRMA Insurance, RACV and SGIO brands.
The company recently bought the insurance business of Wesfarmers, and has been bolstering its presence in Asia in an effort to diversify.
Earlier this year IAG also signed a $500 million deal with Warren Buffet's Berkshire Hathaway, which will pay 20 per cent of the company's claims over the next decade in exchange for 20 per cent of its gross written premium.
However, rising claims and increasing competition in the local market have put a cloud over the company's growth prospects, and will demand the full attention of the new boss.
IAG's net profit dropped 40 per cent in 2014/15 as Tropical Cyclone Marcia in Queensland and damaging storms in NSW pushed natural claim costs past $1 billion for the first time.
The company's share price has also fallen 21 per cent in 2015.
"The market's focus will be on how Mr Harmer steers IAG through the cyclical downturn to maintain growth and margins," Deutsche Bank analyst Kieren Chidgey said.
"The change also raises questions as to whether IAG will remain as strongly committed to its Asian growth strategy under the new CEO."
Mr Harmer said IAG is focused on building and strengthening its Asian platform.
It currently has a presence in China, India, Vietnam, Malaysia, Thailand and Indonesia, and expects to earn 10 per cent of the group's premium income from the region in 2015/16.
"If there are opportunities we will continue to invest in Asia," Mr Harmer told AAP.
"We are continually reviewing opportunities, but we will not lose our caution and discipline. It has to be the right opportunity at the right price."
Mr Harmer, a 36-year veteran of the insurance industry, said IAG will also continue to invest in digital technology to redesign customer processes.
IAG shares gained one cent to $4.98.
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