Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Investor Presentation (June 2011)
13 slides from Insurance Australia's investor presentation, Jun 14, 2011
Slide 1: Investor Briefing 2011
2011 INVESTOR BRIEFING 14 June 2011 ABN 60 090 739 923
Slide 2: Group Overview
1 GROUP OVERVIEW MIKE WILKINS MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER 3
Slide 3: IAG's Business Today
IAG’S BUSINESS TODAY GROUP GEOGRAPHICAL PRESENCE OVERVIEW 1 A portfolio of general insurance businesses: • Leading and established brands in Australia and New 2 Zealand • Growing presence in Asia 3 4 • Specialist motor underwriter in the UK 5 1. 49% ownership of AmG Insurance, trading under the AmAs
Slide 4: Diversified GWP Mix – Product, Geography and Channel
IAG’S BUSINESS TODAY GROUP DIVERSIFIED GWP MIX – PRODUCT, GEOGRAPHY AND CHANNEL OVERVIEW PRODUCT MIX REGIONAL MIX CHANNEL MIX Approximately $8bn of gross written premium Motor Australia Direct Home New Zealand Broker / agent Short tail commercial UK Affinity CTP / motor liability Asia Liability Othe
Slide 5: Corporate Strategy – Set July 2008
CORPORATE STRATEGY – SET JULY 2008 GROUP CREATING A SOLID PLATFORM OVERVIEW • Improve our performance in Australia and New Zealand OUR • ROE 1.5x WACC TARGETS • Pursue selective • Top quartile TSR international growth options – Asia and other OUR narrow specialist opportunities STRATEGIC • Deliver
Slide 6: Achievements Against Strategic Priorities
ACHIEVEMENTS AGAINST STRATEGIC PRIORITIES GROUP CREATING A SOLID PLATFORM OVERVIEW STRATEGIC PRIORITES ACHIEVEMENTS Improve our performance in Significantly improved collective insurance margin in Australia and New Zealand Australia and New Zealand Delivered strong Australia Direct performance
Slide 7: Clear Operational Improvement Delivered
CLEAR OPERATIONAL IMPROVEMENT DELIVERED GROUP GROUP INSURANCE MARGIN – 1H09 TO 1H11 OVERVIEW GROUP INSURANCE PROFIT ($M) / MARGIN (%) Significant 500 480 9 12.7% improvement in 460 Group 440 420 underwriting 400 380 172 performance 360 340 320 300 2 280 470 260 42 240 6.2% 23 220 200 180 160 227 140
Slide 8: Home Markets Driving Improvement
HOME MARKETS DRIVING IMPROVEMENT GROUP DIVISIONAL INSURANCE PROFIT – 1H09 TO 1H11 OVERVIEW GROUP INSURANCE PROFIT ($M) / MARGIN (%) Australia and 700 New Zealand 680 660 640 driving the 620 600 580 560 107 Group’s financial 540 520 500 198 improvement 480 29 12.7% 460 161 12 440 12.7% 420 400 380 36
Slide 9: Delivering Strong Results in Home Markets
DELIVERING STRONG RESULTS IN HOME MARKETS GROUP MARKED IMPROVEMENT SINCE JULY 2008 OVERVIEW Clear trend of top line growth and improved profitability in Australia and New Zealand AUSTRALIA AND NEW ZEALAND AUSTRALIA AND NEW ZEALAND GROSS WRITTEN PREMIUM ($M) $m INSURANCE PROFIT AND MARGIN 17.8% 700 1
Slide 10: Remediating to Create a Solid Platform
RESETTING OUR CORPORATE STRATEGY GROUP A PLATFORM FOR DELIVERY OVERVIEW 2008 2011 2011 2016 REMEDIATING TO REALISING OUR CREATE A SOLID POTENTIAL PLATFORM 11
Slide 11: Resetting Our Strategic Priorities
RESETTING OUR STRATEGIC PRIORITIES GROUP A CLEAR FOCUS ON AUSTRALIA, NEW ZEALAND AND ASIA OVERVIEW REALISING OUR POTENTIAL AMBITION STRATEGY TARGETS PRIORITIES Deliver superior Accelerate growth in Australia and To be the world’s Long term performance by New Zealand most respected financial targets:
Slide 12: Shaping Our Operating Environment
SHAPING OUR OPERATING ENVIRONMENT GROUP INFLUENCING OUR INDUSTRY’S FUTURE OVERVIEW Active involvement in policy and regulatory consultation Addressing flood insurance issues in Australia • Stricter and more transparent planning and zoning decisions • Accurate and accessible digital elevation mapping
Slide 13: FY11 Guidance
FY11 GUIDANCE GROUP UPDATE OVERVIEW • Too early to assess impact of Christchurch FY11 GUIDANCE* earthquakes on 13 June 2011 • Prior to 13 June 2011, on track to deliver insurance Insurance margin* 8–10% margin within 8–10% guidance range: – Ongoing strong underlying performance from the Underlying G
Insurance Australia Group — Investor Presentation (June 2011) on 6ix