Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Investor Presentation (June 2011)
9 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: United Kingdom: Restoring profitability
6 UNITED KINGDOM Restoring profitability IAN FOY CHIEF EXECUTIVE OFFICER 54
Slide 3: Largest Lloyd's Motor Syndicate
BUSINESS OVERVIEW LARGEST LLOYD’S MOTOR SYNDICATE UNITED KINGDOM EQUITY RED STAR (ERS) • Largest Lloyd’s personal lines syndicate • Diverse and broad based book ranging from fleets to classic cars • Distributes through selected 3rd party brokers who deliver over 80% of ERS volume • Remaining volume
Slide 4: Diversified GWP Mix
BUSINESS OVERVIEW DIVERSIFIED GWP MIX UNITED KINGDOM GWP PRODUCT MIX Remediation driving changed mix Fleet • Reduction in overall GWP as a result of remedial Private car broker action Private car direct (affinity motor) • Significant reduction in external broker-sourced Commercial motor standard pri
Slide 5: The Road Travelled
CURRENT MARKET ENVIRONMENT THE ROAD TRAVELLED UNITED KINGDOM Competition Economic • Aggregators continue to present a pricing challenge • Increased prevalence of fraud • Aggregators account for c.55% of new private motor business • Decline in investment returns • Private motor has become more commod
Slide 6: The Road Ahead
CURRENT MARKET ENVIRONMENT THE ROAD AHEAD UNITED KINGDOM Competition Economic • The need for market recovery will drive further rate increases • Interest rates are likely to rise • The UK market will grow by both volume and premium • Economic recovery may reduce recession driven fraud • Aggregators
Slide 7: Building the Fundamentals
OUR ACHIEVEMENTS BUILDING THE FUNDAMENTALS UNITED KINGDOM Immediate rate increases There are signs of recovery Exited unprofitable relationships however change takes time: Ceased writing non targeted external aggregators (non-bike) Underwriting Deep-dive review of all major classes of busine
Slide 8: Driving Forward
FOCUS FOR THE FUTURE DRIVING FORWARD UNITED KINGDOM Horizon 1: Accelerated Remediation Horizon 2: Re-focus Horizon 3: Sustainable Position CY2011 CY2012 Beyond • Redoubled our efforts • A return to our core strengths • Passionate about motor • Aggressive re-pricing across the portfolio • Deliver our
Slide 9: Return to Fundamentals
OUTLOOK RETURN TO FUNDAMENTALS UNITED KINGDOM Short term Long term • Strengthened senior leadership team • Improving market environment • Capable and passionate employees • Positive contribution to Group performance dedicated to restoring performance and profitability • 2010 and prior year accounts
Insurance Australia Group — Investor Presentation (June 2011) on 6ix