Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Investor Presentation (June 2011)
10 slides from Insurance Australia's investor presentation, Jun 14, 2011
Slide 1: Investor Briefing
2011 INVESTOR BRIEFING 14 June 2011 ABN 60 090 739 923
Slide 2: New Zealand: Accelerating growth in home markets
5 NEW ZEALAND Accelerating growth in home markets JACKI JOHNSON CHIEF EXECUTIVE OFFICER 45
Slide 3: New Zealand's largest general insurer
BUSINESS OVERVIEW NEW ZEALAND’S LARGEST GENERAL INSURER NEW ZEALAND • GWP NZ$1.2bn The largest general • More than 2,000 full time equivalent employees insurer in New Zealand, with a broad base across • Market share of approximately 33% three major channels • More than 1m customers and 2.6m items wr
Slide 4: A changing landscape
CURRENT MARKET ENVIRONMENT A CHANGING LANDSCAPE NEW ZEALAND Political • Introduction of Prudential Supervision Act • Opening of ACC workers’ account Customers and Businesses • Changing consumer demographics • SMEs still dominate the landscape with c.90% of businesses employing five or less • Financi
Slide 5: Christchurch earthquake impacts
CURRENT MARKET ENVIRONMENT CHRISTCHURCH EARTHQUAKE IMPACTS NEW ZEALAND Impact of Christchurch earthquakes (September 2010 and February 2011) • Combined estimated cost to insurance industry of over NZ$19bn • Australasia natural perils significantly increasing the cost of reinsurance • Financially dis
Slide 6: Delivered on our 2009 strategic priorities
OUR ACHIEVEMENTS DELIVERED ON OUR 2009 STRATEGIC PRIORITIES NEW ZEALAND Return on Risk • Established return on risk based capital as key driver for pricing decisions Based Capital • Exited under performing partnerships and products • Tactical pricing reviews for State, NZI and Business Partners Port
Slide 7: Improved outcomes evident in 2011
OUR ACHIEVEMENTS IMPROVED OUTCOMES EVIDENT IN 2011 NEW ZEALAND Insurance result (A$m) Customer advocacy 35 30 28 23 FY09 14 14 FY11 90 68 63 State NZI Business Partners Source: IAG and IBANZ surveys 17 Our people 88 (17) 1H09 2H09 1H10 2H10 1H11 84 83 FY09 81 FY11 Engagement Risk culture Source: Tow
Slide 8: Focus for the future: Strategy
FOCUS FOR THE FUTURE STRATEGY NEW ZEALAND PURPOSE 2015 “To be NZ’s insurer of choice by being the easiest to interact with” Return on Risk Based Capital DASHBOARD 2015 5.5/10 Customer advocacy $26.5/$100 efficiency Businesses & +1 policy per customer score of 50% rating households KEY STRATEGIC INIT
Slide 9: Key strategic initiatives
FOCUS FOR THE FUTURE KEY STRATEGIC INITIATIVES NEW ZEALAND Alignment of operating Differentiated capability Evolution of e-business Customer led systems + structure to deliver clarity + culture strategy processes and accountability 52
Slide 10: Positive momentum: Outlook
OUTLOOK POSITIVE MOMENTUM NEW ZEALAND Short term Long term • Strong underlying financial performance: • Continued financial performance: – Sustainable profitable growth – GWP growth will be driven by passing through increased reinsurance costs – Leading risk management – Ongoing focus on underwritin
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