Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — FY2025 Earnings Presentation
33 slides from Insurance Australia's earnings presentation, Aug 13, 2025
Slide 1: Financial Results
Financial Results Full year ended 30 June 2025 13 August 2025 This release has been authorised by the IAG Board IAG
Slide 2: Important information
Important information This presentation contains general information current as at 13 August 2025 (unless otherwise stated) and circumstances to differ materially from those expressed, anticipated or implied in such statements. For is not a recommendation or advice in relation to any product or serv
Slide 3: Introduction
Nick Hawkins Managing Director and Chief Executive Officer Introduction IAG
Slide 4: Acknowledgement of Country
Acknowledgement of Country IAG acknowledges Traditional Owners of of Country Country throughout throughout Australia Australia and and recognises the continuing connection to to lands, lands, waters waters and and communities. communities. We pay our respect to Aboriginal and Torres Strait Islander
Slide 5: FY25 summary - Disciplined execution of strategy
FY25 summary - Disciplined execution of strategy Supported customers Strong financial Growth Strong capital & communities outcomes momentum position NPAT customer policies $10.2bn claims paid FY24: >5m Efficient capital $1,359m $898m on Retail Enterprise Platform platform Customer Australia NZ GWP +
Slide 6: Financial summary
Financial summary FY24 FY25 Change GWP ($m) 16,400 17,106 4.3% NEP ($m) 9,244 9,984 8.0% Administration expense ratio ex-levies (%) 11.9 12.2 30bps Reported insurance profit ($m) 1,438 1,743 21.2% Reported insurance margin (%) 15.6 17.5 190bps Underlying insurance profit ($m) 1,337 1,542 15.3% Under
Slide 7: Direct customer growth momentum
Direct customer growth momentum Retail growth initiatives and metrics IAG Direct Customers AUSTRALIA NEW ZEALAND (‘000) +45 +54 6,340 tNPS tNPS 6,320 Strong Motor Home Strong Mid across Motor renewal rates ~90% ~95% renewal rates 90s and Home 6,300 6,280 ~4m policies on Retail Enterprise Platform ~1
Slide 8: Retail Insurance Australia
Retail Insurance Australia Underlying GWP ($m)1 Underlying insurance profit ($m) Reported insurance profit ($m) Operational highlights • Significant improvement in customer +7.3% experience via enterprise platform • Simple claims settled faster 8,729 809 791 • Online quote times reduced 30% 8,137 wi
Slide 9: New Zealand Retail
New Zealand Retail Operational highlights GWP (NZ$m) Underlying insurance profit ($m) Reported insurance profit ($m) • Expanded AMI MotorHub to 10 sites, +5.3% delivering improved customer satisfaction and ~20% lower costs 2,361 382 2,242 • 36% of claims lodged digitally, reduction in customer touch
Slide 10: Intermediated Insurance Australia
Intermediated Insurance Australia Operational highlights GWP ($m) Underlying insurance profit ($m) Reported insurance profit ($m) • NPS improvement of 6pts from FY24 +6.3% (44.8) to FY25 (50.8) driven by: 4,550 • Investment in claims 334 4,282 328 • Improvement in service and delivery 308 propositio
Slide 11: New Zealand Intermediated
New Zealand Intermediated Operational highlights GWP (NZ$m) Underlying insurance profit ($m) Reported insurance profit ($m) • Retained 33 of 34 large accounts -2.6% during recent renewals 1,861 • NZI went live with digital lodgement 1,812 224 for Onesurance motor claims through 210 Gallagher • Exclu
Slide 12: Financials
William McDonnell Chief Financial Officer Financials IAG
Slide 13: Solid top-line growth
Solid top-line growth Reported FY25 GWP growth of 4.3%: Underlying Group GWP growth (%) • Growth of 7.7% in RIA’s direct business with positive customer and unit momentum 5.2 • Strong renewal rates for direct channels in Australia and -0.4 0.3 1.0 New Zealand 4.3 • Challenging commercial conditions
Slide 14: Increased underlying insurance margin
Increased underlying insurance margin Underlying insurance margin improved to Underlying insurance margin (%) 15.5% (FY24: 14.5%): • Increased perils allowance to $1,283m (FY24: $1,098m) 15.5 14.5 -0.4 -0.2 • 260bps underlying claims ratio improvement 2.6 -1.0 • Expense ratio increase to 23.8% (FY24
Slide 15: Favourable perils experience and strong reinsurance protection
Favourable perils experience and strong reinsurance protection FY25 net perils costs of $1,088m, $195m below allowance Reinsurance expense and profit commission • Favourable perils experience in 1H25 with 2H25 perils broadly in line with allowance (adverse in Australia, benign in New Zealand). +18.8
Slide 16: Improvement in underlying claims ratio
Improvement in underlying claims ratio Drivers of 260bps improvement in Underlying claims ratio (%) underlying claims ratio -260bps • Earn through of prior year rate increases 55.6 54.7 54 • Moderating motor inflation, partially offset by impact 52.6 51.6 52.1 of higher theft and third-party credit
Slide 17: Investment in growth and transformation activities
Investment in growth and transformation activities FY25 admin ratio ex-levies 30bps increase Administration ratio ex-levies (%) compared to FY24 • Administration expenses ex-levies up 8.6% due to 11.9 12.2 ~11.6 additional investments in growth and transformation <11 • Growth initiatives, including
Slide 18: Strong investment result across all asset classes
Strong investment result across all asset classes Technical reserves income Shareholders’ funds income Technical reserves (~$7.5bn portfolio) (~$6bn portfolio) • Strong contribution of $464m which included the benefit of the decline in the risk-free rate 464 403 456 • FY25 underlying yield of 5.3% 2
Slide 19: Strong CET1 capital position
Strong CET1 capital position 1.42 -0.03 -0.04 1.47 Strong capital position above target range 0.23 -0.11 • Strong 2H25 NPAT • Software capitalisation impact reflects ongoing Enterprise Platform investment 0.9 to 1.1 CET1 target range • Risk charges increase from elevated investment assets and lower
Slide 20: Indicative pro-forma CET1 ratio reflecting RACQ Insurance and RAC Insurance acquisitions
Indicative pro-forma CET1 ratio reflecting RACQ Insurance and RAC Insurance acquisitions 1.47 ~0.05-0.1 1.40 -0.17 -0.21 0.26 -0.40 1.09 1.00 0.9 to 1.1 CET1 target range Jun-25 FY25 final RACQI Jun-25 Consensus FY26 Other expected Jun-26 RACI Jun-26 dividend acquisition (post-RACQ and organic capit
Slide 21: Guidance & Outlook
Nick Hawkins Managing Director and Chief Executive Officer Guidance & Outlook IAG
Slide 22: FY26 guidance
FY26 guidance1 GWP growth of ‘low-to-mid single digit’ Excluding the benefit of RACQI and RACI acquisitions, IAG expects Reported insurance profit of $1,450m to $1,650m, This reflects premium increases that cover moderating claims roughly equating to a reported insurance margin of inflation combined
Slide 23: Transaction and comprehensive integration plans
Transaction and comprehensive integration plans Leading member organisations Value creation pathway Integration phases & expected timing # members (~m) 1.7 1.3 FY24 GWP ($bn) 1.3 1.3 Regulatory Completion Reinsurance Claims Operational NPS (#) 68 66 Approval synergies synergies synergies ~6-18 month
Slide 24: IAG supporting ~10m customers with leading brands across Australia & New Zealand
IAG supporting ~10m customers with leading brands across Australia & New Zealand Annual GWP of ~$21bn Retail ~$14.5bn Intermediated ~$6.5bn Direct Partner Australia New Zealand Australia New Zealand Australia New Zealand Building connected customers (NRMA Road & Motoring Providing leading insurance
Slide 25: Slide 25
Slide 26: Investor Relations and Media contacts
Investor Relations Media Insurance Australia Group Limited Mark Ley Amanda Wallace ABN 60 090 739 923 M: +61 (0)411 139 134 M: +61 (0)422 379 964 Level 9, Tower Two, 201 Sussex Street E: mark.ley@iag.com.au E: amanda.wallace@iag.com.au Sydney NSW 2000 Australia Ph: +61 (0)2 9292 9222 Nigel Menezes M
Slide 27: Appendix 1. Group Profit & Loss
Appendix 1. Group Profit & Loss 1H24 2H24 1H25 2H25 FY24 FY25 GROUP RESULTS A$m A$m A$m A$m A$m A$m Gross written premium 7,947 8,453 8,426 8,680 16,400 17,106 Gross earned premium 7,550 7,875 8,366 8,408 15,425 16,774 Reinsurance expense (3,054) (3,127) (3,436) (3,354) (6,181) (6,790) Net earned pr
Slide 28: Appendix 2. Group Insurance Ratios
Appendix 2. Group Insurance Ratios Insurance Ratios 1H24 2H24 1H25 2H25 FY24 FY25 Loss ratio 69.1% 62.9% 61.6% 65.0% 65.9% 63.4% Immunised loss ratio 68.5% 63.7% 61.3% 64.1% 66.0% 62.7% Expense ratio 23.7% 23.2% 23.6% 24.1% 23.4% 23.8% Commission ratio 9.3% 9.3% 9.2% 9.0% 9.3% 9.1% Administration ra
Slide 29: Appendix 3. RIA Profit & Loss and Insurance Ratios
Appendix 3. RIA Profit & Loss and Insurance Ratios 1H24 2H24 1H25 2H25 FY24 FY25 RETAIL INSURANCE AUSTRALIA A$m A$m A$m A$m A$m A$m Gross written premium 4,058 4,264 4,305 4,444 8,322 8,749 Gross earned premium 3,769 3,999 4,242 4,302 7,768 8,544 Reinsurance expense (1,486) (1,568) (1,729) (1,731) (
Slide 30: Appendix 4. IIA Profit & Loss and Insurance Ratios
Appendix 4. IIA Profit & Loss and Insurance Ratios 1H24 2H24 1H25 2H25 FY24 FY25 INTERMEDIATED INSURANCE AUSTRALIA A$m A$m A$m A$m A$m A$m Gross written premium 2,025 2,257 2,233 2,317 4,282 4,550 Gross earned premium 2,072 2,080 2,225 2,189 4,152 4,414 Reinsurance expense (840) (817) (895) (834) (1
Slide 31: Appendix 5. NZ Profit & Loss and Insurance Ratios
Appendix 5. NZ Profit & Loss and Insurance Ratios 1H24 2H24 1H25 2H25 FY24 FY25 NEW ZEALAND A$m A$m A$m A$m A$m A$m Gross written premium 1,864 1,932 1,887 1,920 3,796 3,807 Gross earned premium 1,709 1,796 1,898 1,918 3,505 3,816 Reinsurance expense (728) (742) (812) (789) (1,470) (1,601) Net earne
Slide 32: Appendix 6. NZ Retail Profit & Loss and Insurance Ratios
Appendix 6. NZ Retail Profit & Loss and Insurance Ratios 1H24 2H24 1H25 2H25 FY24 FY25 NEW ZEALAND RETAIL A$m A$m A$m A$m A$m A$m Gross written premium 1,034 1,041 1,067 1,087 2,075 2,154 Gross earned premium 919 959 1,057 1,080 1,878 2,137 Reinsurance expense (368) (375) (428) (417) (743) (845) Net
Slide 33: Appendix 7. NZ Intermediated Profit & Loss and Insurance Ratios
Appendix 7. NZ Intermediated Profit & Loss and Insurance Ratios 1H24 2H24 1H25 2H25 FY24 FY25 NEW ZEALAND INTERMEDIATED A$m A$m A$m A$m A$m A$m Gross written premium 830 891 820 833 1,721 1,653 Gross earned premium 790 837 841 838 1,627 1,679 Reinsurance expense (360) (367) (384) (372) (727) (756) N
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