Insurance Australia Group Ltd · ASX:IAG

Insurance Australia — Shareholder Meeting (October 2013)

14 slides from Insurance Australia's shareholder meeting presentation, Oct 30, 2013

  1. Slide 1: Annual General Meeting 2013

    30 October 2013 ABN 60 090 739 923 ANNUAL GENERAL MEETING 2013 Mike Wilkins Managing Director & Chief Executive Officer

  2. Slide 2: FY13 Highlights: Strong Result and Positive Outlook

    FY13 HIGHLIGHTS STRONG RESULT AND POSITIVE OUTLOOK STRONG GROWTH  Gross written premium (GWP) growth of 11.8%  Insurance margin of 17.2% IMPROVED UNDERLYING  Continued strong performance from Australia Direct PERFORMANCE  Double digit underlying margin from Australia Intermediated (CGU)  Sound

  3. Slide 3: FY13 Financial Summary

    FY13 FINANCIAL SUMMARY SIGNIFICANT UPLIFT ACROSS ALL KEY MEASURES FY12 FY13 CHANGE GWP ($M) 8,495 9,498 11.8% NET EARNED PREMIUM ($M) 7,346 8,318 13.2% INSURANCE PROFIT ($M) 845 1,428 69% REPORTED MARGIN (%) 11.5 17.2 570bps NET PROFIT AFTER TAX ($M) 207 776 275% CASH NPAT ($M) 583 1,156 98% DIVIDEN

  4. Slide 4: Australia Direct Continues to Perform Strongly

    AUSTRALIA DIRECT CONTINUES TO PERFORM STRONGLY FY13 RESULT  GWP growth of 6.6%  Growth in all states and most product classes  Reported margin of 19.7% (FY12:14.3%) boosted by lower peril costs and favourable credit spreads  Strong underlying margin of 13.5% OUTLOOK 1  Further GWP growth  High

  5. Slide 5: Australia Intermediated (CGU) Delivers Underlying Double Digit Margin

    AUSTRALIA INTERMEDIATED (CGU) DELIVERS UNDERLYING DOUBLE DIGIT MARGIN FY13 RESULT  Strong GWP growth of 9.7% through rate increases and volume  Significantly improved underlying margin of 11.2%  Benefits of new operating model – cost savings close to $30m OUTLOOK  Ongoing GWP growth  Improving

  6. Slide 6: New Zealand Maintains Strong Underlying Performance

    NEW ZEALAND MAINTAINS STRONG UNDERLYING PERFORMANCE FY13 RESULT  GWP growth of 30.2%, including full year of AMI  Strong underlying margin of 11.1%  AMI integration tracking to plan OUTLOOK  Further GWP growth  Maintenance of strong underlying profitability Annual General Meeting 2013 6

  7. Slide 7: Asia Moving from Development to Delivery

    ASIA MOVING FROM DEVELOPMENT TO DELIVERY FY13 RESULT  GWP now around 7% of Group  Small profit for division – First full year of China and Vietnam – Rapid GWP growth in India – Integration of Kurnia OUTLOOK  Building operational momentum  Opportunities in Indonesia under consideration Annual Gen

  8. Slide 8: Regulatory Capital: Robust Position, Above Long Term Benchmark

    REGULATORY CAPITAL ROBUST POSITION, ABOVE LONG TERM BENCHMARK REGULATORY CAPITAL CASH RETURN ON EQUITY TOTAL DIVIDENDS 30 June 2013 (%) (CPS) 36 25 PCA CET1 13 17 16 11 1.67 1.09 FY11 FY12 FY13 FY11 FY12 FY13 Targeted benchmark range Annual General Meeting 2013 8

  9. Slide 9: Investment Returns Affected by Volatile Markets

    INVESTMENT RETURNS AFFECTED BY VOLATILE MARKETS TOTAL INVESTMENT TECHNICAL RESERVE SHAREHOLDERS’ FUNDS PORTFOLIO – $13.6BN RETURNS ($M) RETURNS ($M) 914 347 $4.2bn 270 89 $9.4bn Technical Reserves Shareholders' Funds FY12 FY13 FY12 FY13 Annual General Meeting 2013 9

  10. Slide 10: Realising Opportunities for Our People

    REALISING OPPORTUNITIES FOR OUR PEOPLE FOCUS ON TALENT AND DIVERSITY Annual General Meeting 2013 10

  11. Slide 11: Leaders in Risk: Creating Safer & More Resilient Communities

    LEADERS IN RISK CREATING SAFER & MORE RESILIENT COMMUNITIES Annual General Meeting 2013 11

  12. Slide 12: Sustainability Performance: Key Indicators Remain Strong

    SUSTAINABILITY PERFORMANCE KEY INDICATORS REMAIN STRONG BUSINESS VOLUME 16.1m CARBON NEUTRAL IAG has more than 16 million active Maintained our carbon neutral policies in force position COMMUNITY RECONCILIATION ACTION PLAN INVESTMENT $11.1m Increased from last year’s $9.7m Supporting indigenous comm

  13. Slide 13: FY14 Outlook: Continued Strong Performance

    FY14 OUTLOOK CONTINUED STRONG PERFORMANCE YEAR TO DATE PERFORMANCE  On track to deliver full year guidance  Strong underlying operating performance  Continued focus on strategic priorities FY14 guidance Insurance margin 12.5–14.5% GWP growth 5–7% Guidance for FY14 assumes net losses from natural

  14. Slide 14: Annual General Meeting 2013

    100% owned unless indicated. 1 RACV is via a distribution relationship and underwriting joint venture with RACV Limited. 2 IAG has a 98.6% beneficial interest in Safety Insurance, based in Thailand. 3 IAG owns 49% of the general insurance arm of Malaysian-based AmBank Group, AmGeneral Holdings Berha

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