Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Merger or Acquisition (November 2024)
13 slides from Insurance Australia's merger presentation, Nov 28, 2024
Slide 1: Strategic Alliance with RACQ
Strategic Alliance with RACQ 28 November 2024 Investor Presentation | 28 November 2024 1
Slide 2: Important Information
Important Information This presentation contains general information current as at 28 November 2024 (unless otherwise from those expressed, anticipated or implied in such statements. For further information on some of stated) and is not a recommendation or advice in relation to any product or servic
Slide 3: Exclusive Strategic Alliance with RACQ
Exclusive Strategic Alliance with RACQ • IAG and RACQ have entered into an exclusive long-term partnership, which includes: ‒ Transfer of the RACQ Insurance (“RACQI”) entity and existing portfolio to IAG Transaction ‒ 25 years exclusive access to RACQ’s network for distribution of RACQ branded gener
Slide 4: Overview of RACQ and RACQI
Overview of RACQ and RACQI RACQ Strategic Vision Largest club in Queensland 119 years of operation “To be a trusted partner for our ~1.7m ~60% members, providing solutions to live and move safely, securely RACQ Group members of members with 10+ year membership and sustainably” Queensland position FY
Slide 5: A Compelling Strategic Alliance with RACQ
A Compelling Strategic Alliance with RACQ 1 2 3 4 5 6 Builds on IAG’s successful RACQI has a Attractive Queensland RACQ is a highly history with motoring complementary personal De-risked integration plan Strong financial outcomes economy trusted Queensland brand club partnerships lines portfolio • Q
Slide 6: Attractive Queensland Economy
1 Attractive Queensland Economy Queensland Market Key Statistics • Queensland is an attractive growth area in Australia in which IAG gross state product growth currently is underweight 2.1% (FY24) • Queensland economy has grown above pre-pandemic levels and continues to recover strongly post the COV
Slide 7: Builds on IAG's Successful History of Motoring Club Partnerships
2 Builds on IAG’s Successful History of Motoring Club Partnerships ~1.7m members ~2.5m members ~2.3m members NT WA High member penetration across all states QLD SA Market leading customer loyalty and engagement program that rewards loyalty and gives customers control of identification, consent a
Slide 8: RACQ is a Highly Trusted Queensland Brand
3 RACQ is a Highly Trusted Queensland Brand RACQ Group’s Reputation Leads Queensland Insurers RepTrak Q2’24 Benchmark Scores • Net promoter score of 681 #1 RACQ Group3 85.33 • Strong member services culture driving engagement #2 Insurer 2 76.4 • Retention rates of ~80% in the motor book and ~85% in
Slide 9: RACQI has a Complementary Personal Lines Portfolio
4 RACQI has a Complementary Personal Lines Portfolio RACQI GWP1 ($m) FY21 – 24 CAGR Portfolio Composition 1,308 Total: 15% Motor 32 • Largely consists of Comprehensive2 Other: 14% Motor products (~95%), with the remainder predominantly Third Party Property3 586 • Retention rate of ~80% Home: 21% Hom
Slide 10: De-Risked Integration Plan
5 De-Risked Integration Plan Pre-Completion Transactional, Operational Post-completion and Financial Activity (9-12 months) (0-24 months post-completion) • Regulatory and government engagement • Roll-out IAG’s Enterprise Platform to RACQ, reducing risk of technology integration • Develop detailed Da
Slide 11: Strong Financial Outcomes
6 Strong Financial Outcomes Financial Outcomes Pro-forma CET1 Multiple • Annual run rate synergy benefit expected to exceed $50m per annum, largely by adopting IAG’s reinsurance strategy • Reinsurance synergies expected to be realised in first full year 0.05 (0.01) (0.21) 1.12 • EPS accretion expect
Slide 12: In Summary: A Compelling Strategic Alliance with RACQ
In Summary: A Compelling Strategic Alliance with RACQ 1 Entry into an exclusive long-term partnership with RACQ 2 Greater exposure to an attractive Queensland economy 3 Builds on IAG’s successful history with motor club partnerships 4 Access to RACQ’s highly trusted brand and ~1.7m members 5 Reduced
Slide 13: Investor Relations
Investor Relations Mark Ley Nigel Menezes Mobile. +61 (0)411 139 134 Mobile. +61 (0)411 012 690 Email. mark.ley@iag.com.au Email. nigel.menezes@iag.com.au Media Amanda Wallace Mobile. +61 (0)422 379 964 Email. amanda.wallace@iag.com.au Insurance Australia Group Limited ABN 60 090 739 923 Level 13, T
Insurance Australia Group — Merger or Acquisition (November 2024) on 6ix