Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Corporate Update (June 2024)
15 slides from Insurance Australia's corporate update, Jun 28, 2024
Slide 1: Market update
Market update 28 June 2024
Slide 2: Important information
Important information This presentation contains general information current as at 28 June 2024 (unless otherwise stated) and is events causing losses to exceed forecasts, and uncertainties in the Australian and global economic not a recommendation or advice in relation to any product or service off
Slide 3: Agenda
IAG Market Update Agenda 01 Financial update Nick Hawkins 02 Strategic recap Nick Hawkins 03 Operational update Nick Hawkins 04 Capital and Balance Sheet William McDonnell 05 Reinsurance transactions William McDonnell 06 Financial outcomes Nick Hawkins Nick Hawkins 07 Q&A William McDonnell 3 Market
Slide 4: 1. Financial update
1. Financial update FY24 Reported Insurance Profit and Margin expected to be around the upper end of guidance1 ranges Reported Insurance Profit Expected to be around the upper end of the $1,200m to $1,450m guidance range based on June perils experience in line with seasonal expectation, resulting in
Slide 5: 2. Strategic recap
2. Strategic recap We make your world Create a stronger, Our people are the difference: bringing our Purpose a safer place Strategy more resilient IAG People purpose to life and delivering our strategy Focus Achieved Grow with our Enterprise Platform successfully being rolled out across IAG deliveri
Slide 6: 2. Strategic recap
2. Strategic recap Trusted direct and partner brands powered by enhanced technology and efficient capital platform Retail Broker/Intermediated Direct Partner Broker Tied Agent Australia New Zealand Powered by Enterprise Platform Powered by Commercial Enablement Efficient Capital Platform 6 Market up
Slide 7: 3. Operational Update - Enterprise Platform delivery for our retail business
3. Operational Update - Enterprise Platform delivery for our retail business Modern policy and pricing technology successfully being rolled out, building on the delivered claims platform ON TRACK Initial go live EP capability enabled Large brands Re-use base and switch on Benefits for all divisions
Slide 8: 4. Capital and Balance Sheet
4. Capital and Balance Sheet Lower volatility reduces capital requirements Capital approach Outcomes • Strong capital targets based on regulatory requirements • Comprehensive reinsurance program with multiple components: • Successful hybrid capital issues • Prudent balance sheet and capital manageme
Slide 9: 5. Reinsurance transactions
5. Reinsurance transactions Long-term perils volatility protection Financial and capital impacts Agreement details • Unique long-term deal to provide additional protection against increasing severity and frequency of perils events • Up to $680 million of protection per • Expected reduction in regula
Slide 10: 5. Reinsurance transactions
5. Reinsurance transactions Simplified structure of long-term perils protection FY24 program structure Program structure for the next five years2 All covers places to 67.5% reflecting quota share arrangements $m $m 10,500 10,500 All natural perils including: Major catastrophe protection Main Catastr
Slide 11: 5. Reinsurance transactions
5. Reinsurance transactions Adverse Development Cover Agreement details Financial and capital impacts • $650 million of protection against adverse movement • Significant protection against potential deterioration in $2.5 billion long-tail reserves of long-tail reserves • Includes cover for molestati
Slide 12: 5. Reinsurance transactions
5. Reinsurance transactions Capital Benefit 0.9 to 1.1 CET1 target range 12 Market update
Slide 13: 6. Financial outcomes
6. Financial outcomes Greater stability with Reported Insurance Margin ‘through the cycle’ target maintained at 15%, expected to deliver increased ROE ‘through the cycle’ target of 14% to 15%1 22% 20% Upside potential in the event of low perils experience 18% 16% Annual margin 15% reported margin 't
Slide 14: 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 Insurance Australia Group Limited ABN 60 090 739 923 Level 13, Tower Two, 201 Sussex Street Sydney NSW 2000 Australia Ph: +61 (0)2 9292 9222 14 M
Slide 15: Appendix 1: FY24 Guidance and Outlook
Appendix 1: FY24 Guidance and Outlook IAG’s confidence in the strength of its underlying business is The FY24 guidance aligns to IAG’s aspirational goals to deliver a reflected in FY24 guidance which remains: 15% insurance margin and a reported ROE of 13% to 14% on a • GWP growth of ‘low double digi
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