Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Shareholder Meeting (October 2011)
20 slides from Insurance Australia's shareholder meeting presentation, Oct 26, 2011
Slide 1: Annual General Meeting 2011
ANNUAL GENERAL MEETING 2011 Mike Wilkins Managing Director & Chief Executive Officer 26 October 2011
Slide 2: Group Performance
GROUP PERFORMANCE Insurance Australia Group
Slide 3: Achievements Against Strategic Priorities
ACHIEVEMENTS AGAINST STRATEGIC PRIORITIES CREATING A SOLID PLATFORM STRATEGIC PRIORITES ACHIEVEMENTS 2008–2011 Improve our performance in Significantly improved collective insurance margin in Australia and New Zealand Australia and New Zealand Delivered strong Australia Direct performance Retu
Slide 4: FY11 Financial Performance
FY11 FINANCIAL PERFORMANCE SOLID PERFORMANCE IN CHALLENGING CONDITIONS 8,050 250 7,842 7,782 9.1 7.1 7.0 181 91 09 10 11 09 10 11 09 10 11 GROSS WRITTEN INSURANCE NET PROFIT PREMIUM ($M) MARGIN (%) AFTER TAX ($M) PAGE 4 4
Slide 5: Significant Natural Peril Activity
SIGNIFICANT NATURAL PERIL ACTIVITY REINSURANCE LIMITED NATURAL PERIL CLAIM COSTS 610 • Significant reinsurance protection in FY11, against 502 major events in Australia and New Zealand 463 451 • Status of catastrophe cover for balance of 411 calendar 2011: – Current maximum event retention (MER) of
Slide 6: Divisional Results: Home Markets Improved
DIVISIONAL RESULTS HOME MARKETS IMPROVED FY11 GWP 4 BUSINESS MIX 1 3 1 5 2 2 Australia Direct Australia Intermediated New Zealand United Kingdom Asia PAGE 6 6 1. 49% ownership of the general insurance arm of AmBank Group, AmG Insurance Berhad, trading under the AmAssurance brand. 2. 98% voting right
Slide 7: Australia and New Zealand
AUSTRALIA AND NEW ZEALAND IMPROVEMENT IN HOME MARKETS 1 • Collective insurance margin of 12.9% • Australia: − Strong performance maintained in Direct 2 Insurance − Top line growth restored and underlying turnaround continuing in CGU • New Zealand: − Earthquake affected insurance profit, but underlyi
Slide 8: Asia: Good Progress in India and China
ASIA GOOD PROGRESS IN INDIA AND CHINA • Established businesses (in Thailand and 1 3 Malaysia) continue to perform soundly • Expanded launch of Indian general 2 insurance joint venture • Strategic investment in China announced • Continue to pursue growth opportunities through partnerships in other em
Slide 9: United Kingdom
UNITED KINGDOM REDUCED 2H LOSS AS REMEDIATION ACTIONS TAKE HOLD • Market conditions remained challenging, with bodily injury claim inflation affecting UK motor insurance industry • Remediation plan accelerated to restore profitability − New management team − Aggressive rating action − Exiting unprof
Slide 10: Capital, Dividend and Investments
2 CAPITAL, DIVIDEND AND INVESTMENTS 10
Slide 11: IAG Remains Well Capitalised
IAG REMAINS WELL CAPITALISED CASH RETURN ON EQUITY AND FULL YEAR DIVIDEND UP 4,140 3,933 11.1 16 8.3 13 3,573 4.9 10 09 10 11 09 10 11 09 10 11 TOTAL CASH RETURN TOTAL REGULATORY ON EQUITY (%) DIVIDENDS CAPITAL ($M) (CPS) PAGE 11 11
Slide 12: Sound Investment Returns
SOUND INVESTMENT RETURNS GENERATED FROM CONSERVATIVE, HIGH QUALITY INVESTMENT MIX 554 213 489 $3.6bn Shareholders' funds 96 Technical reserves $8.3bn Shareholders’ funds Technical reserves 10 11 10 11 $11.9B TOTAL TECHNICAL SHAREHOLDERS’ INVESTMENT RESERVE FUNDS RETURNS PORTFOLIO RETURNS ($M) ($M) P
Slide 13: Sustainability Performance & Building Community Resilience
3 SUSTAINABILITY PERFORMANCE & BUILDING COMMUNITY RESILIENCE 13
Slide 14: Sustainability Performance Remained Strong
SUSTAINABILITY PERFORMANCE REMAINED STRONG DESPITE DIFFICULT INTERNAL AND EXTERNAL FACTORS EMPLOYEE CUSTOMER ENGAGEMENT 82% SATISFACTION 80 Direct insurance customer Up from 80% and exceeded global satisfaction across claims, financial services companies’ sales and service benchmark COMMUNITY CO2 IN
Slide 15: Building Community Resilience
BUILDING COMMUNITY RESILIENCE RECENT CATASTROPHES SHOW CRITICAL ROLE OF INSURANCE 15 © Newspix / Lyndon Mechielsen / John Wilson / Mark Mitchell
Slide 16: Reset Strategic Priorities and Outlook for FY12
4 RESET STRATEGIC PRIORITIES AND OUTLOOK FOR FY12 16
Slide 17: Resetting Our Strategic Priorities
RESETTING OUR STRATEGIC PRIORITIES A CLEAR FOCUS ON AUSTRALIA, NEW ZEALAND AND ASIA REALISING OUR POTENTIAL AMBITION STRATEGY TARGETS PRIORITIES • Accelerate growth in Australia To be the world’s Deliver superior Long term and New Zealand most respected performance by financial targets: group of gen
Slide 18: Strategic Priorities: A Platform for Delivery
STRATEGIC PRIORITIES A PLATFORM FOR DELIVERY STRATEGIC PRIORITIES ACTIONS 2011-2016 Accelerate growth in • Australia Direct: increase the value of existing customers and attract new customers using insights to meet evolving customer needs Australia and New Zealand • CGU: continue turnaround through
Slide 19: First Quarter Performance: FY12 Guidance Reaffirmed
FIRST QUARTER PERFORMANCE FY12 GUIDANCE REAFFIRMED 1Q performance • Encouraging GWP growth • Relatively benign natural perils experience • Adverse impact of volatile investment markets On track to deliver FY12 guidance: FY12 Insurance margin 10–12% GWP growth 6–9% Guidance for FY12 assumes over the
Slide 20: Our Business Model and Brands
OUR BUSINESS MODEL AND BRANDS PAGE 20 20
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