Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Shareholder Meeting (October 2012)
17 slides from Insurance Australia's shareholder meeting presentation, Oct 23, 2012
Slide 1: Annual General Meeting 2012
23 October 2012 ABN 60 090 739 923 For personal use only ANNUAL GENERAL MEETING 2012 Mike Wilkins Managing Director & Chief Executive Officer
Slide 2: Highlights: Guidance Delivered and Outlook Positive
HIGHLIGHTS GUIDANCE DELIVERED AND OUTLOOK POSITIVE For personal use only SOLID GROWTH Gross written premium (GWP) growth of 11.7%, above guidance Insurance margin of 10.6%, within guidance STRONG BUSINESS RESULT Continued strong performance from Australia Direct Further improvement from Aust
Slide 3: Financial Summary
FINANCIAL SUMMARY SIGNIFICANT UPLIFT ACROSS KEY MEASURES For personal use only FY11 FY12 CHANGE GWP ($M) 8,050 8,992 11.7% NET EARNED PREMIUM ($M) 7,238 7,843 8.4% INSURANCE PROFIT ($M) 660 832 26.1% REPORTED MARGIN (%) 9.1 10.6 150bps NET PROFIT AFTER TAX ($M) 250 207 -17.2% CASH NPAT ($M) 496 583
Slide 4: Progress Made on Strategic Priorities
PROGRESS MADE ON STRATEGIC PRIORITIES MOMENTUM BUILDING For personal use only 4
Slide 5: Australia Direct
AUSTRALIA DIRECT CONTINUED STRONG GROWTH For personal use only FY12 RESULT Strong GWP growth of 10.5% mainly in motor and home portfolios Reflects recovery of increased reinsurance costs as well as improved customer insights, marketing and enhanced customer experience Reported margin of 14.3%
Slide 6: Australia Intermediated (CGU)
AUSTRALIA INTERMEDIATED (CGU) CONTINUED IMPROVEMENT IN UNDERLYING PERFORMANCE For personal use only FY12 RESULT GWP growth of 12.0% through rate increases and acquisitions Reported insurance margin of 10.8% (FY11: 6.5%) Implementation of a new operating model making it easier for brokers to do
Slide 7: New Zealand
NEW ZEALAND STRONG RECOVERY CONTINUES For personal use only FY12 RESULT GWP growth of 26.6% Insurance margin of 10.4% (FY11:0.4%) AMI acquisition enhances our leading position in the market OUTLOOK Further GWP growth Improved underlying profitability including synergies from AMI integratio
Slide 8: Asia
ASIA ESTABLISHED BUSINESSES PERFORMING WELL For personal use only FY12 RESULT Established Malaysian and Thai businesses performing strongly at underlying level Developing businesses on track – SBI General growing rapidly – Acquisition of strategic interests in Bohai (China) and AAA Assurance (Vi
Slide 9: United Kingdom
UNITED KINGDOM CLOSE TO BREAKEVEN For personal use only FY12 RESULT Close to breakeven result Remedial plan delivering benefits with significant improvement in performance Strategic review underway, to be completed before the end of calendar year OUTLOOK Modest full year profit FY13 9
Slide 10: Capital, Dividend and Investments
For personal use only CAPITAL, DIVIDEND AND INVESTMENTS
Slide 11: Regulatory Capital
REGULATORY CAPITAL ROBUST POSITION, ABOVE LONG TERM BENCHMARK For personal use only REGULATORY CAPITAL CASH RETURN ON EQUITY TOTAL DIVIDENDS (MCR) (%) (CPS) 13 17 16 1.92 1.74 11 1.58 13 8 FY10 FY11 FY12 FY10 FY11 FY12 FY10 FY11 FY12 11
Slide 12: Investment Returns
INVESTMENT RETURNS AFFECTED BY VOLATILE MARKETS For personal use only TOTAL INVESTMENT TECHNICAL RESERVE SHAREHOLDERS’ FUNDS PORTFOLIO – $13.0BN RETURNS ($M) RETURNS ($M) 924 213 $3.6bn Technical Reserves 489 Shareholders' Funds 89 $9.4bn 88% of portfolio in fixed interest and cash FY11 FY12 FY11 FY
Slide 13: Creating Sustainable Business Outcomes
CREATING SUSTAINABLE BUSINESS OUTCOMES FOCUS ON DIVERSITY AND RESILIENT COMMUNITIES For personal use only 13
Slide 14: Sustainability Performance
SUSTAINABILITY PERFORANCE KEY INDICATORS REMAIN STRONG For personal use only BUSINESS CARBON VOLUME 16.1m NEUTRAL ▼ 30% Net zero greenhouse gas IAG has more than 16 million active emissions by cutting emissions by policies in force more than 30% since 2006 COMMUNITY EMPLOYEE INVESTMENT $9.7m TURNOVE
Slide 15: Outlook
For personal use only OUTLOOK
Slide 16: 1Q Results and FY13 Outlook
1Q RESULTS AND FY13 OUTLOOK MOMENTUM CONTINUING For personal use only 1Q PERFORMANCE On track to deliver full year guidance Strong underlying operating performance Realisation of business initiative benefits: – Implementation of CGU’s new operating model – Integration of AMI in New Zealand FY1
Slide 17: For personal use only
For personal use only 100% owned unless indicated. 1 RACV is via a distribution relationship and underwriting joint venture with RACV Limited. 2 IAG owns 30% of AAA Assurance Corporation, based in Vietnam. 3 IAG owns 20% of Bohai Property Insurance Company Ltd, based in China. 4 IAG owns 49% of the
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