Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Investor Day (June 2023)
6 slides from Insurance Australia's investor day presentation, Jun 14, 2023
Slide 1: Michelle McPherson, Chief Financial Officer: CFO Update
Michelle McPherson Chief Financial Officer 06 Investor Day | 14 June 2023 CFO Update
Slide 2: CFO update
CFO update Deeper dive into capital, reinsurance and expense base Capital Platform Reinsurance Cost base AASB17 • Strong capital base built • Impact of reinsurance • Gross operating • Will apply from 1 July on equity, hybrid and program on perils cost trajectory 2023 reinsurance allowance and capita
Slide 3: Capital platform
Capital platform Reinsurance Equity Debt / hybrid • Catastrophe and earnings • Capital management options • Hybrid securities volatility covers • Ongoing on-market buyback • Subordinated term notes • Unique quota share arrangements Quota share arrangements 01/01/2023 Hannover Re 2.5% 30/06/2023 Expe
Slide 4: Impact of global reinsurance market changes
Impact of global reinsurance market changes Gross catastrophe reinsurance Gross catastrophe reinsurance program at 1 Jan 2020 Comparison of 2023 program to 2020 program program at 1 Jan 2023 $m $m 10,000 10,000 ~$220m ~$135m $196m Reinsurance Perils Capital - ICRC program cost allowance1 Main Catast
Slide 5: Cost base
Group expenses Cost base 2,503 2,531 ~$2.5bn ~$2.5bn gross operating cost target achieved 12.7 12.7 ~12 in FY21 and FY22, and on track for FY23 Expected increase in gross operating costs from FY24. Drivers of cost uplift include: FY21 FY22 FY23 FY24 FY25 • Wage inflation pressure Gross operating cos
Slide 6: AASB17
AASB17 AASB17 will NOT impact our capital or solvency requirements or business strategy Onerous Financial impact Timing Measurement Capital & contracts Impacts the timing of Applies from 1 July approach Balance Sheet Testing at a more recognition, 2023 Premium Allocation Cost of capital measurement