Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Morgan Stanley Insurance Forum (April 2013)
13 slides from Insurance Australia's conference presentation, Apr 11, 2013
Slide 1: ASX cover letter: Presentation to the Morgan Stanley Insurance Forum
11 April 2013 For personal use only Manager, Company Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, Insurance Australia Group Limited (‘IAG’) Presentation to the Morgan Stanley Insurance Forum Please find attached a copy of a presentation e
Slide 2: Looking forward with confidence: CGU Insurance update
For personal use only Looking forward with confidence CGU Insurance update Peter Harmer Chief Executive Officer, CGU Insurance Australia Group 11 April 2013 Morgan Stanley Insurance Forum
Slide 3: Important Information
IMPORTANT INFORMATION For personal use only This presentation contains general information in summary form which is current as at 11 April 2013. It presents financial information on both a statutory basis (which has been prepared in accordance with Australian accounting standards, which comply with
Slide 4: CGU Business Overview: A Diverse Well-Balanced Portfolio
CGU BUSINESS OVERVIEW A DIVERSE WELL-BALANCED PORTFOLIO • For personal use only ~$3bn GWP per annum – over 30% of IAG’s GWP • ~8% of total Australian general insurance market, ~14% of Australian intermediated • Nationwide coverage, with strong presence in SME and rural segments DISTRIBUTION CHANNELS
Slide 5: 1H13 Results Recap: Strong Underlying Performance, Positive Momentum
1H13 RESULTS RECAP STRONG UNDERLYING PERFORMANCE, POSITIVE MOMENTUM For personal use only UNDERLYING INSURANCE MARGIN • GWP growth of 7.7% 10.7% o Improved momentum, ex-acquisitions 7.5% 5.1% 5.8% • Significantly improved underlying margin of 10.7% 0.4% o Flow through of rate increases -0.9% FY08 FY
Slide 6: Market Dynamics: Taking a Leadership Position in a Competitive Market
MARKET DYNAMICS TAKING A LEADERSHIP POSITION IN A COMPETITIVE MARKET For personal use only • Intermediated insurance market remains competitive, Personal Lines and pricing behaviour appears rational • Home rates continue to harden, especially in • CGU has taken a leadership position on sustainable
Slide 7: oneCGU Update: New Operating Model Has Created a Solid Foundation
oneCGU UPDATE NEW OPERATING MODEL HAS CREATED A SOLID FOUNDATION TO BUILD ON For personal use only On track to deliver key commitments: Financial Broker & Agency Institutions Motor Dealers • Double digit underlying insurance margin & Affinity • Expense savings: o Initial $25m pre-tax in FY13 One und
Slide 8: The CGU Journey: Looking Forward with Confidence
THE CGU JOURNEY LOOKING FORWARD WITH CONFIDENCE For personal use only Differentiation and competitive advantage Active portfolio management – Improved financial performance exposure / mix More aspirational goals Portfolio remediation Profitable growth Rebuild core competencies New on
Slide 9: 2016 Strategy: Building on Momentum
2016 STRATEGY BUILDING ON MOMENTUM For personal use only • Strategy focused on creating competitive advantage through Margin partnerships and improved service Double digit underlying • Building on current strategic positioning – focus is on next margin through the cycle performance horizon, and sett
Slide 10: People Excellence: Strong Leadership
PEOPLE EXCELLENCE STRONG LEADERSHIP For personal use only • Effective leadership, including change management capability, has been integral to the success of the oneCGU operating model • The company has invested heavily in leadership development of its existing talent • CGU has also been successful
Slide 11: Operational Excellence: Process Optimisation
OPERATIONAL EXCELLENCE PROCESS OPTIMISATION For personal use only • Internal efficiency & effectiveness program in FY12 delivered significant savings, which were largely reinvested back into technology projects • Opportunity to further improve partner and customer experiences and reduce costs throug
Slide 12: Information and Technology Excellence: Upgrading Core Technology
INFORMATION AND TECHNOLOGY EXCELLENCE UPGRADING CORE TECHNOLOGY For personal use only • CGU has a significant investment program to upgrade core technology and create more flexible and cost-effective systems • Guidewire ‘ClaimsCentre’ successfully implemented for personal and commercial insurance cl
Slide 13: Conclusion
CONCLUSION • 1H13 results demonstrate improved underlying performance and positive momentum For personal use only • CGU is taking a leadership position in a competitive market • oneCGU operating model is progressing well and is on track to deliver on commitments around savings and implementation cos
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