Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Shareholder Meeting (November 2009)
18 slides from Insurance Australia's shareholder meeting presentation, Nov 10, 2009
Slide 1: Insurance Australia Group Annual General Meeting 2009
For personal use only INSURANCE AUSTRALIA GROUP ANNUAL GENERAL MEETING 2009 Michael Wilkins Managing Director & Chief Executive Officer 10 November 2009
Slide 2: Refined Strategy Delivered
For personal use only 1 REFINED STRATEGY DELIVERED IMPROVED PERFORMANCE IN FY09
Slide 3: Group Strategy and Priorities
GROUP STRATEGY AND PRIORITIES For personal use only A CLEAR DIRECTION OUR Deliver superior performance by actively managing our portfolio STRATEGY and driving operational performance and execution OUR • Improve our performance in Australia and New Zealand PRIORITIES • Pursue selective general insura
Slide 4: Financial Performance Improved
FINANCIAL PERFORMANCE IMPROVED For personal use only A YEAR OF REBUILDING REVENUE INSURANCE PROFIT NET PROFIT AFTER TAX $7,793 m $7,842 m $600 7.1% 8.0% 7.0% $181m 5.4% 6.0% 5.0% $400 4.0% 3.0% 2.0% FY2008 FY2009 1.0% $200 0.0% FY2008 FY2009 FY2008 FY2009 -$261m FY2008 FY2009 Insurance profit ($m) I
Slide 5: Insurance Margin
INSURANCE MARGIN For personal use only VISIBLE IMPROVEMENT IN OPERATING PERFORMANCE Group Insurance Margin (FY09 vs. FY08) -0.3% +3.1% -2.6% +1.5% -0.7% 7.1% +0.7% 5.4% FY08 Reported Reserve Natural Perils Credit Spreads DAC/LAT Running Yield Operational FY09 Reported Margin Releases Improvement Mar
Slide 6: IAG Remains Well Capitalised
IAG REMAINS WELL CAPITALISED For personal use only BALANCE SHEET AND CAPITAL POSITION REMAIN STRONG • At 30 June 2009, minimum capital requirement increased to 1.79 times, reflecting: –$534m capital raising –Debt buyback –Revised dividend policy • Intent to remain overweight over medium term, reflec
Slide 7: Improvement Achieved in Challenging Environment
For personal use only 2 IMPROVEMENT ACHIEVED IN CHALLENGING ENVIRONMENT
Slide 8: Volatile Investment Markets
VOLATILE INVESTMENT MARKETS For personal use only CONSERVATIVE MIX AND HIGH CREDIT QUALITY MAINTAINED Group Investment Asset - $10.6b Group Fixed Interest & Cash - $10.0b Growth <"A" 6% 1% "A" 5% "AAA" 48% "AA" 46% Fixed Interest & Cash 94% Retained a conservative investment portfolio with 94% of in
Slide 9: Natural Perils
NATURAL PERILS For personal use only SIX OF AUSTRALIA’S WORST DISASTERS IN LAST THREE YEARS 2,500 Australia's major insurance losses 1974 - 2009 2,000 1,500 1,000 500 0 ey m s tle wi n es ey VI C ne or m ne rra LD ay ey rm s dn or as ar fir dn ba st ba be Q ck dn to y St w c D ria n y & i s i l i s
Slide 10: We're In It For The Long Haul
For personal use only 3 WE’RE IN IT FOR THE LONG HAUL
Slide 11: A Balanced Approach Across Five Dimensions
A BALANCED APPROACH ACROSS FIVE DIMENSIONS For personal use only TO ENSURE PROFITABLE LONG TERM SUSTAINABILITY PAGE 11
Slide 12: Sustainability Performance Remained Strong
SUSTAINABILITY PERFORMANCE REMAINED STRONG For personal use only DESPITE DIFFICULT INTERNAL AND EXTERNAL FACTORS EMPLOYEE CUSTOMER ENGAGEMENT 84% SATISFACTION 84 Direct personal lines customer Exceeded global financial satisfaction index level with the services companies’ previous year benchmark COM
Slide 13: Customer Experience
CUSTOMER EXPERIENCE For personal use only MEETING NEEDS AND BUDGETS PAGE 13
Slide 14: Sustainability Performance Globally Recognised
SUSTAINABILITY PERFORMANCE GLOBALLY RECOGNISED For personal use only HIGH RANKINGS RETAINED Ranked one of the A member of the Included in the Australia world’s most FTSE4Good Index and NZ Goldman Sachs sustainable since 2005 JBWere Climate companies for the Disclosure Leadership fourth year in a row
Slide 15: A Clear Direction for FY10
For personal use only 4 A CLEAR DIRECTION FOR FY10
Slide 16: Improvement Continues in 1Q
IMPROVEMENT CONTINUES IN 1Q For personal use only ON TRACK FOR FY10 GUIDANCE • Improvement continues in 1Q driven by: – Higher premiums, including earned effect of rate rises implemented in FY09 – Full benefit of operating efficiencies in Australia and ongoing cost control – Improved performance fro
Slide 17: Looking Further Ahead
LOOKING FURTHER AHEAD For personal use only A CLEAR DIRECTION OUR Deliver superior performance by actively managing our portfolio STRATEGY and driving operational performance and execution OUR • Improve our performance in Australia and New Zealand PRIORITIES • Pursue selective general insurance grow
Slide 18: IAG's Business Model and Brands
IAG’S BUSINESS MODEL AND BRANDS For personal use only DIRECT INTERMEDIATED ONLINE DIRECT DIRECT INTERMEDIATED 1 RACV is via a distribution INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE relationship and underwriting joint venture with RACV Limited 2 RACV has a 30% interest 2 3 3 49% own
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