Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — UBS FIG Conference 2005
11 slides from Insurance Australia's conference presentation, Jun 22, 2005
Slide 1: Presentation to UBS FIG Conference - ASX cover letter
22 June 2005 Manager, Company Announcements Office Australian Stock Exchange Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INSURANCE AUSTRALIA GROUP LIMITED (‘IAG’} Presentation to UBS FIG Conference — Sydney 22 June 2005 The attached presentation will be given at
Slide 2: Presentation to UBS FIG Conference
© IAG insurance Australia Group Limited eval Presentation to UBS FIG Conference George Venardos, Chief Financial Officer ~ Sydney, 22 June 2005 NEMA Scio saig | ce W4 RAN GOH 0gDF INSURANCE
Slide 3: Important information
important information q IAG The information in this presentation is an overview and does not contain all information necessary to an investment decision. Insurance ustralia The information contained in this presentation and accompanying materials has been prepared in good faith by [|AG. No Group rep
Slide 4: Outline of presentation
Outline of presentation « IAG’s risk management framework — Overview of framework and structures * Key tools in managing risk — ALCo » Examples of risk reduction actions in FY05 ~ UPPCo — Aligning our people ¢ a4 . = “Bee sone wean scio sic ‘cau Eiitine INSURANCE "ome: WA © IAG insurance Australia G
Slide 5: IAG's risk management framework
IAG’s risk management framework q IAG insurance Australia Group Capital management Ne? Governance Framework — en Insurance Australia Group Limited Gu Ae ERR ie ABN 60 090 739 923 Nant 4 ans Ree, eee INSURANCE
Slide 6: Governance structure the framework
Governance structure the framework q IAG insurance Australia ig Grow ae P Oia TGR van | Subsidiary Boar even Men ; £8 Pcie ity Computice ii (Re ote, . f , oe Insurance Australia Group Limited NEMA SGIO SGIC °.CcGU & Pein STATE [i & I ABN 60 090 739 523 a 5 INSURANCE "ni
Slide 7: ALCo addresses the Group's capital management
ALCo addresses the Group’s capital management Too little capital Too much capital Austata Group means the company runs the risk of being put means that profit margins will be insufficient to out of business due to a random adverse event generate an adequate return on that capital for (eg, Catastroph
Slide 8: Examples of risk reduction actions during FY05
Group MCR Multipte (times) Examples of risk reduction actions y during FY05 © insurance * Issued $550m of contingent capital with consequent reduction in benchmark Australia MCR multiple necessary to sustain economic capital Group * Reduced equity exposure — use of enhanced cash mandate for capital
Slide 9: UPPCo considers business mix & pricing & products
UPPCo considers business mix & pricing & products WE Motor C) Home HE eat HE other Shoda BE Shod-tail Commercial Liability BB crpipotor napilty YW Workers! Comp ever FygsoFyY9e FOO FYC] «= FYO2)«FYO3. FO = THUD Annuatisec Group business mix — also review geographical mix & accumulation u . —_ spp, n
Slide 10: Alignment of our people to the risk framework
Alignment of our people to the risk q framework oe IAG e Risk assessment and management plans and responsibilities Ausra incorporated in — Business plans - Individual position descriptions & performance plans — Project plans « Remuneration and retention - Hurdles on timely identification & correctio
Slide 11: Conclusion
Conclusion q IAG insurance Australia Group « Risk management is key to what we do « We have an integrated view of risk and strong Governance al] ae frameworks in place to Framework support it * We are aware of the additional risk that overseas expansion brings and have processes in place to manage t