Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — AmCham (March 2009)
17 slides from Insurance Australia's conference presentation, Mar 31, 2009
Slide 1: Evolving to Deliver Sustainable Business Outcomes
EVOLVING TO DELIVER SUSTAINABLE BUSINESS OUTCOMES 31 MARCH 2009 MICHAEL WILKINS MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER
Slide 2: Agenda
AGENDA 1 WHO WE ARE 2 OUR REFINED STRATEGY AND DEVOLVED OPERATING MODEL 3 DRIVING SUSTAINABLE BUSINESS OUTCOMES PAGE 2
Slide 3: Who We Are
= WHO WE ARE IAG ice Australia Group
Slide 4: Our Business Model and Brands
OUR BUSINESS MODEL AND BRANDS DIRECT INTERMEDIATED DIRECT DIRECT INTERMEDIATED INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE ** *** UNITED KINGDOM NEW ZEALAND eVENTURES AUSTRALIA INTERMEDIATED INTERMEDIATED ASIA INSURANCE INSURANCE * OTHER * RACV is via a distribution relationship and underwriti
Slide 5: Market Conditions Tough for Entire Industry
MARKET CONDITIONS TOUGH FOR ENTIRE INDUSTRY AUSTRALIAN GENERAL INSURANCE INDUSTRY ROE % 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Jun 2008 Dec 2008 Source: APRA general insurance statistics PAGE 5
Slide 6: Our Refined Strategy and Devolved Operating Model
2 OUR REFINED STRATEGY AND DEVOLVED OPERATING MODEL
Slide 7: Our Refined Corporate Strategy
OUR REFINED CORPORATE STRATEGY A portfolio of high performing, customer-focused diverse operations providing general insurance in a manner that delivers superior experiences for our stakeholders and creates shareholder value OUR • Top quartile TSR • Improve our performance in TARGETS • ROE > 1.5x WA
Slide 8: Our Devolved Operating Model
OUR DEVOLVED OPERATING MODEL SIMPLE, BASED ON HOW CUSTOMERS INTERACT WITH US Australia – Australia – New Asia United eVentures Direct Intermediated Zealand Kingdom Insurance Insurance (CGU) OUR CORPORATE ACTIVE PORTFOLIO MANAGEMENT & GOVERNANCE INTENT (CORPORATE OFFICE) PAGE 8
Slide 9: Our Achievements
OUR ACHIEVEMENTS IMPLEMENTING OUR STRATEGY PRIORITY STATUS Move to a simpler operating model by end of September 2008 3 Deliver $130m in annual before tax run rate savings in Australia 3 Appoint CEO of Direct Insurance 3 Pursue select opportunities in Asia 3 Scale back operations in the UK 3 Exit fr
Slide 10: Driving Sustainable Business Outcomes
3 DRIVING SUSTAINABLE BUSINESS OUTCOMES
Slide 11: Driving Our Long Term Success
DRIVING OUR LONG TERM SUCCESS BUSINESS SUSTAINABILITY PAGE 11
Slide 12: Our Customers
OUR CUSTOMERS INNOVATION AND SPEED TO MARKET PAGE 12
Slide 13: Workforce
WORKFORCE ATTRACTING AND RETAINING TALENT PAGE 13
Slide 14: The Community
THE COMMUNITY QUICK TO RESPOND AND HELP THE COMMUNITIES WE SERVE [Insert CGU photo here] PAGE 14
Slide 15: Environment
ENVIRONMENT RESPONDING TO CLIMATE CHANGE AND REDUCING EMISSIONS IS A RESPONSIBILITY SHARED BY ALL MEMBERS OF THE COMMUNITY We contribute in four key areas: • Continuing to work with and influence government • Assisting customers and suppliers reduce their emissions, and developing products which rew
Slide 16: Maintaining a Devolved Operating Model
MAINTAINING A DEVOLVED OPERATING MODEL PRINCIPLES AND LEARNINGS • Clear roles and accountabilities • Adult/adult relationship • Define the role of the Corporate Office • Build governance frameworks • Maintain discipline around strategy to achieve alignment across the organisation • Selected shared a
Slide 17: Our Business Model and Brands
OUR BUSINESS MODEL AND BRANDS DIRECT INTERMEDIATED DIRECT DIRECT INTERMEDIATED INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE ** *** UNITED KINGDOM NEW ZEALAND eVENTURES AUSTRALIA INTERMEDIATED INTERMEDIATED ASIA INSURANCE INSURANCE * OTHER ACTIVE PORTFOLIO MANAGEMENT & GOVERNANCE (CORPORATE OFFI