Insurance Australia Group Ltd · ASX:IAG
Insurance Australia — Investor Day (June 2011)
9 slides from Insurance Australia's investor day presentation, Jun 14, 2011
Slide 1: Investor Briefing 2011
2011 INVESTOR BRIEFING 14 June 2011 ABN 60 090 739 923
Slide 2: Australia Direct: Accelerating growth in home markets
3 AUSTRALIA DIRECT Accelerating growth in home markets ANDY CORNISH CHIEF EXECUTIVE OFFICER 22
Slide 3: Business Overview: Australia's leading direct insurer
BUSINESS OVERVIEW AUSTRALIA’S LEADING DIRECT INSURER AUSTRALIA DIRECT Australia’s leading direct insurer • State based brands, leading market positions in NSW and Victoria • One distribution system^, pricing engine, claims system • GWP over $3.6bn • Over 3.5m customers#; over 4,000 employees • Multi
Slide 4: Current Market Environment: Increased competition
CURRENT MARKET ENVIRONMENT INCREASED COMPETITION AUSTRALIA DIRECT System growth Competitive dynamics Motor Asset Base 3.0% • New players pursuing different business models 2.5% with limited traction 2.0% 1.5% • Mainstream brands not using aggregators 1.0% 0.5% 0.0% • Competitors’ advertising spend r
Slide 5: Our Achievements: Progress against priorities
OUR ACHIEVEMENTS PROGRESS AGAINST THE PRIORITIES WE SET IN 2009 AUSTRALIA DIRECT Industry-leading risk selection and pricing Customer insights and delivery • Further refined technical risk analysis • Customer insights framework, segmentation • Granular pricing at an individual risk address level • I
Slide 6: Our Achievements: Real results delivered
OUR ACHIEVEMENTS REAL RESULTS DELIVERED AUSTRALIA DIRECT Marketing spend stable, effectiveness up Tighter expense management New business cost down 24% ~13% reduction FY09 FY10 FY11(f) FY09 FY10 FY11(f) Business now achieving profitable, above market, Internet sales trebled since July 2009 growth Sy
Slide 7: Focus for the Future: Strategic drivers of growth
FOCUS FOR THE FUTURE STRATEGIC DRIVERS OF SUSTAINABLE, PROFITABLE GROWTH AUSTRALIA DIRECT CUSTOMER INSIGHTS THE RIGHT PRICE Commercialised Insurance risk selection that’s easy to and pricing have and use Industrialised low cost delivery CONSISTENT EXECUTION Customer led insurance that is easy to hav
Slide 8: Focus for the Future: To out-compete and grow
FOCUS FOR THE FUTURE TO OUT-COMPETE AND GROW AUSTRALIA DIRECT Immediate focus Organic growth opportunities • Further improve marketing effectiveness Maximising the value of the existing • Maximise multi-distribution model customer base − Cross-selling and up-selling products • Further enhance risk s
Slide 9: Outlook: Maintain profitable growth
OUTLOOK MAINTAIN PROFITABLE GROWTH AUSTRALIA DIRECT Short term Long term • Maintain profitable growth momentum • Recovery of reinsurance expenses • Reinsurance rates may place pressure on • Continue to leverage strategic drivers to fuel margin profitable growth momentum • Continued focus on developm