Having joined Australia Direct Insurance in February 2009, I'd like to start my first report to you by saying what a great privilege it is to steward an organisation with such talented people, powerful brands and community heritage.

These strengths were brought into sharp focus when bushfires devastated the Victorian community, and storms hit NSW and Queensland. Our people mobilised with the sole purpose of helping customers recover from these catastrophes. The response was as good as anything I've seen, anywhere in the world, in my 30 years in the insurance industry.

This dedication and customer focus were important drivers of the strong performance this year. Gross written premium was up by 9.1% to $3.4 billion, with growth in all state markets. Insurance profit was $373 million, up from $316 million in the previous year, resulting in an improved margin of 12%. Our business achieved its share of the targeted cost savings of $130 million pre tax per annum, with both expense and claims management initiatives reducing the cost base.

Similarly, a new marketing campaign, improvements to our websites and new products have also contributed to the results.

Our 'Unworry' campaign has resulted in improvements in our brand health, suggesting it has struck a chord with customers in the current economic climate. At the same time, we have made changes to our internet sites so that it's faster and easier for customers to interact with us.

We also launched a number of products, including third party fire and theft motor in NSW, Queensland and Western Australia, variable excesses on comprehensive motor, a new motor insurance product, Comprehensive Plus, and a home contents option for renters.

Perhaps the most significant product improvement was the launch of flood insurance in NSW, the ACT and Tasmania. Around 98% of our customers in these states will now be automatically covered for flood, at minimal cost. For the remaining 2% of customers in the high risk areas, they will be charged a premium that reflects how likely and how seriously they could be impacted by flooding. These customers have choice—they can remove flood from their home insurance to reduce their overall premium, while still retaining the same cover they previously had.

Flood is still an option for customers in South Australia and Western Australia, and we're hoping to launch flood insurance in Queensland and Victoria when the flood data is available for these states.

Looking ahead, the challenge is to continue to accelerate our performance. Overall, during the 2010 financial year, we expect to deliver solid gross written premium growth and improve our insurance margin.