IAG Annual Report 2004 - Consolidated Statement of Financial Performance

	Notes	CONSOLIDATED 2004 $m	CONSOLIDATED 2003 $m
Premium revenue	4(a)(i)	6,265	4,885
Reinsurance expense		(402)	(249)
Net premium revenue		5,863	4,636
Claims expense		(4,365)	(3,743)
Reinsurance and other recoveries	4(a)(ii)	550	380
Net claims expense		(3,815)	(3,363)
Acquisition costs		(963)	(700)
Other underwriting expenses		(384)	(241)
Fire brigade charges		(153)	(133)
Underwriting expenses		(1,500)	(1,074)
Profit from underwriting		548	199
Investment income	4(a)(iii)	485	332
Realised gains on investments	4(a)(iii)	116	1
Unrealised gains / (losses) on investments	4(a)(iii)	212	(37)
Retirement services revenue	4(a)(iv)	70	30
Other operating revenue	4(a)(v)	216	177
Borrowing costs expense		(57)	(46)
Life insurance business expenses		(52)	(11)
Corporate and administration expenses		(386)	(348)
Profit from ordinary activities before income tax		1,152	297
Income tax expense		(346)	(80)
Net profit		806	217
Net profit attributable to outside equity interests		(141)	(64)
Net profit attributable to shareholders of Insurance Australia Group Limited		665	153
Non-owner transaction changes in equity:
Net exchange difference on translation of financial reports of foreign controlled entities		(3)	-
Total changes in equity from non-owner related transactions attributable to the shareholders of the parent entity		662	153
		2004 cents	2003 cents
Basic earnings per ordinary share	9(a)	37.87	8.65
Basic earnings per reset preference share	9(b)	532.30	587.36
Diluted earnings per ordinary share	9(a)	37.74	8.61

The above consolidated statement of financial performance is to be read in conjunction with the notes to the financial statements and the discussion and analysis.

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