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Five Year Financial Summary
Directors' Report
Discussion Analysis of The Financial Statements
Consolidated Statement Financial Performance
Consolidated Statement Financial Position
Consolidated Statement of Cash Flows
Note to the Financial Statement
Directors' Declaration
Independent Auditors' Report
Five Year Financial Summary
Insurance Australia Group Five Year Performance 20001
$m		 20011
$m		 2002
$m		 2003
$m		 2004
$m
Gross written premium 2,643 3,198 3,558 5,150 6,427
Gross earned premium 2,573 3,036 3,448 4,885 6,265
Reinsurance expense (189) (260) (253) (249) (402)
Net earned premium 2,384 2,776 3,195 4,636 5,863
Net claims expense (2,048) (2,234) (2,425) (3,363) (3,815)
Underwriting expenses (514) (564) (628) (1,074) (1,500)
Underwriting profit / (loss) (178) (22) 142 199 548
Investment income from technical reserves 288 232 136 372 244
Insurance profit 110 210 278 571 792
Investment income from shareholders' and external funds 471 204 (291) (76) 508
Financial services revenue 217 182 37 30 70
Other operating revenue 188 164 173 177 216
Life insurance business expenses (93) (72) - (11) (52)
Borrowing costs expenses (80) (88) (46) (46) (57)
Corporate and administration expenses (345) (317) (242) (267) (268)
Amortisation of goodwill and intangibles (13) (28) (43) (81) (118)
Non-recurring items2 19 - 33 - 61
Profit / (loss) before income tax 474 255 (101) 297 1,152
Income tax (expense) / credit (128) (44) 18 (80) (346)
Net profit / (loss) 346 211 (83) 217 806
Net (profit) / loss attributable to outside equity interests (50) (68) 58 (64) (141)
Net profit / (loss) attributable to shareholders of Insurance Australia Group Limited 296 143 (25) 153 665
Ordinary shareholders' or members' equity ($ million) 2,853 2,523 2,476 3,575 3,538
Total assets ($ million) 12,130 12,586 11,307 16,470 16,335
Number of general insurance risks in force (thousand) 6,802 8,619 8,671 18,213 19,161
Premium growth  
– gross written 19.7% 21.0% 11.3% 44.7% 24.8%
– net earned 21.4% 16.4% 15.1% 45.1% 26.5%
Key ratios
Loss ratio 85.9% 80.5% 75.9% 72.5% 65.1%
Expense ratio 21.6% 20.3% 19.7% 23.2% 25.6%
Combined ratio 107.5% 100.8% 95.6% 95.7% 90.7%
After tax return on ordinary shareholders' or members' equity3 11.0% 5.3% (1.2%) 5.1% 21.1%
Share information
Dividends per ordinary share – fully franked (cents) n/a 10.00 10.50 11.50 22.00
Basic earnings per ordinary share (cents)4 n/a 9.40 (1.78) 8.65 37.87
Ordinary share price at 30 June ($) n/a 3.40 3.15 3.40 5.00
5.80% reset preference share (IAGPA) price at 30 June ($) n/a n/a 100.10 107.94 104.70
4.51% reset preference share (IAGPB) price at 30 June ($) n/a n/a n/a 100.10 98.35
Issued ordinary share capital (million shares) n/a 1,399 1,301 1,683 1,591
Issued reset preference share capital (million shares) n/a n/a 4 6 6
Market capitalisation (ordinary shares) at 30 June ($ million) n/a 4,761 4,100 5,722 7,954
Net tangible assets backing per ordinary share ($) n/a 1.33 1.15 0.84 0.96

1 The 2001 disclosure represents the consolidated result of Insurance Australia Group Limited assuming it acquired Insurance Australia Limited (formerly NRMA Insurance Limited) and its controlled entities on 1 July 2000. This differed to the reported statutory result that is based on the date of acquisition, 22 July 2000. All other prior years represent the consolidated results of Insurance Australia Limited (formerly NRMA Insurance Limited).
2 This includes demutualisation expenses of $61 million and the recognition of deferred acquisition costs for certain general insurance portfolios of $80 million in 2000, profit on disposal of NRMA Building Society Limited of $45 million and “Share the Future” litigation expenses of $12 million in 2002 and the profit on disposal of ClearView retirement services businesses of $61 million in 2004.
3 Net profit / (loss) attributable to ordinary shareholders to average ordinary shareholders' equity.
4 The 2001 figure reflects a full year operating period assuming the acquisition of Insurance Australia Limited (formerly NRMA Insurance Limited) occurred on 1 July 2000. The reported statutory figure is 8.62 cents.

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