In this section:
HIGHLIGHTS
RETURN TO SHAREHOLDERS
GROUP INSURANCE RATIOS
OPERATIONAL HIGHLIGHTS
| HIGHLIGHTS |
2003 |
2004 |
GROSS WRITTEN PREMIUM
The total amount we received from customers for the payment of their insurance policies. |
$5,150m |
$6,427m |
NET EARNED PREMIUM
Our net earned premium is our gross earned premium minus reinsurance expense. |
$4,636m |
$5,863m |
NET CLAIMS EXPENSE
The amount paid out in claims during the year, as well as an estimate of how
much we need to pay on unsettled claims, plus claims handling costs such as legal
and administrative expenses, less recoveries from reinsurers and other parties. |
$3,363m |
$3,815m |
UNDERWRITING EXPENSES
The costs associated with researching risk and determining appropriate premiums,
underwriting, administering the policy information required to run the business, marketing, commissions, distribution and meeting the Group's compliance requirements. |
$1,074m |
$1,500m |
UNDERWRITING RESULT
The profit or loss we make from our premium income before we consider related
investment income. |
$199m |
$548m |
INVESTMENT RETURNS FROM CLAIMS RESERVES
This is the income received from investing reserves held to pay future claims. |
$372m |
$244m |
INSURANCE RESULT
The addition of our underwriting result and investment returns from claims reserves. |
$571m |
$792m |
INVESTMENT INCOME/(LOSS) ON SHAREHOLDERS' FUNDS
The income received from investing our shareholders' funds. |
$(120)m |
$434m |
| NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS |
$153m |
$665m |
| RETURN TO SHAREHOLDERS |
2003 |
2004 |
RETURN ON EQUITY
Net profit attributable to our ordinary shareholders as a percentage
of the average equity of those shareholders. |
5.1% |
21.1% |
TOTAL DIVIDENDS PER SHARE
Includes an interim dividend of 8 cents per ordinary share and a final
dividend of 14 cents per ordinary share for the financial year
ended 30 June 2004. |
11.5 cents |
22.0 cents |
| GROUP INSURANCE RATIOS |
2003 |
2004 |
INSURANCE MARGIN
The insurance result as a percentage of net earned premium. |
12.3% |
13.5% |
COMBINED OPERATING RATIO
Our claims and underwriting expenses measured as a percentage
of our net earned premium. |
95.7% |
90.7% |
OPERATIONAL HIGHLIGHTS
- Refocused on general insurance – sold non-core health insurance underwriting and ClearView businesses.
- Completed the programme to integrate CGU and NZI into the Group, to deliver $160 million in annual synergy benefits, pre-tax, promised at the time of acquisition.
- Met or exceeded all Group operating targets.
- Increased risks in force by 5.2%.
- Sustained high customer retention levels above 90% across our largest portfolios of directly distributed home and motor insurance and claims satisfaction above 85%.
- Completed $414 million off-market share buy-back.
- Recorded a regulatory capital position as at 30 June 2004 of 1.75 times the minimum capital required by APRA.
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