Annual Report Introduction
IAG's Four Principles Paying Claims Understanding & Pricing Risk Managing Costs Reducing Risk
Group Operating Performance
Chairman's Review
CEO's Review
Business Overview
Executive Team
Review of Operations
Board of Directors
Corporate Governance
Financial Report
Five Year Financial Summary
Directors Report
Directors Report
Statements of Financial Performance
Statements of Financial Position
Statements of Cash Flows
Notes to Financial Statements
Directors' Declaration
Independent Auditors Report
Shareholder Information
Corporate Directory
Financial Performance
For the year ended 30 June 2005
Print
  NOTES CONSOLIDATED
2005
$m		 CONSOLIDATED
2004
$m
Premium revenue 3(a) 6,561 6,265
Reinsurance expense (417) (402)
Net premium revenue 6,144 5,863
Claims expense (4,729) (4,365)
Reinsurance and other recoveries 3(b) 660 550
Net claims expense (4,069) (3,815)
Acquisition costs (1,075) (1,029)
Other underwriting expenses (339) (318)
Fire service levies (177) (153)
Underwriting expenses (1,591) (1,500)
Underwriting profit(i) 484 548
Investment revenue 3(c) 1,055 813
Other operating revenue 3(d) 178 286
Borrowing costs expense (69) (57)
Corporate, administration and other expenses (390) (438)
Profit from ordinary activities before income tax 1,258 1,152
Income tax expense (379) (346)
Net profit 879 806
Net profit attributable to outside equity interests (119) (141)
Net profit attributable to shareholders of Insurance Australia Group Limited 760 665
Non-owner transaction changes in equity:
Net exchange difference on translation of financial reports of foreign controlled entitie (1) (3)
Total changes in equity from non-owner related transactions attributable to the shareholders of the parent entity 759 662
2005 cents 2004 cents
Basic earnings per ordinary share 6(a) 45.89 37.87
Basic earnings per reset preference share 6(b) 533.09 532.30
Diluted earnings per ordinary share 6(a) 45.83 37.74
2005 $m 2004 $m
Note:
(i) Underwriting profit comprises:		      
Net premium revenue 6,144 5,863
Net claims expense (4,069) (3,815)
Underwriting expenses (1,591) (1,500)
484 548

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.