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| Insurance Australia Group Five Year Performance | 20011 $m |
2002 $m |
2003 $m |
2004 $m |
2005 $m |
|---|---|---|---|---|---|
| Gross written premium | 3,198 | 3,558 | 5,150 | 6,427 | 6,673 |
| Gross earned premium | 3,036 | 3,448 | 4,885 | 6,265 | 6,561 |
| Reinsurance expense | (260) | (253) | (249) | (402) | (417) |
| Net earned premium | 2,776 | 3,195 | 4,636 | 5,863 | 6,144 |
| Net claims expense | (2,234) | (2,425) | (3,363) | (3,815) | (4,069) |
| Underwriting expenses | (564) | (628) | (1,074) | (1,500) | (1,591) |
| Underwriting profit / (loss) | (22) | 142 | 199 | 548 | 484 |
| Investment income from technical reserves | 232 | 136 | 372 | 244 | 516 |
| Insurance profit | 210 | 278 | 571 | 792 | 1,000 |
| Investment income from shareholders’ and external funds | 204 | (291) | (76) | 508 | 501 |
| Financial services revenue | 182 | 37 | 30 | 70 | – |
| Other operating revenue | 164 | 173 | 177 | 216 | 178 |
| Life insurance business expenses | (72) | – | (11) | (52) | – |
| Borrowing costs expense | (88) | (46) | (46) | (57) | (69) |
| Corporate and administration expenses | (317) | (242) | (267) | (268) | (247) |
| Amortisation of goodwill and intangibles | (28) | (43) | (81) | (118) | (105) |
| Non-recurring items2 | – | 33 | – | 61 | – |
| Profit / (loss) before income tax | 255 | (101) | 297 | 1,152 | 1,258 |
| Income tax (expense) / credit | (44) | 18 | (80) | (346) | (379) |
| Net profit / (loss) | 211 | (83) | 217 | 806 | 879 |
| Net (profit) / loss attributable to outside equity interests | (68) | 58 | (64) | (141) | (119) |
| Net profit / (loss) attributable to shareholders of Insurance Australia Group Limited | 143 | (25) | 153 | 665 | 760 |
| Shareholders’ or members’ equity ($ million) | 2,523 | 2,476 | 3,575 | 3,538 | 3,855 |
| Total assets ($ million) | 12,586 | 11,307 | 16,470 | 16,291 | 17,147 |
| Business volume (thousands) | 8,619 | 8,671 | 13,334 | 14,052 | 14,204 |
| Premium growth | |||||
| – gross written | 21.0% | 11.3% | 44.7% | 24.8% | 3.8% |
| – net earned | 16.4% | 15.1% | 45.1% | 26.5% | 4.8% |
| Key ratios | |||||
| Loss ratio | 80.5% | 75.9% | 72.5% | 65.1% | 66.2% |
| Expense ratio | 20.3% | 19.7% | 23.2% | 25.6% | 25.9% |
| Combined ratio | 100.8% | 95.6% | 95.7% | 90.7% | 92.1% |
| Insurance margin3 | 7.6% | 8.7% | 12.3% | 13.5% | 16.3% |
| After tax return on ordinary equity4 | 5.3% | (1.2%) | 5.1% | 21.1% | 23.1% |
| Share information | |||||
| Dividends per ordinary share – fully franked (cents) | 10.00 | 10.50 | 11.50 | 22.00 | 26.50 |
| Basic earnings per ordinary share (cents)5 | 9.40 | (1.78) | 8.65 | 37.87 | 45.89 |
| Ordinary share price at 30 June ($) (ASX code: IAG) | 3.40 | 3.15 | 3.40 | 5.00 | 6.01 |
| 5.80% reset preference share price at 30 June ($) (ASX code: IAGPA) | n/a | 100.10 | 107.94 | 104.70 | 103.90 |
| 4.51% reset preference share price at 30 June ($) (ASX code: IAGPB) | n/a | n/a | 100.10 | 98.35 | 99.05 |
| Reset exchangeable securities price at 30 June ($) (ASX code: IANG) | n/a | n/a | n/a | n/a | 99.00 |
| Issued ordinary share capital (million shares) | 1,399 | 1,301 | 1,683 | 1,591 | 1,594 |
| Issued reset preference share capital (million shares) | n/a | 4 | 6 | 6 | 6 |
| Market capitalisation (ordinary shares) at 30 June ($ million) | 4,761 | 4,100 | 5,722 | 7,954 | 9,582 |
| Net tangible asset backing per ordinary share ($) | 1.33 | 1.15 | 0.84 | 0.96 | 1.22 |
1 The 2001 disclosure represents the consolidated result of Insurance Australia Group Limited assuming it acquired Insurance Australia Limited and its controlled entities on 1 July 2000. This will differ to the reported statutory result that is based on the date of acquisition, 22 July 2000.
2 This includes 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 Insurance margin is a ratio of insurance profit over net earned premium.
4 Net profit / (loss) attributable to ordinary shareholders to average ordinary shareholders’ equity.
5 The 2001 figure reflects a full year operating period assuming the acquisition of Insurance Australia Limited occurred on 1 July 2000. The reported statutory figure is 8.62 cents.
