| GOALS |
PROGRESS |
| Top quartile total shareholder return. |
Measured from listing on 8 August 2000 until 30 June 2005, IAG’s total shareholder return ranks it in the top 20% of entities in the S&P/ASX 100 index. |
| |
| Return on equity of at least 1.5 times weighted average cost of capital. |
Achieved return on equity greater than 1.5 times weighted average cost of capital. |
| |
| Establish an Asian foothold. |
Added a small Thai general insurance business to the Group’s portfolio of Asian assets and continued to pursue further opportunities. |
| |
| Maintain an 80:20 mix of short-tail:long-tail premiums. |
Maintained short-tail : long-tail premium mix of approximately 80 : 20. |
| |
| Maintain a ‘AA’ category rating. |
Maintained its very strong ‘AA’ insurer financial strength ratings from S&P for its key wholly-owned licensed insurers, the highest rating of any Australian-based financial institution. |
| HIGHLIGHTS |
2004 |
2005 |
GROSS WRITTEN PREMIUM
The total amount we received from customers for the payment of their
insurance policies.
|
$6,427m |
$6,673m |
NET EARNED PREMIUM
The portion of premiums written which relates to the financial year
minus the reinsurance expense. |
$5,863m |
$6,144m |
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. |
$3,815m |
$4,069m |
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. |
$1,500m |
$1,591m |
UNDERWRITING RESULT
The profit or loss we make from our premium income before we consider related investment income.
|
$548m |
$484m |
INVESTMENT RETURNS FROM CLAIMS RESERVES
The income received from investing reserves held to pay future claims.
|
$244m |
$516m |
INSURANCE RESULT
The addition of our underwriting result and investment returns from claims reserves.
|
$792m |
$1,000m |
INVESTMENT INCOME ON SHAREHOLDERS’ FUNDS
The income received from investing our shareholders’ funds.
|
$434m |
$479m |
NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS
The net result after allowing for income taxes and the share of profit owing to minority shareholders/unitholders within the Group.
|
$665m |
$760m |
| GROUP INSURANCE RATIOS |
INSURANCE MARGIN
The insurance result as a percentage of net earned premium.
|
13.5% |
16.3% |
COMBINED RATIO
Our claims and underwriting expenses measured as a percentage of our net earned premium.
|
90.7% |
92.1% |
| RETURN TO SHAREHOLDERS |
RETURN ON EQUITY
Net profit attributable to our holders of ordinary shares as a percentage of the average equity of those shareholders.
|
21.1% |
23.1% |
TOTAL DIVIDENDS PER ORDINARY SHARE
Comprising an interim dividend of 12.0 cents per ordinary share and a final dividend of 14.5 cents per ordinary share for the financial year ended 30 June 2005.
|
22.0 cents |
26.5 cents |
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