IAG Annual Report 2006 - Business Overview Australia

Group Operating Performance

Chairman's Review

Business Overview

Summary of Performance

Board of Directors

Corporate Governance

Financial Report

Shareholder Information

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BUSINESS OVERVIEW

AUSTRALIA

WHAT WE DO

IAG’s Australian operations – Personal Insurance, Commercial Insurance (CGU) and Business Partnerships – together distribute a range of personal and commercial insurance products.

The Personal Insurance business distributes products through a network of branches, franchises and country service centres throughout metropolitan, regional and rural Australia, as well as through call centres and online. Products are distributed under the NRMA Insurance brand in NSW, QLD, ACT and TAS; SGIC in SA; SGIO in WA; and RACV in VIC. Some personal insurance products are also sold through CGU.
The Commercial Insurance business, CGU, sells products nationally, predominantly through CGU’s network of more than 1,000 intermediaries (insurance brokers and authorised representatives). Some commercial insurance products are also sold through NRMA Insurance, SGIO and SGIC.
Business Partnerships partners with government bodies and the private sector to distribute a range of commercial and personal insurance products.

2006 FINANCIAL PERFORMANCE*

Gross written premium	$5,399 million
Net earned premium	$5,041 million
Combined ratio	86.7%
Insurance margin	14.1%

PRODUCTS

Commercial and motor fleet
Commercial property
Construction and engineering
Consumer credit
CTP
Directors and officers’
Extended warranty
Farm, crop and livestock
Home and contents
Home warranty
Marine
Motor vehicle
Niche insurance, such as veteran, vintage and classic car, boat, caravan and travel
Premium funding
Professional indemnity
Public and product liability
Workers’ compensation

BRANDS

	NRMA Insurance is the brand used in NSW, QLD, ACT and TAS. The brand dates back to 1920 when it was formed as the NSW branch of the National Roads Association.
	SGIO is the brand used in WA, where it dates back to 1926. IAG acquired SGIO from the WA Government in 1998.
	SGIC is the brand used in SA, where it was established in 1971 by the SA Government. IAG acquired SGIC in 1998.
	Swann Insurance sells a range of niche insurance products including consumer credit and motor vehicle-related products. IAG acquired Swann Insurance in 2003.
	CGU is one of Australia’s largest intermediarybased insurers, with a history dating back to the 1860s. IAG acquired CGU in 2003.