INDEPENDENT AUDITOR’S REPORT
TO THE EQUITY HOLDERS OF INSURANCE AUSTRALIA GROUP LIMITED
The accompanying concise financial report of the Consolidated entity comprising Insurance Australia Group Limited (the “Company”), and its subsidiaries comprises the consolidated balance sheet as at 30 June 2007, the consolidated income statement, consolidated statement of recognised income and expense and consolidated cash flow statement for the year then ended and related notes 1 to 9, derived from the audited financial report of Insurance Australia Group Limited and its subsidiaries for the year ended 30 June 2007. The concise financial report does not contain all the disclosures required by Australian Accounting Standards.
As permitted by the Corporations Regulations 2001, the Company has disclosed information about the remuneration of directors and executives (“remuneration disclosures”), required by Australian Accounting Standard AASB 124 Related Party Disclosures, under the heading “Remuneration Report – sections A to D” in the directors’ report and not in the concise financial report. We have audited these remuneration disclosures.
DIRECTORS’ RESPONSIBILITY FOR THE CONCISE FINANCIAL REPORT AND THE AASB 124 REMUNERATION DISCLOSURES CONTAINED IN THE DIRECTORS’ REPORT
The directors of the Company are responsible for the preparation and presentation of the concise financial report in accordance with Australian Accounting Standard AASB 1039 Concise Financial Reports and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation of the concise financial report; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. The directors are also responsible for the Remuneration Report contained in the directors’ report.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on the concise financial report based on our audit procedures. We have conducted an independent audit in accordance with Australian Auditing Standards, of the financial report and the Remuneration Report of Insurance Australia Group Limited and its subsidiaries for the year ended 30 June 2007. Our audit report on the financial report and the Remuneration Report for the year was signed on 24 August 2007 and was not subject to any modification. The Australian Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report and the Remuneration Report for the year are free of material misstatement.
Our procedures in respect of the concise financial report include testing that the information in the concise financial report is derived from, and is consistent with, the financial report for the year, and examination on a test basis, of evidence supporting the amounts, and other disclosures which were not directly derived from the financial report for the year. These procedures have been undertaken to form an opinion whether, in all material respects, the concise financial report complies with Australian Accounting Standard AASB 1039 Concise Financial Reports.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
AUDITOR’S OPINION
In our opinion the concise financial report of Insurance Australia Group Limited and its subsidiaries for the year ended 30 June 2007 complies with Australian Accounting Standard AASB 1039 Concise Financial Reports.
KPMG
Brian Greig
Partner
Sydney
24 August 2007