1. Paying Claims
2. Understanding & Pricing Risk
3. Managing Costs
4. Reducing Risk
ABOUT THIS ANNUAL REPORT
This is the fourth in a series of annual reports which explores how Insurance Australia Group (IAG or the Group) manages risk for the long term.
Having told the story from the point of view of our customers and our employees, this report aims to demonstrate how we create sustainable growth and value for our shareholders.
While the basic principle of insurance is the same for all insurance companies – our customers pay us premiums to reduce the financial hardship of an unexpected loss – it is how we do it at IAG that adds value for our shareholders.
It’s the way we pay claims, how we understand and price risk, the approach we take to managing costs, and our strategies to reduce risk in communities where we operate that enhance returns to shareholders and create value for society.
| PERFORMANCE HIGHLIGHTS | 1/4 > |
$552m |
|
| Net profit after tax | |
| The net result after allowing for income taxes and the share of profit owing to minority shareholders within the Group. more | |
| PERFORMANCE HIGHLIGHTS | 2/4 > |
11.4% |
|
| Insurance margin | |
| The insurance result as a percentage of net earned premium. more | |
| PERFORMANCE HIGHLIGHTS | 3/4 > |
29.5c |
|
| Total dividends per share | |
| This comprises an interim dividend of 13.5c per ordinary share and a final dividend of 16c per ordinary share, fully franked. more | |
| PERFORMANCE HIGHLIGHTS | 4/4 > |
13.5% |
|
| Return On Equity (ROE) | |
| The net profit attributable to our shareholders as a percentage of the average equity of those shareholders. ROE was 12.9% on a normalised basis. more | |
| INVESTING IN SUSTAINABILITY |
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| Initiatives to reduce risk during 2007 |
| Managing our business for the long term requires investment in initiatives to reduce risk. That means improving safety on roads, in homes, in the community and in the workplace, reducing crime and minimising environmental impacts. more |
| CEO'S REVIEW |
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| Managing our business over long-term trends |
| As a business that deals in risk, it is vital for us to manage our business over long-term trends to ensure we continue to deliver sustainable, quality shareholder returns. more |
| CHAIRMAN'S REVIEW |
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| Delivering sustainable shareholder returns |
| Our entry into a new international market during the year has further diversified our business. This is part of our strategy to deliver sustainable shareholder returns over the long term. more |