For further details of our sustainability performance please see the IAG website www.iag.com.au/sustainable/.

The following details the definitions used in the calculation of data represented in the graphs and charts in each section of this report:

Absenteeism: Employee absenteeism is a measure to indicate the absence level in IAG. The absenteeism is determined by dividing the total annual unscheduled absence days by total annual days worked.

Air travel: Distance travelled by IAG employees includes domestic, trans-Tasman and international flights booked through the online travel service provider.

Charity leave: Number of days based on FTE working hours taken as charity leave by IAG employees.

Claims satisfaction levels: Satisfaction levels of IAG customers in the settling of claims in personal lines only. Satisfaction levels are determined from two questions in the Home and Motor Surveys. Surveys are conducted by a third party and include NRMA, SGIO and SGIC and exclude CGU.

CO₂ emissions: CO₂ emissions are calculated for electricity consumption, office and print paper use, fuel use and air travel using emissions factors obtained from the Australian Greenhouse Office.

Communityhelp grants: Cash grants given to community groups through the communityhelp grant program. Figures reported are inclusive of GST.

Contribution to Gross Domestic Product (GDP): The net earned premium as a percentage of GDP, where GDP was obtained from the Australian Bureau of Statistices, document title "National Income Expenditure and Product" from the National Accounts Catalogue #5206.0 Table 3.

Customer satisfaction levels: A measure of the end to end customer experience when enquiring, taking out or renewing general insurance. Customer satisfaction levels are determined by a third party through telephone interviews with a random sample of customers contacted within 48 hours of service experience.

Employee engagement score: Determined through six questions in the Your Voice staff survey conducted by a third party. The survey assesses the extent to which employees consistently say positive things about working at IAG, want to stay with IAG, and strive to achieve above and beyond what's expected of them.

Electricity use: Includes metered electricity consumption for those sites directly owned or controlled by IAG (approximately 70% of all sites). Where metered data is not available electricity consumption has been estimated based on an equivalent floor space model using consumption figures for similar known sites.

FTE (Full Time Equivalent): FTE is a measure of the size of the workforce that takes account of part-time employees. It is determined by dividing total working hours by 37.5 (Standard Full Time Hours). Figures do not include guests, casuals or employees on extended leave without pay.

Fuel: Petrol consumed by IAG's tool of trade fleet (cars used by IAG assessors and for sales and claims purposes). Diesel and LPG use is not reported as it accounts for a very small proportion of overall fuel use (less than 0.2%).

Full time versus part time staff: Number of full time versus part time staff as assessed through internal online HR system codes. Full time employees work 35 or 37.5 hours a week depending on their Enterprise Agreement. Part time employees work less than 35 hours per week.

Funding of OH&S initiatives: Spending on medical costs for employees, fire protection, St Johns Ambulance training, the besafe program and the Employee Assistance program.

Funding of OH&S salaries and on-costs: Salaries and on-costs for staff in the occupational health and safety department.

Funds for community investment: Direct financial support of community groups and programs, as well as indirect support to help promote and raise awareness of these community organisations. This also includes direct IAG management and administration related costs. Figures reported are exclusive of GST.

Green electricity: Green power purchased by IAG. Only IAG sites in NSW, ACT and VIC consumed green power in 2003-04. Green Power is a national accreditation program of the Sustainable Energy Development Authority (SEDA).

Headcount: Employees employed by IAG regardless of their hours of work, excluding guests, casuals and employees on extended leave without pay.

Male to female annual salary ratio: The ratio is determined by dividing the average of male employees' total annual salary by the average of female employees' total annual salary. The average of male employees total annual salary is determined by dividing the sum of male employees annual salary by the number of male employees at the end of the reporting period, the average female employees total annual salary is calculated on the same basis.

Number of level 2 and 3 customer complaints: IAG records three levels of complaints. Level 1 includes issues raised at the branch level, Level 2 includes complaints escalated to IAG head office customer service consultants and Level 3 are those complaints that are referred to a third party for resolution. Figures reported include only Level 2 complaints and above.

Number of fire wardens: The number of staff who have been trained as fire wardens. Staff are trained through an external service provider.

Number of staff trained in first aid: The number of staff who have completed first aid training. This comprises staff who attended either a 4-hour CPR training course or a 2-day First Aid Officer Training course in the current reporting period as well as staff with previous first aid training.

Number of workers compensation claims: The number of workplace incidents that became workers compensation claims. This does not include claims that were declined or withdrawn.

Office paper use: A3 and A4 office paper use as determined through an inhouse ordering system using two separate suppliers.

Print paper: Print paper consumption consisting of commercially printed material (booklets, business cards, brochures and customer documentation such as renewals and certificate of insurance).

Recycled waste collected: Comingled waste collection coordinated though VISY. This figure includes recycled paper at 388 George St, Sydney and WA sites only, and storage box destruction. At present IAG do not have separate figures for paper recycled, as the recycling bins collect both paper and other types of recycled waste (commingled waste). It is estimated that 90% of waste recycled is paper.

Risks in force: Total risks covered through IAG policies. Business policies may cover two or more distinct risks of business and therefore the risks are accounted for separately.

Staff turnover: Turnover percentage is determined by dividing the total number of terminations by Headcount. Termination includes all permanent fulltime, part-time employees and excludes casuals, guests, and employees on a fixed term contract.

Staff volunteering commitment to the community: Based on 1-day Enterprise Agreement allocation to community leave. Figure is based on total FTE employees and average staff wage per average day worked.

Sustainability nominations for rewardhelp: rewardhelp is the internal staff recognition program. This indicator takes into account all rewardhelp nominations in the sustainability and innovations category.

Women in executive management: Total number of females on the Executive Management Team.

Women in senior management: Total number of females in senior manager positions. Women in senior management is determined as women in the position of senior manager and above, as per the Australian Standard Classification of Occupation (ASCO 1.1).

Workplace giving program: The dollars contributed by staff through payroll deduction scheme.

If you have any suggestions or questions arising from this report please do not hesitate to contact IAG at sustainability@iag.com.au.

indicates that KPMG has provided assurance on the figures. For more information please see the Assurance statement.

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