Initiatives
Increased shareholder returns: IAG delivered a strong financial performance in 2004, reporting a record insurance profit of $792* million. Profit was boosted significantly by the $434* million return made from investing the Group's shareholder funds. This represents a record since IAG's listing and a $554* million turnaround from the $120* million portfolio loss incurred last year. In addition, sales (risks in force) increased 5.2%, the Group entered new markets, and operating efficiencies improved. The result included a full 12-months performance of the CGU/NZI acquisition, compared with only six months in the previous year. These businesses added more than $2.5 billion in annual revenue to the Group. The sale of ClearView Retirement Solutions also contributed around $61* million in pre-tax profits. In light of the strong performance, shareholders were rewarded with a 91% increase in the dividend they received.
Engaging shareholders: In keeping with the Code of Conduct and the importance of continuous disclosure, IAG ensures shareholders are kept informed of significant developments. Regular announcements to the ASX are relayed through an email messaging service to shareholders who have registered to receive them and are also posted on the IAG website. Major investor briefings are webcast where practical and copies retained on the website so that they can be easily accessed. The company seeks media coverage of key events to deliver information to shareholders and communicates formally with them through annual and half-year reports and at annual general meetings, where they are encouraged to ask questions of the Board. Electronic proxy voting was introduced for the 2004 AGM to make it easier for shareholders to lodge their vote on resolutions.
Brand value: Several independent studies undertaken during the year confirmed the significant value of our Australian retail brands - NRMA Insurance, SGIO and SGIC - and showed NRMA Insurance to be the most trusted insurance brand in NSW and ACT with the highest commitment score of any insurance brand in Australia, and well in excess of international benchmarks. Considerable effort is being made to further increase brand value by aligning IAG employees around a common culture that is focused and motivated and cares about customers and the community. Demonstrated improvements can already be seen through improved customer service levels, a fall in the number of complaints, a reduction in errors and acceleration in employee engagement.
indicates that KPMG has provided assurance on the figures. For more information please see the Assurance statement.
