GLOSSARY

Employee absenteeism is a measure to indicate the absence level in IAG. Absenteeism is determined by dividing the total annual unscheduled absence days by total number of available (rostered) working days for all employees in the year.

This measures the volume of business at a point in time. The basis of the measure depends on the class of business. In the personal lines class, the relevant volume measure is 'risks in force'. In commercial classes, the volume measure is 'policies in force'. The difference in the definition is required to capture the distinct nature of IAG's business mix. New Zealand brands included in this measurement: State, NZI, Mike Henry Travel Insurance.

In Australia, this measures the end to end customer experience when enquiring, taking out, or renewing a policy, or when making a claim for direct personal insurance. Customer satisfaction levels are determined by a third party through telephone interviews with a random sample of customers contacted.
The survey was conducted by a different supplier prior to 2006 and results attained before 2006 are thus not comparable with results attained from 2006 onwards.

In New Zealand, the survey is a random sample of customers who have had Sales and Service contact with State or NZI (e.g. requested a quote, changed their address, taken out a policy) within the last month, or customers whose claim has been closed during the previous month. Satisfaction is measured by a third party survey where the percentage of customers rating 5, 6 or 7 on a 7 point scale are considered to be satisfied (7 = extremely satisfied and 1 = extremely dissatisfied).

This estimates direct financial support of community groups and programs through sponsorship and donations, as well as indirect support to help promote and raise awareness of these community organisations (including commitments) through research and promotion. In Australia direct IAG management and administration costs related to community investment are also included plus salary costs and on costs for employee volunteering hours recorded in the Human Resources systems. Figures reported are exclusive of GST.

In prior years, this measured direct financial support of community groups and programs, as well as indirect support to help promote and raise awareness of these community organisations, including corporate sponsorships.

Definitions of forms of investment:
• Donations. These include donations made directly by the business where funds are provided to an organisation and there is no obligation on the part of the recipient. Donations must be made with primary aim of improving the quality of life to sections of the community or to provide targeted welfare or other support;
• Sponsorships. These are usually financial support in exchange for something from the receiving organisations, such as provision of advertising. The primary purpose of the sponsorship must be community rather than commercial benefit;
• In kind. This includes the equivalent financial costs of materials/ services provided and time volunteered by employees to various community initiatives, events and fundraisers. This will not include volunteering undertaken in personal time unless it is specifically acknowledged by the business;
• Administration: This includes management and administration costs of IAG staff directly involved in community investments; and
• Research. This includes the financial support contributed to research activities. The primary purpose of the research must be community rather than commercial benefit.

Contributions may be made in areas of the environment, social welfare, arts and culture, charitable organisations, community infrastructure or industry specific contributions.

Community investment aims to capture those expenditures made to benefit the general public or community. Hence, it does not include:
• expenditure on commercial research;
• support to a business association, registered political party, associated entity or trade union, or community government council or municipal council;
• donations made by customers through the use of brands to promote particular causes;
• any contribution made under a reciprocal arrangement;
• expenditure that relates to fulfilling any legal obligations; and
• any expenditure already included within the environmental expenditures indicator.

In Australia, this includes metered electricity consumption for those sites directly owned or controlled by IAG (approximately 85% of all sites). Where metered data is not available, electricity use has been estimated based on an equivalent floor space model using consumption figures for similar known sites.

In New Zealand, all electricity consumption is metered.

Measured in MWh of electricity consumed and per FTE.

Note: electricity data covers the period June 2007–May 2008.

The number of employees included within the headcount who are paid members of a union. In Australia, this only represents those employees that have paid for their union membership through payroll deductions.

In Australia this is the petrol, diesel and LPG consumed by IAG's tool of trade fleet. In New Zealand only petrol consumption is reported. No adjustments are made for any personal usage of the tool of trade vehicles.

Green Power purchased by IAG. Green Power, which is supplied from Energex as part of a Department of Energy, Utilities and Sustainability Green Power program.

The number of people employed by IAG, regardless of hours worked. Headcount comprises permanent and fixed term employees. It includes employees on extended leave and excludes casuals and contractors (people not paid by IAG).

Note: Before 2007, the definition excluded employees on a fixed term contract.

The number of lost time injuries for each one million hours worked. A lost time injury is an injury that has resulted in at least one shift/day's absence from work and for which a workers' compensation claim has been lodged and liability accepted. Journey claims and claims on an unpaid break are not included. Million hours worked includes all scheduled hours, plus overtime less leave and also includes the hours worked by casual employees.

The amount paid out by the Group in claims during the year, as well as an estimate of how much is needed to pay on unsettled claims, plus claims handling costs such as legal and administrative expenses, less recoveries from reinsurers and other parties.

A3 and A4 office paper consumption as determined through an in house ordering system using two separate suppliers. This excludes glossy paper. In New Zealand, this measures office paper consumption as determined through supplier invoices for paper ordered during the month.

Recycled commingled waste is a measure of paper, cardboard and commingled material collected for recycling across Australia. In previous years, it consisted of waste collected from IAG premises and archived material recycled only. From FY06–07, the measure also included paper sent for secure destruction. From FY07–08 the measure also included printer cartridges and consumables collected.

New Zealand figures included paper and cardboard recycled from most sites, whereas commingled waste was only collected from Auckland, Wellington and, from this year, Christchurch sites (brands include State, NZI, Swann Insurance, NAC, Mike Henry and DriveRight).

Total turnover indicates the total number of staff terminations as a percentage of headcount. The turnover percentage is the aggregate of turnover for each month, where headcount is as at the end of the month. Staff terminations includes all permanent and fixed term full time and part time employees but excludes casual employees and guests, where the last day of employment was within the reporting period. Terminations do not include non starters and people terminated at the end of a fixed term, but do include fixed term appointments that are terminated earlier than the contract expiry date.

Total percentage of females in senior management positions is determined by women in the position of senior manager, head of and executive roles, based on their career band.

The dollars contributed by staff through our payroll deduction scheme.