OUR PERFORMANCE

Our performance during the 2009 financial year has been solid and has improved despite challenging market conditions.

We have been particularly pleased with our ability to reduce our consumption of resources that produce carbon dioxide equivalent emissions (CO2e). The net impact has been an 11.8% decrease in our carbon footprint across our Australian and New Zealand businesses.

We believe that a holistic and transparent approach to reporting benefits IAG, our shareholders and other stakeholders. We remain committed to engaging and communicating with our stakeholders and this interaction ensures that we can identify, action and respond to the issues that matter to our stakeholders and informs the development of our corporate strategy. As such, we continue to report our performance against economic, social and environmental measures, and have integrated this broader reporting with our financial reporting in the 2009 Annual Review. This year we have taken a new approach, reporting in detail on all five key dimensions to better reflect the breadth of our approach.

Our priority is to make this report meaningful for our stakeholders, therefore; we have focused on the issues that matter most to them.

This section provides information on IAG’s business sustainability performance, and includes case studies that provide more details on specific initiatives. Performance is reported across the five areas—economic, customer, workforce, community and environment from 1 July 2008 to 30 June 2009 (unless otherwise stated).

Our sustainability performance is independently assured to ensure that our disclosure is honest, accurate and material in accordance with the AA1000 Assurance Standard. Our 2009 performance has been assured by Net Balance Management Group, a provider of advisory and assurance services in business responsibility in Australasia and its assurance statement is published on this website.

Assurance statement (217kb .pdf)

For further information regarding our sustainability reporting please contact nina.collinson@iag.com.au

Economic

2009 2008 2007 2006 2005
Gross Written Premium $7,842 $7,793 $7,381 $6,435 $6,673

Net Earned Premium $7,233 $7,295 $6,743 $6,132 $6,144

Net Claims Expense $5,370 $5,155 $4,474 $3,900 $4,090

Return on Equity 4.10% 5.9% 13.5% 22.1% 23.1%

Insurance Margin 7.1 5.4 11.4 13.7 15.4


Customer

2009 2008 2007 2006 2005
AU NZ AU NZ AU NZ AU NZ AU NZ
Business volume 11.5 2.3 11.6 2.3 11.8 2.3 11.6 2.3 11.9 2.7

Customer satisfaction 84 90 84 87 83 85 80 88 81 88


Workforce

2009 2008 2007 2006 2005
AU NZ AU NZ AU NZ AU NZ AU NZ
Full time versus part time employees
    FT 82% 88% 83% 90% 83% 90% 84% 91% 85% 93%

    PT 18% 12% 17% 10% 17% 10% 16% 9% 15% 7%

FTE 8,538 1,927 8,962 2,003 9,227 2,028 9,138 1,925 9,175 1,875

Total headcount 9,396 2,006 9,909 2,072 10,185 2,106 10,086 2,036 9,856 1,974

staff turnover 19.7% 15.2% 20.3% 25.5% 19.5% NR 20.6% NR 19.5% NR

    Employee initiated 13% 12.3% NR 20.3% NR 22.4% NR 23.3% NR 19.0%

    Employer initiated 6.7% 2.9% NR 5.2% NR NR NR NR NR NR

Absenteeism 4.5% 3.9% 4.7% 4.2% 4.4% 4.3% 3.5% 4.2% 3.5% 3.9%

Employees represented by unions 12.2% 48.7% 13.4% 47.9% 15.4% 52.9% NR NR NR NR

Engagement survey response rate 79% 87% 78% 83% 82% 90% 76% 87% 86% 91%

Engagement survey score 85% 84% 61% 51% 61% 55% 56% 54% 54% 50%

Male to female annual salary ratio ($) A$
1.37:1
NZ$
1.31:1
A$
1.37:1
NZ$
1.30:1
A$
1.37:1
NZ$
1.28:1
A$
1.37:1
NZ$
1.30:1
A$
1.42:1
NZ$
1.31:1


Women in senior management positions 27.0% 24.0% 34.0% 20.0% 32.0% 20.0% 32.0% 19.0% 29.0% 20.0%

Women in executive positions 22.0% 25.0% 25.0% 25.0% 25.0% 13.0% 27.0% NR 11.0% NR

Lost time injury frequency rate 2.6 1.3 3.6 0.9 6.2 1.2 4.9 NR 5.3 NR


Community

2009 2008 2007 2006 2005
AU NZ AU NZ AU NZ AU NZ AU NZ
Community Investment (total) A$
7.6m
NZ$
0.5m
A$
11.6m
NZ$
0.7m
A$
12.0m
NZ$
1.1m
A$
14.4m
NZ$
3.1m
A$
12.4m
NZ$
2.5m



Environment

2009 2008 2007 2006 2005
AU NZ AU NZ AU NZ AU NZ AU NZ
CO2e emissions tonnes 53,527 3,400 60,984 3,557 63,184 4,207 76,886 3,696 82,002 3,768

    CO2e emissions
    tonnes/FTE
6.3 1.8 6.8 1.8 6.8 2.1 8.4 1.9 8.9 2.0

Total fuel consumption KL* 2,975 419 3,049 397 2,720 392 2,982 420 3,280 503

    Total fuel consumption
    kL/vehicle
3.6 1.9 3.4 1.8 3.0 1.7 3.3 1.9 3.5 1.9

Total air travel km (millions) 21.8 3.46 26.2 4.4 35.9 7.2 32.5 6.0 31.8 4.9

    Air travel km/FTE 2,549 1,794 2,926 2,173 3,894 3,526 3,554 3,101 3,467 2,624

Electricity MWh 35,312 5,871 40,197 5,416 39,521 5,594 45,926 5,121 45,536 5,125

    Electricity MWh/FTE 4.1 3.0 4.5 2.7 4.3 2.8 5.0 2.7 5.0 2.7

Office paper tonnes 328 47 320 51 375 58 376 62 446 69

    Office paper kg/FTE 38.5 24.4 35.7 25.6 40.6 28.6 41.0 32.1 49.0 37.0

Print paper tonnes 1,425 289 1,512 300 1,644 198 1,682 173 2,693 183

    Print paper per kg/BV 0.12 0.13 0.1 0.1 0.1 0.1 0.2 0.1 0.2 0.1

Recycled waste tonnes** 1,119 93 740 114 653 121 302 109 232 60

    Recycled waste kg/FTE 131 48 83 57 71 60 33 56 25 31