Insurance Australia : 1H22 Results presentation (1.15 MB)

This release has been authorised by the IAG Board

Financial results

Half year ended 31 December 2021 11 February 2022

Nick Hawkins

Managing Director and

Chief Executive Officer

Michelle McPherson

Chief Financial Officer

1 1H22 Results | 11 February 2022

Overview

Nick Hawkins

Managing Director and Chief Executive Officer

2 1H22 Results | 11 February 2022

1H22 results

overview

GWP	Underlying margin	Reportedmargin
$6.6bn	15.1%	7.1%
Strong premium growth, particularly in	Underlying margin expansion	Reported margins impacted by perils
commercial lines	compared to FY21	and reserve strengthening

Cash earnings	CET1 ratio	FY22 guidance
$176m	1.02x	GWP upgraded
No unusual items adjusting cash	Remains within target range,	GWP guidance upgraded to mid
earnings, maintain business	post 6cps dividend payment	single-digit, reported margin
interruption provision		maintained

3 1H22 Results | 11 February 2022

1H22 highlights robust GWP trends and stable underlying margin performance

GWP growth

8.9%

8.3%

6.2%

3.3%

Group		Direct Insurance		Intermediated		New Zealand
		Australia		Insurance
				Australia

Insurance margin

17.9%

15.9%	15.1%

13.5%

9.1%

7.1%

1H21		2H21	1H22
		Reported margin	Underlying margin

4 1H22 Results | 11 February 2022

Divisional highlights

	Direct Insurance		Intermediated Insurance
	Australia (DIA)				Australia (IIA)
• >1% GWP volume growth in	• ~9% premium rate increases
personal short tail					•	Rate-driven underlying margin
• Pricing for short tail inflation		improvement
• Strong underlying margins maintained	•	Reserve strengthening confined to liability
• NSW CTP reserve strengthening
	GWP growth		GWP growth / underlying margin
											8.9%
5.2%	4.8%		3.3%
					5.7%			5.5%
									5.0%
							3.8%			3.9%
Motor	Home	CTP	Commercial Total GWP
			-4.8%
		-6.4%					1H21	2H21	1H22
Note: SME Direct Partner business is recorded in IIA from 1H22, which resulted in a				GWP Growth	Underlying margin
~$5m reduction to Commercial GWP. Commercial GWP was slightly ahead of 1H21,
normalising for this transfer.

New Zealand

• Notable GWP momentum
• Large claims increase after benign 1H21
• Underlying margins higher than FY21 overall

GWP growth / underlying margin

18.6%

16.8%

	14.3%
			8.3%
			5.9%
2.8%	2.7%
1.5%	0.3%
1H21		2H21	1H22
A$ GWP growth		NZ$ GWP growth	Underlying margin

5 1H22 Results | 11 February 2022