Insurance Australia : FY22 Investor presentation (1.05 MB)

This release has been authorised by the IAG Board

Financial results

Full year ended 30 June 2022	Nick Hawkins
Managing Director and
	Chief Executive Officer
	Michelle McPherson
12 August 2022	Chief Financial Officer

1 FY22 Results | 12 August 2022

Important information

This report contains general information current as at 12 August 2022 and is not a recommendation or advice in relation to any product or service offered by Insurance Australia Group Limited (IAG) or its subsidiaries. It presents financial information on both a statutory basis (prepared in accordance with Australian Accounting Standards which comply with International Financial Reporting Standards (IFRS)) and non-IFRS basis. This report is not an invitation, solicitation, recommendation or offer to buy, issue or sell securities or other financial products in any jurisdiction.

The report should not be relied upon as advice as it does not take into account the financial situation, investment objectives or particular needs of any person. The report should be read in conjunction with IAG's other periodic and continuous disclosure announcements filed with the Australian Securities Exchange (available at www.iag.com.au) and investors should consult with their own professional advisers.

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In addition, there are particular risks and uncertainties associated with implementation of IAG's strategy and related targets and goals. As the targets and goals span a number of years, they are subject to assumptions and dependencies which have greater levels of uncertainty than guidance given for FY23. IAG's ability to execute its strategy and realise its targets and goals will depend upon its ability to respond and adjust its business plans (as and when developed) to any changes in such assumptions and dependencies, including disruptions or events that are beyond IAG's control.

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References to currency are to Australian dollars, unless otherwise specified. Prevailing exchange rates have been used to convert local currency amounts into Australian dollars, where appropriate.

Further information, including IAG's business structure, portfolio and partnerships is available on IAG's

website at https://www.iag.com.au/about-us/what-we-do

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2 FY22 Results | 12 August 2022

Overview

Nick Hawkins

Managing Director and Chief Executive Officer

3 FY22 Results | 12 August 2022

FY22 results

overview

GWP	Underlying margin	Reported margin
$13.3bn	14.6%	7.4%
Strong rate increases and customer	Positive underlying margin	Impacted by natural perils, reserve
growth	momentum	strengthening and investment markets

Net profit after tax	CET1 ratio	FY23 guidance
$347m	0.97x	Strong momentum
	Within target range, and additional	GWP growth 'mid-to-high single digit',
	pro-forma 6pts from Malaysian sale	reported margin 14-16%

4 FY22 Results | 12 August 2022

FY22 group highlights strong GWP trends

and steady underlying margin performance

GWP growth

7.4%

1.7%

4.4%

0.6%

5.7%

3.8%

FY21FY22

Estimated COVID-19, ESL, FX and IAL exit impacts

Insurance margin1

13.8%	14.4%
13.5%
	7.4%

FY21		FY22
Reported margin		Adjusted underlying margin

		(1)IAG defines its underlying insurance margin as the reported insurance margin adjusted for net natural peril claim costs less the related allowance; prior period reserve releases or
5	FY22 Results | 12 August 2022	strengthening and credit spread movements. The adjusted underlying margin also excludes COVID-19 and discount rate timing impacts. A reconciliation is contained in Appendix 2.