Insurance Australia : Five-year financial summary (44.52 KB)

FIVE-YEAR FINANCIAL SUMMARY

	2022	2021	2020	2019	2018
	$m	$m	$m	$m	$m
Gross written premium	13,317	12,602	12,135	12,005	11,647
Gross earned premium	12,972	12,345	12,164	11,942	11,522
Outwards reinsurance premium expense	(5,063)	(4,872)	(4,801)	(4,704)	(3,851)
Net premium revenue	7,909	7,473	7,363	7,238	7,671
Net claims expense	(5,215)	(4,807)	(5,010)	(4,619)	(4,617)
Net underwriting expense	(1,870)	(1,798)	(1,757)	(1,716)	(1,877)
Underwriting profit(1)	824	868	596	903	1,177
Net investment income on assets backing insurance liabilities	(238)	139	145	321	230
Management reported insurance profit(1)	586	1,007	741	1,224	1,407
Net investment (loss)/income from shareholders' funds	(105)	306	(181)	227	165
Other income	132	165	441	111	164
Share of net profit of associates(2)	17	35	57	42	31
Finance costs	(93)	(89)	(92)	(94)	(82)
Corporate and administration expenses(3)	34	(1,705)	(404)	(124)	(185)
Acquired intangible amortisation and impairment	(7)	(108)	(27)	(54)	(90)
Profit/(Loss) before income tax	564	(389)	535	1,332	1,410
Income tax (expense)/benefit	(140)	125	(37)	(363)	(384)
Profit/(Loss) after tax from continuing operations	424	(264)	498	969	1,026
Profit/(Loss) after tax from discontinued operations	-	(13)	(4)	204	(25)
Net loss attributable to non-controlling interests	(77)	(150)	(59)	(97)	(78)
Net profit/(loss) attributable to shareholders of the Parent	347	(427)	435	1,076	923
Cash earnings(4)	213	747	279	931	1,034
Ordinary shareholders' equity ($ million)	6,163	6,246	6,077	6,404	6,669
Total assets ($ million)	34,083	33,449	29,694	29,286	29,766
KEY RATIOS
Gross written premium growth	5.7 %	3.8 %	1.1 %	3.1 %	1.8%
Loss ratio(5)	65.9 %	64.3 %	68.0 %	63.8 %	60.2 %
Expense ratio(6)	23.7 %	24.1 %	23.8 %	23.7 %	24.5 %
Combined ratio(7)	89.6 %	88.4 %	91.8 %	87.5 %	84.7 %
Reported insurance margin(8)	7.4 %	13.5 %	10.1 %	16.9 %	18.3 %
Underlying insurance margin(9)	14.6 %	14.7 %	16.0 %	16.6 %	14.1 %
SHARE INFORMATION
Dividends per ordinary share (cents)(10)	11.00	20.00	10.00	37.50	34.00
Basic earnings per ordinary share (cents)(11)	14.09	(17.82)	18.87	46.26	39.06
Basic earnings per ordinary share - cash basis (cents)(12)	8.65	31.16	12.12	40.04	43.78
Diluted earnings per ordinary share (cents)(11)	13.33	(17.82)	18.49	44.58	38.30
Diluted earnings per ordinary share - cash basis (cents)(12)	8.49	28.51	12.12	38.83	42.75
Ordinary share price at 30 June ($) (ASX: IAG)	4.36	5.16	5.77	8.26	8.53
Capital notes price at 30 June ($) (ASX: IAGPD)	102.00	104.57	103.54	106.95	104.67
Issued ordinary shares (million)	2,465	2,465	2,311	2,311	2,367
Issued capital notes (million)	4	4	4	4	4
Market capitalisation (ordinary shares) at 30 June ($ million)	10,747	12,719	13,334	19,089	20,191
Net tangible asset backing per ordinary share ($)	1.12	1.23	1.27	1.43	1.47

1. The amounts for the 2022 and 2021 financial years are presented on a management reported (non-IFRS) basis which is not directly comparable to the equivalent statutory (IFRS) figure. A reconciliation between the two is outlined in the Reconciliation Between The Statutory Results (IFRS) And The Management Reported (Non- IFRS) Results section of the Directors' Report in this report.
2. Share of net profit of associates includes regional support and development costs.
3. Includes a $200 million pre-tax net impact of the business interruption claim reduction and a $12 million pre-tax net impact of the payroll compliance provision for 2022, and a $238 million pre-tax net impact of the customer refunds provision, a $1,150 million pre-tax net impact of the business interruption claim provision and a $51 million pre-tax net impact of the payroll compliance provision for 2021.
4. Cash earnings represent non-IFRS financial information. It is defined as net profit after tax attributable to shareholders of the Parent, plus amortisation and impairment of acquired identifiable intangibles, and excluding non-cash earnings items (not considered part of the Group's ongoing financial performance).
5. The loss ratio refers to the net claims expense as a percentage of net premium revenue.
6. The expense ratio refers to net underwriting expense as a percentage of net premium revenue.
7. The combined ratio refers to the sum of the loss ratio and expense ratio.
8. Reported insurance margin is a ratio of insurance profit over net premium revenue.
9. From the 2021 financial year, IAG's underlying margin definition will no longer factor in an allowance for reserve releases. The prior period comparatives are reported on the previous basis, which included an allowance of 1% of NEP. Underlying margins continue to be adjusted for prior year reserve releases or strengthening, natural peril claim costs above or below related allowances and credit spread gains or losses.
10. The dividends per ordinary share are partially franked for the 2022 financial year and unfranked for the 2021 financial year, partially franked for the 2019 to 2020 financial years, and fully franked for the 2018 financial year.
11. Reflects basic and diluted earnings per ordinary share on an accounting basis.
12. Basic and diluted earnings per ordinary share on a cash basis are calculated with reference to cash earnings.

120 IAG ANNUAL REPORT 2022