Insurance Australia : IAG 1H22 Results Presentation

This release has been authorised by the IAG Board

Financial onlyresults

Half year ended 31 December 2021 use11 February 2022

ersonal1 1H22 Results | 11 February 2022

Nick Hawkins

Managing Director and

Chief Executive Officer

Michelle McPherson

Chief Financial Officer

only	Overview
use
Nick Hawkins
ersonal	Managing Director and
Chief Executive Officer
2 1H22 Results | 11 February 2022

1H22 results

overview

only	$6.6bn
	GWP
use	Strong premium growth, particularly in
commercial lines
ersonal
Cash earnings
	$176m

No unusual items adjusting cash

earnings, maintain business

interruption provision

3 1H22 Results | 11 February 2022

Underlying margin	Reportedmargin
15.1%	7.1%
Underlying margin expansion	Reported margins impacted by perils
compared to FY21	and reserve strengthening

CET1 ratio	FY22 guidance
1.02x	GWP upgraded
Remains within target range,	GWP guidance upgraded to mid
post 6cps dividend payment	single-digit, reported margin
	maintained

1H22 highlights robust GWP trends and stable underlying margin performance

onlyuse ersonal4

GWP growth

8.9%

8.3%

6.2%

3.3%

Group		Direct Insurance		Intermediated		New Zealand
		Australia		Insurance
				Australia

1H22 Results | 11 February 2022

Insurance margin

17.9%

15.9%	15.1%

13.5%

9.1%

7.1%

1H21		2H21	1H22
		Reported margin	Underlying margin

1H22 Results | 11 February 2022

-6.4%

-4.8%

Direct Insurance

Australia (DIA)

highlights

Divisional

only	• >1% GWP volume growth in
personal short tail
• Pricing for short tail inflation
• Strong underlying margins maintained
• NSW CTP reserve strengthening
use
	GWP growth
5.2%	4.8%	3.3%
ersonal
Motor	Home	CTP Commercial Total GWP

Note: SME Direct Partner business is recorded in IIA from 1H22, which resulted in a ~$5m reduction to Commercial GWP. Commercial GWP was slightly ahead of 1H21, normalising for this transfer.

5

Intermediated Insurance

Australia (IIA)

• ~9% premium rate increases
• Rate-drivenunderlying margin improvement
• Reserve strengthening confined to liability

GWP growth / underlying margin

		8.9%
5.7%	5.5%	5.0%
3.8%	3.9%

1H21	2H21	1H22
		GWP Growth	Underlying margin

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