Glossary

AGM

An annual general meeting of shareholders required by law where directors inform shareholders of company performance and future prospects. Shareholders vote on board elections and significant company issues. All shareholders will be mailed a Notice of Meeting at least 28 days prior to the AGM date.

ASIC

Australian Securities and Investments Commission.

ASX

Australian Securities Exchange Limited ACN 008 624 691.

ASX Business day

Monday to Friday inclusive, except New Year's day, Good Friday, Easter Monday, Christmas day, Boxing day and any other date that the ASX declares is not a business day.

CHESS

ASX's Clearing House Electronic Sub-register System which provides the central register for electronic transfer of share ownership.

Chess holding

A holding of shares on the CHESS sub-register of the company, sponsored by a sharebroker.

CGT

Capital Gains Tax

Cum dividend

With dividend. This means the holder has bought shares in time to qualify for a dividend which has been recently announced.

Demutualisation

The change of NRMA Insurance Limited from a company limited by guarantee to a company limited by shares owned by IAG and the issue of shares in IAG to former members of NRMA Insurance Limited on 22 July 2000.

Dividend

Amount the company pays to shareholders. The rate of dividend is generally expressed in cents per share.

Dividend imputation

The system under which shareholders receiving dividends from a company, are entitled to a credit for the Australian tax paid by the company on its income. See also imputation credit/imputed credit/franking credit.

Dividend yield

The return on share investment, calculated by dividing the dividend rate (in cents per share) by the market price of the share. It is expressed as a percentage.

Ex date

The date on which shares change from 'cum' to 'ex' status. This date is the third day prior to, and including, the record date. It's the first day the shares trade without the buyer qualifying for the dividend.

Ex dividend

Without dividend. Once a share has gone 'ex dividend' the buyer does not receive the dividend declared, but will receive subsequent dividends if the shares are still held.

Franked dividend

Dividends on shares with franking credit attached. A company is able to declare that a percentage (up to 100% of a dividend) is franked depending on the amount of franking credits available.

Group

The group of companies made up of Insurance Australia Group Limited and its controlled entities.

HIN

Holder Identification Number. Allocated by a broker to shareholder sponsored through CHESS.

Holding statement

A statement which confirms your shareholding and any changes to the number of shares held.

Imputation credit / Imputed credit / Franking credit

To prevent shareholders from paying income tax on dividends paid out of company profits that have already been taxed (a double tax on the same earnings), the company's tax payment is 'imputed' or attributed to the shareholders, through the company being entitled to either fully, or partially 'frank' its dividends. Shareholders receive a tax credit for the franked portion of such dividends. See also dividend imputation.

IAG

Refers to Insurance Australia Group Limited ABN 60 090 739 923, formerly NRMA Insurance Group Limited ABN 60 090 739 923.

Interim dividend

The dividend paid before the end of the financial year on profits attributable to that year. (The company's current financial year ends on 30 June).

Marketable parcel

The number of shares which have a value of at least $500, based on the share closing price on a trading day.

NIGL

NRMA Insurance Group Limited. Now called Insurance Australia Group Limited ABN 60 090 739 923.

Record date

The date on which the company closes its register for the determination of eligible shareholders and shareholder details.

Registrar

Computershare Investor Services Pty Limited ABN 48 078 279 277.

Shareholder

A holder of either ordinary or preference shares in IAG.

Shares

Issued shares in Insurance Australia Group Limited.

SRN

Securityholder Reference Number. Allocated to shareholders not sponsored by a broker.

Trading day

Is as defined in the ASX business rules.