CONSOLIDATED
2015
2014
$m
$m
D. DEFERRED TAX LIABILITIES
I. Composition
a. AMOUNTS RECOGNISED IN PROFIT
Investments
35
108
Intangible assets
56
78
Other
165
130
256
316
b. AMOUNTS RECOGNISED DIRECTLY IN OTHER COMPREHENSIVE INCOME
Hedges
27
12
283
328
c. AMOUNTS SET-OFF AGAINST DEFERRED TAX ASSETS
(283)
(328)
-
-
II. Reconciliation of movements
Balance at the beginning of the financial year
328
160
Charged/(credited) to profit or loss
(49)
71
Charged/(credited) to equity
15
(8)
Additions through business acquisition
-
108
Transfers
-
2
Adjustments relating to prior year
(12)
(4)
Foreign exchange differences
1
(1)
Balance at the end of the financial year prior to set-off
283
328
NOTE 7. SEGMENT REPORTING
The Consolidated entity has general insurance operations in Australia, New Zealand and Asia. In Australia, the financial results are
generated from three different divisions being Personal Insurance, Commercial Insurance and Corporate and other.
From 1 July 2014, a new Australian operating model came into effect resulting in changes to the reporting segments of the Australian
operations. Prior period segment information has been re-presented accordingly. The Australian operating segments are now
identified by management based on the activities that directly affect the customer experience, from pricing, marketing, to sales
services and claims; these segments are Personal Insurance and Commercial Insurance.
In the prior financial year, on 30 June 2014, the Group acquired the former Wesfarmers insurance business in Australia and New
Zealand, with the entities being consolidated by the Group from that date. The Australian and New Zealand acquired businesses form
part of the Australian Commercial Insurance and Australian Personal Insurance segments, and the New Zealand segment.
The Consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by the Chief
Executive Officer (being the chief operating decision maker) in assessing performance and in determining the allocation of resources.
The reportable segments are based on the operating segments as these are the source of the Consolidated entity’s major risks and
have the most effect on the rates of return.
The reportable segments comprise the following business divisions:
A. AUSTRALIA PERSONAL INSURANCE
This segment provides general insurance products to individuals throughout Australia primarily under the NRMA Insurance, SGIO,
SGIC and CGU brands, in Victoria under the RACV brand (via a distribution and underwriting relationship with RACV) and the Coles
Insurance brand nationally (via a distribution agreement with Coles).
B. AUSTRALIA COMMERCIAL INSURANCE
This segment provides commercial insurance to business customers throughout Australia, predominantly under the CGU, WFI,
and Swann Insurance brands through intermediaries including brokers, authorised representatives and distribution partners.
C. NEW ZEALAND
This segment provides general insurance business underwritten through subsidiaries in New Zealand. Insurance products are
sold directly to customers predominantly under the State and AMI brands, and through intermediaries (insurance brokers and
authorised representatives) predominantly under the NZI and Lumley Insurance brands. Personal and commercial products are
also distributed by corporate partners, such as large financial institutions, using third party brands.
D. ASIA
This segment provides direct and intermediated insurance business underwritten through subsidiaries in Thailand, Vietnam and
Indonesia and the share of the operating result from the investment in associates in Malaysia, India and China. The businesses
offer personal and commercial insurance products through local brands.
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