Chairman's
Review
Our results attest to the strength of the Group’s core franchises in Australia and New Zealand and the considerable improvement in their collective underlying performance in recent years, as the Group continues its active reinvestment in those businesses.
Being continuously open to change prepares us for the future
Managing change is challenging at the best of times – even more so when one is a market leader, as we are. Having a culture that embraces change ensures we are open to opportunities in the future, and it is one of the things we are most proud of.
From acquisitions to transformation, the story of IAG’s growth and success is one of continual change, and our ability to respond positively to the opportunities this brings. Despite the scale and size of our business, we are enthusiastic about challenging the status quo. Our ability to continually refine our strategy and reshape our business demonstrates that we are open to trying new and better ways of doing things.
Preparing for the digital future
This year, the Board made digital a major priority, enthusiastically supporting the way the business is using digital technology as a key enabler, and taking steps to improve our skills and knowledge in this important area. IAG strives to be the best-in-class in our collection and use of data in our industry; our aim is to be amongst the best in the world.
Asian growth strategy remains a focus
Our commitment to our Asian growth strategy remains strong, and this year we began the process to increase our holding in our Indian joint venture business, SBI General, and we purchased a small business in Indonesia. We see considerable opportunity in our target markets, where there is a relatively low penetration of insurance, and rising affluence and consumption in the emerging middle classes.
Welcome to Berkshire Hathaway
In June, the Board was delighted to welcome Berkshire Hathaway as a strategic partner and shareholder. We believe the partnership is an endorsement of our strategy, the strong franchises we have created, and the opportunities we are creating in Asia, and we look forward to an ongoing and mutually beneficial relationship.
Our focus on diversity starts with the Board
IAG benefits from having access to a diverse range of skills and experience in its people and Mike Wilkins talks about our diversity achievements in more detail in his review. I am extremely proud that we as a Board are setting the tone for the organisation, demonstrating diversity in Directors’ geographic bases, gender, age and skills.
We further strengthened our Board this year, with the appointments of Elizabeth Bryan am, Tom Pockett and Jon Nicholson, and the subsequent naming of Elizabeth as our Deputy Chairman, and continue to seek out people who have the experience to help guide IAG into the future.
Dividend
Reflecting our confidence in the future, the Board has declared a dividend at the top end of our target range of 50 – 70% of cash earnings. The final dividend of 16.0 cents per share (cps) will be paid on 7 October 2015 to shareholders registered at 5.00pm on 9 September 2015. This brings the full year dividend to 29.0 cps.
In closing, I thank and congratulate Mike, his Executive Team, and the entire IAG team, on their willingness to embrace change, and the strong results this has enabled us to achieve to the benefit of all who have a stake in our company.
