FIVE YEAR FINANCIAL SUMMARY
| 2017 $m |
2015 $m |
2016 $m |
2014 $m |
2013 $m |
|
|---|---|---|---|---|---|
| Gross written premium | 11,805 | 11,367 | 11,440 | 9,779 | 9,498 |
| Gross earned premium | 11,692 | 11,411 | 11,525 | 9,721 | 9,135 |
| Outwards reinsurance premium expense | (3,227) | (3,183) | (1,196) | (1,077) | (817) |
| Net premium revenue | 8,465 | 8,228 | 10,329 | 8,644 | 8,318 |
| Net claims expense | (5,263) | (5,397) | (6,941) | (5,201) | (4,982) |
| Underwriting expenses | (2,185) | (2,116) | (2,847) | (2,303) | (2,178) |
| Underwriting profita | 1,017 | 715 | 541 | 1,140 | 1,158 |
| Net investment income on assets backing insurance liabilities | 241 | 463 | 562 | 439 | 270 |
| Management reported insurance profita | 1,258 | 1,178 | 1,103 | 1,579 | 1,428 |
| Net investment income from shareholders’ funds | 249 | 97 | 223 | 396 | 347 |
| Other income | 182 | 204 | 187 | 199 | 175 |
| Share of net profit/(loss) of associatesb | 19 | 17 | 6 | (8) | (29) |
| Finance costs | (93) | (99) | (107) | (98) | (95) |
| Corporate and administration expensesc | (224) | (423) | (383) | (255) | (208) |
| Amortisation expense and impairment charges of acquired intangible assets and goodwill | (57) | (54) | (80) | (11) | (25) |
| Profit before income tax | 1,334 | 920 | 949 | 1,802 | 1,593 |
| Income tax expense | (329) | (218) | (119) | (472) | (424) |
| Profit after tax from continuing operations | 1,005 | 702 | 830 | 1,330 | 1,169 |
| Loss after tax from discontinued operation | — | — | — | — | (287) |
| Net profit attributable to non-controlling interests | (76) | (77) | (102) | (97) | (106) |
| Net profit attributable to IAG shareholders | 929 | 625 | 728 | 1,233 | 776 |
| Ordinary shareholders’ equity ($ million) | 6,562 | 6,563 | 6,817 | 6,568 | 4,786 |
| Total assets ($ million)d | 29,597 | 30,030 | 31,402 | 29,748 | 24,859 |
KEY RATIOS |
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| Gross written premium growth | 3.9% | (0.6)% | 17.0% | 3.0% | 11.8% |
| Loss ratioe | 62.2% | 65.6% | 67.2% | 60.2% | 59.9% |
| Expense ratiof | 25.8% | 25.7% | 27.6% | 26.7% | 26.2% |
| Combined ratiog | 88.0% | 91.3% | 94.8% | 86.9% | 86.1% |
| Insurance marginh | 14.9% | 14.3% | 10.7% | 18.3% | 17.2% |
SHARE INFORMATION |
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| Dividends per ordinary share fully franked (cents) | 33.00 | 36.00 | 29.00 | 39.00 | 36.00 |
| Basic earnings per ordinary share (cents) | 39.03 | 25.79 | 31.22 | 56.09 | 37.57 |
| Diluted earnings per ordinary share (cents) | 37.72 | 25.34 | 30.45 | 53.62 | 36.44 |
| Ordinary share price at 30 June ($) (ASX: IAG) | 6.78 | 5.45 | 5.58 | 5.84 | 5.44 |
| Convertible preference share price at 30 June ($) (ASX: IAGPC) | — | 101.50 | 101.60 | 106.44 | 101.88 |
| Capital notes price at 30 June ($) (ASX: IAGPD) | 106.53 | — | — | — | — |
| Reset exchangeable securities price at 30 June ($) (ASX: IANG) | 103.40 | 100.00 | 103.10 | 107.00 | 102.80 |
| Issued ordinary shares (million) | 2,367 | 2,431 | 2,431 | 2,341 | 2,079 |
| Issued convertible preference shares (million) | — | 4 | 4 | 4 | 4 |
| Issued capital notes (million) | 4 | — | — | — | — |
| Market capitalisation (ordinary shares) at 30 June ($ million) | 16,048 | 13,249 | 13,565 | 13,671 | 11,310 |
| Net tangible asset backing per ordinary share ($)d | 1.36 | 1.30 | 1.34 | 1.27 | 1.38 |
a The amounts for 2016 financial year 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 Operating and Financial Review section of the 2017 annual report.
b Share of net profit/(loss) of associates includes regional support and development costs.
c Includes a $198 million impairment of capitalised so ware for 2016 and a $60 million impairment of the investment in Bohai Insurance for 2015.
d The financial information for 2014 has been restated to reflect the fair value adjustments to the net assets acquired in respect of the former Wesfarmers business in 2014.
e The loss ratio refers to the net claims expense as a percentage of net premium revenue.
f The expense ratio refers to underwriting expenses as a percentage of net premium revenue.
g The combined ratio refers to the sum of the loss ratio and expense ratio.
h Insurance margin is a ratio of insurance profit over net premium revenue.