Five year financial summary
| 2018 $m |
20179 $m |
2016 $m |
2015 $m |
2014 $m |
|
|---|---|---|---|---|---|
| Gross written premium | 11,647 | 11,439 | 11,367 | 11,440 | 9,779 |
| Gross earned premium | 11,522 | 11,321 | 11,411 | 11,525 | 9,721 |
| Outwards reinsurance premium expense | (3,851) | (3,122) | (3,183) | (1,196) | (1,077) |
| Net premium revenue | 7,671 | 8,199 | 8,228 | 10,329 | 8,644 |
| Net claims expense | (4,617) | (5,082) | (5,397) | (6,941) | (5,201) |
| Underwriting expenses | (1,877) | (2,079) | (2,116) | (2,847) | (2,303) |
| Underwriting profit1 | 1,177 | 1,038 | 715 | 541 | 1,140 |
| Net investment income on assets backing insurance liabilities | 230 | 232 | 463 | 562 | 439 |
| Management reported insurance profit1 | 1,407 | 1,270 | 1,178 | 1,103 | 1,579 |
| Net investment income from shareholders’ funds | 165 | 246 | 97 | 223 | 396 |
| Other income | 164 | 180 | 204 | 187 | 199 |
| Share of net profit/(loss) of associates2 | 31 | 19 | 17 | 6 | (8) |
| Finance costs | (82) | (93) | (99) | (107) | (98) |
| Corporate and administration expenses3 | (185) | (222) | (423) | (383) | (255) |
| Amortisation expense and impairment charges of acquired intangible assets and goodwill | (90) | (57) | (54) | (80) | (11) |
| Profit before income tax | 1,410 | 1,343 | 920 | 949 | 1,802 |
| Income tax expense | (384) | (328) | (218) | (119) | (472) |
| Profit after tax from continuing operations | 1,026 | 1,015 | 702 | 830 | 1,330 |
| Loss after tax from discontinued operation | (25) | (10) | – | – | – |
| Net profit attributable to non-controlling interests | (78) | (76) | (77) | (102) | (97) |
| Net profit attributable to IAG shareholders | 923 | 929 | 625 | 728 | 1,233 |
| Ordinary shareholders’ equity ($ million) | 6,669 | 6,562 | 6,563 | 6,817 | 6,568 |
| Total assets ($ million)4 | 29,766 | 29,597 | 30,030 | 31,402 | 29,748 |
Key ratios |
|||||
| Gross written premium growth | 1.8% | n/a | (0.6)% | 17.0% | 3.0% |
| Loss ratio5 | 60.2 | 62.2% | 65.6% | 67.2% | 60.2% |
| Expense ratio6 | 24.5% | 25.3% | 25.7% | 27.6% | 26.7% |
| Combined ratio7 | 84.7% | 87.3% | 91.3% | 94.8% | 86.9% |
| Insurance margin8 | 18.3% | 15.5% | 14.3% | 10.7% | 18.3% |
Share information |
|||||
| Dividends per ordinary share fully franked (cents) | 34.00 | 33.00 | 36.00 | 29.00 | 39.00 |
| Basic earnings per ordinary share (cents) | 39.06 | 39.03 | 25.79 | 31.22 | 56.09 |
| Diluted earnings per ordinary share (cents) | 38.30 | 37.72 | 25.34 | 30.45 | 53.62 |
| Ordinary share price at 30 June ($) (ASX: IAG) | 8.53 | 6.78 | 5.45 | 5.58 | 5.84 |
| Convertible preference share price at 30 June ($) (ASX: IAGPC) | – | – | 101.50 | 101.60 | 106.44 |
| Capital notes price at 30 June ($) (ASX: IAGPD) | 104.67 | 106.53 | – | – | – |
| Reset exchangeable securities price at 30 June ($) (ASX: IANG) | 102.66 | 103.40 | 100.00 | 103.10 | 107.00 |
| Issued ordinary shares (million) | 2,367 | 2,367 | 2,431 | 2,431 | 2,341 |
| Issued convertible preference shares (million) | – | – | 4 | 4 | 4 |
| Issued capital notes (million) | 4 | 4 | – | – | – |
| Market capitalisation (ordinary shares) at 30 June ($ million) | 20,191 | 16,048 | 13,249 | 13,565 | 13,671 |
| Net tangible asset backing per ordinary share ($)4 | 1.47 | 1.36 | 1.30 | 1.34 | 1.27 |
1 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 Directors' Report in the 30 June 2016 Annual Report.
2 Share of net profit/(loss) of associates includes regional support and development costs.
3 Includes a $198 million impairment of capitalised software for 2016 and a $60 million impairment of the investment in Bohai Insurance for 2015.
4 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.
5 The loss ratio refers to the net claims expense as a percentage of net premium revenue.
6 The expense ratio refers to net underwriting expense as a percentage of net premium revenue.
7 The combined ratio refers to the sum of the loss ratio and expense ratio.
8 Insurance margin is a ratio of insurance profit over net premium revenue.
9 The financial information for 2017 has been re‑presented to reflect the changed treatment of the Asian businesses as discontinued operations. Financial information for 2016, 2015 and 2014 is not re‑presented.