How we performed

FINANCIAL PERFORMANCE – SELECTED HIGHLIGHTS

Six months ended
31 Dec 2013
$m		 Six months ended
31 Dec 2014
$m
Gross written premium 4,786 5,603
Net earned premium 4,320 5,154
Net claims expense (2,508) (3,481)
Underwriting profit 671 266
Investment income on technical reserves 87 427
Insurance profit 758 693
Investment income on shareholders’ funds 233 137
Net profit attributable to
holders of ordinary shares		 642 579

FINANCIAL POSITION

As at
30 June 2014
$m		 As at
31 Dec 2014
$m
Cash and investments 16,396 16,090
Other assets 9,721 10,525
Goodwill and intangibles 3,540 3,595
Total assets 29,657 30,210
Claims provisions and unearned premium 18,193 18,936
Borrowings and other liabilities 4,670 4,467
Total liabilities 22,863 23,403
Net assets 6,794 6,807
Equity attributable to IAG shareholders 6,568 6,583
Non-controlling interests 226 224
Total equity 6,794 6,807

Key Figures

Increased by 17.1% to $5.6 billion, largely reflecting the first-time inclusion of the former Wesfarmers business.

The Group’s reported insurance margin of 13.4% was affected by net natural peril claim costs of $421 million, $71 million higher than our allowance and including $165 million for the Brisbane storm in November 2014; and lower prior period reserve releases of $92 million, equivalent to 1.8% of net earned premium (NEP), down from 4.3% in the first half of the 2014 financial year.

Compared to the first half of last financial year, net profit after tax decreased by nearly 10% to $579 million.

Consistent with the last interim dividend of 13.0 cents per share (cps) and equal to a payout ratio of 46.6% of cash earnings. The Group’s policy is to pay out 50-70% of cash earnings in any given year. The fully franked dividend will be paid on 1 April 2015, to shareholders registered at 4 March 2015. The Dividend Reinvestment Plan will operate for the interim dividend.

© 2015 Insurance Australia Group Limited ABN 60 090 739 923