Shareholder Information
| KEY DATES | |
|---|---|
| 2016 financial year end | 30 June 2016 |
| Full year results and dividend announcement | 19 August 2016 |
| Notice of meeting mailed to shareholders | 6 September 2016 |
| Final dividend for ordinary shares Record date Payment date |
7 September 2016 5 October 2016 |
| Annual general meeting | 21 October 2016 |
| 2017 half year end | 31 December 2016 |
| Half year results and dividend announcement | 16 February 2017* |
| Interim dividend for ordinary shares Record date Payment date |
1 March 2017* 30 March 2017* |
| 2017 financial year end | 30 June 2017 |
| Full year results and dividend announcement | 23 August 2017* |
* Please note: dates are subject to change. Any changes will be published via a notice to the Australian Securities Exchange (ASX)
2016 ANNUAL REPORT SUITE
This annual review contains a summary of the 2016 financial year performance of Insurance Australia Group Limited (IAG, or the Group). Unless otherwise indicated, references to 2016, 2015 and 2014 in graphs and copy throughout this review refer to IAG’s financial years ended 30 June 2016, 2015 and 2014 respectively. All figures are in Australian dollars unless otherwise stated.
Information about IAG’s 2016 financial year performance is available online in the 2016 reporting centre on our website (www.iag.com.au). The website also has financial updates, investor reports, ASX announcements, key dates and a comprehensive shareholder centre.
More detailed information is contained in IAG’s 2016 annual report, including full statutory accounts, and the Directors’ and remuneration reports for the 2016 financial year. This year’s corporate governance report is available in the About Us area of our website. To have a copy of the annual review or annual report mailed to you, contact IAG’s Share Registry using the contact details located below.
SCOPE AND ASSURANCE OF SUSTAINABILITY REPORTING
Material Issues and Creating Shared Value of this review provide an outline of our shared value and sustainability performance during the year ended 30 June 2016.
These pages contain quantitative and qualitative information for IAG’s controlled operations in Australia, New Zealand, Thailand, Vietnam, Indonesia and our Singapore office. We developed the shared value content in line with the Global Reporting Initiative’s (GRI) G4 Principles for Defining Report Content, and this report contains General and Standard Disclosures from the GRI Sustainability Reporting Guidelines, including the Financial Services Sector Disclosures.
In 2016, we engaged independent assurance provider EY to assure selected Customer, Community, Workforce and Environment indicators (sustainability indicators) as presented online in the Data Summary.
Selected sustainability indicators have also been presented in this annual review. The sustainability indicators were assured to a limited level in accordance with the ISAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information standard.
The shared value content of this annual review was also reviewed against the GRI’s Principles for Defining Report Content. Results of the assurance can be found in the assurance statement provided by Ernst & Young. A complete Data Summary and Glossary of Terms which describes the scope of sustainability data included in our content, GRI Content Index and assurance statement is available in the Shared Value area of our website.
SHARE REGISTRY
Computershare Investor Services Pty Limited
GPO Box 4709, Melbourne VIC 3001 Australia
Hand deliveries:
Level 4, 60 Carrington Street
Sydney NSW 2000 Australia
Telephone:
(within Australia) 1300 360 688 or
(outside Australia) +61 (0)3 9415 4210
Other:
Email iag@computershare.com.au
Facsimile (general) +61 (0)3 9473 2470
REGISTERED OFFICE
Insurance Australia Group Limited
Level 26, 388 George Street
Sydney NSW 2000 Australia
Telephone +61 (0)2 9292 9222
Email investor.relations@iag.com.au
Facsimile +61 (0)2 9292 8072
Website www.iag.com.au
INSURANCE PROFIT RECONCILIATION
The 2016 insurance profit in this annual review is presented on a management reported basis which is not directly comparable to the equivalent statutory figure in IAG’s 2016 annual report. A reconciliation between the two is provided below and on page 7 of the annual report to comply with the Australian Securities and Investments Commission’s Regulatory Guide 230. IAG’s 2016 net profit after tax is the same in this annual review and the annual report.
| INSURANCE PROFIT | FY16 $m |
|---|---|
| Annual review | 1,178 |
| Capitalised software accelerated amortisation and impairment |
(198) |
| Run-off portfolio reinsurance protection | (5) |
| Statutory accounts | 975 |
GLOSSARY
APRA is the Australian Prudential Regulation Authority.
Credit spread is the difference between the average yield to maturity of the portfolio of non-government securities and the average yield to maturity of the liability profile, valued using Commonwealth Government of Australia yields.
Gross written premium is the total amount of insurance premiums that we receive from customers.
Insurance margin represents our insurance profit as a percentage of our net earned premium.
Insurance profit is our underwriting result plus the investment income on assets backing our technical reserves.
Long tail classes of insurance (such as CTP and workers’ compensation) are those with an average period generally greater than 12 months between the time when earned premiums are collected and final settlement of claims occurs.
Net earned premium (NEP) is gross earned premium less reinsurance expense.
Net profit after tax is our net result, after allowing for income taxes and the share of profit owing to non-controlling interests.
Prescribed Capital Amount (PCA) is as defined by APRA under its LAGIC regime.
Risks in force refers to the subject matter that an insurance policy or contract protects (eg number of vehicles, houses, employees). An insurance policy may cover one risk or many risks, depending on the terms of the policy. Risks in force is a measure of the total number of risks covered by an insurance company at a point in time.
Shareholders’ funds the investment portfolio of assets we hold in excess of the amount backing technical reserves; it represents shareholders’ equity not used in day-to-day operations.
Short tail classes of insurance (such as motor, home and SME commercial) are those with an average period generally less than 12 months between the time when premiums are earned and final settlement of claims occurs.
Technical reserves are the investments we hold to back the outstanding claims liability and unearned premium, net of recoveries and premium debtors.
Underlying margin is defined by IAG as the insurance margin adjusted for net natural peril claim costs less related allowance for the period; reserve releases in excess of 1% of NEP; and credit spread movements.