Improving our performance in Australia and NZ
A key priority in our refined corporate strategy is to improve our performance in our home markets of Australia and NZ. Significant operational improvements are expected to deliver annual savings of around $130 million (before tax) in Australia once fully implemented, and we’ll benefit from annual savings of $16 million (before tax) in NZ. A major focus will be to better understand our customers’ needs and provide superior customer experiences.
Pursuing select international growth, scaling back in the UK
We will continue to pursue select, complementary international growth, but we’re scaling back our UK operations to focus solely on the more specialised and profitable segments, principally our successful Equity Red Star specialist underwriting business. This means we will sell some of our UK based mass market underwriting and distribution businesses.
More streamlined operating model
We have moved to a new operating model, creating end to end businesses aligned around customers, brands and markets. In this devolved model, accountability and responsibility are closer to the end consumer. This provides our operating businesses the control they need to better execute strategies and manage performance.
Improved outlook
We expect our refined corporate strategy, coupled with improved operating conditions, to improve shareholder value. During the 2009 financial year, we expect underlying GWP growth of around 3%–5% and reported GWP growth of 0%–2%. Our insurance margin is expected to be above 10%. This guidance is subject to no material movements in foreign exchange rates or credit spreads, and no catastrophes or large losses beyond our allowances.
