Five Year Financial Summary
The financial information for the 2007, 2006 and 2005 years has been prepared under Australian equivalents to International Financial Reporting Standards (“AIFRS”). All financial information prior to 2004 was prepared under previous Australian Accounting Standards.
| Insurance Australia Group Five Year Performance | 2007 $m |
2006 $m |
2005 $m |
2004 $m |
2003 $m |
|---|---|---|---|---|---|
| Gross written premium | 7,381 | 6,435 | 6,673 | 6,427 | 5,150 |
| Gross earned premium | 7,207 | 6,537 | 6,561 | 6,265 | 4,885 |
| Reinsurance expense | (464) | (405) | (417) | (402) | (249) |
| Net earned premium | 6,743 | 6,132 | 6,144 | 5,863 | 4,636 |
| Net claims expense | (4,474) | (3,900) | (4,090) | (3,815) | (3,363) |
| Underwriting expenses | (1,862) | (1,699) | (1,624) | (1,500) | (1,074) |
| Underwriting profit | 407 | 533 | 430 | 548 | 199 |
| Investment income on asset backing insurance liabilities | 360 | 310 | 516 | 244 | 372 |
| Insurance profit | 767 | 843 | 946 | 792 | 571 |
| Investment income from equity holders' and external funds | 319 | 537 | 500 | 508 | (76) |
| Other operating revenue | 463 | 218 | 179 | 216 | 177 |
| Share of net profit of associate | 5 | 2 | – | – | – |
| Finance costs | (119) | (86) | (69) | (57) | (46) |
| Corporate and administration expenses | (454) | (265) | (258) | (268) | (267) |
| Amortisation of goodwill and intangibles | (73) | (14) | (13) | (118) | (81) |
| Financial services and life insurance result (net) | – | – | – | 18 | 19 |
| Non-recurring items(1) | – | – | – | 61 | – |
| Profit/(loss) before income tax | 908 | 1,235 | 1,285 | 1,152 | 297 |
| Income tax (expense)/credit | (279) | (373) | (357) | (346) | (80) |
| Net profit/(loss) | 629 | 862 | 928 | 806 | 217 |
| Net (profit)/loss attributable to minority interests | (77) | (103) | (117) | (141) | (64) |
| Net profit/(loss) attributable to equity holders of Insurance Australia Group Limited | 552 | 759 | 811 | 665 | 153 |
| Ordinary shareholders’ equity ($ million) | 4,660 | 3,491 | 3,378 | 2,999 | 3,036 |
| Total assets ($ million) | 21,610 | 16,972 | 17,102 | 16,291 | 16,470 |
| Premium growth | |||||
| – gross written | 14.7% | (3.6%) | 3.8% | 24.8% | 44.7% |
| – net earned | 10.0% | (0.2%) | 4.8% | 26.5% | 45.1% |
| Key ratios | |||||
| Loss ratio | 66.4% | 63.6% | 66.6% | 65.1% | 72.5% |
| Expense ratio | 27.6% | 27.7% | 26.4% | 25.6% | 23.2% |
| Combined ratio | 94.0% | 91.3% | 93.0% | 90.7% | 95.7% |
| Insurance margin(2) | 11.4% | 13.7% | 15.4% | 13.5% | 12.3% |
| After tax return on ordinary equity(3) | 13.5% | 22.1% | 24.5% | 21.1% | 5.1% |
| Share information | |||||
| Dividends per ordinary share – fully franked (cents) | 29.50 | 42.00 | 26.50 | 22.00 | 11.50 |
| Basic earnings per ordinary share (cents) | 32.79 | 47.66 | 49.31 | 37.87 | 8.65 |
| Ordinary share price at 30 June ($) (ASX code: IAG) | 5.70 | 5.35 | 6.01 | 5.00 | 3.40 |
| 5.63% reset preference share price at 30 June ($) (IAGPA) | 99.80 | 101.80 | 103.90 | 104.70 | 107.94 |
| 4.51% reset preference share price at 30 June ($) (IAGPB) | 99.25 | 98.50 | 99.05 | 98.35 | 100.10 |
| Reset exchangeable securities price at 30 June ($) (IANG) | 100.09 | 100.00 | 99.00 | n/a | n/a |
| Issued ordinary share capital (million shares) | 1,794 | 1,595 | 1,594 | 1,591 | 1,683 |
| Issued reset preference share capital (million shares) | 6 | 6 | 6 | 6 | 6 |
| Market capitalisation (ordinary shares) at 30 June ($ million) | 10,226 | 8,533 | 9,582 | 7,954 | 5,722 |
| Net tangible asset backing per ordinary share ($) | 0.90 | 1.22 | 1.18 | 0.96 | 0.84 |
Notes:
(1) This includes profit on disposal of ClearView retirement services businesses of $61 million in 2004.
(2) Insurance margin is a ratio of insurance profit over net earned premium.
(3) Net profit/(loss) attributable to ordinary equity holders to average ordinary equity holders’ equity.