Initiatives

Community Support: IAG makes significant contributions to the broader community. Net earned premium accounts for $5.9 billion, or 0.75% of the Australian Gross Domestic Product.

The Group has a long history of supporting local organisations. The Group's community investment program has graduated from traditional chequebook philanthropy to mutually beneficial partnerships. Though it still contributes significant funds to the community (see graph above) the Group also ensures that community partners align with corporate objectives.

The Group's partnerships with St John Ambulance Australia, NRMA Careflight, KidSafe, the Salvation Army Services and the Volunteer Rescue Association have been highly beneficial.

St John Ambulance: The Group's key partnership with St John continued during the year. Many joint initiatives were developed including first-aid training programs and public-awareness campaigns to improve safety. Employees backed initiatives. When they were offered free first-aid training, over 80% indicated interest. In the past year, 784 employees underwent first-aid training. There has also been a tangible benefit to their safety, with the cost of claims per full-time equivalent employee reducing.

The Group assisted St John in the distribution of more than 13,000 first-aid kits publicly, and promoted discounts to around two million people to encourage them to undertake training.

Jumpstart Autobody Traineeship and Scholarship Programs: IAG is committed to ensuring the Australian autobody repair industry remains healthy and strong. In partnership with the Group's smash repair network, TAFEs and the relevant government departments in each state, the Group has created the Jumpstart Autobody Traineeship and Scholarship Programs. These programs comprise three initiatives aimed at giving young people an opportunity to train and work in the autobody repair industry. The first is a traineeship that facilitates school students to work in the industry, study at TAFE and finish Year 12; the second is a scholarship program for Year 10 school leavers; and the third is a program that gives apprentices in their final year the opportunity to improve their skills by repairing damaged cars at major motor sport events throughout Australia, such as the Bathurst 1000 and the Surfers Paradise V8 events.

communityhelp grants: The communityhelp grants program supports projects and programs that make society safe and more sustainable. The focus of the program is to support projects in crime prevention, injury prevention, emergency services and the environment. Its primary aims are: to give employees the opportunity to develop relationships with community groups beyond day-to-day business activities; and to help prevent or reduce problems that may impact on the local community and the business. IAG employees nominate community groups that actively work to reduce risk. The grants range from $500-$5,000. This year the Group received more than 700 applications, up from 400 in 2003. The program donated a total of over $500,000 including GST (up from $250,000 in 2003) to 139 community groups across all states and territories. Grant nominations included 42 in the reducing crime category, 32 for reducing injury, 57 for emergency services and 8 nominations for environmental initiatives.

Staff contributions and volunteering: IAG's employees contribute to society in their own right through the communityhelp Workplace Giving program. This program gives employees the opportunity to donate directly to charities. Employees were surveyed to identify which charities would benefit in the program. Fourteen were selected. The list will be reviewed every two years and more charities may be added. Charities currently include Life Line, Make A Wish Foundation, Juvenile Diabetes Research Foundation, Alzheimer's Australia, the Cancer Council and several other groups. Since the program was launched in March 2004, IAG people have contributed over $33,000 to the chosen charities. Employees also contribute through a gold coin donation on "Casual For a Cause Day". Held monthly, this program raised $84,574.20 over the past year. This figure includes IAG's matching of employee donations.

Employees are encouraged to volunteer in the community. The Group provides one day a year per FTE for employees to work in the community organisation of their choice. This provision, made through the Enterprise Agreement, allows over $2,100,000 in employee hours for work in the community. The employee volunteering program was officially launched in July 2004. However the company has already seen staff volunteer over 300 hours since the introduction of the Enterprise Agreement in December 2003. To further encourage IAG employees to volunteer in the community, the company will deliver a pilot program with Conservation Volunteers Australia in 2004/05. As well, the company is developing a volunteer database to share with employees. The database will list volunteer opportunities from a range of community partners and provide the means for staff to get involved.

Funds to support the community- total:	$18,226,000 (exc. GST)
Includes:	$15,737,770 to community organisations
	$1,426,495 in promotional expenses
	$1,061,661 in administration costs

Net earned premium as a total of GDP:	Net earned premium- $5,863 million
	GDP $783,593 million
	Total of 0.75%

indicates that KPMG has provided assurance on the figures. For more information please see the Assurance statement.

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