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Financial results
Half year ended 31 December 2021 11 February 2022
Nick Hawkins
Managing Director and
Chief Executive Officer
Michelle McPherson
Chief Financial Officer
1 1H22 Results | 11 February 2022
Overview
Nick Hawkins
Managing Director and Chief Executive Officer
2 1H22 Results | 11 February 2022
1H22 results
overview
GWP | Underlying margin | Reportedmargin |
$6.6bn | 15.1% | 7.1% |
Strong premium growth, particularly in | Underlying margin expansion | Reported margins impacted by perils |
commercial lines | compared to FY21 | and reserve strengthening |
Cash earnings | CET1 ratio | FY22 guidance |
$176m | 1.02x | GWP upgraded |
No unusual items adjusting cash | Remains within target range, | GWP guidance upgraded to mid |
earnings, maintain business | post 6cps dividend payment | single-digit, reported margin |
interruption provision | maintained |
3 1H22 Results | 11 February 2022
1H22 highlights robust GWP trends and stable underlying margin performance
GWP growth
8.9%
8.3%
6.2%
3.3%
Group | Direct Insurance | Intermediated | New Zealand | |||
Australia | Insurance | |||||
Australia |
Insurance margin
17.9%
15.9% | 15.1% |
13.5%
9.1%
7.1%
1H21 | 2H21 | 1H22 | |
Reported margin | Underlying margin | ||
4 1H22 Results | 11 February 2022
Divisional highlights
Direct Insurance | Intermediated Insurance | ||||||||||
Australia (DIA) | Australia (IIA) | ||||||||||
• >1% GWP volume growth in | • ~9% premium rate increases | ||||||||||
personal short tail | • | Rate-driven underlying margin | |||||||||
• Pricing for short tail inflation | improvement | ||||||||||
• Strong underlying margins maintained | • | Reserve strengthening confined to liability | |||||||||
• NSW CTP reserve strengthening | |||||||||||
GWP growth | GWP growth / underlying margin | ||||||||||
8.9% | |||||||||||
5.2% | 4.8% | 3.3% | |||||||||
5.7% | 5.5% | ||||||||||
5.0% | |||||||||||
3.8% | 3.9% | ||||||||||
Motor | Home | CTP | Commercial Total GWP | ||||||||
-4.8% | |||||||||||
-6.4% | 1H21 | 2H21 | 1H22 | ||||||||
Note: SME Direct Partner business is recorded in IIA from 1H22, which resulted in a | GWP Growth | Underlying margin | |||||||||
~$5m reduction to Commercial GWP. Commercial GWP was slightly ahead of 1H21, | |||||||||||
normalising for this transfer. | |||||||||||
New Zealand
- Notable GWP momentum
- Large claims increase after benign 1H21
- Underlying margins higher than FY21 overall
GWP growth / underlying margin
18.6%
16.8%
14.3% | |||
8.3% | |||
5.9% | |||
2.8% | 2.7% | ||
1.5% | 0.3% | ||
1H21 | 2H21 | 1H22 | |
A$ GWP growth | NZ$ GWP growth | Underlying margin | |
5 1H22 Results | 11 February 2022
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IAG - Insurance Australia Group Limited published this content on 10 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2022 22:57:01 UTC.