Insurance Australia Group (IAG) investor relations material

Strategic Vision and Growth Targets

• Ambition 2030 aims for over 11 million customers, AUD 25+ billion in premiums, and a customer NPS of 55 by 2030, with growth at least in line with the market and a continued focus on risk reduction and climate resilience.

• ROE is targeted at 15%+, with high single-digit EPS growth and top quartile shareholder returns, supported by a stable and growing dividend policy of 60%-80% payout.

• Strategy builds on strong delivery since 2021, including a 36% increase in GWP and a 73% rise in reported insurance profit by FY25, with customer numbers rising by 1 million to 9.6 million.

• Focuses on customer obsession, insurance excellence, future-fit operations, and exceptional people, underpinned by leading brands and omnichannel distribution.

• Commitment to resilient communities and advocacy in risk reduction, with high-performing culture and engagement targets of 80%.

Technology, AI, and Operational Transformation

• Retail and commercial platforms have been consolidated and modernized, reducing from multiple legacy systems to unified cloud-based platforms, improving customer satisfaction and operational efficiency.

• Over 600 AI activators and 92 production use cases are deployed, driving automation, faster claims, and improved risk management.

• Digital sales now account for 65% of new business, with quoting times halved and customer journeys streamlined.

• AI and automation are expected to deliver AUD 500 million in annual claims savings by 2030, supporting a consistent 15%+ margin.

• Ethical AI deployment is governed by frameworks developed in partnership with the Gradient Institute, ensuring responsible and inclusive innovation.

Business Unit Performance and Market Positioning

• Retail Insurance Australia serves 6.7 million customers, writes over AUD 10 billion in premium, and maintains margins above 15% with a customer satisfaction score above 55.

• Retail Insurance New Zealand maintains #1 personal lines position, investing in digital experiences and operational agility to respond to flat market growth and evolving customer needs.

• Intermediated businesses in Australia and New Zealand are targeting a 13%+ insurance margin by 2030, with a 3-point reduction in cost ratios and 100% straight-through processing for SME, agri, and personal lines.

• Recent acquisitions (RACQ, RAC W.A.) have improved geographic diversification and capital efficiency, supporting future growth.

• All segments emphasize AI and data-driven operations, customer-centricity, and operational efficiency to drive growth and margin improvement.