Insurance Australia Group Stock

Good morning, everyone, and welcome to IAG's FY '26 results presentation. I'm joined here today by our Chief Financial Officer, William McDonald, together with members of the executive team, we're all sitting in the front row here in our offices. We're holding today's event in IG Sydney's office on the lands of the Gadigal people. We acknowledge the traditional owners of country throughout Australia, and we recognize their continuing connection to land, waters and communities. And of course, I pay my respects to elders past, present and emerging.

This has been a strong year for IAG, and I'm really proud of what we've delivered. We've refreshed our strategy, and we've sharpened our strategic priorities as we set out on this slide. Of course, our purpose is unchanged. We make your world a safer place. As part of this, we act as an economic shock absorber across Australia and New Zealand at an individual, at a community and in a business level. Our growth-orientated strategy is all about helping more of Australia and New Zealand. We'll do this by leveraging the strength of and the investments we have made to help more people and more businesses across our 2 countries.

This has been a year of delivery. Our financial results reflect the deliberate strategic choices we have made to grow our business, reduce our volatility and importantly, deliver sustainable, growing shareholder returns. At our top line, our premiums have grown by 7.6%. This includes strong growth momentum in our direct retail businesses in both Australia and New Zealand of around 5%. And importantly, we've seen strong quarter-on-quarter improvement that I'll touch on later in those 2 businesses.

Underlying insurance profits was up 2.3% to nearly $1.6 billion, and the net profit after tax was just over $1 billion. This, combined with our strong capital position has enabled us to increase our final dividend by 5% to $0.20 per share. And pleasingly, with our franking on that $0.20 increase to 80%. Our positive momentum provides the foundation for our FY '27 guidance of continued strong top line, combined with growing earnings. More broadly, we successfully completed the acquisition of RACQ Insurance in September last year, and we're pleased with the integration momentum and our member retention within that. That alliance contributed $1.3 billion of premium in the last -- for the 10 months that we owned it in last financial year.

And as we discussed in February, the severe Queensland storms, which occurred -- before the RAC business came under our reinsurance arrangements impact our first half results. Our second half performance though was strong, and the business is on track to meet all of our expectations we had when we purchased it. Across the whole business, we actively responded to 65 weather events in Australia and 44 in New Zealand. We paid by $12 billion in claims to support our customers and their community to recover.

And we know our customers recognize the role we play and the dedication of our teams with our NPS scores up 55 in Australia and at 63 in New Zealand. And what those scores are really our sort of top quartile performance in our industry. We continue to work through the process with Western Australia and remain confident this will be completed in FY '27. And we're excited about the prospect of welcoming the RAC Insurance team into IAG.

And then finally, on this highlight slide, we flagged the acceleration of AI that is helping drive efficiency and better customer experience. At the Investor Day that we held in May, the team talked a lot about the extensive technology transformation taking place at IAG and the tangible benefits that transformation is delivering. More than 60% of our people are regular users of AI. We have more than 600 activators who have published more than 90 AI agents to improve workflows in areas like customer service, operations and within our corporate functions. And over 2,000 employees using AI and claims, fraud and servers and delivering significant benefits to our claims cost that we are reinvesting for growth.

We've also recently signed a landmark partnership with OpenAI that will help our people deliver faster and more effective customer service, particularly within our claims teams. And our initial focus will be on where the need is greatest, scaling our claims handling capabilities during natural disasters and severe weather event -- this initiative represents the next step in our AI journey, reinforcing our commitment to responsible customer-led innovation.

Growth is a strategic focus for us. As you can see here, our 7.6% growth in premiums to $18.4 billion has been delivered across our key brands and channels, boosted by the 10-month contribution from RACQ. On an underlying basis, though, our premiums grew by around 2%. Importantly, though, within this, our direct retail businesses in Australia and New Zealand grew at around 5%. These are our growth engine. And including RACQ, these represent around 60% of the entire IAG business. Both of our direct businesses in Australia and New Zealand had strong momentum as a result of the strategies we've put in place we are growing where we want to grow.

You'll see on this slide, and we're showing here this on a quarter-on-quarter growth in our businesses. What they've done is have continued to accelerate throughout the year, driven by both volume and price. You can see here combined, they delivered growth of around 7% in the final quarter of FY '26, and we expect this to continue into FY '27. In addition, we'll have a full year of RACQ premium and the potential additional benefit of RACQ and WA. In Australia, price has been the key driver with recent improvements in net volume growth in both NRMA Insurance and RACV. And in New Zealand, growth has been primarily volume driven with strong AMI organic growth supported by the transfer of Aon into that business. Going forward, we expect New Zealand growth will be supported by a mix of both volume and by price.

This is real momentum. And what that does, of course, it sets us up well. The markets we operate in are structurally growing. With general insurance premiums in both Australia and New Zealand forecast to grow at around 6% per annum through to 2030. With clear strategies and strong leadership, we have the brands, technology and distribution to grow and protect more customers across our 2 countries.

Returning now to some of the individual businesses. And let me start with the Australian Retail, which is, of course, the largest part of IAG. This business delivered strong headline premium of 17.8% or an underlying 4.5% after excluding RACQ. Retention rates are strong. And Julie and the team have done a great job to deliver home growth in line with market and really is a competitive market.

In Motor, our recent trends have been very favorable, contributing to the 6.7% direct growth that we saw in the final quarter of the financial year. So the core direct business of the NRMA Insurance and RACV are performing well, while our bank partner business has been slightly weaker over the last 12 months. Underlying profits were up 7% to $846 million. And our reported insurance profit was down slightly due to some of the perils that we had in the first half from RACQ. If we exclude that, the reported insurance profit was up 7% and significantly stronger in the second half versus the first.

The business is clearly benefiting from the implementation of the enterprise platform. improved risk selection and sales and service processes that we've heavily invested in. Our NPS is strong at 55, and NRMA Insurance has continued to be the most trusted insurance brand in Australia. These provide the foundations for our positive growth going forward. In New Zealand, our retail business delivered a strong result. Premium growth was 3.7% in local currency, with our strong direct growth of 5% and reflecting market share gains. So we had 7% growth in Motor driven by strong retention rates, improved customer satisfaction, particularly within our AMI brand. where we continue to expand the AMI motor hub sites, and we've also transitioned Aon customers.

Bank and partner businesses has also shown some similar trends in New Zealand to what we've seen in Australia. So it's been slightly weaker. During the year, we've completed the migration of a core AMA and state motor and home portfolios onto our retail enterprise platform. Of course, what this does is improves underwriting, pricing and customer experiences, providing a strong platform for continued growth of this business going forward. Underlying profits grew by 10.7% in local currency. When we've seen improved loss ratios from better risk selection and claims handling and the claims supply initiatives that were put in place.

Reported margins remained strong at over 20%, but they were impacted by the increase in natural perils this year compared to last. And pleasingly, like Australian retail, our NPS score lifted by 9 points to 63. And the strong customer metrics position the business well for sustained top line growth into FY '27.

If we turn now to the other side of the business, the intermediated business. I'll start first with Australia, where Jarrod and the team have delivered stable premium and underlying profits. Of course, what is a challenging market. What this does, it reflects a disciplined approach to underwriting and our resilient business mix that our business has. We're focused on segments where our brands, customer relationships and specialist capabilities create a clear source of competitive advantage. As a result, we saw growth in our short-tail commercial lines and around 10% growth in WFI, which, of course, is our rural business.

Strong cost management improved the expense ratio here by 140 basis points. where prudent reserving and claims management have delivered $78 million in reserve releases here as well. Reported profits remained solid at $316 million. despite a $71 million perils impact within this business, and that's primarily from the Victorian bushfires in January. William will explain this later, but the adverse impact in CGU was more than offset by favorable of experience in other parts of our company.

During the year, we delivered important commercial enterprise platform capabilities. And what we're doing now is we're accelerating those plans into FY '27. What this is, of course, is going to do improve underwriting, simplify our process to support targeted growth through WFI and some of our other priority segments.

Across the Tasman and the intermediated business in New Zealand, which represents around 8% of IAG, continue to navigate a soft market with premium declining 11% in local currency terms. Of course, what we've done here is we maintain our strong discipline as that New Zealand commercial market experience suffers sort of intense competition from global capital. Our underlying profits of New Zealand, $133 million reflects solid 14% margin after highly profitable FY '25.

Reported profits were down 1/3, largely due to the impact of increased perils. Probably more importantly, we are seeing signs of the market stabilizing in New Zealand with commercial SME lines expected to be broadly flat in FY '27. And we do expect some growth within our personal lines business here within NZI. Phil and the team are responding well with disciplined targeted premium increases, strong broker service, continued focus on costs, which is serving us well in this point in the cycle.

If we step back and look at our overall profitability. And the underlying insurance result of $1.58 billion was up $36 million. The reported profit was around $1.55 billion, and that's consistent with the guidance that we've provided to the market in February. And importantly, this is a quality result. It does include the settlement of a significant portion of the greenfield proceedings confirming our announcement that we made in May that this would not have a material impact on the group's financial results.

The trial on the remaining claims is due to commence on the 14th of September. So we will continue to defend these proceedings. And with the potential for settlement discussions coinciding with the pricing period. What we've done is we have suspended our DRP for next month's dividend. In relation to RACQ integration and the amortization costs, we have not taken anything below the line. So all of those costs associated with ROC are in our underlying and reported margins.

Key drivers of the quality of our numbers a 50 basis point improvement in the underlying claims ratio and a 120 basis point improvement in our expense ratios. What of course, this does is gives us the confidence that we can continue investing in growth while delivering strong sustainable earnings profile. Many of you will be familiar with this slide, which we showed at our Investor Day in when we unveiled Ambition 2030 and defined our success metrics. What this slide does, it shows our winning formula and our key performance drivers, many of which are evidenced in today's results.

We continue to build on our portfolio of leading brands. leveraging our data and our technology, integrating our supply chain model, which is very important in our business model. Of course, our diversified distribution model is helpful and our claims management expertise is giving us a competitive edge, combined, of course, what these do is drive outcomes for our customers, our shareholders and of course, importantly, for all of our people. With our capital-light balance sheet and [indiscernible] earnings model, these underpin our growth and strong investment proposition from a shareholder perspective. Our winning formula is delivering strong growth momentum at IAG.

With that, I'm going to hand over to William, who's going to run through the financials in a bit more detail.

Thank you, Nick, and good morning, everyone. I'll start with the financial summary shown on Slide 16. At a high level, we are pleased with our FY '26 outcomes relative to the FY '25 result, which was assisted by benign perils and the release from the business interruption provision. Nick has discussed the positive growth and profit momentum in our retail businesses and our disciplined and resilient approach to the commercial cycle. Our second half performance has been strong, and the negative movements on this slide relate to the one-off transitional impacts that we outlined at the half year results back in February.

I'll run through some of the key technical aspects of the result to demonstrate the quality and stability of our earnings, the improved efficiency the core business momentum and the strength of our balance sheet and capital position as we enter FY '27. Starting with our reinsurance program. The increase in reinsurance expense reflects portfolio growth the inclusion of RACQ Insurance and the additional protection provided by our expanded quota shares from 32.5% to 35% from the 1st of January '26.

Non-quota share expense increased by around 15% to $1.34 billion. Most of the increase relates to RACQ Insurance, including specific catastrophe cover costs reinstatement premiums following the severe first half weather events, an increase in cyclone reinsurance pool costs and incorporating RACQ Insurance into our long-term perils volatility cover. Importantly, we've achieved the targeted annual reinsurance synergies of more than $50 million, and this provides a material benefit heading into FY '27.

Turning to FY '26 perils. The group recorded net payroll costs of $ 179 million, which was nearly $500 million higher than FY '25. We finished the year $114 million above the net peril allowance which was primarily attributable to the RACQ severe perils experience that we had in the first half prior to it being incorporated into the IAG program. Additionally, at the half year, the rest of the group's perils was stabilized by the parallel volatility cover. The second half result was much stronger, and therefore, the parallel volatility cover stabilizer unwound, and we ended with net payroll costs million below the allowance.

In terms of our divisions, I've shown in the bottom right that for the full year, RIA and New Zealand came in below allowance, and you'll see that IIA finished the year $71 million above allowance with the Victorian bushfires in January having a major impact, as Nick mentioned. Overall, the net of these equate to the $38 million favorable outcome. Looking ahead to FY '27, our perils allowance increases by only 2% to $ 1.49 billion. This increase is below net earned premium growth and it includes a full year of RACQ Insurance within the group reinsurance program.

Coming back to the perils upside that Nick mentioned. I'm sharing again here how our long-term perils volatility cover works to protect downside in over 95% of modeled scenarios, while importantly, the upside benefit is retained as we presented at our recent Investor Day. The top chart shows the pattern of parallel outcomes we face before taking this cover into account. For each of the 3 remaining years of the contract, the cover provides around $1 billion gross of downside protection. Applying that, the net pattern of likelihoods, the lower chart is very different with little downside risk but with upside likely to materialize around 1 year in 2.

In a favorable year, the average upside is over $200 million, giving us the modeled net peril upside across all years of over $ 100 million or approximately 1% of reported insurance margin. And this is because we set our perils allowance in line with the attachment point of the payroll protection rather than having a gap and setting it lower, while the cost of the protection is already included in our insurance margin. We believe this detail further highlights the quality of our reported insurance margin guidance.

In terms of the underlying claims, which exclude all perils reserving and discount rate effects, the ratio improved by 50 basis points to 51.6% and and with further momentum through the year with the second half ratio improving to 51.2%. Some specific callouts for each division: in IIA, we saw a modest improvement in motor frequency. However, in home, we experienced higher claims inflation. Across long-tail lines, commercial claims in IIA and CTP experience was broadly in line with expectations. And in New Zealand, the underlying claims showed a material improvement, including the benefit from lower frequency in the home content portfolio.

The overall improvement reflects continued benefits from our claims transformation program, which includes supply chain efficiencies. Disciplined execution of these projects are delivering claims benefits of around $350 million per year. On costs, we continue to deliver disciplined expense management and are seeing the benefits of prior investments in transforming the business. The admin expense ratio improved by 60 basis points to 11.6%, including a 100 basis point improvement in the second half compared with the prior corresponding period.

We'll continue to invest in FY '27 with a focus on AI and tech modernization, improving productivity and customer outcomes and the long-term scalability of our business. Importantly, we expect the group admin expense ratio, excluding levies, to reduce to below 11% in FY '27, achieving the target that we set in 2024. This reflects both continued cost discipline and the benefits we expect to realize from our transformation program. We continue to anticipate further cost reductions in our business, allowing us to accelerate our investments, including in AI, in order to grow and transform.

Investment income, while lower than FY '25, was a solid contributor, supported by underlying income from technical reserves and strong equity returns in shareholders' funds. Technical reserves reported investment income of $ 246 million, including a $ 136 million negative mark-to-market impact from the increase in risk-free rates. The underlying investment income remains strong at $ 378 million, representing an underlying yield of 4.8%. Additionally, the FY '26 exit yield of around 5.5% and provides a supportive starting point for FY '27.

Shareholders' funds reported investment income of $383 million. This was driven by strong returns in our equities portfolio, while fixed interest returns were reduced by negative mark-to-market movements as risk-free rates rose. The shareholders' funds portfolio remains defensively positioned with a growth asset weighting of 28%. The year-on-year increase in growth assets primarily reflected a higher infrastructure allocation, partly offset by a reduced allocation to higher-yielding credit.

We finished the year with a strong capital position, with our CET1 multiple of 1.14x above our target range of 0.9 to 1.1. Strong second half earnings were more than offset they more than offset returns to shareholders from the dividend and buyback. During the second half, we completed the $200 million buyback that we announced in February. This reduced the share count by approximately 27 million shares at an average price of around $7.30.

In terms of other movements, the reinsurance recovery timing headwind that we recognized in the first half unwound as we expected. We also recognized a temporary capital impact of over $100 million relating to the profit commission recognition equivalent to 4 points. And there were modest headwinds from growth in the PCR charges and the weaker New Zealand dollar.

Overall, we remain strongly capitalized. Our strong capital position has supported a $0.20 final dividend, up 5%, bringing the full year dividend to $0.32 per share. The full year dividend represents a payout ratio of 73% and we've also increased franking to 80% in the second half. Looking ahead, we expect dividends to be 80% to 100% franked in FY '27 and going forward. Together, the increased dividend and completed buyback demonstrate our capacity to return capital to shareholders while continuing to fund growth and invest in the business.

Finally, this slide shows our indicative capital position after allowing for the announced RAC Insurance acquisition. Starting from a CET1 multiple of 1.14, the final dividend reduces this to 0.98x. We're not providing FY '27 N patent dividend guidance, but you can see similar to our previous approach we've included a benefit to capital that's broadly in line with consensus earnings and dividend expectations. We've also included a 10-point impact of other capital movements, and this includes potential benefits from our capital-light strategies that I've previously discussed.

The RAC Insurance acquisition is expected to result in an indicative pro forma position in the middle of our target range of 0.9 billion to 1.1. And we remain comfortable operating toward the lower end of the target range given the reduced volatility provided by our comprehensive reinsurance protections.

With that, I will now hand over back to Nick.

Thanks, William. Thanks, William, build more resilient communities across Australia and New Zealand, which is really core to Ambition 2030 and our community pillar. What we've done is we set a clear 2030 goal to help Australia and New Zealand has taken more than 2 million actions to help to better understand the natural hazard risk. This includes digital tools, face-to-face community workshops and some practical guidance. We're also continuing to share our research and our data and our insights to support national resilience. This includes our commitment to recognizing effective large-scale risk reduction activities in insurance pricing through our participation in the federal government's hazards insurance partnership.

It's critical that insurance remains accessible and affordable across Australia and New Zealand. So where we see resilient actions that materially reduce risk, our insurance costs need to come down. We're backing this up with our own investments, including the multimillion dollar NRMA Insurance health fund and our new investments from our venture fund [ Firemark ]. A great example is space cube, modular housing that can be deployed quickly for customers after major events, adding taking pressure off the country's housing and construction challenges. It was great to see this in action in regional Victoria in January during -- following the devastating bushfires, where we were keeping customers comfortably on their land during recovery.

So moving to guidance. And the confidence in our underlying business is reflected in our FY '27 guidance. This includes 5% to 8% premium growth with volume growth and targeted premium increases and a full year of RACQ, we anticipate underlying growth in our retail businesses of mid-single digit, and we anticipate low single-digit growth in the intermediated businesses Trans-Tasman. In FY '27, we expect our reported margin guidance to be between 14.5% and 16.5%. The midpoint of this is above the 15% plus margin that we outlined in the Investor Day, and really forms the basis of our 15% ROE, high single-digit EPS targets with IAG well set to deliver on this on a sustainable basis.

You can see how the actions we have taken have delivered a materially improved financial profile in recent years. We are delivering more consistent growing earnings profile. As we head into FY '27, the midpoint of our reported insurance margin guidance represents a 9% increase on results delivered this year. In addition to this, as William explained, our perils modeling shows that there is an additional extra average upside of over $100 million a year from perils. Based on momentum in our business and the perils protection we have in place, we're confident on what we'll deliver.

So just let me finish with this. The past 12 months has been a period of delivery for us. I'm proud of the company, our people and the strong positioning we have for FY '27. We will continue to be a customer-obsessed economic shock absorber, supported by our scale, our brands and the platforms that we've built to service our customers. Ambition 2030 outlines clear goals for our customers, our communities and our people. And importantly for our shareholders, we'll deliver an ROE of 15% or above, high single-digit earnings per share and top quartile shareholder returns.

William and I are now happy to answer any of the questions. And so why don't we start in the room? And I think Mark's got the microphone handing around to Kieren.

Kieren Chidgey from UBS. Nick, 3 questions. I'd like to start on GWP on trends you showed on Slide 8 on the quarterly progress in retail in Australia and New Zealand. Can you just unpack in a bit more detail by product and I guess, units and rate what you saw, particularly through that fourth quarter?

Yes. I mean that's sort of a demonstration, I think, things we've been doing over the last couple of years starting to come together and really creating some real momentum. Sort of breaking that down, we've definitely seen home volume growth as part of that, it's together with continued price that's flowing through. I think we'll start with Australia, then we moved to New Zealand. So we've got that low single digit is 1, 1 and a bit percent volume growth as well as home as well as prices flowing through in that home portfolio. And motor, we're probably -- I mean, that probably was a trend that we were doing well in the first half.

I think the big change first half, second half has been more about motor. We definitely had some challenges. We talked about that at the half and in the August results. in February for the first half results. We've definitely seen a reversal in the second half. And we're seeing both price and volume growth there, we're seeing new business, we're winning new business, that's really helping us which was sort of slightly disappointing second quarter, call it that.

You can see third and fourth quarter, we're really seeing both of that flow through that sort of 7% in total growth within the direct retail business. in that last quarter, which is very positive, right? That's really a result of a lot of things we've been doing in our company. We really feel pretty excited about that. New Zealand is probably more of a volume story. There's a bit of price that's flowing through. There's also an that's come in and that's sort of -- it's equal quarter on quarter-on-quarter, but it's definitely amplified each of those quarters. Now that will run off, and we think we'll see in FY '27 in New Zealand, a bit more price in there as well as continuation of volume. That's kind of the story.

All right. Second question just on margins in 2 different areas. New Zealand intermediated obviously, under significant pressure in second half down to 8.9%. I guess I'm just surprised at the pace of decline there half-on-half from 18% in the first half. And if we look at your GWP and, I guess, the earn through of the premium into 27. I'm interested in where you see that margin headed into '27?

Yes. I mean, that's a tough market. I mean we sort of highlight it's 8% of our company, but we're not -- we're very focused on it. It's a real challenge for Phil and the team there. I mean that our business is 10% down year-on-year, essentially in the NZI, in New Zealand, in local currency. What -- I mean, what we can observe now, and we saw this at June renewals because we have some of these big dates in that more lumpier that business. And we saw a continuation in July. We've definitely seen is the right expression, a slowdown in the decline. And so where that was doubled for run rates of minus 10, which is not great. That's definitely slowed down a lot as in sort of now sort of minus 5, all of that.

And that -- and we're expecting that to continue. Although in my guidance, in our guidance, we did say low single digit for intermediate. We probably mean a couple of percent in Australia and probably 0 to minus a little bit, 1% or 2% in New Zealand that's probably the blend. I can't -- 0 would be a good outcome, I think, for FY '27 and NZI. In relation to margin, we're just maintaining that discipline. I don't see it keeping -- reducing we're not reducing the price 10% for risk. We've lost volume, too. So I don't see that trend down. I see that sort of stabilizing around where it is in FY '27?

So the second part of that margin question was RACQ's 6.3% underlying second half still well shy where the group looks to operate. Where do you see that moving in '27? Can it hit the 15%? Or is that still more a '28 target?

Yes, it's definitely lifting up. I would expect it to be double digit and getting closer, but maybe not of the full FY '27. But we are putting all the costs in there as well, remember. So we're sort of not bearing anything below the line. And so we sort of -- it's obviously secure better than first half, we expect '27 to be a lot better than '26, maybe not at the full 15% to your comment and '28 we'd expect to be there.

And just a final quick question for William. Page 146 of your annual report. -- as an interesting comment on reinsurance profit commissions that you can sustain the 26 run rate in less gross loss ratio deteriorates by more than 5%, which would be quite desirous at a group level. If the gross loss ratio is sustained, how much upside is there in reinsurance profit commission?

Yes, thanks. So we booked the profit commission in a conservative way. So we do risk adjust it as we indicated in that note. So you would expect it to gradually build towards the maturity date of the respective contracts. So -- but broadly, we're expecting in a similar amount in '27 to '26, but it will gradually build over time.

Freya Kong, BofA. Just on the group margin outlook, again, is 15% underlying a good starting point going into next year. Can you just walk us through the moving parts and scenarios where you might come in at the bottom end of guidance 14.5% and where you'd be at the top end I'm just surprised because at the Investor Day, you guys said 15% plus?

Yes. We decided to stay the ambition is 15% plus them it's really 15% ROE, top quartile EPS sorry, high single-digit EPS top quartile performance. The mass of that is we need to run the business 15% plus to deliver that. We went with a 200 basis point guidance range, so 14.5% to 16.5%. So we've sort of guided the market pretty quickly to take the midpoint, 15.5%. We have a slide there that sort of guides the market quickly there. I mean never say never in insurance, but we have to think that the lower end of that range is -- we're more likely towards the top than the bottom, would be my thinking. But we've got a 200 basis point range for uncertain that we have been running the business we have.

We spent a lot of time taking the uncertainty of reinsurance, other things we've done operationally, the technology transformation. So sort of you're stepping it through within the sort of the run rate, we expect effect to Kieren's point, we'll see a greater contribution and we'll see a better a greater contribution and underlying level from RACQ in FY '27 compared to '26. Our commercial businesses, there are challenges, particularly in New Zealand. So we're not expecting anything certainly not in New Zealand, anything stronger. And that to hang on and sort of what we're trying to do and be disciplined is the better word to use, probably then hang on.

So that's -- we're just -- we're we're operating there. We don't have headwind in things like perils allowance and the like too much because we've only increased that by a couple of percent, but we're trying to -- you can see what we're doing on perils. We're leaving the $100 million outside of guidance. So we're purposely doing that. Our guidance is our perils allowance, which is the attachment of our layer. But actually, the modeling says on average, there should be upside on that. And we're leaving that outside of those guidance numbers purposely to make it simpler, hopefully, for investors.

I mean my overall tone for this releases. The business is going pretty well as well. And so we're trying to get that balance right of $5 million to necessarily impacting the retail business, the AMI and the state brands. No, that business continues to do very well. We -- that margins are strong. We continue -- I mean there's something in New Zealand, which is a bit unusual. But every year, you don't have an earthquake that there's sort of an element of that pricing and profitability that sits there. So sort of there are higher returns because of that. So no, I'm sort of -- that business is going very well. It's got genuine growth happening, and I expect those margins to stay roughly where they are.

And as I said, with NZI, that's a different story. That's about maintaining the discipline, holding that position. As I said, if we could be flat in '27, that would be a great outcome. And I'm thinking maybe minus a little bit, but definitely not minus 10. That's what -- that's in relation to growth.

All right. [ Mike Tomlins ], [ Hunter Green ]. Following up on one of the questions on your annual report on Page 83 in directors' report, you mentioned that home nonperils claims inflation of around 15% was due to increasing severity of water claims, including impact of changes in building repair standards. Can I get you to maybe elaborate on that and what else you're seeing around claims inflation?

Yes. Maybe I'll some themes, and I'll bring William and sitting there quietly -- so the themes on inflation are motor a much better story. -- we're really seeing quite a drop. And that -- I think that's been helpful, obviously helpful for consumers. But in our go-to-market strategy, we sort of feel like that's been helpful to us. Property we continue to see property inflationary challenges. And that's not really driven by the industry. It's driven by the challenges of our country, on repair costs, access to labor, building materials.

So there's just inflationary pressure in the system. That's right. We definitely have greater incidence of water damage. And then the standard to which we were repairing some of that, particularly anything to do with mold has increased. And that's not just an IG comment, that's an industry comment. So there's sort of -- and then sort of throw in, just generally, we're going to see -- we're seeing more perils some more events. So we expect over time, greater frequency of apparels events, therefore, not adding to the challenge here. It's really the combination of those things that are driving that.

And then on your expense ratio, we'd likely to see it lower in the second half of the you switch legacy systems off? Or should we expect to be sort of stable through the year?

Yes. You can see that we are gradually bearing down on the expense ratio. And a bit like this year, you had 11.5% in the second half, 11.7% in the first half. We expect a continued downward trend. But what's really important within that is that the cost to maintain, if you look at the sort of the shaded bars in the buildup is coming down faster. And we're giving ourselves space to continue investing in AI, in technology. It's a little bit of amortization also coming through, obviously, from all the great work we have already done. We're giving ourselves space for that. And then labor technology costs, we're actually allowing for that to increase at a double-digit rate, but within -- while bearing down the whole thing, but so we invest well for the future.

[ Andres Sutton ] from Royal Bank of Canada. Can I ask my first question around the top line premium guidance. So between 5% and 8%, I think that's well the market is looking at I think the market is just below 4%. So can you step us through what is going to be driving that? That's quite a bunch of number.

Yes. I mean there's a few parts. I mean I mean that's part of the reason we showed the quarterly direct retail businesses in Australia and New Zealand because you can see why the evidence of why we're confident. So the elements are there's probably 10% from RACQ. So last year, we in '26 we had 10 months, in '27, we got 12 months. So just that is the sort of bank had. -- the run rate of our direct retail businesses. I mean we sort of sit in the mid-single digits for retail in total and but the direct element of that, which is the biggest part. Remember, our retail business is a gigantic part of the premium for -- the run rate, which is on those slides was sort of 7%. The banks are slightly softer than that in both Australia and New Zealand. Both of them are not growing as fast as our direct businesses, but that's still positive.

So that's sort of the 1% from that, that sort of mid-single digit with our direct retail AMI state, NARC -- and then within sort of Jared CGU and Phil's NZI, we have said low single digits. But actually, behind that, the commentary I made was we'll probably do slightly better than that in CGU in Australia and if we can do 0 in NZI, I think we'd be very pleased and probably minus 1, minus 2, something in that order, but then you got to add the materiality of that tone. That's the rough outline of our growth for FY '27.

And for my second question, just following up on the cost side. So you mentioned you're making about $400 million of AI and technology modernization investments for I mean that's an admin cost base of the group, about $1.4 billion. So that's quite a meaningful improvement. So can you talk a little bit about how -- is that going partly through CapEx line? And then also, what kind of what kind of improvements are you expecting a yes that's quite a deliberate investment you make.

Just a comment from there before I throw to William is that's roughly what we've been spending. So that's not new. So that sort of run rate of IAG. We've been able to manage that, and it doesn't just appear in the admin, it's sort of in claims handling, it's claim systems. This is a few other buckets. But we don't feel like that's a sort of a surge, call it that, but that we use the run rate of absorbing that. And that I think we're really starting to see the benefits.

That's exactly right. So the level of capitalized asset will be fairly stable. The -- we do capitalize some of what we invest each year, and we also expensed quite a chunk in year. And you can then get some amortization, but it's relatively stable. And as I mentioned, obviously, we're giving ourselves the capacity to continue investing at a strong level in that because we're bearing down on the underlying just cost to run the business.

I think Mark telling me to go to the phones or the video.

Thank you, Nick. We have Julian Braganza with Goldman Sachs.

Just the first one, I'm trying to work out where we can see the benefit of the reinsurance synergies, the $50 million within the nonquota share reinsurance costs seem to be broadly flat half-on-half. And also just a second question on that is, what's your expectation here for this into FY '27, given some of the drop-off in those reinsurance reinstatement costs?

Yes. Thank you, Julian. So -- the part of it, in fact, the larger part of it was the benefit of bringing RAC QI onto the group's whole of account quota share. which is better terms than the quota share that RAC QI had beforehand. So that's where quite a bit of the benefit is. And then there's also just better pricing on a number of the other payroll and nonpayroll covers that we have.

Should we expect the non-quota share reinsurance cost to reduce next year? Is that just given the drop-off of some of these one-off costs?

Yes. I think it will be fairly stable. We are also -- we are continuing to buy some drop-down cover on perils in addition to the quota share for the RACQI business.

And the next peak renewal date will be 1 January. So we'll just sort of wait and see. There can be other factors that happen and it's a bit hard to predict sort of out when we've got some other global factors that could -- may or may not be impactful over the next few months.

Julian, I can take it in line with you later. There's how some of the items come through the claims line as well on the commissions.

Yes, sure. Got it. And then maybe just a second question for Jarrod. Just be interested to understand thoughts where we're at today in terms of margin ROE for the intermediate business and just around a reinsurance opportunity. I know we were quite -- it was something that was seeming to be quite imminent -- so just understanding where they're at and what's the time line and what's the catalyst for getting that done.

Okay. Maybe I'll comment on the reinsurance opportunity something that Jarrod had worked on. So yes, we have explored whether we could bring in some reinsurance behind the commercial business. We continue to think it would be a good idea. We set ourselves some financial hurdles for that. We haven't quite met those yet, so we haven't yet -- haven't yet executed something on that, but it's something we will just continue to explore if it meets our targets, we'll do it, but we'll stay disciplined on our targets.

Just a comment from me then on sort of ROEs and returns in commercial business this is generally. I mean we -- there's definitely around the world. That's where we're in a softer cycle, which turns are still relatively strong, but outlook is tougher. I think there's some real uniqueness around our CGU business and WFI business in Australia. That's not quite that. Because there's a big chunk of that business FI, which is a rural agency business that really doesn't have some of the similarities to global commercial businesses at all. It's more retail like -- so that's a big chunk of the business. We've also got personal lines in there that's not like that.

And we've also got even compared to, say, our NI business proportionately smaller proportionately into that sort of SME smaller commercial markets. And that's why we continue to deliver really strong returns in that business. There's definitely pressure in our intermediate business here in Australia, but we've been extremely disciplined, and we would expect to continue to earn the sort of return profile we're currently delivering despite the softer market over the next couple of years.

And actually, we're doubling down on investment. We're accelerating our program into the into our business. So we really more match fit when I think there'll be more opportunities for growth as the market sort of changes in the cycle.

Just a follow-up,. In terms of the financial hurdles, what -- I just want to understand that a little bit better that you're hoping to achieve?

For that business or just generally?

So in terms of the reinsurance strategy, you mentioned that you weren't getting the financial hurdles at the line up to meet them out.

Exactly. So clearly, we expect a capital relief and it improves the sort of volatility in distribution of our earnings, and we want something to be at least ROE neutral, if not ROE positive.

Okay. And that's proving difficult to achieve in the current market for reinsurance?

I won't go into detail, but there has been investor interest. We just haven't quite met the hurdle yet.

As part of the -- just a comment from me, sorry. is we're always looking to diversify our reinsurance. We could easily write a mainstream quota share into our intermediated business tomorrow easily, if we chose to. We're trying to -- what we're also trying to do is ensure that we're not -- we've got different structures, different funding mix, sort of sophisticated way so that we have multiple sources of capital to fund our company, not overly reliant on 1 form or 1 counterparty. That's kind of why we went down this path a little bit. Actually, we could just -- we could do something easily with a more traditional form. We're purposely not is kind of our thinking. And and you should expect -- we probably made at the time to a big a thing of this Lloyds syndicate. -- actually, there's -- we're always looking at different ideas about different ways of funding the company. And that was just an example, but we've got other ideas, too.

Got it. And then just a last question for me. Profit commissions this half. I couldn't see that anyway, but both it stable versus first half, just to be very clear, both the quota share and the aggregate stop-loss.

So yes, broadly stable, and we also expect it to be a similar level into FY '27.

Your next question comes from Siddharth Parameswaran with JPMorgan.

Just a few questions. Firstly, just -- I just wanted to ask about rate versus inflation. -- and the outcomes we're seeing in RIA margins in Australia. I think when I go through your commentary, it seems like home inflation is extraordinarily high. I think you flagged 15% at the moment. Just wanted to -- and I think it didn't feel like rate is covering that. I think you're flagging high single digits. I know there could be some benefits from the cat reinsurance, but it still seems to be there seems to be a gap there. Motor seems like you're flagging a low single digit for both rate and inflation.

So that thing is okay. But half-on-half ex RSC, you do seem to have had significant margin improvement in RIA. So I open firstly to understand 2 things. inflation just in home? Is that just -- is that likely to continue? And what are you going to put through in rate going forward? And signal if it doesn't look like the improvement in margin came from short tail, was it long tail that led the improvement in ROE margins?

I'll make some comments and then William you come in to. I mean as a principle across the company right now, we're not -- there's nowhere that we're not putting rate through in line with inflationary costs. So that's we've got some challenges probably an NZI on sort of assessing that risk. It's not really inflationary cost. That's the problem. It's sort of the competitive environment. But if you park NZI, that's not the approach anywhere. So to your point, in sort of yes, we have some examples of that sort of 15% within some examples of within our property classes within Australia. But that's -- I wouldn't -- I don't think we can generalize to say that's causing us to put pressure on our margins. That's not right.

I mean, I could do it. Yes, I'm back a little bit, if you said we can go into this more later. But within the 15% is actually an average claim size inflation number. So there's a little bit of mix in there. And then -- but also if you look at -- that's about nonpayroll claims. We have perils where, obviously, that's at a much more stable position and our overall parallel allowance is only up 2% and into next year. There's an admin cost component also that all of these things feed through into rate and of course, admin costs we're bearing down on. And when you take all of those things together, -- and don't forget the net -- the non-payroll claims is actually only a minority of the cost of a home policy. So when you put all of those things together, that's how you get to the high single digit.

Yes. And sorry, just the last part of that question was just the margin improvement that we saw half-on-half underlying in RACQ?

Sorry, I didn't hear the first part of the question.

Sorry, the margin improvement that was there in the sequentially first half to second half on RA ex RACQ. Was that driven by the long tail?

No, not No. No, not by CTP. But obviously, we're just gradually getting benefits from all of those substantial claims actions, expense actions and other things coming through.

I mean, I mean, the run rate of the business is sort of -- it feels like we're on top of any inflationary pressure that we are pricing as we're seeing it. I don't feel like that's the case. CTP is relatively flat. So I don't think that's a driver. -- this is a gradual improvement where at the same time, we're growing the company, we're -- we're getting some expense ratio relief as part of that. We've got some reinsurance benefits that are sort of being helpful, too. So it's sort of a combination of a few things is that we've got the machine sort of running well. That's how it feels.

Yes. I just have a follow-up on the profit commission component. So our second half is in line with the first half. I think that suggests that you're tracking at a little bit over 2% of NEP as the contribution from profit commissions. So I think previously, you guided to 100 to 200 basis points from the quota share. Just wanted to understand and just in terms of messaging, I'm always just a little bit unclear exactly where the messaging is around profession because on one hand, what you're running through at the moment seems to be higher than the guidance you've given before, but you're also flagging upside further down the track. So I'm just a little bit confused by the -- by messaging around this. I was hoping you could clarify it once and for all -- are we tracking above the long-term guidance at the moment? Where is the potential upside? Maybe if you just clarify for me?

Yes. No, I'm happy to clarify. No, we are in that 100 million to 200 range. We're not above that range. And we continue to book it conservatively. And so the trend over time should be an increasing profile. And that -- I mean, that is the answer.

Okay. Can I calculate a number of the 200 basis points if the number was consistent with the first half?

Well, it's not over 200 basis points, not at all. So again, I'm happy to dig into that further with you later.

Your next question comes from Nigel Pittaway with Citi.

I'd like to sort of focus back on unit growth in Australia Retail, if we could. And taking on board, Nick, what you've said about increasing momentum, particularly in New South Wales in motor units, -- but presumably, if you look on a national basis, you're probably still not growing quite in line with systems. Firstly, is that correct? And secondly, do you think that the strength of the momentum that you have in that space will sort of lead you to be at least being able to grow in line with system moving forward?

Nigel, I mean I feel like you answered the question, by the way. I would say in the 12-month period, we've grown volume and probably held or maybe even slightly growing market share in home. And in motor, we definitely had a tough first 6 months. We're back a lot more positive, as you can tell, in the second 6 months. If I look at that entire period, say, we may be at or maybe slightly below system for the whole country. But I feel like we've got some momentum to take that forward in relation to sort of aspiration, call it that. We want to able to hold our own in both those parts of the business going forward at least.

And obviously, sort of -- I mean, you're sort of suggesting that system growth in home is around about 1%. So maybe just slightly higher than Suncorp seem to be indicating yesterday. I mean -- that obviously is still pretty subdued. I mean what's your sort of feeling as to why that growth is quite subdued at a system level?

I mean that's -- there's a whole lot to unpack under that isn't there. But I mean that's population growth, new builds, apartment living, the way we live I think that the sort of the building stock that is -- I mean, that's sort of -- I mean it sounds like Suncorp said something similar. That's sort of roughly what we see across that market probably for the next year or 2.

Yes. So okay. So you think it's a pretty ongoing level of low system growth to change?

Yes, you're thinking upside or downside on that, sorry. I mean, I would have thought that's relatively modest.

It doesn't sound great, but it's just obviously, it seems to be where it's at. Yes. All right. And so in that kind of environment, had you get 8% growth at the top of the year top of your target range. What would that be core?

It's NZI doing slightly better. It's see what the pricing for property. It's it's slightly better in motor probably. I think it's at the margins in a few different places would be what I'd say.

Right. So I mean it sounds a bit unlikely but is it too realistic?

I mean the only thing -- I mean that's why we showed you the quarter-on-quarter. And that's quite a positive slide that quarter-on-quarter on quarter-on-quarter, what we're delivering on our direct retail business, which is 60% of our company. And so I mean, we've got a range there. We've got a range for a reason, and I'm not guiding everyone to the top of the range. But I can see a scenario where that's delivered. I'm not saying that's where I want you to go. That would be my commentary.

Okay. Fair enough. And then maybe just also just on the reinsurance, obviously, I've covered a little bit on that already. But obviously, now you are sort of there with the quota share at 35%. And I mean is this the long term now? Is this 35% you be for a while or how should we be thinking about it?

We're not looking at -- Nigel, we're not looking to make any changes. Never say never, but it's not on the agenda at the moment. Let's leave it at that.

Thank you. There are no further questions at this time. I'll now hand back to Nick.

It's a busy day for everyone. Thanks, everyone, for participating, those in the room and those that have participated online. I mean the key message we want to leave you with is we sort of got this. We've invested heavily. Technology platforms are really starting to deliver. We're getting some productivity efficiency. We're getting great customer metrics in our retail businesses. We've got that slide, I mean we talked about a lot today around genuine momentum in our direct retail businesses with our flagship brands really creating growth. And we see that as a pretty exciting opportunity for us over the next couple of years. Profits and margins are strong, and we really see outlook very positive. So that's sort of the message that we want to leave you with today. Thanks again for being here, and enjoy the rest of your day.

Good afternoon, everyone, and welcome to IAG's 2026 Investor Day. I'm joined here by our Chief Financial Officer, William McDonnell; our COO, Neil Morgan; the CEOs of our divisions, Julie, Jarrod and Phil and other members of the executive team of IAG are all sitting in the front row here in Sussex Street. We're holding today's event on IAG Sydney's offices on the lands of the Gadigal people. And so we acknowledge the traditional owners of country throughout Australia, and we recognize their continuing connection to lands, waters and the community. I pay my respects to elders past, present and emerging.

Many of you have been on the bus trip this morning attending the showcases at our research center and the major event command center. And I hope you enjoyed the insights and the kind of uniqueness of IAG that you've just seen. Just in terms of agenda, as you can see, we've got a full agenda this afternoon. But within that, we're going to break for a couple of times for questions after a couple of the sessions. And Mark is going to help out and moderate the questions during the afternoon.

So let me start with sort of the Ambition 2030 and really around how we're going to deliver that over the next 4 years. So, as you know, across Australia and New Zealand, we've got a significant responsibility to provide insurance to the community when it needs it most. Our role, as you know, is to be customer-obsessed, economic shock absorber, supported by our scale, supported by our brands and importantly, by the platforms that we've built in support of that. By 2030, we'll be targeting over 11 million customers, over $25 billion in premiums, customer engagement NPS of 55 as we continue to be the insurer of choice across Australia and New Zealand.

Our ambition around growth is to grow at least in line with the market, and we'll seek opportunities to grow beyond that as they arise. For our communities, we'll continue to play a leading advocacy role in risk reduction. And, as you know, this is already in our DNA here at IAG, and we're doing more of this over the next few years. Continue to have a significant voice on climate, resilience on under insurance and on building out a safer and a more sustainable future.

We want our people to thrive in a high-performing culture. We're delivering on this ambition every day through our academy, the investments we're making around capability of our people and building a future-ready workforce. And importantly, for our shareholders, we'll deliver an ROE of 15% or above, high single-digit earnings per share growth and top quartile shareholder returns. And really, these are the metrics that I've just stepped you through that are going to define our success as we deliver Ambition 2030.

So if we just start with sort of a bit of a recap of the last 5 years and what we've delivered against some of the things we set out 5 years ago. I mean our customer numbers are up 1 million, up to 9.6 million. So if we sort of look behind that, the last 5 years, our Australian Retail Direct business has grown organically through the NRMA and RACV brands. And that's been complemented, of course, by our recent acquisition of the RACQ business. We have, though, reshaped our partner businesses and our retail direct business in New Zealand.

Sort of pleasingly, over the last 12 months, the New Zealand retail business has been growing, and Phil is going to talk us through that shortly. Our premiums are up something like 36% to just over $17 billion. And with the addition of RACQ, more like 50% to $18.5 billion for the current financial year. Our reported insurance profits are up 73% to over $1.7 billion. And then within that, our intermediated business, which we set a target of $250 million is delivering in excess of that, as you know. And our ROE is well above the original target we set of sort of 12% to 13%. And we repurchased around 5% of our shares, and we continue to look and be capital efficient.

EPS is up 42% to around $0.44 at an underlying level. These are big things, and they sort of reflect deliberate strategic choices and really, from your point of view, a management team that's really focused on delivery. And I'm really proud of the team that are sitting here in the audience today and the delivery that has occurred by this team over that period. And of course, we welcome Phil Gibson -- sorry, wrong side. We welcome Phil Gibson into the team as we take this forward and deliver Ambition 2030.

So of course, our choices have really been what's helped us build out a stronger and a more resilient company. Some highlights on those choices we've made, made alliances with RACQ and then with RAC in WA. Importantly, our ability to fund growth from organic capital generation and return some of that capital to shareholders over the period. Completing the build of our retail technology platform has been a big thing and accelerating the delivery of our commercial platform. These are the building blocks we've got at IAG that are going to help us towards Ambition 2030.

Pioneering long-term reinsurance protection, and William is going to talk more about that. And what all these things do, of course, is set us up well for delivery of our next phase of our strategy. I mean the markets we operate in, of course, are growing with general insurance premiums in Australia and New Zealand forecast to grow at around about 6% per annum through to 2030. I mean my view is these forecasts are likely to be conservative in that growth. If you look back the last 5 years, our markets have grown closer to 10% per annum compounded over that period.

And of course, this is structural growth driven by population increases across our countries, rising asset values, increasing awareness of underinsurance, climate risk and its implications and the growing sophistication of how retail and commercial customers think about the protection that we provide. And I always say this, as an industry, we have demand greater than supply. It's helpful, which is going to help continue to fuel growth opportunity for our business. We're the market leader in both our countries with the brands, technology, distribution and ambition to grow and protect more customers.

As we look forward, what we've also done, we've sort of sharpened our strategic priorities. Purpose is unchanged to make your world a safer place. We importantly act as the shock absorber at an individual community, business and country level. Our growth-orientated strategy is helping out more of Australia and New Zealand. It's about leveraging the investments we've made to help more people and businesses across our 2 countries. This year, I've spent time in communities across Australia and New Zealand affected by bushfires, by hailstorms, floods.

And every time I do one of these visits, it reinforces why our business exists. Frontline team [indiscernible] that matters most and the role they play in helping people rebuild is something, of course, that we are genuinely proud of. And those of you that have been on the tour today saw some of that. Within our strategy, we have refreshed our strategic priorities. Customer obsession from how we attract, serve, support customers and how we grow our business with them, around insurance excellence, technology pricing, underwriting, reinsurance and claims and really getting that all to work together as an insurance company.

We're calling this future fit operations, and that's really around how we harness innovation to continue to reimagine a scalable and resilient business over the next 4 years. And of course, importantly, we'll continue to hire and invest in the right people who bring our purpose to life every day. I've had a go here at sort of describing our winning formula. And that's really what makes our business different, but I think importantly also, why that actually even matters.

Sort of on one hand, insurance is a relatively simple business, price risk, distribute products, manage claims, and we carefully look after our balance sheet. If you say that quickly, it doesn't seem that complicated. Actually, there's a lot in that in running an insurance company and differentiators really are important. Our customer data set at IAG is one of the most valuable in Australia and New Zealand. And of course, what that does, it enables us to expand and deepen our customer engagement, improve our retention and really help fuel and drive our growth.

We've built a modern, scalable technology platform and have the flexibility to grow efficiently, onboard our partners and deploy new capabilities at pace. Also sets us up well as AI integration becomes an everyday defining factor of our business. So as we look around that wheel, when a customer makes a claim, we control much of the experience end-to-end through our integrated supply chain model, including some that we own.

And of course, that's good for our customers, but it's also really good for our own economics of running IAG. When a major weather event hits, we move fast, assess impact quickly, and we manage our response. I think many of you this morning saw firsthand how we coordinate those resources through our major event command center. We have leading brands and trusted channels. Customer relationships are reinforced at every interaction across digital, across partner and across our intermediary relationships.

And the depth of that trust shows up directly in our retention rates and in the claims experience that we're delivering for our customers. I think importantly, our diversified distribution model is sort of set up for growth and to absorb disruption. We operate -- I'll say this slightly, we operate across more channels through more brands to more customer segments than any other insurer in this market. That's got to be a source of competitive advantage.

And the combination of our retail and our commercial businesses gives us diversification benefit that lowers our capital requirements and expands our options around growth. This is our winning formula, pricing risk, distributing products, managing claims, doing this well, of course, and consistently at scale. That's how we've earned and maintained the trust of something like 10 million customers that we currently look after across Australia and New Zealand. And as you can sort of see, growth is going to be -- is a major focus for us.

So let's spend a bit more time on our distribution model, which is a key advantage we have in our growth agenda. We serve the major customer segments in this market, club members, individuals, families, rural and regional customers, SME, commercial businesses in our targets. So we serve a lot, and we reach them through clubs, through digital, through bank partners, through brokers and our own regional representation network. Our aim is to be relevant and visible to customers, so we're present wherever they choose to engage with us.

We can also grow efficiently as customers' behavior and distribution channels continue to evolve. We have some of the most trusted brands in both countries and a unified platform across the brands, which gives us the data and insights to tailor offers and remain relevant in the world of Agentic search. So, in summary, broad distribution, leading brands and a scalable technology core make us a business built for growth in a changing dynamic external environment. And, of course, we're pursuing the ongoing transformation of IAG, and we're not done.

And Neil and Julie and Jarrod and Phil are going to cover this as they talk through their businesses and the changes that are occurring. I think you know that we've been really focused on laying the technology foundations in our core platform to make IAG's operations simplified, consolidated and cloud-based. Our efforts are now more directed at the processes that will improve the customer experience, our claims and sales and service as we continue to transform our business for the future.

Of course, AI is going to be a huge part of our transformation opportunity going forward. And the way we're thinking about that is in 3 buckets. And internally, we call them Deploy, Shape and Compose. So deployers put AI in the hands of everyone here at IAG, largely through our technology providers. More than 60% of our people are regular users of AI through the Microsoft, Success Plus and other providers who have embedded AI in their products that we use. And we're essentially democratizing AI for our people of IAG.

Shape is where we're tailoring AI to our specific business problems and use cases. And we now have more than 600 activators and have already published something like 90 AI agents that are improving workflows across areas like customer service, operations and across some of our corporate functions.

And then lastly, Compose, which we're building for high-value, more complex AI solutions at scale. And right now, we have more than 2,000 of our people that are using Compose AI in their everyday business and in our claims and our fraud and some of our service teams. These are delivering transformational change in the way we are running and operating IAG.

And as the team steps you through what we're doing, you'll see many examples of this transformation being brought to life. And let me just finish around some of the metrics that we're focused on and the metrics that we want to be held to account on as we deliver Ambition 2030. We'll have grown our company to one that is over $25 billion in premiums. We'll have achieved an insurance margin and an ROE in excess of 15%, and we will have delivered high single-digit EPS and a stable growing dividend for our shareholders. These are the metrics that will drive the enterprise value of IAG.

I'll now hand over to Neil, who's going to take us through more on the technology story. Neil?

Thanks, Nick. Good afternoon all. So I think Nick has already set the frame. We're performing well. We've built a set of assets that are genuinely hard to replicate, a small number of powerful brands, a club member culture at our core and an integrated supply chain. Now from an operational perspective, winning with those assets is all about creating speed, accuracy and scale advantage. So my role today is to talk to the enablers, what we've built behind the scenes to make this possible, particularly as emerging technology reshapes our industry.

So I've been obsessed by 2 things, and I continue to be obsessed by them. The first is consolidating and modernizing our core. When the core is fragmented, complexity quickly turns into cost, risk and slow change. So we've been really deliberate about simplification, fewer platforms, cleaner data and delivery that's repeatable, faster, cheaper, safer on scalable platforms.

The second obsession is to create the conditions where our customers and our people can fully benefit from emerging technology, including AI. So we benchmark widely. We look globally. We're not approaching this as swapping humans for tokens. The aim here is about experience uplift, about speed and accuracy. So beyond the financials, you're going to hear a lot of stats today, some from me, many from Julie, Jarrod and Phil. And I think you'll feel the level of change that's materializing in our operations from that combination of a simple core and AI at scale. It's a real step change for us, and it's well underway.

So to go a bit deeper on consolidation and modernization, the work we've done has set us up extremely well for what's now possible. In retail, we've shifted to a modernized cloud-based core. We've moved from 8 personal lines pricing platforms to 1 from 16 claims platforms to 1. We've moved over 6 million policies to our strategic platforms, and we've got another 2 million that we'll be migrating in the next 6 months. So we've actually moved 27 brands to our common core platform, the biggest platform transition in our history. And it shows in customer satisfaction, which, of course, is the key to retention and acquisition.

Over the 3-year migration period, the digital NPS has increased by almost 20% in New Zealand and over 30% in Australia, both up to 57 points. And having gone live with our new CTP experience in New South Wales, we've seen an immediate 27% increase in the Net Promoter Score to 66 points. Importantly, we're also seeing our investment mix shift from spending predominantly on that core transition to spending predominantly on growth and agility.

Over the last 24 months, we've seen a 15% increase in policies purchased through our digital channels, now at 65%. Our NRMA and State and AMI mobile apps have been transformed, rating well over 4 stars. And these scalable platforms were a key enabler in growing our business by $1.4 billion of GWP through the RACQ acquisition. So as the Operating Officer, simplification is what makes change repeatable. It reduces duplication and variation and it lifts quality and control.

So moving to cloud-based services frees up time previously spent on maintenance. It reduces delivery time lines and it materially reduces operational complexity. Customers feel these changes through their day-to-day experiences. And of course, the bonus is that these investments have created new strategic options for us, winning partner agreements, supporting acquisition opportunities because the core is coherent and scalable.

So the replatforming of our direct retail business has been delivered as committed. We are now focused on the seamless migration of our remaining CTP customers and enabling our partners in RACV and RACQ. Intermediated is on a similar transformation journey. It needs separate focus, but the same story is repeating. In broker markets, time creates friction and it creates cost. And we now have our commercial enterprise platform deployed and performing well. We've built multiple broker integration patterns, deployed Guidewire as our system of record and delivered the finance integration.

We've commenced moving products and brands to that platform. And from our initial releases, the level of impact we're seeing from the transformation is even more material than in retail. Our first product, Padlock, has more than doubled sales since the same period last year. In WFI, small business quotes have dropped from 24 hours to 15 minutes. And we're now triaging 100% of intermediated motor claims via AI.

Whilst we're on AI, continuing the theme, our use does extend right across the enterprise, as Nick referred to. At the highest level, we're organized around 3 opportunity areas, and I'll just run through them. The first opportunity is to target specific areas of the value chain. The examples that I mentioned before, use of AI in our intermediated division to support quote ingestion and claims lodgment are good examples. Likewise, in retail, the claims assessment phase in CTP has been a key value area to target.

Second, there are opportunities wherever we can enable the scaled workforce from front office to back office by giving them consistent advanced tools to serve customers better. And third, empowered AI has been amazing to see come to life. We have use case deployments across the entire business through providing people with tools and skills. Our people are amazing at solving pain points, but also at creating new opportunities.

Now in terms of the how, Nick described it earlier, but the 3 models -- Deploy, we're really focused on excelling at consuming capability that is embedded and continuously evolving in platforms like Microsoft, Google, Guidewire, Earnix, ServiceNow and more. Our AI activator shape solution, this is about rapid delivery of bespoke agents using our proprietary tooling, Genie. And finally, we build deep industrialized models through the in-house engineering team.

In terms of Impact, you'll hear directly from Jarrod, Phil and Julie shortly. But from an operations perspective, we've started to reap the rewards of having taken a really strategic and quite inclusive approach to AI deployment. We've gone from 0 production GenAI use cases 2 years ago to 92 today, and they are not pilots. They are in production. In just the last year, we've doubled the proportion of controls that are automated across the company. And in the Technology division, this is now upwards of 70%.

Test Design cycles have dropped from weeks to days. Migration road maps have shortened by around 1/3. And we've unlocked data assets that have been built through 160 years of insurance operations. Importantly, we now have a certified network of more than 600 AI activators right across the business. All of this is squarely in service of better experiences, greater speed, higher accuracy.

Now before I move on from AI, just a couple of comments on agentic and retail. There's rightly a lot of commentary about Agentic Commerce. For us, agentic is about faster, more accurate customer journeys where multistep work can be orchestrated within guardrails and controls, of course, and with human oversight as required. And it's feasible precisely because our core is stable and it's scalable. Specifically on Agentic Commerce, to us, just like online and mobile apps, it's another channel to market.

And I think it's an attractive one because generative AI tools can synthesize full-service information, not just compare pricing. And that plays to transparency of customer satisfaction, of coverage quality and claims experience, the areas where leading brands win, as you'll hear from Julie and Phil. So from here, the approach is pretty straightforward, focused on the journeys that matter most, embed control and connect the agentic experiences tightly into the simplified core.

So back to the big picture. Insurance modernization is hard. It's never really done, but we are well through the heavy lifting. And we're looking ahead, there are a small number of focus areas that we know are absolutely key. At the enterprise and retail level, it's now about extracting the economic upside of our simplification. It only counts if it changes cost, quality or control, and we have plenty of evidence that using AI on top of the simplified core is starting to drive those benefits.

Just in my world, we have less work on manual controls and compliance, more change, faster at lower risk, lower cost, migration solutions that can better deal with data variability, improve security and platform resilience. And these are all indicators of an ecosystem that's maturing, turning capability into performance. In the intermediated space, we're early in the brand and business onboarding process, but a lot of the hard work is done. Our technology ambition is really clear to provide the fastest, most accurate experience in the market.

The step change in SME quote times is exactly the kind of improvement that brokers notice. No doubt, Jarrod will share more on it shortly. So from here, the focus is on consistent ingestion of information, reduced handling, higher straight-through processing, and that is the winning formula in our commodity lines. So to close, 18 months ago at Investor Day, we promised that this would be the management team that leaned into the legacy platform challenge that we wouldn't pass it on to future generations of leaders, customers or investors.

We've delivered the biggest change in IAG's core in over 40 years. We've made the investment. And as you'll hear from William, the mix is now shifting from consolidation and migration to spending on differentiating capability, rapid feature delivery, leading customer experiences. Along with creating market opportunities, modernization has also allowed us to offset increasing costs with lower run and delivery expense.

So the next phase is no easier, but it's different and it's full of opportunity. Through both the strategy and to be honest, some fortunate timing, we feel very well positioned. We're seeing a step change in speed and accuracy, and that gives us confidence to be more aggressive in our expectations.

And with that, thank you for your time. I'm going to hand you over to Julie for a deeper dive into the retail business.

So good afternoon, everyone, and thanks for joining us. I'm Julie Batch, the CEO of Retail Insurance Australia, and I'm really glad that you got to see a little bit of our operations today. We're a business that's built on customer trust with a deliberate strategy to grow responsibly, to underwrite with rigor, to lift customer outcomes and to improve productivity through technology. And today, I'll share with you how we're creating value, how we're scaling with discipline and why we're well positioned to win through the rest of the decade.

Retail Insurance Australia is an advantaged platform with trusted brands, strong distribution and disciplined underwriting. Today, we serve around 6.7 million customers, and we write more than $10 billion in premium. And that scale matters. It gives us the data, the reach and the operating leverage to invest with confidence, and it keeps us close to customers through the moments that matter. We are a multi-brand, multichannel business, anchored by our direct flagship brand, NRMA Insurance and our national digital innovator, ROLLiN.

Our partnerships with trusted motoring clubs, including RACV in Victoria, AANT in the Northern Territory, RACQ in Queensland and subject to approval, RAC in WA. And our banking distribution partners, including ANZ, Bendigo Bank and People First Bank that provide us with broad Australia-wide access to those who embed insurance in their home mortgage decisions. We manufacture the full suite of retail products, balancing volume and margin.

And with the RACQ and RACWA insurance acquisitions, we significantly improved geographic mix and diversification, lifting capital efficiency and allowing us to sharpen our competitive edge. And the result, market-leading margins above 15% and a customer satisfaction score of more than 55 across our touch points. And if we step back for a moment and look at the last 5 years, the industry has shifted fast. Digital behaviors have changed and inflation has surged and our response has been deliberate, disciplined and calibrated to the conditions.

Over the last 5 years, we've simplified and scaled our business. We've positioned NRMA Insurance nationally as a health company. We've acquired the insurance operations of RACQ and RACWA funded entirely through organic earnings. And we've standardized core platforms and built an early data advantage, including a single view of each customer and each insured asset across Australia.

And we've embedded AI across distribution, pricing and claims, delivering $300 million in claims and supply chain benefits on an annual run rate basis. So today, we can move faster, we can price more precisely, and we can serve customers with less friction. And critically through this change, we've maintained our financial strength, positioning the business to convert capability into momentum.

So turning to momentum. In New South Wales, ACT in Victoria, the home and motor classes have grown strongly. These East Coast states and products are the core of the retail franchise through our flagship NRMA Insurance brand. Today, they represent 66% of retail and 34% of IAG's overall premium. And over the last 5 years, the market compound annual growth rate of these portfolios was 10.8%, reflecting the repricing that was necessary for inflation, supply chain shifts and reinsurance uplifts.

NRMA's insurance book, its equivalent book grew 9.6% per annum to $5.8 billion and delivered leading returns through these portfolios. And if we look at that growth rate over the last 3 years, that gap has narrowed. NRMA Insurance's CAGR is 12%, slightly below the market growth of 12.5%, with our home book performing particularly strongly. And we are confident that this strength will continue because going forward, the acquisitions of RACQ and RACWA provide us with better diversification, and a better diversified, more capital-efficient portfolio gives us headroom to grow. It allows us to balance risk across states and classes and provide new pathways to market for more of our products.

Aligned to IAG's strategy, we're making consistent choices that create sustained value. We're growing responsibly, lifting customer outcomes and improving performance through disciplined underwriting at scale. We're focused on building exceptional brands and partnerships that earn our customers' trust and expand our share of the household over time. Brand strength drives preference and retention, and this is how we grow. We're leveraging Australian made scale backed by flexible underwriting and sophisticated pricing and disciplined underwriting is the engine of our business. It protects margins and your returns.

And we're delivering an effortless experience, particularly in claims by using advanced technology to improve our claims cost while keeping the experience simple for customers. This productivity uplift is long-term value creation. And our opportunity is to keep moving faster than anyone else. We're empowering our people with technology-enabled decisions, a growth mindset and a productive operating model, allowing them to move faster because we believe the future is a game of speed, speed to insight, speed to price, speed to settle and speed to improve, and this will deliver cost efficiency over time.

Turning to customer obsession. Customer obsession, it's our profit engine. When customers trust us and the experience is simple and reliable, they stay longer, they buy more over time, and they're more likely to recommend us. The elements that underpin our customer obsession are firstly, scale, which I've already talked to and scale and trust, they're highly interlinked. NRMA Insurance is the most trusted Australian insurance brand 4 years in a row. And our motoring club partner brands are the #1 insurer of choice in their home states. That trust gives us access to a large, high-quality customer base today, and that trust is also critical tomorrow in an agent-to-agent world.

Scale then creates efficiency advantages through data that powers our digital platforms. If you're one of the 65% of our customers who buy online, you'll get a quote today 50% quicker than the same time last year. And that efficiency improves customer experience and it lowers marginal costs. With better scale and efficiency comes pricing sophistication. We respond in real time to changes in risk, and we're much more targeted in our risk selection. And with our 100 years of history, we understand the value of a customer across their lifetime. And this is how we create high-quality, long-term value and earnings.

And those capabilities in turn flow directly into market-leading insights. We capture touch points from all of our interactions, including more than 7.9 million voice calls per year. And it's this vast deep knowledge that drives our customer experience, reinforcing trust and advocacy in our brands. These are the moments when our differentiation is earned. And the result of this equation, it's higher quality growth. We see this in renewal frequency, which has improved 3% and targeted acquisition focused on the customers we want to keep for the long term.

Returns are then reinvested back into the customer experience, strengthening brands, improving digital journeys and lifting claims performance again and again. This foundation is what allows us to scale with confidence and deliver you consistent market-leading returns. So let me bring our strategy to life for a moment through our portfolio because this is where insurance excellence shows up. We're shaping a portfolio that's resilient and connected. So we price risk precisely, we serve customers consistently, and we put capital behind the best opportunities.

Each product has a clear role to play. Motor is our historic foundation. It's a scaled product where operational excellence matters. And we're focused on trusted distribution and integrated supply chain and consistent claims execution because that's what sustained advocacy and margins over time. And here, our proof point is clear. We're at 61.5 points of customer satisfaction for our motor journeys. Home drives customer loyalty, and you can see that translate directly into persistency with a 95% renewal rate.

Customers trust our brands and service, and we price and underwrite with discipline, so we retain the right customers and we protect returns. And this is where our capabilities in perils pricing and in our claims response are a durable advantage. CTP is our gateway to new customer growth, a powerful relationship builder, especially with younger drivers. It's a bridge to a broader NRMA insurance relationship.

And today's CTP customers, on average, hold 2.49 policies. It also gives us vehicle visibility that deepens the motoring club insights that we already have, but it only creates value if it's profitable. And in this class, our pricing excellence and capital management have delivered over the long term. Small business helps us expand from protecting customers' assets to their earnings, and we've seen consistent volume uplift. Today, we serve more than 120,000 small businesses across Australia, many of them also holding other personal products.

And finally, our niche product helps us meet more customer needs and deepen relationships, expanding our role from protection to lifestyle. Our multiproduct portfolio lifts retention. It improves lifetime value, and it allows us to invest more confidently in service and in innovation because the economics compound. And critically now with a broader, better balanced geographic spread, we can extend these products to more customers across Australia.

So the future of our operation, it's grounded in technology, taking all of that capability that we've built through the enterprise platform and using data-led technologies to accelerate outcomes for customers, lowering unit cost through automation and speed. And we're already using AI extensively across our retail business, powered by that incredible scale of our data. It's improving the underwritten quality of our book. The fraud detection platform we've built has delivered a 125% improvement in preventive loss over 5 years. It's increasing our speed and productivity.

Using deterministic AI, we've improved claims cycle times by 13% and using AI agents in CTP, we've halved the decision time to the second liability decision. And these faster decisions, they free up our people to spend more time helping customers return to health and work. Our telematics capability has provided over 100 million kilometers of driving information from both ROLLiN and NRMA Insurance. And this is informing us about road risks that support safer driving outcomes and creating a platform for more personalized engagement.

And finally, our API connectivity honed with our partners sets us up for an agentic future, including agent-based distribution as that capability matures. We're building on the enterprise platform and industrializing AI across our organization, preparing our teams for the change that will come. So looking towards 2030, our 2030 Ambition is grounded in scale, in value creation and in disciplined underwriting.

We're targeting 8 million customers, driven by organic growth and the inclusion of RACQ and WA. And this will deliver $15 billion of premium for IAG. Through AI and automation, we'll lift our claims saving run rate by $500 million per annum, giving us confidence to deliver a consistent 15% margin over time. Experienced leadership and data-driven scale are our competitive moats, lifting retention, lowering acquisition costs and improving risk outcomes. And as Australia's largest retail insurer, we have the scale to lead the discipline to perform and the capability to transform.

And with that, I'd like to hand you across to Phil Gibson. It's the first time you're going to hear from him, so he's going to tell you a little bit about himself and a little bit more about New Zealand Retail.

Thank you, Julie. Kia ora to everyone. I'm Phil Gibson, and I'm thrilled to be here representing the New Zealand business. Over the last 11 weeks, I've been immersing myself in the country, the culture and the business, meeting with partners, customers, stakeholders and regulators. This has reinforced the reasons I'm excited to be here. I see a strong business with solid fundamentals, good alignment across the team of values and objectives and significant upside from which we can grow.

I come with deep relevant experience over 3 decades in general insurance. I've spent my career helping insurance businesses grow, modernize and perform at scale across the U.S. and Canada. I've worked in both personal and commercial insurance, ranging from startups to some of the largest insurance companies in North America, including Travelers, Allstate and Aviva. I've led major performance transformations and my experience spans underwriting, pricing, operations, claims, distribution, data and AI.

And prior to IAG, I worked in a very large consulting firm advising senior insurance executives on strategy, technology and AI. My passion has always been strategy and execution, building high-performing businesses that combine talented people, great customer experiences and long-term resilience to generate exceptional financial outcomes. As I see it, the opportunity here is to take this business from being good to great. I'm going to talk to you first about the retail business, and then I'll come back to talk about the intermediated business after Jarrod.

Our retail business is the personal lines market leader. Our brands are among the most trusted and established in New Zealand. AMI is the leading direct brand in the market. And this month, it will celebrate 100 years in business, and it's actually just the baby of the bunch. State is the third largest direct brand in the market. It enjoys widespread brand recognition and it's 121 years in business this year. We also serve customers through our major bank partners. Together, this gives us a tremendous breadth across the market, generating more than $2 billion in GWP and proudly serving 1.7 million customers. We represent over 1/3 of the personal lines market.

And the headline here is that we are growing. In the first half of this year, we grew our market share in an otherwise flat market. And our customers are happier. We've proudly achieved an impressive 7-point lift in NPS across all of retail since July as a result of our actions. Our opportunity now is to reach new customers and deepen our relationship with existing customers. And we'll do that by building on our growth momentum, simplifying customer experiences and continuing to scale our hub businesses, which offer services beyond insurance, all to deepen our customer relationships.

Our strategy is to continue building growth momentum as market conditions improve. We expect the New Zealand personal lines insurance market to return to growth after 6 flat quarters. This growth will be driven by a combination of moderate system growth of items and very modest rate actions. We are closely monitoring geopolitical events and can respond quickly to claims inflation. To date, cost pressures have been modest. We're seeing some minor increases in motor parts, and we're responding accordingly. And we'll recognize and we'll respond to changing customer preferences as well.

Customers increasingly expect simpler, more digital, personalized experiences at a price they can afford. At the same time, AI will fundamentally reshape how customers interact with insurers, particularly how they discover, compare and buy insurance. And we're already seeing signs of this shift. For example, AMI and State have seen changes in organic website traffic as more customers find what they need via AI summaries. So our digital content must ensure that our brands are visible and well represented to LLMs.

Looking ahead, emerging AI native agents and aggregators will help customers interpret policy terms, benchmark products and proactively monitor the market for better terms. We see this as an opportunity, not a threat. In response, we will leverage our strong brand propositions as trust will remain a critical factor. We'll deliver simple, digital and more engaging personalized experiences. We'll ensure we have sharp competitive pricing, which is always going to be a key part of the purchasing decision. We'll increase our operating agility to respond to a more dynamic competitive environment.

And as you're hearing the recurring theme, we'll scale AI as a strategic capability to help us grow and increase productivity. Let's talk about the strength of our brand propositions. AMI has been the primary driver of growth for New Zealand retail this year. Just like our member clubs, AMI offers a range of connected services. Our free AMI roadside rescue service offer is unique in the market, and it is having a proven growth impact. It was rated #1 roadside service by Consumer NZ, proving it's not only free, it's a better proposition.

We're adding further value through discounted motor servicing and road fitness tests using existing capacity to extend the proposition and deliver the service. The impact on the AMI brand in a short space of time has just been exceptional. And we know from our experience in Australia, the halo benefits a member brand can bring. AMI strategic NPS has lifted 5 points since first quarter, a huge shift and a metric that's notoriously difficult to move quickly. AMI is forecast to grow personal lines items by 8% by the end of FY '26. Now about 60% of this has come from the AAON deal, giving their customers the opportunity to move to AMI.

And thanks to the strength of the AMI proposition, the majority are saying yes to the offer. We're seeing similar increases in building our noninsurance customer database -- customer base, serving over 11,000 customers to date. It's been so successful. We plan to launch 2 new stand-alone mechanical repair sites in Auckland this year on top of the 10 AMI MotorHub and 6 AMI HomeHub locations we already have in place.

This vertical integration not only helps deliver a seamless customer experience, it does so with superior economics for us with internal motor repairs costing 20% less versus similar third-party repairs. AMI and State can create more personalized and engaging experiences through our digital apps. Over 60% of our customers are digitally registered and around 30% have downloaded the app. To date, our app offers always-on convenience in your pocket. You can open and book roadside rescue and track the vehicle on its way to you. You can amend or renew your policy and half of our app customers now elect to pay using Apple or Google Pay.

You can also lodge a claim. In fact, I recently had a rock strike my windscreen, so I was able to experience our touch-free service for myself. I lodged a claim in our app. I selected a location, a time and date that was convenient for me. I dropped my car off, came back after lunch and drove off with a new windscreen, amazing. We also offer proactive notifications like weather events and even marketing offers. And as we continue to expand our capability, these experiences will become much richer, like faster claims experiences where our customers simply upload photos for instant assessment, assignment and scheduling of a claim. And soon, offers to help manage your car or your home with a range of risk prevention services.

Increasing the appeal of digital service, it's not only great for customers, it lowers our cost to serve. So this will be a key priority as we move forward in 2027. As Neil mentioned, our retail business is at scale on the modern platform, enabling pricing precision, speed and cost efficiency. We have almost 2 million policies on the platform, and we're unlocking operating efficiencies from reduced system complexity, removing both cost and remediation risks, bringing our AMI and State teams together in a single sales and servicing team.

We're also leveraging the Earnix pricing platform and using risk-based pricing. We now price at a much more granular level with the ability to refresh pricing fortnightly, ensuring we remain responsive to loss trends and cost pressures. Automated underwriting decisioning is improving speed and consistency while we're maintaining our strong risk discipline. To date, we've removed over 200,000 manual referrals to underwriters. We're now at 90% straight-through automated decisions for personal lines, and we're targeting 99% straight-through processing for motor and 95% straight-through processing for home.

In claims, our supply chain scale is delivering clear cost benefits through greater vertical integration and repairs, stronger partnerships with motor parts suppliers and our procurement scale, we're materially improving claims unit costs and customer repair outcomes. And as we all know, continuing to drive down the underlying cost gives us more margin to reinvest in growth. So similar to what you heard from Neil, our investments in Technology have created an excellent foundation for us to scale an AI-led transformation. Our business is ready.

Around 90% of our data has been ingested on Google's data platform, giving us a single scalable source of truth. That matters because AI outcomes are only as good as the data that underlies them. We have modern cloud-based platforms from several key systems partners, including Guidewire, NICE, Microsoft, Earnix and Google. That means we get out-of-the-box AI capability and evergreen updates, allowing us to focus on building our AI strategic capability on processes that matter most to us and to our customers. Beyond the technical foundations, our people have experience with AI.

We have active AI use cases being widely used in the business. As an example, our knowledge helper agents and claim summary agents assist our frontline employees in delivering faster, accurate answers to customers. These tools, combined with targeted process reengineering have cut our average claim settlement time in half, getting our customers back on their feet faster. The business and technology are working closely, building AI agents that unlock increased productivity, efficiency and workforce flexibility within clear guardrails.

And now we have a clear opportunity to accelerate, moving from good individual use cases to a systematic enterprise-wide AI transformation. For the last 2 years, I've been helping clients leverage AI to seize opportunities and solve so many problems. If there's been one consistent predictor of success, it's that widespread AI transformation works best when it's CEO-led. Based on my experience and what I've learned so far, there is a fantastic opportunity to transform our business using AI as a true strategic capability. It's early days, and I look forward to sharing more on this in our next update.

Overall, even in uncertain times, our retail outlook is positive. What gives me confidence is that we have an AMI proposition that's winning in the market. We have a multi-brand portfolio that gives us scale and breadth. We can deepen customer relationships through our Hub services and by unlocking the full value of our data with a single view of the customer. We'll continue to obsess over the customer and build richer digital experiences and lower our cost to serve.

And as I mentioned, I see a huge opportunity for us to scale AI strategically across the business, increasing operational agility and productivity. Together, this means we can deliver growth and margin. And finally, our highest priority is disciplined execution, strengthening a market leader today and extending that leadership for the long term.

Thank you. I'd now like to invite my colleagues up to the stage for Q&A. And as they come up, we'll show a short video that brings our AI journey to life.

[Presentation]

Thanks, team. So just how we're going to run this now is, we'll just do -- we've sort of broken up questions into 3 little buckets. So we've got a break now for 20-odd minutes. Then we'll hear back from Jarrod and Phil, then we'll open up again for questions on sort of the intermediated commercial businesses. And then William is going to come up and talk about some of the financial and reinsurance aspects, and then we'll open up for questions again.

And I'll sit on all 3 of those panels, just so we can sort of manage questions as we go along, don't have a load of them after a couple of hours of presentation. So why don't we just open up? And Mark's in the room -- for those on the video, Mark's in the room with a roaming mic, and he'll be sort of directing to the traffic here. Over to you, Mark.

Kieren Chidgey from UBS. Nick, I might start on Agentic Commerce. It was mentioned a couple of times there. Just keen for you to unpack in a bit more detail how you're currently thinking about it. We've clearly seen a reluctance to support price comparison websites for the obvious reasons historically. But it sounds like you want to lean into some of the agentic apps that no doubt will appear here soon.

Is that going to be brand specific? Is it going to be across the bigger brands like NRMA? Are you going to open up pricing engines to these apps? Can you just give us a feel for why you're comfortable sort of leaning into that and why you're not going to commoditize what is a very strong brand?

Yes. Thanks, Kieren. I mean -- and I'll ask the team to come in and -- to give us a bit of support around sort of bringing that to life in some of our brands. And the sort of the macro is going to have to be that we're going to meet our customers where they want to be met with insurance needs. I mean either that's through a broker, an agent, an authorized rep coming in direct, either through an NRMA or one of our club partnerships or financial institutions.

So we kind of have -- I mean one of the great advantages of our business model is that we are set up for that. I think that is just an extension of that story, this topic, which is we're assuming over time, more and more consumers are going to want to buy their insurance products, particularly direct, particularly retail. But I think we should save that question also for Jarrod and Phil when we talk about Intermediated and Relationships with partners. So maybe we'll park that for that part of the discussion and just concentrate on the retail.

I think the reality is that we are going to engage. And I think that -- I mean, Phil sort of mentioned that in a way, it's not the same as a price comparison because it's going to be able to look at the full strength of your proposition, your wording, your price, your -- the capability, your claim strength, actually what your brand stands for. And I think those -- not just in our sector, but just as a general theme, those companies with strong brands, with strong relationships that stand for something.

I think in a sort of a changing environment, a changing e-commerce world, they're going to do well. I think if you don't have those things, then that's going to be a problem for you. But actually, that's not IAG. I mean our retail brands have got many of those things in spades. So I think actually, there's an opportunity to bring that to life more, but maybe how [indiscernible]. Julie and Phil, maybe just sort of bring it to life and how you're thinking in some of the brands.

Sure. I mean we've got pretty strong, pretty well diversified distribution now. So it's direct, it's digital, it's call centers, online. We work through partners. We've got incredibly strong APIs. And so when we look at the opportunities, the risks and the opportunities through agentic, we see it as another channel. I think it's too early to say whether the pricing engines will open up. I definitely think you'd want to price. It may actually make some of our data more defensible. And so we're really kind of focused on being ready for that and prepared for the way that our customers want to meet us, as Nick said.

Same. I think I'll just be echoing the sentiment of, we want to meet our customers. We want them to be able to come through any door they want to come to us. AI agents, I think it's not something that we're afraid of. We see this as another opportunity for customers to get to know us better and get to know our true value, not just the price, but the whole -- what we offer. And I think we'll outperform our competitors when they do that.

I think -- just a close for me, just the authenticity of our brands, I mean, they really are real. I mean we talk about it a lot. I think people in this room and on the video would know that. We're super proud of the way we show up and look after our customers. And I think that gets more exposed in this world. So maybe this is going to turn out to be -- I know there's concern, actually, it may be a positive.

Nick, can I just add one comment. I think there's sort of 2 aspects to how we show up. One is being visible and clear and having a digital presence that can be accessed by others. The other is the actual agentic execution within our tool sets. And I think perhaps some of what you're hearing and the confidence is that if we were in a position where we had 10, 12, 14 claims policy pricing platforms, our ability to expose that consistently externally and actually support those new channels is very, very difficult. And so some of the sort of confidence you're hearing, I think, is because having done the consolidation work and gone retail first, we feel like we actually can really focus the energy and effort to supporting those channels in a much cleaner kind of way.

This [indiscernible]. Last week, both APRA and ASIC wrote regulated institutions regarding one of the latest AI models. How are you embracing that in your technology stack?

Yes. I mean I'll make some comments here, and there's sort of a whole lot of topics in those. And those who are not familiar with those letters were really around the governance, the systems and process, which financial institutions that are running AI and sort of putting the whole financial services industry on notice essentially sort of look after yourselves and look after your customers really.

I mean -- so it doesn't feel like that was new, the issues that were being raised. And I mean it rightly does raise a whole lot of things. I mean the starting point for us, though, is pretty good. because what you don't want to have is an enormous amount of complexity in your business in the first place that you're trying to tap things onto. And Neil sort of answered it before when we were talking about sort of answering Kieren's question.

But actually, we feel like we've got sort of the house in order, and we're well on the path to have that. Now that doesn't mean that these issues aren't real, but it just makes it a bit easier to line ourselves up. But then it's all about how we're thinking about the governance, how we're deploying. You can see it in the way we've got a methodology to deploy. This is not a random walk at IAG. We've really been thoughtful about how do we get 15,000 people excited, but then how do we govern and ensure that we're structuring and controlling that and putting guardrails around it.

I mean I'll just ask Julie, another sort of aspect they didn't raise so much in those letters. It's really around sort of the ethical concerns that sometimes come out of this topic. And we've given some thinking around that as well as around just making sure that we don't inadvertently exclude people or somehow in sort of desiring to do something good for a customer end up not. And Julie, you might want to make some comments around that.

Yes. I mean just for your information. So in 2019, we founded an institute called Gradient Institute. It was a collaboration between Sydney University, ourselves and the CSIRO. And that institute is around looking at building ethics into algorithms. It's released a lot of research. It's had a lot to do with how the government and various different organizations have built regulation and risk into their -- the way they put standards out.

So I'd encourage you to do that. And we're using -- just have a look at that website. We're using a lot of that information in the way that we're building out our algorithms and AI applications now and making sure that we're leaning into the ethical, repeatable, reusable side as much as the opportunity.

Just a few things for me. I think this idea of inclusiveness around these tools is pretty important to us. So this is not kind of a small center of excellence type capability. That's probably a fast path in the short term. But actually, the long term here is to have an organization that has a culture awareness, understanding of responsible ethical use, but also a level of governance and control around how we deploy these capabilities into production that is really stringent.

And you'll have heard -- you probably -- some of you have picked this up. In the video, there was a comment about 700 agents. And when I was presenting, I talked about 92. That's actually the difference between those that are in incubation, creativity, experimentation and those that we've gone through the validation, verification and control process to be comfortable having them in production in our organization today. So again, this language and categorization is all about the level of governance control and risk associated with different models, the level of business continuity we need to have around them and so on that gives us that sort of framework to step into this space.

Simon Fitzgerald here from Jefferies. Just a wider question on AI. Obviously, the adoption here is absolutely fascinating. But what's also interesting is just the speed at which they can be deployed. I think there was a comment made before that productivity through technology is our long-term value creation. I'm interested to know -- I suspect that a lot of insurers will be using these and it just becomes a standard as opposed to anything else. Like could you make some comments about how you see this as an advantage longer term, Nick?

Yes. I mean I'd say one-off, not the source of competitive advantage. I mean the point is right that we're not going to be the only financial services, only insurance company that's embracing this topic and deploying at a pace and looking for sort of productivity efficiency, customer -- improved customer experience. I mean what we also know is our industry has got lots and lots and lots of legacy systems and lots and lots of things that don't talk very well to each other.

And I mean, Neil sort of stepped us through that, that we've done some heavy lifting here. Now that doesn't mean that the next step is -- we're there already, but it does make it a bit easier. And we've also -- we went retail first on how we've deployed this and how we've really sort of put a new platform in place. But we do feel like our capacity to engage, build sort of the next step change, which really feels like it's happening now. We've kind of got the building blocks set.

And I'd say probably more set than others. However, the point is also right. But no doubt everyone else is also thinking about how they can accelerate whatever plans they've got and embrace this. It's just a bit easier when we've got our assets lined up. We've also got the scale. And I think that really is an advantage because across Australia and New Zealand markets, we've got wonderful insight and history and data and understanding and our capacity to this technology and capability really allows us to use that knowledge to a greater extent. And if you've got it like we do, I think that's got to be a source of competitive advantage.

So I think that call around just the power of our data. I mean we have abstracted our data from every core system. We've organized that into information about a house, a car, a person, and whatever that might be. And we don't need to ask the same amount of questions as others might because we already know the answers to those things. And I think that gathered over decades is quite unique.

I might just throw it to Phil because Phil worked in the industry for 30 years and stepped out for 2 and turned on to the other side, giving us advice and then sort of saw the light and came back luckily. And what's your observation of us, but also what you've seen across many other insurers?

Yes. I think generally, when you start this journey, the big questions are, well, how is your data? Because if you want to train models to make decisions based on your data, if it's not clean, consistent, accurate, you're going to get bad answers. And then how is your processes?

Because if you're going to use AI models to automate or take humans out of the equation and do these processes, if they're inefficient, you're just automating bad process. You're just going to make it go faster, which is going to make it worse. So then the third one is, do you have the fundamental technologies in place, generally cloud-based to do these things that you want to do. And IAG is unique and that we can go, yes, yes, yes. So that to me is quite the accelerator and great foundation to start from.

Okay. It's Nigel Pittaway from Citi. Just slightly changing tack. Just wanted to ask that with your modern tech stack and 61.5 tNPS in motor, do you think your difficulties in Australian motor unit growth are largely over?

I mean some thoughts, and I'll ask Julie to come in as well. I mean we sort of showed those -- that great slide, I think, for New South Wales and Victoria for NRMA and RAC. This sort of shows the market grew just over 10% and us just under that. In the last 3 years, actually, it's not as -- it's even closer.

So I wouldn't characterize it the way you said. I would say that we know that our price point has been -- has been challenging that we know that, that's been tougher than home. And we know competition has been pretty heavy in the motor classes, particularly in New South Wales and Victoria. What we can also see, and we made some change, and I'll get Julie to make some comment now that actually, we've turned that a little bit. And maybe you can come in rather than me saying more.

Sure. So if I look at the direct business in Australia, across New South Wales and Victoria, we've seen a little bit of volume loss as we said in motor. Victoria, we've explained before because of the conditions in the market, we've been holding our share there. And in New South Wales, it's been new business growth.

So we've put a lot of work in over the last 6 months to kind of turn that around and reshape some of that portfolio, and we're pretty comfortable with the way it looks. I mean we're always going to be selecting the risks that we think meet our risk profile and bringing in RACQ and we've got growth going through South Australia gives us a bit more ability to balance. We've sharpened some of our marketing. We've reshaped some of our media spend. And so we're feeling comfortable with the outlook.

Siddharth Parameswaran from JPMorgan. Just a follow-up question on growth -- aspirational growth ambition. So I think you've got a target, particularly for RIA of $15 billion of GWP ex the acquisition. It implies around 5% growth. You're expecting the market to grow at 6%. Are you still targeting -- it seems that it's a revised target of below market. Am I reading that correctly?

I think you're overthinking that. I mean as a general theme, the 25% is sort of, let's say, the current run rate of our business -- sorry, let's pick -- for June '26, let's say the business is writing about 18.5%. Actually, the run rate is more than that because it's got RAC -- an extra 2 months of RACQ in it. So let's call it 18.75% or something like that. That's today -- that's our business right now. That's a shift on really -- what we're really saying is we're going to grow that roughly at 6% plus the inclusion of RAC and WA. That sort of run rate business plus the inclusion of WA gets us to the 25% and a version of that is each of the businesses.

Sorry, my question was specifically about RIA targets, but...

Within that, it's the same sort of -- it's the same math. It's the current run rate. We've got an extra couple of months -- extra 2 months of RACQ because last year we only had 10 months and then 6% plus the inclusion of WA.

So sorry, you're targeting 6% organic growth?

Yes, we're saying...

That's what you're hoping to...

Actually, what we said is we're targeting market growth -- the assumption on market growth, which is what we put up on there was sort of 6%.

I mean the only reason was it specifically before you had targets of aspiring for market share for market growth, but it wasn't particularly...

I think we can [indiscernible] to market growth. So we're projecting outwards to FY '30. We're expecting the market to grow about 6%. We're saying that we will grow organically at that level and bring in the RACWA and the full run rate of RACQ. And it might be in the rounding. So I wouldn't score...

Well, my numbers are around 4.5% versus your 6%. So over the 5 years, that compounds to a difference, but it's sort of consistent?

Yes, the same as the one Julie said. So that might be rounding because that is what -- the story is the one I said.

Okay. Fair enough. Okay. And just -- I mean, the chart you showed on NRMA in particular and growing close to market, just where have the difficulties been by State? If you could give us some help in understanding? And yes, what actually happened in those other areas?

Sure. So I mean, we've given you the publicly available data from a CAGR perspective from that perspective, so you can check that. We've shared our NRMA position just to try to give you a bit of a sense that in our home states, they're growing. Obviously, in Queensland -- if we look at Queensland from the NRMA book, it's a little behind. We've been very focused on RACQ, and that will be our growth engine going forward, and that is going pretty well ahead of our targets on growth. So we're pleased with that.

In South Australia, we've transitioned our brands to NRMA. We've got home and motor volume growth going through South Australia that we're pleased with. It's also supported by the CTP book. And in WA, our shares have been more muted. We're obviously, again, focused on the RACWA acquisition there. And again, that would be our future growth lever through that market. Across the country, home has grown strongly. So it really has been a motor new business story, particularly in New South Wales.

Freya Kong from Bank of America. Just a follow-up on Sid's question and your outlook and confidence in market growth over the next 5 years. I think under -- addressing under insurance has always been a structural growth driver that the industry has pointed to, but affordability is getting worse, not better. And we've seen instances of the government having to step in to help with that with the cyclone pool. Any steps you can take as an industry to address this and drive the growth?

No, I think there's quite a few. And we're certainly working with government around this topic. And I think we'll probably hear a little bit about that in the budget tonight and tomorrow around sort of putting some money away to sort of do some more exploring with the industry around what we could do. And we don't -- and it's not good for our country, and I'd say something similar for New Zealand around sort of this excluding an element of the population that has sort of ended up with being exposed to sort of certain risk predominantly around natural perils that sort of exclude them from insurance.

And so I think there has to be -- that ends up being a country issue. One thing is the industry knows a lot and IAG knows a lot and it's very helpful with the government is trying to work through what could be done. And we are definitely working with the right people around -- with other members of the industry and the industry association around what potential solutions could be. I mean, Julie is heavily involved in this topic. I mean, you might want to make some comments around HIPP.

Yes. I mean the ICA is very focused on bringing the industry together to collaborate on how we might increase availability, if you like, particularly in some of these flood challenged areas. There is a group called the Hazards Insurance Partnership. That brings together almost every department of government, I would say, and most insurers to try to have a look at what we might be able to do to change affordability in some of those spaces and availability. So that work is underway. Obviously, the work that we put into our technology and simplification will help us be more cost efficient over time, and that's really important to us. So those are the areas as well we're looking from an affordability perspective.

Andrew Adams from Barrenjoey. Can you just help me understand where the benefits of AI come through for investors? I guess, looking at guidance, and I'm going to bog down on the rounding, but it does seem to imply a recovery in premium rates in retail, but flat or lower margins in retail because it all looks to be coming from Intermediated. So I would have thought AI, I'd get some expense savings or the ability to reinvest back into premiums, but where am I seeing AI in the financials?

I mean my sense will be, obviously, it's not just going to be IAG, right? It's going to be the market. There's going to be wholesale change, I think, in sort of cost structures that could occur over the next sort of 5, 6 years that hopefully go to affordability. And so maybe some of this gets -- some of the discussion we just had around the affordability of that. So, it's not good for people to be excluded from insurance. So actually, this may be helpful because I think risk is on, remember. So yes, AI is going to probably help with some of our expense cost structures, productivity efficiency and against that risk is on. And so the products...

So if we're successful in AI -- so if we're successful in AI, the industry growth arguably over the next 5 years could be closer to 0 or much lower than what it's historically been or...

I doubt that because I think risk will continue with obligation...

You doubt that it will be successful or you doubt that there will be low growth?

I doubt there will be low growth. I'm confident the industry will be successful in deploying capability to improve customer experience, take some inefficiency out of the way the system works. both right across the system, by the way, not just in the -- I know we're talking about retail now. Against that, I think, one, that could actually be helpful so that may expand the market because it goes to affordability, so more people can actually buy insurance. Against that as well, I think risk is on.

So yes, there may be some productivity efficiency from a cost point of view. Against that, I see the risk profile of our country only going one way, which is up. And that's why I think the net of that, we're sort of forecasting at 6%. My view is that's likely to be low. And my sense would be that we'll end up having at an industry level premium growth at or above that. Mark's given me the wind up. Thank you, panel, and thanks for the questions. And we'll roll now into the other part of our business, our Intermediated business, start with you, Jarrod. Thank you.

Good afternoon, everyone, and thank you for joining us. Today, I want to do more than just share numbers. I want to share the story of how CGU and WFI are shaping the future of Intermediated Insurance in Australia. But before I take you through our strategy, I'd like to answer a question I'm sure a number of you want answered, which is how confident am I in our capability to navigate the commercial insurance market cycle, which has softened since this time last year?

I've seen many of these cycles over my career. And since first joining IAG, I've become really focused not just on rebuilding the foundations of this business, but on preparing for this softer phase of the cycle. The investments we've made in strong underwriting discipline pricing sophistication, people capability and operational efficiency position us well to deliver through the cycle. We have strong reputable brands in CGU and WFI, diverse portfolios and channels to market, not all of which are as exposed to the cycle to the same extent.

And in 2025, we were very deliberate in taking costs out of the business and restructuring around a functional model to drive operational efficiency, and that will be fully enabled with AI. Since exceeding our $250 million profit milestone in 2024, we've demonstrated the ability to achieve half-on-half stable underlying margins. And today's capabilities position us well for the cycle we are in. But our ambition is much greater and our in-flight strategic investments in AI, process and technology transformation and broader capability uplift put us on track to achieve a sustainable 13%-plus insurance margin by 2030.

And by then, we will have taken out at least 3 percentage points of cost to run our business. We will also have more agile connectivity to our brokers, the ability to bring product innovations to market quickly as customer needs change. Our focus hasn't shifted. We're committed to hitting our annual financial targets, managing margins through the soft market and transforming our operating model. These aren't just aspirations. They are actions that drive outcomes for our customers, brokers and shareholders.

IA operates with meaningful scale across commercial, SME, Agri and Personal lines, over $4.5 billion in GWP. And that scale and quality of partnerships allows us to invest in data, AI, process transformation while maintaining our underwriting discipline. Growth here is intentional and targeted. This and our foundational insurance capability already delivered provides the confidence in achieving these targets. Across the industry, expectations are moving quickly from customers and brokers.

They're looking for speed, consistency and relevance, not just price, and that's shifting the basis of competition. At the same time, Technology, particularly AI, is reshaping how we price risk, select business and serve customers. And that's right across the value chain. Alongside that, the risk environment remains complex and increasingly dynamic, which raises the bar on execution. Our response is deliberate. We're investing where benefits compound in capability that strengthens over time, in efficiency that is structural and in control that is built into how we operate.

Our vision is to be recognized globally as a leading intermediated insurer. We're focused on the areas that mattered most, growing and succeeding in our market, leading with customers and brokers, driving operational efficiency, embedding risk control by design and engaging our people. We've set ambitious targets for 2030, a plus 13% plus insurance margin, #1 in NPS across WFI, CGU and claims. A 10% admin ratio, 100% straight-through processing on SME, Agri and Personal lines. 90% plus automated controls and an outstanding employee engagement score above 78%. These aren't just numbers, they are outcomes that reflect the discipline and delivery we're embedding across the business.

How are we going to get there? We're going to focus on 4 priorities: Customer Obsession, accelerating growth and expanding our market by delivering exceptional customer experiences; Insurance Excellence, driving underwriting excellence, leveraging data and generative AI and ensuring capital efficiency and governance; and Future-Fit Operations, redesigning our control environment, building a platform for profitable growth and striving for operational excellence; and Exceptional People, outcome-driven, exceeding customer expectations and fostering a culture of engagement and consistent innovation.

Let's look at some of these in a little more detail. What really drives our ambition is our obsession with customers. Today, we're delivering measurable results. Our cost -- our broker pulse scores is up, claims NPS is rising and retention rates in preferred segments are improving. These aren't just metrics, they're proof that our customer program is translating into real value, more GWP through higher retention, lower cost to serve, fewer complaints, targeted GWP growth and elevated customer experience.

We've set the foundations. Our CX team has established. Customer experience is built into our commercial enterprise platform and AI journeys, and we're tightening measurement so we can manage it like any other performance driver. In insurance, customer experience, especially at claim time is what builds loyalty and uplifts retention. This is about growth, not just marketing. Looking ahead, our ambition is to completely embed customer obsession into our organizational DNA. We're integrating digital and human channels, delivering tailored products and solutions that reflect emerging risks our customers are facing.

What really sets us apart is our commitment to insurance excellence. Our pricing sophistication continues to evolve, enabling us to better price risk and deliver underlying margin. This is about strong risk assessment, agile underwriting that drive improved margins across our portfolio. We've laid solid foundations, underwriting and pricing discipline, robust reinsurance protection and strategic data asset building. Looking ahead, we're accelerating the build of our underwriting function of the future. We're delivering new tools like the underwriting workbench and product factory and optimizing our portfolio.

Our Ambition for 2030 is clear, fully integrate AI-enabled risk assessment and underwriting, develop continuously evolving pricing mechanisms, evolve our risk appetite to serve emerging customer exposures. Operational excellence is the engine behind everything we deliver. We've established and embedded our operations function, redesigning end-to-end processes, and we've started with claims and launched skills and capability uplift programs across the business. We're automating claims lodgment and validation and our CEP delivery is on time and on budget.

Looking ahead, we're continuing AI-enabled automation across all remaining processes. We're completing CEP delivery for all planned lines of business and processes and integrating redesign work across the value chain. Our Ambition is to recognize all benefits from CEP delivery, the operating model changes we've already implemented and the broader tech modernization we'll step into. We're shifting from manual detective and corrective controls to automated preventative controls, making our business more resilient and more efficient.

Let's bring it all together and look ahead to our ambition for 2030. Our target is clear. We're aiming for a 13% plus insurance margin by 2030. It's not just about hitting number. It's about building a business that's resilient, relevant and ready to lead. We want to be recognized as a leading commercial insurer. We're transforming our technology stack, enabling us to capture disruption opportunities as they arise. This is a deliberate reengineering of the insurance value chain.

We're investing early were advantaged compounds, data, AI and process redesign. These investments are already delivering results, and they'll continue to drive value as we move forward. Aligned product and service propositions will enable us to gain market share, and we'll see a 3 percentage point improvement in our cost to run the business. That will be tangible progress and a measurable outcome that our strategy is delivering.

As I wrap up, I just want to leave you with a clear sense of where we're headed. We're not just aiming for financial targets. We're building a business that's resilient, relevant and ready to lead the industry. Our actions are deliberate and future focused. We have momentum. We have confidence, and we have a clear plan to deliver on our 2030 ambitions. I thank you for your time and attention today. I'm going to pass back to Phil and he's going to take you through NZI intermediated business and New Zealand plans. Thank you.

Great. Thanks, Jarrod. Here again, everyone. I'm excited to be back on stage representing our intermediated business in New Zealand.

NZI is New Zealand's leading commercial insurer and we serve customers via our broker network. The NZI brand is 167 years young with a storied history and we enjoy strong long-standing relationships with our broker partners. So first, I'd like to share some market context on the New Zealand market. The intermediated market makes up about half of the overall insurance market in New Zealand. Around 80% of our GWP is spread across 5 key broker partners comprised of 3 global and 2 local networks. It's a diversified broker partner mix, which reduces our concentration risk. And our broker NPS scores consistently outrank competitors across various surveys. What differentiates our business is our scale and our local capability. We have deep on-the-ground broker and customer relationships, strong local underwriting expertise and a leading claims capability. Together, they enable faster decisions and better outcomes at the moments that matter most.

We've also evolved the proposition beyond traditional insurance with our risk solutions, strengthening risk assurance, prevention and customer engagement. Taken together, these fundamentals give us a strong defensible market position and a platform from which we can continue to invest, modernize and grow with discipline. We're currently well into a soft market and I've seen a few of these during my career just like Jarrod. Heightened levels of offshore capital are driving down commercial rates. Corporate property rates are down 10% to 30% year-over-year and SME, property and commercial motor vehicle are both down about 5% to 10% year-over-year. Our priority is discipline, not chasing volume at any price. The good news is we are seeing -- starting to see signs of potential recovery. Now it's way too early to declare victory but as a market leader, we will lead the market with targeted modest rate increases.

The team has been communicating inflationary rate increases are coming and we're working with our brokers to manage expectations. We're also seeing more managing general agencies enter the market. Most MGAs specialize in specific segments, often with a modern tech stack that gives them speed, speed to quote and bind. The potential for AI native brokers would further intensify the competitive landscape. Our strategic response really differs across our key customer segments. In our corporate segment, we remain relationship-led and really disciplined on price. These are the largest businesses in New Zealand and we enjoy strong part type relationships with our brokers and customers where we provide sector-based expertise.

The SME mid-market segment is our largest cohort and it's less exposed to the price cycle. The opportunity here is to invest in digital capabilities to lift speed to quote and respond to brokers' needs faster. Migrating on to the Commercial Enterprise Platform is a key strategic priority with planning commencing in FY '27 and commencing in FY '28. In the interim, we'll continue to modernize the business through pricing sophistication, process optimization and targeted use of data and AI. We see the smaller personal rural segment as an opportunity to explore agency models to better serve our brokers and our customers. As an example, we've invested in Ag Guard to target growth in the rural market. Ag Guard launched a digital end-to-end proposition tailored to rural customer needs earlier this year to improve service and increase efficiency. Early feedback is very positive. A recent quote from a broker was super fast and responsive, blowing your competition out of the water. That's the kind of feedback we like to hear. So we'll continue to pursue targeted growth through our agency investments.

Similar to retail, we continue to introduce unique propositions to reduce reliance on price-led competition. NZI Risk Solutions enable us to win customers on value even when we're not the cheapest. These services shift insurance from a once-a-year transaction to an ongoing relationship. As an example, our fleet fit retention rates are 95% and generate strong lifetime value. We're amazing when there's a claim. But the best claim is the one that never happens. By identifying and mitigating risk upfront, we reduce both the frequency and severity of claims and that's good for customers and it's also good for us. As an example, in 2,000 electrical inspections, we found over 4,000 serious defects that could have resulted in a serious fire. Actions like these where we reduce preventable loss mean less downtime for our customers and improve relationships that stay in the test of time. This creates a virtuous cycle.

Customers and brokers see our value as a partner and we achieve stronger portfolio quality and returns. This is how we balance growth, affordability and profitability through the cycle and why these solutions are a core part of our long-term strategy. NZI is a high-quality business with strong fundamentals. We're the market leader in commercial. We're the leading brand with brokers and we're differentiated through our local claims capability and our unique risk solutions. While we are operating through a soft part of the cycle, we'll lead out of it with discipline. And looking ahead, our strategic investments will modernize the business, including migration to the commercial enterprise platform and some targeted bets in alternative distribution where it makes sense. Together, these actions ensure NZI is well placed to sustain and deepen its leadership as the market evolves.

Thank you. And I'd now like to invite my colleagues up on the stage for Q&A and no video this time.

I'm going to say the same again. So Mark is just going to facilitate questions.

Nigel Pittaway from Citi. Just starting off on the comment you just made on AI native brokers could further intensify the competitive landscape. What do you think are the factors that are going to most dictate the prevalence of those native brokers and whether or not they're significant?

To my comment, the factors will be how quickly the AI evolves. It becomes easy for brokers to utilize them to interact with companies and how receptive companies are to interacting with them.

So do you -- I mean, do you think it's likely that they, come 2030, they're going to be very prevalent in the marketplace? And how are you thinking about that?

I wouldn't dare speculate on how prevalent but I'd say we're going to prepare ourselves to deal with brokers. It's a similar answer that we gave to customers is, we want to deal with customers the way they want to come to us. We want to deal with brokers the way they want to interact with us if it makes sense for us from a business.

I mean Nigel. sort of, if there's a sort of a higher order question of -- I mean, Intermediated is a wonderfully entrepreneurial. And we're working on the basis that change is occurring. We're changing our business to meet our customers. No doubt they're doing something very similar. We know that, that advice is sought. Our industry and our products is complicated on one spectrum and hence, we have the advice model and therefore, the broker model why it exists in the first place. We're working on the basis that they're a very relevant part of the insurance industry and therefore, a very, very important part of the way these guys are running their businesses. No doubt, there's a lot of engagement with AI within their businesses and how we're connecting and a lot of efficiency productivity. But just the concept, we're working on the basis that they're a relevant participant in the market.

And just, Nigel, just that in 2030, I'd hate to speculate what the world is going to look like then from an AI perspective. In the engagements I'm having broadly across the broker community, the focus is really much on frictional cost. How do they free up their time? How do they enable their brokers to be spending that quality time with the client to make the real difference and what the client really values.

And maybe just one quick follow-up. I mean just as you said you've been fortuitous in that you've got your sort of modern system in place in retailers before the market changes. Do you have any concerns that given you're still in this transformation process that, that's all going to happen a bit quickly for you given you won't have completed the transformation?

I'm comfortable with where we are on that journey compared to our peers. We're still able to connect. So we have a strong connectivity layer. I think that's the first place things will change. But our delivery time line, so we deliver a lot of our commoditized products, they go straight through as part of the SME, our small business products get delivered through next year. So we'll be moving pretty fast to what could be a fully AI-enabled capability. So I'm comfortable with where we're positioned and probably more so from the product construct that we're building and what that will enable us to do with dynamic product offerings to our broker partners. That's where I think we have a true advantage and that will take some time for others to catch up, I'd say.

Kieren Chidgey, UBS. Jarrod, can you just unpack sort of how you're thinking about the timing of the cost ratio improvements in your business? You're talking about acceleration of the commercial platform. Is that 3% improvement in FY '30 number, when will we start seeing sort of the expense ratio start to fall?

So if I look at our commercial enablement -- sorry, Commercial Enterprise Platform, did I get the acronym right? That -- we complete delivery in '28. So we really start recognizing full value in FY '29. That's when the real marginal gain comes. In the interim, though and we've started at claims because we have a single consistent platform across Guidewire for claims. We will get some efficiencies on our claims handling expenses there, mainly at the front end of the business and what we're seeing there is -- that's our biggest turnover area of our business from a staffing perspective. That's enabling us just to modify the number of new recruits we bring into that space. And we're already starting to recognize some savings there with the ingestion models that we've already deployed. So it will be modest as we deploy and have those deploy cost and then it will accelerate at the back end towards the FY '29 and FY '30s.

And just second question, sort of you started your presentation by articulating your confidence in managing the business through the cycle. In the short term, in the position we're in at the moment in markets, is there a risk margins short term go down before they go back up?

It's a challenging environment. But if I put that in context of our portfolio, we've -- I mean, we've got a global segment, a major account segment that is highly competitive at the moment, heavily influenced by global capacity. That's by far and away the smallest segment of our business, so circa 10%. Middle market, which is, generally define asset somewhere between $20 million and $250 million. That's our rough split, less dynamic in pricing, less international capital flows in there. And we've still got SME, agri, personal lines that we're still getting rate in that business. So the overall balance that we have in our portfolio and separately having our WFI business that's a non-broker business that has a more stable, less impacted from -- we feel that, that balance will enable us to manage through the challenges we see in specific segments. What we will see though is potentially growth will slow and we've already seen that as we have to make decisions to step away from business that we feel is too impactful to margins and we have seen that already through this year.

Siddharth Parameswaran from JPMorgan. Just a question around some of the actions that you've taken before about getting a separate license for intermediated. And just could you talk about what that has done for your business in terms of increasing optionality, what you're actually seeking to do with that optionality?

Yes, sure, Sid. I mean essentially sort of starts with the philosophy which we've reinforced again today around -- we think of ourselves as a retail and intermediated business. You can see that even the way we presented our business, the 2 retail, the 2 intermediated and there's a lot of similarities there, obviously. We had already separated out, not because of the license but because I thought that was the best way to run the company, sort of how we go to market. And so I mean in Australia, Julie and Jarrod, have already separated their team, claims, pricing, that was already in separate teams, not because of the license, Just because we thought that was the best way to run the business. And that sort of had already been replicated in New Zealand. So the license in my mind was really lining up the balance sheet with the business, kind of the story and ensuring that we really were running each of these businesses not separately but really focused on their brands, their customer segments and the balance sheet that supported that part of the business.

I think what it also does, a separate license for CGU in Australia, does give us a bit more flexibility on funding on capital structures and the likes that we're not fixated on as a concept but does create some flexibility in our business model going forward. And that's not our main focus actually. Our main focus is at the front of the business. But the way we've set it up -- sorry, last comment, the way we're running technology platforms, when we originally called the technology platform we built for the retail businesses, the enterprise platform because we're going to roll it out everywhere, exactly the same. And we kind of -- we did that with claims but we kind of worked out for sort of policy and sort of the front of the business, we sort of needed -- the uniqueness -- the products are quite different.

And I was worried we're going to have a project that was sort of half done everywhere. That was -- and so that's sort of that nightmare but we didn't do that. So in fact, the retail has its -- we now -- you can see our language, we call that the retail enterprise platform that supports the retail business. And Jarrod, we're calling that commercial platform, the commercial -- we're calling that different. Now Guidewire is in both, so it's not completely separate. But we really are running the company like that. I think a license and a separate balance sheet gives us optionality. It's not really in the way we run our company, it's not really driving anything.

We're done.

That's a wrap-up from Mark. Thank you, panel and thanks for the questions. And now we will change lastly to William, who's just going to take us through some of the financials and reinsurance aspects of our business.

Okay. Good afternoon all. Welcome to the last presentation of the afternoon. This is my second Investor Day as IAG's CFO. And building on the progress over the past 2 years, I'll bring together everything that you've heard from Nick, Neil, Jarrod, Julie and Phil into the IAG financial model shown on this slide.

Starting with the top line. And based on our operational plans and forecast industry growth in Australia and New Zealand, average annual GWP growth of mid-single digit is clearly achievable. I'll then outline how our reinsurance strategy provides strong downside protection and low volatility. This means IAG can deliver a sustainable reported insurance margin of at least 15% with additional material potential upside. Together, this provides an ROE of greater than 15% and high single-digit EPS growth. Our dividend payout policy of 60% to 80% provides us a sustainable and growing dividend to our shareholders. Additionally, we expect to generate excess returns that can be reinvested back into growth opportunities or used for capital management, typically buybacks, which will continue to reduce our share count. In combination, we believe this positions us well to achieve top quartile total shareholder returns.

Firstly, on expenses. We remain focused and on track to our sub-11% admin ratio target and I'll unpack for you some of the moving parts. Like many firms, we face pressures on our cost base, primarily from technology and the investments we're making to support future growth. These will be more than offset by process and efficiency benefits, reducing the proportion of premiums that it takes to maintain and run IAG and allowing us to invest more in growth, transformation and customer initiatives. As you've heard today, the management team has a strong focus on improving efficiency and productivity. For example, Neil detailed our consolidated technology road map and how AI is being employed throughout the organization. Julie talked the digital transformation and how 65% of new business sales are via this channel and it now takes 50% less time to quote home and motor online. Jarrod described how accelerated Commercial Enterprise Platform and operating model changes are structurally lowering total controllable expenses, thereby improving productivity.

And Phil mentioned various benefits of operating on a single platform for the retail business, namely fewer systems to use and products to sell, more automated processes and having blended teams across sales and service functions. These are just a few examples and we've worked hard to entrench an organization-wide focus on granular itemized productivity improvements and we have strong rigor in tracking the financial outcomes, giving confidence in delivering the benefits. Tech and AI are already delivering around $350 million in claims benefits and around $130 million in expense savings towards our efficiency targets. As a result of this, we anticipate maintaining a competitive claims ratio and achieving a reduction in our expense ratio. Specifically, the admin ratio on an ex levies basis improved in 1H '26 to 11.7% and we expect this to reduce to under 11% in FY '27. And within our FY '27 spend, we include a further around $400 million investment in tech and AI as we continue to execute at pace on the exciting opportunities ahead.

I'll now discuss our strong capital foundations. Our capital targets are anchored around robust regulatory capital target ranges. We have a resilient capital platform that is diversified by type, duration and provider. As shown on this slide, IAG has been innovative in its use of reinsurance to reduce earnings volatility and capital requirements over time. This low volatility capital-light strategy has allowed us to invest in the business, make acquisitions without the need to raise equity and return surplus capital to shareholders via on-market buybacks. Since FY '14, the ratio of GWP to prescribed capital has improved from around $3 per $1 of capital in FY '14 to approximately $6 now. While part of this trend can be attributed to capital allocation initiatives, this has also been driven by IAG's innovative reinsurance arrangements. The original Whole of Account Quota Share deals provided the foundation and this was further extended by the long-term perils volatility and adverse development covers.

On this slide, I've shown the schematic, which outlines the 3 core components of our overall reinsurance strategy. The 35% quota share arrangements, the main catastrophe protection and volatility cover, all serve different purposes. And I'll talk to the specifics of each in more detail over the next few slides. The combination of all of these protections lowers earnings volatility, provides balance sheet protection and materially reduces our exposure to natural perils. Firstly, on the Whole of Account Quota Shares. These are diversified by counterparty and maturity. Since 2015, when IAG first announced the 20% deal, they've increased in quantum to now result in 35% of our consolidated business being ceded to our reinsurance partners.

Following the recent acquisition of RACQ Insurance, we've integrated it into our reinsurance program by canceling its previous quota share arrangements and replacing it with a 2.5% share in IAG on similar terms to our existing arrangements. This has already contributed the bulk of the run rate synergies of over $50 million that we identified at the time of the acquisition. Cumulatively, these quota share deals have reduced our regulatory capital requirements by over $1 billion and provide approximately a 5-point uplift to our insurance margin from a combination of fixed and profit commissions and savings on other reinsurance costs. Secondly, in relation to our main catastrophe protection, this cover is renewed annually on the 1st of January and it provides significant balance sheet protection for gross perils costs up to $10 billion. It has one full reinstatement purchase, which is a unique feature of the local market.

This cover addresses the significant regulatory requirements that we face, particularly in New Zealand, which requires cover for a 1 in 1,000-year event, which is among the most conservative in the world. We also adopt a panel of partners for this protection and it includes both annual and multiyear capacity. Additionally, it has been placed on favorable terms given that we don't need to place the full cover. As a result of our quota shares, we only need to place 65% of the capacity on this program. Importantly, the counterparty credit rating is also very strong with over 90% being rated A+ or higher. The final component of our reinsurance program is the perils volatility cover. This pioneering protection recognizes the potential for perils to impact the financial stability of Australian and New Zealand insurance companies. This is a long-term deal that provides significant downside protection. And in future years, the annual attachment only increases relative to underlying aggregate exposure.

I also want to highlight that as the cover was not utilized in FY '25, the $1 billion of protection or $680 million on a net basis is available now and every year for the remainder of the arrangement through to June '29. And with pricing fixed over the term of the arrangement, this effectively gives us flexibility in how the impact of perils' assumptions and reinsurance costs are reflected in customer premiums. There's a profit commission component that's built into the economics of the transaction. And given that this is modeled over 5 years under the IFRS GMM approach, it's relatively stable and is not materially impacted by perils' activity in any discrete financial period. At the time of the announcement of this cover in conjunction with the adverse development cover, we indicated the incremental cost of the downside protection was around 50 to 100 basis points of the group insurance margin. And this is included in the margin targets that we're discussing today.

In the slide on the right, I have also provided further detail on the long-term perils volatility cover and its impact on our peril modeling. The significant downside protection that I referred to earlier means our peril costs are capped at our allowance in around 95% of scenarios. In 40% of scenarios, from the peril allowance up to the $1 billion limit each year of the cover, we covered in full, meaning our reported results will be in line with our peril allowance. In approximately 55% of outcomes, the peril outcome is below allowance and so we will retain the favorable perils upside in our earnings. And finally, most importantly, the lower chart shows the mean of these expected net peril outcomes. So the favorable upside skew gives an average benefit through time of over $100 million insurance profit in the margin and this is an average potential upside of over 1 point per year of margin, which is a key component of our longer-term financial model.

So bringing all of this together to help you understand the various impacts on IAG's reported margin, I've included the key components on this slide. Firstly, as we've indicated, our underlying margin target is around 15%. And in any financial period, that could be impacted by a range of factors, including the commercial rate cycle, competition, claims frequency and inflation and investment market volatility. On top of this, we expect reinsurance profit commission on our Whole of Account Quota Shares. That has been an increasing feature of our results and we've been risk-adjusting recognition of this additional upside. As the arrangements come closer to their maturity dates, recognition is expected to increase. Going forward, it's reasonable to expect at least 100 basis points in profit commission and this could potentially increase to 200 basis points.

And finally, as discussed in the previous slide, we have average perils upside of approximately 100 basis points a year. We note there is variability from year-to-year in this number. So we'll continue to build our guidance on our stated perils allowance. So the upside won't be built into margin guidance but still, we think it's an important feature for the market to understand. So putting this all together, we expect to deliver a reported margin through the cycle of at least 15% with average potential upside of 1 to 2 points per year. And obviously, this upside provides us with optionality to reinvest for growth. And for comparison, I'll remind you that our reported margin at the recent half year was 17.7%, excluding the one-off RACQ impact. And in FY '25, which, of course, was a favorable perils year, our reported insurance margin then was 17.5%. So these margin settings drive our greater than 15% ROE and high single-digit EPS growth that set us up to deliver top quartile shareholder returns for you.

And with that, I'll ask Nick to join me on stage for the next and final Q&A session.

Andrew from Macquarie. Couple of questions, if I can. Let's start, William, with that last slide. If -- there are very few realistic scenarios that are going to get you below 15% reported insurance margin and you're adding on an additional 100 to 200 basis points of benefit from the profit share, from the quota share, why don't you just step the guidance up, like I don't understand.

Okay. Thanks, Andrew. I'd say 2 things. One is, of course, the underlying margin, depending on the period and those things I mentioned, whether it's commercial cycle, competition, claims frequency, inflation, investments, that could be in different points in that 14% to 16% range is what we expect the underlying margin to be. Then you have the -- on top of that, of course, the profit commissions, 1 to 2 points. But you can see the range is 15% up. And what we don't want to do is build in the perils into -- the perils upside potential into -- because you don't know in which year that's going to come. We had it in '25. It doesn't look like we're getting it in '26. So over time, that's definitely upside but we're not going to build that extra component into the growth.

I think why aren't we saying it's 15% plus and the perils allowance we've got is very strong. So that's -- and then we're sort of saying investors, we're laying it out for you. And we think that 15% plus margin ROE high single-digit EPS growth. That's sort of the expectation as an investor with some upside the way William has sort of set it out.

And then the other one I had was a couple of your global peers have started to take net provisions for Greensill. There's discussions going on through the court process at the moment. Where are you in that process? And could you potentially take a net provision for that in FY '26?

Yes, there's no change to what we -- we went into a lot of trouble to disclose that and we've sort of adjusted that a little bit over the last couple of years. So what we said in February is still the same, so the net position of IAG. There's a court date scheduled for later in the year. There's a requirement to go through a process of mediation that's sort of not about someone blinking. It's about a formal process that one needs to go through. That's sort of occurring at the moment and sort of our net position is unchanged from the disclosure we provided. [indiscernible] even stronger. The fact pack of what we disclosed that is the fact pack today.

Kieren Chidgey, UBS Couple of questions. William, if I can just start on the reinsurance quota share profit commission, the range of 100 to 200 basis points. If we see outcomes in line with cat budget, do you land at the top end of that range?

So the -- and there's a perils component in there as well. Obviously, our core budget, our core underlying earnings and in fact, even the perils part in our reported margin is so strongly protected, as we've described by the perils volatility cover. But in looking at the profit commission, those -- some of those things can come in. So it will sort of depend also what's happening with perils.

I'm not particularly clear on what that response was. I guess the question is a fairly simple one. If we see outcomes in line with cat budget sort of over the next few years, will we see 200 points of benefit from quota share profit commission?

Yes, you'd be close -- you'd be around that, yes. However, again, the other thing I mentioned was that the -- because we risk adjust it, we're not going to -- the amount of that will tend to grow as we get closer to the maturity dates of the different...

Of the quota share?

And I'd like to add one other thing. And obviously, the quota share profit share commission is the whole of the business, not just on the perils outcome. So therefore, that's also with the assumption that the underlying business is delivering a good change.

Yes, yes, yes. And similarly on the aggregate, if we see cat budget outcomes, where would the contribution of that profit commission go? I know it sits within the 14% to 16%. But is that -- I think you've been booking at about $80 million per annum. Does that go up from what we've seen recently?

Yes. I don't think we've disclosed precisely $80 million but I think that's been reverse engineered from some of our things we have shown. But no, that -- I mean, that number -- that cover, the -- as you know, the premium and the other features that cover are relatively stable through time. So you shouldn't expect that to change very much.

Okay. And final question, just the maths behind sort of getting from 5% GWP growth to high single-digit EPS growth, is that dependent on landing above 15% and having that buffer to recycle into capital management? Or if you're at 15% margin, can you still deliver high single-digit EPS growth?

Yes, we believe we can do that if we're at 15% margin. So we have, of course, our 60% to 80% dividend payout. We'd expect to invest a little bit of that in growth and capital requirements supporting growth. But over time, we expect that also support some additional level of capital management, typically buybacks. And if we deliver above, then we can either accelerate or we've got more capacity to reinvest further in growth.

And remembering our dividend policy is not on underlying. Our dividend policy is on just how much money we make. So there's a range there from 60% to 80%. But if we have a couple of good years from perils or that -- an element of that just immediately goes into the dividend policy. And sure, we got some -- we have a range in there to potentially go to the bottom and do more buybacks or something like that. But don't forget the dividend policy is on absolute earnings, not on underlying.

Richard Amland, CLSA. Now that we've heard from all the business units, I'd like to go back to the 6% GWP and sort of see if I can get some relativities between the business units. I'm not necessarily convinced that you can keep growing home at 9% to 10% per annum but you can offset that with recovery or acceleration in intermediated. So can you -- within the 6%, can you just talk to -- and you don't have to give percentages, if you're uncomfortable but just sort of how that stacks up between the home, motor, intermediated Australia, intermediated New Zealand.

Yes. I mean the themes are going to be, aren't they? In the next 1 year or 2, intermediated, it's going to be tough as sort of it's coming through a softer cycle. Now one assumes that changes. So we know the history of that business is, that does change. And so we would be assuming that, yes, the next 1 to 2 years, that would be low to sort of single-digit type growth. But we've got some change happening in New Zealand. And we know that our business -- our commercial business, intermediate business in Australia has got many attributes that aren't big in the town. So that's helpful. On the other side of that, I think on motor, we're definitely not seeing -- seeing a reduction in some of those inflationary pressures, sort of from a 12-month view.

Sure the Middle East at the moment may cause some increase in parts but I think that's definitely has come down quite a lot. I think the challenge is around property actually, where it feels like that's inflation, which has been sticky and just hasn't gone away, pre-Middle East was still there, building costs and sort of claims, the cost of rebuilds for us. But I think it's not unique to the insurance industry, just the housing markets. And I think the Middle East is going to make that go longer, that inflationary pressure. And so I really see inflation in our home and therefore, pricing stronger for longer, if that's the right expression. And I see the question of affordability. I mean that's a challenge but that's what we're experiencing, that inflationary pressure and that's just not -- it's not coming off on property classes.

How much attritionally [indiscernible] you can raise prices but I think you lose customers and...

Yes. I mean not much is the answer to that, at the moment. I mean we're not saying that. That's not our lived experience of sort of people effectively opting out. We see a little bit of examples in motor and second and third cars and people dropping out their covers and -- but not less so in property. Content maybe versus -- comprehensive versus the home. Sorry.

Just a point of clarification. What sort of investment yields are you assuming to -- in that 15% margin?

So the investment yield, I think we're -- I think at the moment, it's -- we're assuming somewhere between 5% and 5.5%.

Just maybe -- Nigel Pittaway, Citi here again. Just maybe a quick clarification on New Zealand. I mean, previously, you've said that obviously, New Zealand is over earning, you expect it to come back. So presumably within this target, we're expecting New Zealand to be a little bit above the 15%. And how soon do you think it's going to get there?

I mean it's probably the same question we asked Jarrod to about how soon are you going to get there? Because I think the theme for us, Nigel, in the way we've thought about all this is, we've got a retail business that's delivering at 15%, maybe a little bit above. We've got our commercial intermediated business in Australia, sort of run rate sort of 11%, 12%, that's drifting up. over the next couple of years. And then you've got to proportionalize these, the numbers here versus the size of the businesses. And then New Zealand, definitely not dramatic but definitely, we're expecting that to come back a bit. And the theme of sort of that, the package of that comes back to this. You can see the makeup is a little bit different.

And just on conditions there at the moment, are they -- I don't know whether you can say anything about actual conditions there today but just in New Zealand, does -- has it come back as quickly as you thought or is that [indiscernible]

In margin? I mean, no, no. I mean we've been very disciplined in -- I mean, on retail, it sort of pretty much the same. On commercial is where we're really seeing quite a change in the pricing environment in the last 12 to 24 months. We've been very disciplined but that's impacted growth. And so margins are still okay. But I do expect them over the next couple of years to drift down.

Last call for questions. It looks like we might have answered all of the sell-side questions today. That's a first. We'll take that as a win. We're done.

That's a wrap-up. Okay. Thanks, everyone, for coming along today. I mean the things we want to leave you with and this is a very quick wrap up, everyone, because I know you've been sitting here for a long time. We feel like we're in really good shape at IAG. We've done a lot of heavy lifting to get the business where we want to be. We are rightly focused on sort of Ambition '30 around sort of the core planks of us around customer, around this sort of insurance excellence we're phrasing. We're really good at running an insurance company. About the running of our operations, you hear a load about that. And there really is change -- more change happening. And then, of course, the people that are going to drive that and sort of the culture and us and the capability that we've got within the company.

Outcomes, I mean -- we're trying to be quite specific on the outcomes we're delivering in Ambition 2030. That's really around the size of the company, $25 billion plus, the sort of profitability margins of 15% plus insurance margin, 15% plus ROE and really this high single-digit EPS and sort of growing dividend return to shareholders. And we want to leave that with you as the outcomes we're going to deliver over the next 4 years. All right. Thank you online -- those people online, thanks for staying with us over the last couple of hours. Those in the room, thanks for those that came out and saw our sites. Our people are really proud to show off what we got. You probably saw a fair bit of that when you were there. And we invite you to refreshments in the room here on Sussex Street. Thanks again, everyone.

Well, good morning, everyone, and welcome to our first half financial results presentation. I'm joined here today by our Chief Financial Officer, William McDonald, and members of the group leadership team of IAG. And we're holding this briefing in IAG Sydney offices on the lands of the Gadigal people. We acknowledge the traditional owners of country throughout Australia, and we recognize their continuing connections to land, waters and the communities. And I pay my respects to their Elders past, present and emerging.

My key call out this half are the resilience of our business and our confidence for the future. The headline profit is a strong outcome and demonstrates our underwriting discipline and ability to absorb the seasonal weather impacts that we've experienced, of course, while putting our purpose into action.

Our on growth outcomes were good across the majority of our portfolios, particularly in retail, where the underlying growth across Australia and New Zealand is around 4%. We've maintained our focus on pricing discipline. And this is delivering results. Our strong, stable earnings funded the RACQ acquisition from organic capital generation, and we're in a position to announce an on-market share buyback today of up to $200 million.

The outlook is strong. We're forecasting top line growth in high single digits and maintaining our FY '26 reported insurance profit and margin guidance despite the severe weather that Australia has experienced. When it comes to supporting our customers, the experience measures in our much loved brands are strong, and our retention rates continue to remain really high. Over the half and continuing into this calendar year, we've seen hailstorms, bushfires, flooding across Australia as well as terrible landslide in New Zealand, and I've spent time visiting impacted customers and communities.

And of course, as always, I'm incredibly proud of our frontline teams and the role they play in supporting rebuilding efforts. Of course, this reinforces the critical role that we play as a shocker absorber in Australia and New Zealand while also playing a leadership role in advocating for risk reduction, ensuring a sustainable and insurable future for Australia and New Zealand.

And this slide is important. It really highlights the strategy of IAG in action. It demonstrates the quality of us and the success in delivering a more stable earnings profile, which is much less at the mercy of weather. The 6 months have shown the strength of our model in a period that has tested the entire industry. Our proactive strategy to manage payroll's risks and maintain underwriting discipline is delivering clear results. We also attribute our success to the world-class customer franchises and leading brands, which are now supplemented with RACQ and to the operational improvements we have made right across our businesses.

We have transformed our commercial businesses, and they're delivering valuable contribution. In Australia, this is well above the original $250 million target that we set. And our sophisticated reinsurance program provides a significant strategic advantage and materially improves the group's earnings profile. Combined, these factors create much greater certainty around our future earnings in a world where there's increasing demand for the protection that we provide.

Now turning to growth. Our retail businesses in Australia and New Zealand are delivering with solid underlying growth of around about 4% for the half, complemented by the strong margins they've delivered. In addition, we've strengthened our business with the RACQ acquisition contributed 6% growth this half and will deliver around about 9% growth in the second half. Our commercial businesses, particularly in New Zealand, have some challenging market dynamics, and we've also seen the impact of a weak New Zealand dollar in the results.

Our Australian commercial business delivered solid underlying growth of around 3.5%, and it benefits from the WFI rural business and greater focus on SME. So our business in Australia here is less exposed to the global capital that is impacting corporate insurance markets around the world.

Going forward, we'll maintain our vigilance on pricing and underwriting disciplines, ensuring we can continue to deliver strong and sustainable profits. In relation to our margins, we're in a strong position coming into the result, and we continue the positive momentum over the last 6 months. Pricing capability, underwriting disciplines and claims supply chain initiatives are driving and improving our claims ratios across IAG. Our comprehensive reinsurance arrangements supported the margin by keeping the perils allowance relatively stable and delivering an increase in profit commissions. And disciplined cost management is providing a material benefit through an improved expense ratio.

The sustainable and ongoing underlying benefits have offset the temporary reduction in investment returns and some one-off impacts from RACQ in the half. And so as we head into the second half of the year, investment yields have rebounded strongly and the RACQ portfolio is now protected by our comprehensive reinsurance arrangements, delivering the targeted synergies.

If I sort of turn now into the divisions, I'll start with our Australian retail business, which has delivered top line growth of 14.4%, which does include 4 months of RACQ, building on underlying growth of that business of around 4. Within all of that, the underlying growth is around 7% in our home portfolio, where we've been growing both customers and policy numbers ahead of system. So we've taken a little bit of share across Australia.

Underlying growth is lower in motor at around about 1.5%. And we're here, we chose to maintain discipline when pricing new business in the highly competitive market, particularly here in New South Wales, but importantly, our retention in our motor book continues to remain really strong. That said, we have responded to some of the competitive challenges. Changes made -- the changes we've made in the last quarter within our New South Wales business are improving new business volumes, and we're seeing that occur in January and in fact, in the month -- in the weeks of February already.

Our Australian retail business continues to generate strong financial results at high levels of customer trust. Before RACQ the retail business delivered an insurance margin of 14.7% and an underlying margin that's actually increased half-on-half from 15.2 to 15.9. When we incorporate our RACQ into that, the Queensland weather events are affecting the headline and the underlying result with a reported margin for retail of 7.4 and underlying of 13.4.

RACQI's integration is on track, and all the costs associated with that are reflected above the line result -- in the above-the-line result, and we're well protected, as I mentioned before, from our comprehensive program from 1 January.

Beyond the financials, Julie and the team are ensuring Australia, our Australian retail business remains set up for success. Key customer metrics, such as TMPS, have improved further from our already strong starting point. And NRMA Insurance has again been rated the most trusted insurance brand by Roy Morgan and continues to climb in ratings by brand strength and brand value. NRMA Insurance continues to support climate resilience through the establishment of a health fund, and we'll continue to position NRMA as a leading health company as we attract new customers in 2026.

Turning to our New Zealand retail business, where Amanda and the team have delivered strong results in a challenging economy. We have reset the strategy and brand positioning and the benefits I demonstrated in the results delivered. The AMI connected customer strategy and roadside motor support initiative are delivering above-market growth in policies. Our headline growth was 3.4% in New Zealand dollars, and it's good to see volume growth contributed to the majority of that 3.4%. Reported insurance margin continues to be strong at over 28%, with an improved underlying margin of 26. And we achieved this through improved capability. Our scale and targeted claims initiatives are driving improvements in our cost to repair, and our pricing capability enabled by the rollout of the retail enterprise platform is delivering improved underwriting profitability.

Our new Chief Executive, Phil Gibson, joins the business on 23rd of February, and we're looking forward to welcoming him in to the leadership team.

Our Australian intermediated business is showing the benefits of disciplined execution of core underwriting, pricing and expense management strategy. This is -- there is clearly a soft market in some commercial lines. So it's pleasing to be able to report underlying growth in this business here in Australia of 3.5% and our strong reported margin of 17.5%. That reported margin, though, was boosted by $86 million of prior period reserve releases, demonstrating the strength and prudence of our reserving approach, which continues to deliver value.

Notably, Jared and the team have delivered a strong improvement in the expense ratio, realizing the benefits of last year's revised operating model that we put in place. We're driving our technology transformation towards a continued investment in commercial enterprise platform. Based on the successful implementation so far and confident in the benefits that have already been achieved, we are accelerating this program to complete 12 months earlier than what we previously anticipated.

From an operating perspective, our rural and regional businesses, WFI, has improved its NPS to 63, and our investment in the brand is continuing to strong premium and earnings growth. Looking ahead, we're confident this business will continue to deliver improved financial returns powered by strong foundations and ongoing investment that we're making in capability.

And then finally, our New Zealand intermediated business NZI, which has demonstrated its resilience, maintaining strong discipline in what is clearly a soft market. In local currency terms, premiums was down 10.4%, while the stable underlying insurance profit of $78 million reflects the discipline that we're putting in place. The reported profit was also strong at $86 million with a margin of 20% and you'll see on the chart, the prior corresponding period did include the benefit of benign perils environment.

In the soft New Zealand market, our core strategy is to leverage our strong customer relationships, combined with assurance tools drive retention. During recent renewals, we retained 33 of 34 of our large accounts.

Before I hand over to William, I just want to highlight the progress on our key strategic alliances with RACQ and RAC in WA, which will expand our ability to protect more Australians. We successfully completed the RACQ acquisition on 1 September, and its integration, as I mentioned before, is progressing well. It's been great to welcome more than 800 new people to IAG and have the opportunity to serve the club's 1.7 million members.

We're committed to the alliance with, which would see it maintain its highly regarded local brand and WA-based services while strengthening the business through our technology, global reinsurance arrangements and scale. We're confident the partnership would ensure RAC members and in fact, Western Australians are well protected for a safe, sustainable and connected future. Make sure where we're going through the process of reapplying for approval under the ACCC's new mandatory merger regime, acknowledging the decision that we received in December.

I'll now hand over to William, who's going to run us through the financials in a bit more detail.

Thank you, Nick, and good morning, everyone. I'll start with the high-level financial summary shown on Slide 15. We're pleased that, in this half, we've generated over $500 million in NPAT, demonstrating our strong earnings capacity and capital generation. In addition to funding the RACQ acquisition and the buyback of up to $200 million that we've announced today, we're also paying an interim dividend at $0.12 per share, representing a payout ratio of 56%. This strong profit is down slightly from the prior corresponding period headline, which was boosted by the $140 million business interruption provision release and $215 million in favorable payroll experience.

In this result, the reported insurance margin of 13.5% has been impacted by the RACQ severe perils experience. However, excluding this, we recorded a very strong 17.7%.

Finally, on this slide, I'll note that the underlying insurance profit of $804 million, or 15.1% margin, also allows for the additional costs from our strong reinsurance protections, including our long tail adverse development cover and the stop-loss perils protection, which I've previously indicated, have a 50 to 100 basis point impact on margin.

I'll now focus on some of the key financial line items. Slide 16 shows the benefit of IAG's comprehensive reinsurance protections. There were several material peril events in this half, and we've recognized recoveries against the adverse experience on the ex-RACQ business. This is a demonstration of our strong downside protection, and it results in net perils being in line with our half year allowance of $646 million.

Separately, until the 1st of January this year, RACQ operated its previous stand-alone reinsurance program. The severe Queensland weather events saw the portfolio experience over $800 million in gross peril claims or $224 million net of reinsurance, which was $152 million above its $72 million payroll allowance.

For the full year, we have a revised payroll allowance of $1,465 million, which reflects the inclusion of the RACQ portfolio into the group reinsurance program as well as an increase in the quota share to 35%. Our nonquota share reinsurance costs increased by 8% this half to $676 million. $60 million of this cost relates to the RACQ business, so excluding this impact, we saw a 1.5% decrease. We also had a favorable 1st of January renewal, providing further margin support into 2026, and we've now integrated RACQ into our broader reinsurance program, which delivers the target of at least $50 million in synergies on an annualized basis.

In terms of the underlying claims, which exclude all perils reserving and discount rate effect. The ratio has improved by 70 basis points from 1H '25 to 51.9%. This figure includes an approximately 50 basis points negative impact from our RACQ, and excluding this, the underlying claims ratio improved 120 basis points. This ratio was assisted by around $115 million of profit commission on reinsurance arrangements compared to around $40 million in 1H '25.

New Zealand saw a proportionately greater allocation of the profit commission based on its strong earnings. This further contributed to the strong improvement in its underlying claims ratio. In RIA, there was a modest improvement and the ratio was steady in IIA. Across IAG, we're focused on operational efficiencies to mitigate ongoing claims inflation, including an array of artificial intelligence intiatives. And some specific callouts for each division in RIA, we saw benefits from claims handling and supply chain initiatives while experiencing a further moderation in motor inflation, assisted by a reduction in total loss claims, which was partly offset by the ongoing impact of third-party credit hire activities.

IIA has seen improvement in long tail experience, improved cycle times and reduced fraud but slightly adverse large loss experience in commercial property, predominantly in the first quarter. And in New Zealand, we're seeing reduced frequency levels compared to prior year in the home and commercial property portfolios.

During the half, we've delivered a material reduction in the expense ratio. Our admin costs on an ex levies basis has improved 20 basis points compared to 1H '25 and a material 80 basis points compared to the temporarily elevated level we saw in 2H '25. This includes the impact of the acquired business and ongoing technology investment, including Gen AI capabilities. This positive trajectory is anticipated to continue for the remainder of the financial year, and I'm confident in the work the team is doing to achieve a level below 11% in FY '27.

Investment income has been a solid contributor to this result, although slightly lower than previous halves. The income on technical reserves of $90 million was impacted by mark-to-market movements following the increase in the risk-free rate towards the end of the period. The underlying investment yield declined 90 basis points from 1H '25 to 4.6%. We continue to deliver a spread of around 100 basis points above risk-free with positive active manager performance. Given recent market movements, we also expect an uplift in the yield in the second half of the financial year. The exit yield at the half year was around 5%, and based on the recent increase in the 2-year Govy rate, our investment team is currently forecasting a further yield improvement.

Our shareholders' funds income delivered a strong contribution of $186 million with the majority of this reflecting a strong performance in the equities portfolio. The shareholders' funds portfolio remains defensively positioned with a growth asset weighting just under 30%.

On capital, we finished the half with a CET1 position above our target range, and I've shown some of the material movements in this waterfall. Our solid earnings are the source of capital generation during the half, and this has been partially offset by the payment of the FY '25 final dividend. The other major item is the 21 point impact from the completion of the RACQ acquisition. Other call-outs in the waterfall include the stop-loss reinsurance recovery that I mentioned earlier, which reduces the excess technical provision. This is a timing issue at the half year and is expected to unwind by the end of the financial year.

And lastly, the weaker New Zealand currency relative to the Australian dollar has a negative impact on the foreign currency translation reserve. Given the strength of our capital position, we're confident in being able to fund the RAC acquisition and announce an up to $200 million buyback. We've shown this waterfall chart previously to demonstrate that our current surplus and the projected organic capital generation can fund the RAC acquisition. It's another example of the confidence we have in the downside protection from our reinsurance program.

We've indicated an 8 point benefit, which includes the reinsurance recovery timing impact that I mentioned on the previous slide as well as the capital benefit from increasing the whole of account quota shares to 35% from the 1st of January. We're not providing 2026 NPAT and dividend guidance, but you can see we've included an indicative 23 points of capital, reflecting earnings in line with our through-the-cycle 15% margin target less the final dividend. This is consistent with analyst consensus expectations. We've also included a net 5 point impact of other capital movements, and this reflects the potential benefits from our capital-light strategies that I've previously discussed.

Finally, I'll remind you that we've maintained our CET1 target range at 0.9 to 1.1x and despite the risk reduction from the downside protections from our comprehensive reinsurance program. As I said last time, our confidence in the projected earnings quality means that we're increasingly comfortable to operate in the lower part of the capital range.

With that, I'll now hand over back to Nick.

Thanks, William. Sort of turning now to guidance for FY '26. So firstly, with growth, and we're forecasting to deliver premium growth of high single digits for the full year. And this is slightly lower than our expectations at the beginning of the year, with a key driver for the change being the impact of the strong Aussie dollar relative to the Kiwi dollar and a slightly softer New Zealand commercial markets.

We do, though, expect second half growth to be double digits, which is stronger than the first half. And of course, that includes 6 months of the RACQ portfolios and our retail businesses growing at least or above the 4% that we've just delivered an underlying growth in the first half. We'll also maintain discipline in our commercial businesses where we expect markets to remain soft.

We're maintaining our FY '26 insurance profit guidance of $150 million to $170 million, which aligns to our target to deliver a 15% reported insurance margin and reported ROE on a through-the-cycle basis. Importantly, we're retaining our range but do expect to be around towards the bottom of those range, really reflecting both the strong underlying performance that we've been delivering together with, against that, the one-off RACQ impact that we've absorbed the full comprehensive reinsurance cover came into play on 1 January.

Our ability to retain this guidance range, despite those -- these perils, really does reflect the strength and the resilience of our businesses.

Five years ago, we set out to create a stronger and a more resilient IAG, with reduced volatility and a capital-light profile. And here is the successful model that we've created with some of the best customer insurance brands in the world and Julie, Jared and now Phil are set up to grow these businesses. We've got a modern, leading scalable technology that supports our brands and our partner brands with insurance products that meet the needs of their customers. And as we look to support 10 million Australian and New Zealanders, we will deliver strong, sustainable shareholder returns driven by a stable margin and low volatility and capital efficiency, which improves the ROE. The results we delivered today are a combination of everything that we put in place.

William and I now, of course, are happy to answer any questions. And why don't we start in the room?

Kieren Chidgey from UBS. A couple of questions, if I can. I might start, Nick, on GWP growth. Just interested in a little bit more color predominantly around sort of the home and motor book in Australia, you talked about 4% underlying growth in aggregate, but perhaps you can give us a feel for the composition between rate and volume and some of the differences between home, which looks like it's done better. And I suspect you've seen some volume or unit loss in your motor in the period? .

Yes. I mean that's sort of the overall story, is we obviously got an acquisition coming in that's delivered 6% first half. It's going to deliver 9% second half. We've got sort of currency going against us between New Zealand Aussie, but the retail business are going pretty well, I think.

Commercial is in a soft market. And so that's some challenges there. But I mean, Jared's business grew at 3.5% underlying pretty pleased with that. NZI's quite tough.

So then we sort of come into, I think, the Australian retail, where we are and where we're going. I mean within that, the Australian retail, the home portfolio grew just over 7 underlying, pretty pleased with that, volume and price. I'd say we held and probably grew a little bit of share around Australia, really strength, great brands, the proposition we're delivering, the service that we're delivering, really feel pretty, pretty strongly about that.

Motor, as you say, was quite tough in the last 6 months. That underlying, you see in the pack, we call it our underlying motor was around about 1.5% in total. We found New South Wales particularly tough. It's been highly competitive. Sort of behind all that, it's a new business story around -- our retention rates at IAG and our retail business are holding, in fact, improving slightly. So it's really a lot of traded new business that's happening in the market, very competitive.

I mean what we have done and Julie and the team have sort of wanted to maintain their diligence. We also know that in Victoria, we've had frequency issues around car theft and some challenges there on just increasing claims cost that we've had to reflect in pricing, so there's a trade here. What we have done -- we've reflected that in pricing. We just -- we're looking again at our new business pricing in New South Wales, where we've definitely been under pressure, probably the most in motor. And we're just slightly adjusted our go-to-market.

What we have seen, though, in the last month or 2 is a tick up in our new business volume in motor, so we can see us actually improving. So we'd probably drop back a little bit of share. We're holding and probably even starting to grow a little bit now, really driven by that new business. Retention rates are strong. And so we're seeing some signs of just slight adjustments to that strategy working and we're -- our general results, and we've got a couple of weeks of February we can see that looking a bit better as well.

So I mean the overall story here is we had underlying retail business, Trans-Tasman. It's about 4%. There's always ups and downs in that. But the underlying, we expect that to be stronger in the second half. A little bit of volume and price flowing through. So we sort of expect a stronger second half retail growth in first half. Sort of the story I want to leave the investors with.

Nick, just specifically on the motor book, I know you don't provide margins by portfolio, but the actions you're having to take on price to improve new business, how should we think about the implications in the margin? .

That margin is -- I mean that -- there's ups and downs in that margin. We've got the strong underlying margin that we sort of started 6 -- month period within the retail business. We've got RACQ that came in that we've had to unwind certain arrangements that were in place. And we have won all the RACQ costs above the line, so just -- there's nothing below the line at IAG. So all the integration, first half, unwinding some of the reinsurance arrangements, that's had a bit of a drag in the first 6-month period. That's going to come off going forward. We made those adjustments, worn those costs, change things around.

And so within that overall targeted margin that we sort of talked about for retail, yes, we can make some pricing adjustments within the portfolio that it doesn't go to the heart of -- is that a margin story? No, we have some pricing adjustments that can make us more competitive in New South Wales. We're seeing it happen, and that won't go to margin. We're probably also seeing some of those inflation and claims stories just come off a little bit. So there's probably room to come down a little bit, too.

And second question, just sort of taking that discussion into group margin sort of outlook. There's a lot of noise in this result, obviously, with RACQ making an underlying loss. The group is still looking pretty good at 15.1%, but as we look forward, that loss, hopefully, in RACQ, I'm keen on your thoughts on what the underlying run rate there is from a margin point of view. You've got synergies coming in. You're talking about a higher underlying yield. You've got admin expense savings coming in. You've got a quota share that's been dialed up in the second half that should, in theory, give you a high margin as well. So there's a lot of positivity in terms of that underlying margin trajectory that to me would suggest you should be tracking closer to 16%. But keen on your thoughts.

Yes, so just 1 on that big list of things, probably just adding we've unwound and remove some of the specific quota share arrangements that RACQ had for the first 4 months, the -- they've all gone. And that was definitely a drag from all that and we've replaced that with our programs.

So there's ups and downs. I mean, I'm working on the basis that when we're doing this presentation in August, we're not talking about RACQ as part of any sort of ups and downs. It's just part of the portfolio. Of course, within Julie's business, we've got different products, different states, different portfolios, and they're not all exactly the same. But as a package, we'll be delivering it to sort of the margin that you mentioned. And some of the -- I mean that's why we've called them one-offs. We genuinely believe there's some one-off things that have occurred that are sort of -- have brought that margin down in the first half, and that's not going to be part of our story in the Second half.

Okay. And the group 15% target, Nick, you've had for a while, will that be revisited at the end of the year, particularly post these quota share changes and sort of everything else that's coming through in the commission?

We had a 2.5%. So it's not hugely different. We're at 32.5% whole of account quota shares, and we've moved to 35% at 1 January. I mean the financial sort of [indiscernible] call it that, is we're trying to run the business at our through-the-cycle 15% ROE with way lower volatility, capital light story. That relates to about 15%. There's definitely some upside on that. We sort of talked about these profit commissions as part of these comprehensive programs that are coming in from a few places now. There's a 100, 200 basis point additional opportunities that, and we've talked about that before. Now we don't want to bank that in every year because we've got inherent volatility in running of our business. But importantly, the cost of all of that is in the 15%.

So that's the message that we want to keep reminding investors that we're -- within our earnings profile is the cost of the protection that's giving us the earnings protection, right? So the downside risk of IAG and its earnings profile is a lot different than probably most other market participants. And you can see that on one of the pages that I went through. And there's a little bit of RACQ that wasn't included, but that's all now included from 1 January. And so sort of the certainty of future cash flows are a lot stronger. But yes, there's some -- I think that 15% ROE, 15% margin, that sort of mass of that is consistent, but with some upside on that, which is what we talked about.

Nick and Will, Simon Fitzgerald from Jefferies. Just wanted to maybe start off just with the Queensland situation with the hail et cetera. Just interested to know what your sort of thoughts are going forward in terms of pricing? And I'm also curious to know what your sort of thoughts are in terms of the consumer and affordability because I would have thought that you're now starting to sort of heat up on some of those levels.

Yes. I mean just I'll answer that second bit first, maybe just on affordability. I mean we -- compared to where we were a couple of years ago, actually, sort of the premium rate environment is obviously better. It's still tough and we're still seeing cost increase, inflationary pressure within the business. We're sort of seeing mid-single digits in motor more than that in property just as a theme. Against that, there are some frequency ups and downs as well, so it's not as directing that into pricing and there's other things, reinsurance markets more favorable. So there's not -- there's always parts to our story. It's never a simplest just 1 thing.

Maybe I'll say this right, that we are seeing our retention rates. I mean there's a retail question, I think. Our retention rates are strong and improving. So that -- I mean that goes to the quality of the franchise, the brand proposition. But also, I think that sort of sticker shock that we've seen maybe in the past has caused greater frequency to churn. That's, I'd say in, a market changed a little bit favorably.

We do know though that new businesses, as I mentioned, around motor, is very competitive. But I would say that it's more stable would be the way I would describe it. So specific, Queensland had a lot of perils across the industry, like a lot. And there was a lot of events. It wasn't to the one big event. It was multiple events, then that's been followed by bushfires and storms in early in this calendar year. That will be impact the overall pricing environment in certain geographies a little bit.

And then just a little bit about the above average reserve releases. Just wondering if you could get a little bit more explanation in terms of the drivers of that.

Yes. Thank you. So...

Just want to make a comment. One thing, we're very pleased. I mean, we nothing worse than a reserve top-up and that -- we've spent a lot of time and Jared and the team are setting us potentially long-term classes, obviously, within our commercial businesses. We spend a lot of time going back through that, really ensuring that we're not in that position. So the lens to which Jared and the team have reserving, long-tail liabilities is a bias to conservatism. So that's just the -- and we know that we disappointed a number of years ago with some top-ups that I was not happy with. I would say just the bias of our business and the way we're conducting and creating our balance sheets and reserving and loss ratios are definitely taking a conservative bonus. I mean that's -- I know there's some detail, sorry, but I think that's the setting of the reserves in the first place.

Yes, exactly. So we believe our reserves are strong and -- but a feature of those strong reserves is that we also will have releases. Just to give you a little bit of color in there, so in the releases, we have some releases across long-tail lines. We have some releases from the remaining part of that business interruption provision. -- on short tail lines, we also have some releases from prior period from perils positions in prior years. We have some increase against that in motor and home, where average claim sizes increased a bit due for both fire and water losses. But obviously, the net of all of that is the release that you can see.

Andrew Buncombe from Macquarie Securities. Just 2 from me. Hopefully, the first 1 is an easy one. apologies if I missed it in the scrum of announcements this morning.

Hope I can answer that.

What is the new attachment points on the volatility cover now that Queensland is included?

It is $1,465 million.

That is the attachment point. That hasn't changed since Q went in.

No, it has changed. But of course, it would come down a bit for the change in the quota share but then goes up for RACQ coming in.

So it's still flush with the allowance.

Yes. So maybe that's -- there's ups and downs in that a little bit because of some of the mechanics of the 32.5% to 35%. But it's the attachment of the allowance. Yes. So there's no gap between allowance and attachment.

Yes, that's perfect. And then the second one, just in terms of the capital waterfall slide, there was still the 5 basis points of additional capital optionality from additional reinsurance. I'm just wondering whether that's contingent on getting the Lloyd's license by 1 7. .

Maybe I'll make a comment. Then you come in, William. The concept of us being capital light is one that is part of the thing about IAG. And so there's a cost to that, and we -- there's various structures that we've got in place. And we have quite a lot of optionality around how to make that all happen. And we're trying to create some variability in the forms and structures to which we're delivering a capital-light strategy.

Lloyd's is kind of just one of the many, many ideas that we've done. So we shouldn't -- I don't want to overweight that as a thing. And so we are constantly thinking and looking for -- I mean we've got traditional structures. We could just expand, which were, in a way, we're just done with 32.5% to 35%, and we've got many other counterparties that would like to be part of that. So that -- but we're always looking at what are some other ways we can do that, just to make sure we've got appropriate diversification in counterparty structure tenure. So that's the package.

So it's not -- we're not sort of relying on one thing. But I mean you can comment specific on Lloyds, but that's just one of many ideas.

Yes. I don't have much to add to that. But we continue to believe, as we set out at the Strategy Day a year ago, that a logical next step for us would be to bring a bit of additional reinsurance behind the intermediated businesses. So that's something we continue to explore.

It's definitely -- just on that Lloyds. There's definitely a lot more examples of that happening in the market. And that's probably a good thing because that means sort of nontraditional capital providers will be getting more familiar with structures like that, and that will probably ease off transaction. It will make it better.

Right, I thought Mark was better [indiscernible] for those on the video, Mark's guiding me to go to the video. So I apologize. To go to the video

Your next question comes from Julian Braganza with Goldman Sachs. .

Just the first one, could you -- can you maybe just talk a little bit more just about the premium rate increases that you're seeing at the moment across the portfolios and also just the claims inflation. If you could put some numbers just around it, that would be great. .

Yes. I mean I do sort of around the ground. So the problem is we end up being quite high level. Don't we, what we're experiencing. Obviously, commercial markets are quite tough. At the -- I mean, in Australia, we've got WFI when we're sort of at the SME smaller end of town. So we're definitely seeing rate flow through those portfolios and Jared delivered 3.5% underlying.

I'd say in New Zealand, that's a lot tougher. And average premium is relatively flat or even slightly negative, but our 10% is really also driven by -- often, we're taking a smaller share of risks so that we're just sort of coming back as well. And it's not such a volume game. We might be taking a smaller share. So that's sort of driving the 10% more than -- it's not a 10% price reduction. It's 10% reduction in sort of exposure almost. The prices flat or probably slightly negative. That's driven by lots of factors around the world. So then into the retail businesses.

If I start with New Zealand, I would say the -- I mean the margins in the retail businesses are strong, obviously. We had -- we sort of talked about 3% to 4% growth there and sort of expect that to be stronger in the second half underlying. At the moment, that would be mostly volume and not much price as an average across that retail, I would expect that to be stronger in price as well as continued volume. So that's why that number will be higher in the second half compared to first half. We are putting through rate in New Zealand on our retail business now.

And then that sort of comes into Australia, where I expect home to be similar, second half to be -- to what we've just experienced first half. We are seeing sort of mid- to high single-digit claims inflation. We're seeing reinsurance costs come more favorable. We're seeing some movements in frequency. We had a discussion around Queensland hail. So there'll be some perils affected areas that will be different than others. But I would expect rate increase to be flowing through in home in sort of that 5% to 10% type range.

And then motor, we've had high single double-digit almost rate increases in motor, particularly in on Victoria. There's probably a bit of pressure coming off that and similar in New South Wales. We are seeing a little bit of relief around inflation. That's why the comment around new business for motor we made. And so it's probably slightly lower.

And then if I look at what's driving that, reinsurance is obviously slightly more favorable. We are seeing a little bit of cost increase year-on-year. We call it -- we call everything inflation now. I just keep using that word we're seeing year-on-year cost increases in repairing a car that's smashed. Against that, though, it's like total losses and sort of value of secondhand cars coming back a little bit in some markets. So that -- this is sort of working favorably against some of these. But I so that sort of mid-single-digit type rate increases.

The thing about motor, I'll just say again, Julie and the team are all over this. We definitely have found it a bit tough and we're not happy with 1.5% underlying growth for the first 6 months, and we'll expand that in the second half.

Okay. Great. That's clear. And then maybe just in terms of margin expectations by division, you've made a that news and margin is quite strong. So just as that starts to normalize, where will the expansion come from? And how are you expecting the expansion to be in, whether it's intermediated through expense ratio benefits or even just in the retail business from here? .

I mean there's a few parts to it out there. I mean we know that commercial businesses, we really set ourselves up differently here in Australia, and there's an opportunity. We sort of set Jared and the team a target of $250 million. They're delivering against that. And they've got a lot of strategies in place to improve expense ratio, capability. We're deploying technology now and we're accelerating into that program of work. So we really see -- I mean we've said many times that our starting position in the CG business here in Australia, we're starting behind some of our global competitors, and we just can't keep -- that can't be the structure of us going forward, and we're closing that gap. And I would expect to continue to see that over the next number of years. And so that's probably some margin improvement there.

We know that within Julie's business, retail here in Australia that I mean we called -- we sort of called it out, a one-off. That's not really saying anything about the business we bought. That's just saying we bought them. We had some very large perils, we had to unwind some arrangements in place all in the first 4 months. We took all that cost into the margin. We haven't tucked anything below the line. So there's some -- there's obviously that drag will be gone in the second half. So we should see some expansion there.

And then probably in New Zealand, which is a high -- which the margins are pretty strong there, there's probably some risks that, that could drift down a little bit. As a blend -- against that, we've got profit commissions. We've got quite a few things going our way and from how we see the next sort of 6, 12, 18 months.

And if I could just add. So then, RACQ obviously will get -- will be a lot closer to its run rate because, as we said, the reinsurance synergies, which originally we talked about getting those synergies of in excess of $50 million in the first full year, which would be FY '27, we've already got that from the 1st of January. Against that, the underlying for the RACQ part will just have a little bit of a drag in the second half because we've got a little bit more reinstatement premium just to expense that we incurred during Q2 under its old program.

Okay. No, that's clear. And then maybe just a question around just the stop loss and the profit commission. So $115 million this period, I just want to understand, again, any comments on how conservatively that estimate is being estimated at? And is there further upside on a best estimate basis? And secondly, how much did you rely on your stop loss protection for the last 6 months? Are you able to provide some commentary just to help us understand the other side of the equation in terms of just the benefits that you're getting on that stop loss aggregate?

Yes. So just to take that second part. So for the stop loss, we -- ex RACQI, we were $137 million. Perils were over allowance before allowing for that. And then so the stop loss recovery accrued at the half year is $137 million.

And then I think your other question, you're asking about the $115 million of profit commission. Did I get that right?

How conservative is that being booked? Or is that now a more best estimate for you of profit commissions?

Yes. So we -- I mean, we assess that with some risk adjustment on it. So that is a conservative calculation. And that number includes both profit commission on the multiyear peril stop loss and on the whole of account quota share. And indeed, the increase relative to last year is mainly whole of account quota share profit commission.

But I'd say you all with the risk on a risk-adjusted basis.

Got it. And just a final question for me. Is there a reason why the BI provisional rates was taken in the reported margin as opposed to the corporate expense line?

So we said -- I mean, we said last year when we did that substantial release of $140 million, $200 million pretax, we said at that time that the remaining part of the provision, which I think was about $50 million, we would then just treat as BAU. And you'll remember previously, we also had our dividend policy, was about paying out net of BI and then we just changed that. So we just treated as part of BAU.

At a practical level, I mean we obviously are calling it out, and we're not including the underlying margin. Actually, I just don't want anything below the line. We're trying to make our results that's just part of our normal process. It's relatively modest amounts of money now. And so it's sort of in the spirit of simplicity in the way we report go-to-market, run our company. We just wanted to run all that.

And the same on the negatives, remember. So that's why we -- in Julie's business, we've had wear some of the additions, some of the sort of one-off costs associated with the acquisition, where everything is just -- everyone's had to wear everything in their business unit results. And that's sort of how we want to run it.

Julian, I don't want to open up a can of worms, but I'll also just say a comment on that recovery from the stop loss. That's also a drag in our capital. So even that -- so that's -- let's not go down a hole on this one, but there is a $130-odd million drag on our capital calculation from that. Now we settled that at 30th of June, so that will go away. But -- so that's sort of the way APRA rules work. So there's probably the capital is slightly stronger than the way we represented by $135 million because that's not -- that recovery is not recognized from an APRA point of view. But of course, it's real, and we'll -- that position stays that we'll cash settle that with the counterparties at 30th of June.

But it should [ trigger ] the full year. Yes.

Yes, and the capital reversal at 30th June, so the capital number's gone. We highlight that in the detail in the pack, but I don't want to miss the opportunity just to highlight it.

Yes. It's purely a half year effect because at the half year, we haven't technically got to the attachment product.

It's a positive to the capital account.

Your next question comes from Siddarth Parameswaran with JPMorgan.

[indiscernible] questions if I can. Firstly, just RACQ, I just want to understand some of the moving parts in that result in the first half '26. I calculate the underlying margin at minus 7%. And I think, Nick, you said that you're expecting that book to come in similar to the group. Maybe that was including the reinsurance synergies. But even if I include what you expect to get, it still has a very, very low underlying margin, near 0. So just wanted to understand where -- how we should think about -- well, firstly, is this book coming on a lot less than you thought? And what steps you're taking to remediate it. .

Yes, sure. I mean, there's a few parts there. Obviously, there were some headline perils that impacted that number, but I know you're talking underlying. So sort of you park that. Within that, there was some -- what we see as pretty unfavorable reinsurance arrangements, particularly around the way the quota share, which is quite a drag, and we call that underlying. So that's not really remediation. That's just been sort of 1 January that's changed. And so that drag that was in that P&L -- and the way that arrangement worked was it was compounded by the perils, so sort of the arrangements get a lot worse because of the perils. Unfortunately, that all plays out in underlying, so we didn't call it perils but also have impacted the actual underlying margin.

We have completely -- all those arrangements are canceled, so that don't exist anymore. So I would say that, that business is sort of coming into us pre-synergies as we expected. Probably we're sort of running high single digits, close to maybe 10% type margin. And then we sort of had the synergies and benefits and opportunities and some of the things we can do differently with that business, we sort of quickly get that business to to sort of that 15% plus type margin that the blend of the retail business is operating at. And I don't see that as that much of a stretch.

And so that's -- so sort of the words -- I don't think of this as a remediation at all. I think of this as we've materially changed some of the drivers of that just by changing the arrangements, which is what we've done. Of course, we've got an environment where pricing flowing through in Queensland, and so there are changes we are making. And then against that, we're developing -- we'll be delivering synergies.

So that's why I said I don't expect RACQ to be a major theme or a theme really in the second half. There's a tiny drag that William highlighted before around some of the reinstatement on some of the reinsurance that we paid in -- during the spring, but that's relatively modest. So I don't see this as a remediation story at all, but I see it as a great business that's coming into IAG that's going to deliver some some solid returns in the Julie's business.

Okay. I mean I just wondering were there reinsertions in the first half?

Yes.

Yes. So were the material. They might have impacted those numbers.

A little there.

I think if my numbers are right, but yes.

Yes, Sid. I mean, unfortunately, we don't call the unfavorable quota share reinsurance arrangements perils. So we sort of call that reinsurance. So we sort of highlight the actual perils cost. The knock-on impact into the underlying margin driven by the perils, it was quite material. That's why I sort of have the confidence -- I don't see this as the way you described it. I see it as 1 January, this business is sort of operating maybe a little bit below where the rest of the retail business is operating. But if we put in the synergies, benefits, it definitely sort of gets us there.

And we wrapped both of those parts up in the -- when we talk the $174 million that we talk about in terms of the one-off RACQ impact associated with perils. So some of that is the underlying part as well.

Yes. Okay. Just a second question just around rates versus inflation. So just -- I mean just the comments you've made through your report suggests that you're saying home you're getting high single digits on claims inflation, low to mid-single digits. These numbers seem higher than what you're getting on rate and quite a bit higher. I'm just wondering, on a go-forward basis, are you hoping to cover the inflation?

I mean we know that's a problem with some of these spot sort of parts of the story. We know that in property, reinsurance and perils is a big chunk of the cost. We know our reinsurance costs are more favorable in '26 6 versus '25. We know that our perils allowance are capped in the way we've put in place those reinsurance arrangements and discussion we had before around having the volatility cover [indiscernible] of the perils allowance.

So yes, some elements are growing like that. We know there's some ups and downs in frequency as well. So I think, Sid, if your question is how does all that work and what does that do to margin, I mean, we're comfortable that the pricing that we are going to market with is covering the cost, the inflationary costs that we're experiencing, factoring in frequency, factoring in what's happening with perils allowance, factoring in what's happening with the cost of reinsurance. And that's the package because, as you know, there's more to pricing than just the cost of building products. There's more to that story. So that's the blend that we're experiencing in relation to inflation.

I don't -- with -- this won't be a margin. This is -- we're pricing to maintain the margin of the company and grow the business.

Okay. Just 1 final question. It's been asked a couple of times. So I just want clarity around that profit commission contribution. So I think there was -- I think you said $115 million taken in the half last year, I think it was around $85 million for the full year. I just want to [indiscernible]. I think it suggests an annual run rate of up to $200 million before was possible. So it seems we're tracking ahead of that, and that's taken in both the underlying annual reported margins. So it doesn't suggest that there's more upside, but you seem to be suggesting that there is more upside. So I just want to be clear, what is the final message do you want to give us on profit commissions contribution to this result versus what is likely going forward?

So the 100 to 200 basis points upside we talked about before was in relation to the whole of account quota share profit commission. The 115 for the first half includes also the perils protection profit commission, which was pretty much that was the 40 you saw last year in the same period. So that increase from year-on-year is largely what's happened to the whole of account quota share profit commission, which I think we indicated we believe would be starting to emerge this year and increasingly become a feature of our results.

And of course, we get that because the underlying business is performing well and generating profit. And then the profit commission above a certain level, then we just have that sort of like multiplier on the profits that we are generating across the business.

And Sid, I'd use 100 to 200 on that. I mean we've got some -- we now have, I think, a better structure where we have a few different drivers, which is what William just went through. So we're not sort of reliant on thing. Obviously, in itself, that gives -- we're more diversified in the earnings stream of the profit commission, so that. And I'd be sort of using 100 to 200. There's potential upside in a period that -- where the company's sort of delivering results like we're delivering.

Sorry, upside on first half '26. .

No, just in total. In total.

In total versus which period?

Just, I mean, there will be a little bit of volatility here. I just think in relation to sort of if you're factoring in what could profit commission add to the IAG results, I'd be using 100 to 200 basis points on average. There may be some volatility in that, right?

Okay. Okay. In total. Okay. So we're agreeing the top end of that inclusion.

Yes. But these are multiyear deals, right? So that doesn't mean 1 year can't make more than that, but they're all multiyear. I mean we're trying to -- we are trying to run a capital-light, confidence in earnings profile, but there's a cost to that. So the downside risk on the cash flows of IAG have mitigated because of the actions we have taken, and there's definitely some upside that we can receive. We're just being cautious about that, right? We don't want to get to a position where we disappoint on these. So I think using 100 to 200, yes, it might be slightly more and in some years, but as a way of valuing the company, I'd be thinking that way.

Your last question today comes from Nigel Pittaway with Citi.

Most of my questions have been answered. But I think I just want to delve a little bit more into the margin volume trade-off in the Australian retail book. I mean it seems as if this time, you disappointed in motor units. You're slightly happy with home units. But my understanding is home maybe got a little bit more competitive towards the end of the half, and it seems like you're putting in price increases there. So I mean are you really sort of in a position you think where those units, you can improve on that unit growth given the action we're needing to take on pricing to cover the claims inflation you've identified.

Yes. Thanks, Nigel. I mean we're seeing -- I'm not sure -- I mean, our business is very strong in home is what we're experiencing, strength of the brand, go to market. We know we perform well. with some of these large perils have occurred in spring of '25 and then what's happened January and February this year. And actually, we're not really seeing what you said in our home portfolio. We're seeing the business be very strong.

On motor, we just found it really tough on new business. I mean, our retention on motors still great improved slightly. It's a new business story mode. We took a price position in Victoria. We obviously had a lot of disruption in that market that's real. And so Victoria and New South Wales, but particularly in New South Wales as well. That new business, we really found quite tough, and Julie and team have been all over this. And we sort of -- we've seen some probably slightly more positive inflation around our pricing points. So we sort of changed that slightly. The evidence that we've actually got is in the last few months in that we are -- our new business volumes are increasing.

So we know that we are growing that business slightly more today than we were 3 months ago, and we know we're winning more new business. And that has -- and that our retention rates are holding and probably slightly improving. So that -- if we can keep running that story, that will be a good story for the next 6 months. And we're sort of spending a lot of time on this, and that story is playing out.

So we feel pretty good about the second 6 months for where we're at the pricing.

Obviously, it's helpful, the business has got a strong margin and some of the one-offs from that conversation we have had, we sit around RACQ, some of that drag is going to go away. So we sort of have a neater story in the second half retail business here in Australia. It's definitely been tough though, and that's been very competitive motor in Australia.

Okay. And then maybe just on the topics you're on the profit commissions as well. I mean is there any sense to which that release from the whole of the count this time has been influenced by the relatively high perils because that doesn't get the benefit of the stop loss or in terms of the profit commission accumulation. .

I mean, actually, the biggest perils, of course, were in the RACQ business, which we're in the -- which is why we didn't get the protection.

Still quite a bit higher than stripping.

Yes. No. We've got a methodology we're employing. We're trying to take the volatility out of that. We're trying to take a conservative lens on that. We have got multiple arrangements now that sort of make that more of a blend, which is better rather than just having one. A bit like the whole capital structure way, we're trying to diversify by counterparty, by product, by design so that we really have a package, and we can -- within that, within -- we've got this big picture earnings volatility covers. Now we're into the detail on an element of it and the way that's being delivered. We're trying to even create diversification in the way that works so that we can ensure that's more of an annuity. That's the concept that we put in place.

Yes, it's not all on identical terms and indeed, the duration is also -- there's a range of durations on it.

As we come to the end of the call. I'll now hand back to Mr. Hawkins for closing remarks.

Mr. Hawkins, I feel like I'm talking to my dad. Thanks, everyone. I mean, we -- thanks for turning out. We're pretty pleased with the result. You can see the strength of the franchise, what we've delivered in the first 6 months. That leaves us in good shape for the second. We've got expectations of sort of underlying growth or growth in our retail business as we expect stronger second half than first. We've got RACQ for the full 6 months, which will deliver around about 9%. Margins are strong. We know commercials are challenging, but we're being very disciplined in our underwriting approach. And we expect to have a strong 6 months and look forward to talking to you again in August. Thanks, everybody.

Good morning, everyone, and welcome to the 2025 Annual General Meeting of Insurance Australia Group Limited. I am Tom Pockett, the Chair of IAG. The group Company Secretary has informed me that we have a quorum. So I formally open our 2025 AGM. The Notice of Meeting was published on the ASX and sent to shareholders. It sets out the items of business we will be considering at today's meeting, and I will take this notice as read. In keeping with the commitments that we made in our stretch reconciliation plan, we are delighted to welcome [indiscernible] to officially welcome us to her land, the [indiscernible].

[Foreign Language] everybody. It's lovely to be back here ago, Mr. Chair to provide an average or welcome to country to IAG. I was here last year, and it's just great to come back again. So I'm actually [indiscernible], which is Midwest, New South Wales, Slocan River freshwater bought and raised on the [indiscernible] they're the youngest of 11 children. However, I have lived on Gadigal country most of my life. So where we are now, we are a Gadigal country. 1 of 29 small client groups of what we recognize is the e-orination. So across Australia, we have over 200 different [indiscernible] nations or language groups. We don't call ourselves tribes. We are aboriginal nations. I mean it's recognized in Europe that they are a country not tribe. So if we can kind of think about it that way.

So our nation is bounded by the Hawkesbury River to the north than the P&M the Georges River. So you could imagine the beauty of all of that, the Gadigal Adira country takes in the environment. And so when we do a welcome to country when we welcome you here to country, it's -- for me, as an average older, it really opens up and quite frankly, makes me a little bit vulnerable. If you see the Gadigal salt water, we have the oceans to our East. The Totem is the girl or the whale, as you know. And they are sunrise people. So when we talk about this, whether it's fresh water or salt water, this is how we identify ourselves. So across this country, Sunrise people, Western Australia, they're the Sundown people. And so we identify ourselves by the land, mother earth.

And I always talk about mother earth children, certainly us as human banks. But mother earths children is also our plans, our animals -- and all of those can be incorporate our totems as well. So my totem is the [indiscernible], sanguine. All of that said, the beautiful land West New South Wales. And so when we do acknowledgment or welcome to country, then this is about acknowledging Mother Earth, it's about acknowledging [indiscernible] culture. It's about acknowledging people. It's about acknowledging that we have been here for over 65,000 years. And we continue to tell those stories. We continue to acknowledge Mother Earth through our songs and our dances, our stories, our story lines connect us right across the country, our art.

And so for example, if you go to any of the to the Art Gallery in New South Wales Art Gallery and you see average [indiscernible] art, and you'll say, yes, I know that. If you're out in the community, yes, we know that, that is actually aboriginal art. But it's what that art is, what the dances are, what the songs are they're telling stories. So we've been telling those stories for 65,000 years, that's identified European counts, Western systems accounting system. But you'll know you'll see these are our stories that we share with everybody that we share with our other Australian brothers and sisters that we share with the people who've come to Australia just quite recently as visitors, as guests, but certainly, as people who now call themselves Australia. So I want to welcome you all to Gadigal country.

Just you could just imagine when the Gadigal people were sitting on the shares, there is Sydney Harbor, when the English came in, in those tool ships. And so that connection happened then. And mentioned about the reconciliation action plan, the stretch. That's about us all working together. It's not just about [indiscernible] people doing the work. It's not about on average people in our workplace doing the work. We have to sit down together as a family and do this work together. So that we all talk about it, and we all agree this is the way forward for our organization, acknowledging and continue to acknowledge aboriginal culture and aboriginal people. So I commend you on having a wrap, a reconciliation action plan. and that work continues and the work that you do continues. We also have to acknowledge or I have to acknowledge elders. So when I do that, it's not just about average orders, it's about all the orders. who hold a very special place in our communities. So elders are respectfully acknowledged in aboriginal culture as [indiscernible]. So this is why I get called out norm. And wherever I go, right across this country, I'm acknowledged and recognized as that. So that's just selling a little -- just a little bit about aboriginal culture because you can't do a wrap without knowing something about aboriginal culture and why it's important to do that. Why it's important to continue. Why it's important for us to work together as Australia is moving forward. We are only 3% of the Australian population Miran. So that means it's 97% of everybody else who call themselves Australians. Who ticked off that the box and the Australian sensors.

So yes, 97%. So we need to work together. We need you -- but you also need us even though with 3% of the Australian population, you need us. It's like -- it's a family. It's like IAG's a family. And so wherever I go to do welcome to country. All of those organizations and families. The kinship system is very important in aboriginal culture. It's 1 of the basis of who we are as aboriginal people. So I acknowledge you all, I acknowledge Mother Earth. I acknowledge the Gadigal people and the traditional custodians at this slide where this meeting is being held on. So continue the work that you do it. I don't know -- do you make money, your fellows to just make money? Because if you do continue to do that, continue to share that as well. So just acknowledge and country, acknowledging all of you. So enjoy your day. Thank you.

Thank you, Arni Norma. Just a reminder, no phones in here, please. If you have a phone, turn it off, if you need to make a call, can you please leave the forum and do it outside. Thank you. I would now like to introduce the IAG Board of Directors to you. On the stage with me starting from my far left is Michelle Tredenick; George Sartorel; Helen Nugent; and Penny McCray, our Company Secretary. And on my right, starting closest to me is Nick, our Managing Director and Chief Executive Officer; Joanne Stephenson; George Savvides; Wendy Thor; Simon Allen; and we have an empty chair. Unfortunately, Scott Pickering, our other Director, is very unwell today, and so he is unable to join us this morning.

Brendan Twining, who is the lead audit partner from KPMG and representatives of IAG leadership team. Finally, at the [indiscernible] on my far left, Kylie Smith, EGM, Corporate Affairs and Sustainability, who will read the questions submitted online during the meeting of shareholders. I now declare that poll open on all resolutions. This means you can submit your votes now.

Before we begin, Penny, our Group Company Secretary, will briefly give you directions on a few procedural matters. Thank you, Penny.

Thank you, Tom. Today, we have shareholders joining us in the room, online and by phone. Welcome, everyone. To ensure an orderly meeting today, I will highlight a few safety and housekeeping matters. For those of us in the room, in case of an emergency, please follow the instructions from the fire wardens. In the unlikely event we do need to evacuate, you can leave by the fire exit at the back or on either side of the stage.

Please do switch your phones to silent mode. Photos and recording are not permitted today as a full webcast of today's meeting will be published on IAG's website following the meeting. today, voting on all items will be conducted by a poll. The Chair, Tom has received the results of direct and proxy voting for each of our items of business today. These voting results will be displayed on the screen at the start of the discussion of our items of business and then as we deal with each individual resolution. Once our AGM has finished today, the final results will be announced on the ASX [indiscernible] Stock Exchange and will also be available on IAG's website. Thank you.

When you arrived in person at the meeting today, you should have registered with Computershare. If you are eligible to vote and ask questions, you will have been given a white card. Shareholders who are in the room can vote either using your mobile device by scanning your QR code on that card, alternatively simply turn the card over. And on the reverse, you can vote on each of our resolutions. If you have any issues today with voting or any problems, just raise your hand and a member of Computershare, our share register will come and help you. For those shareholders who have joined online, welcome. We've published an online meeting guide as part of the notice of meeting, and a copy is also available on IAG's website.

If at any stage you have difficulties with the online platform, please contact Computershare on the number shown on the online platform, and they will help you. To vote online, simply select the Vote icon at the top of the screen and then either vote for, against or abstain on each resolution. For shareholders who have joined us by phone, you will need to log in to the online platform to vote today. That was voting. Moving on to questions. At today's meeting, we will respond to questions that relate to the items of business. If you're attending in person, and have a question that relates to an insurance policy or a claim, please speak to a member of our team at the desks in [indiscernible].

All shareholders whether you're in the room, online or on the phone, you will have the opportunity to ask questions in respect of the items of business at the meeting. We'll address questions in the following order. First, questions in the room, then we'll go to online and then we'll go to the phones. If shareholders in the room have a question, there are 4 microphones, 3 here down the front, and there is a roving microphone at the back. Please either make your way down the front to the microphones and show your right shareholder card to the Computershare representative. If you have limited mobility, just raise your hand and the roving mic will be brought to you.

If there are questions that cannot be answered in the meeting, we will ensure that they are dealt with. You'll be asked to provide your contact details and an AIG representative will contact you. Tom as Chair and I will ensure you will receive a response. For those of you attending online, you just need to click the Q&A icon and simply follow the instructions. For those on the phone, if you would like to ask a question, you need to join the question queue by pressing Star 1 on your phone when the relevant item of business is being discussed. When it's your turn to ask a question, you'll be announced by the operator. And once your question has been asked and responded to, you'll leave the question queue and go back to the meeting. If you've got further questions to rejoin the queue at any time, follow the same process.

And with that, I hand back to Tom. Thank you.

Thanks, Penny. I'll now make some comments about your company. This year, our company has taken further steps to improve the way we support our customers and communities and embrace new opportunities that will deliver growth. We have maintained our focus on meeting the needs of our existing 8.3 million customers, including by paying claims totaling $10.2 billion. For retail customers in Australia, this is a settlement rate of around 98%. We're working on faster, more empathetic and more personal services to help customers recover from adversity. This includes a strengthened claims response and improved customer communication as well as building on improvements to our claims processes already delivered following the 2022 floods and the parliamentary inquiry which followed.

We have enhanced our catastrophe management plan, including a 24/7 major event command center at our Housefull office in Sydney and disaster fact sheets to help inform customers before and during a major event. Customer experience measures are high in both Australia and New Zealand and renewal rates remained strong, reflecting the confidence our customers have in our brands and the quality of our services. We achieved these results as we marked a significant milestone in May this year with NRMA insurance celebrating 100 years of helping Australia.

Our customer outcomes reflect our people's enthusiasm and efforts to deliver on our purpose and strategy. It is therefore pleasing that our annual cultural survey of employees shows high levels of engagement with the company and with their work. We also continue to deliver on our purpose to make your world a safer place by building individual community and national preparedness and resilience. Just this month, and RMA insurance launched a health fund, a multimillion-dollar initiative that aims to support climate resilience in Australia.

In its first year, the fund will provide $1 million across 3 key pillars: supporting climate tech innovation, offering targeted client resilience training to provide industry leaders with knowledge and tools to lead for a better tomorrow and backing community-led resilience. Compared to previous years that have been characterized by increasing catastrophic events beyond our expectations. This year's events were more in line with our expectations. Despite this, we know that climate change continues to drive an increase in the frequency and impact of major disasters. We, therefore, consider that medium and medium term, and adopt a prudent approach to reserving for extreme weather events.

While the impacts of inflation on premiums are abating, there is significant political and social interest in ensuring the availability of insurance and tackling rising costs. This is particularly the case where communities face acute flood risks. As an industry, we are actively engaged in exploring potential solutions that can be delivered in collaboration with government and other stakeholders. These solutions can minimize the impact of major weather events. They include better land use planning in flood-prone areas as well as enhanced building standards that help minimize the impact of events.

Such measures will help ensure Australia and New Zealand remain insurable. We also continue to advocate for state taxes on your insurance policies to be removed as these add directly to the cost of your insurance. 5 years ago, we set a strategy to create a stronger, more resilient IAG. Since then, we have invested significantly for growth. We have made good progress on the retail enterprise platform that supports our expanding direct business in Australia and New Zealand as well as the growth aspirations for our direct and partner brands in these countries. We have improved performance and margin in our intermediated business in Australia during the year and have embarked on a significant technology transformation called the commercial enterprise platform, which will deliver improved business efficiency and uplift in customer experience and also support business growth.

During the year, we embarked on 2 significant transactions that we believe will deliver considerable growth for our company. Last November, we announced an $855 million, 25-year exclusive strategic alliance with the Royal Automobile Club of Queensland to provide general insurance products and services for the club's 1.7 million members. This transaction was completed on 1 September 2025 and we were pleased to welcome some 840 new colleagues into IAG on that day.

In May, we announced a $1.3 billion strategic alliance with the Royal Automobile Club of Western Australia to provide general insurance products and services for its 1.3 million members. This is still subject to regulatory approval. These alliances build on our successful track record of partnering with leading member-based motoring organizations, which share our purpose and values. In both cases, the associations and their members will benefit from our financial stability, advanced technology platforms, global reinsurance arrangements and customer-centric claims processes.

Regarding sustainability, our climate ambition is to focus on empowering better choices for a safer place. This has 3 key pillars: innovate, educate and collaborate. We also refreshed our approach to climate scenario planning analysis to identify our most material risks and opportunities under escalating global warming scenarios. The process and outcomes are described in more detail in our sustainability report. We have a gender representation target of 40% to 60% at each level of senior management which we define as CEO and 3 levels below.

At 30 June, female representation was 37.5% in our group leadership team, 34.6% in our executive general managers, and 47.3% in their direct reports. We continue to focus on programs that will enable us to achieve our targets. The Board has a gender diversity target to have 40% women, 40% men and 20% of any agenda represented on the Board. Currently, we have 40% representation of women on the board. Three of our Board committees are also chaired by women. FY '25 included the final year of our 3-year reconciliation plan, and I am pleased to report that we completed 95% of the planned [indiscernible]. The next iteration of our plan, '26 to '28 includes a commitment to spend $10 million with indigenous suppliers over the next 3 years.

Now to take a look at our financial results, our FY '25 results reflected our strong performance. Our reported gross written premium increased by 4.3% to $17.1 billion. Our insurance profit was $1.7 billion, which equates to a reported insurance margin of 17.5%. The underlying insurance margin of 15.5%, which was 100 basis points higher than FY '24. We achieved a profit after tax of almost $1.4 billion. And as I noted last year, it is critical that we maintain our financial strength -- so we continue to attract the investor and reinsurance capital we need to provide products and that we need to provide for products and services to our customers.

Shareholders benefited from the company's strong financial performance with a final dividend of $0.19 per share franked to 40%. And the full year dividend of $0.31 per share equates to payout ratio of 65% of reported net profit after tax, and that excluded the after-tax impact from releases of the business interruption claim provision. It is pleasing to see recognition of the company's strategy and performance with our total shareholder return growth of 125% over the last 3 years, compared to 46% of the broader index. We benefit from having a Board with a mix of relevant business executive and professional experience.

Shortly, you will have the opportunity to hear from the newest member of our Board, JoAnne Stephenson. JoAnne joined us as an Independent Nonexecutive Director in May this year and is standing for election at this meeting. She brings additional insurance and other financial services, risk management and transformational change skills, which supplement those of our existing directors. The items put before this meeting include a resolution seeking approval to increase the independent Nonexecutive Director fee pool, the cap by $700,000 to $4.7 million. with effect from 1 July.

The primary driver of the proposed increase is to meet the new APRA requirements of boards that have regulated subsidiaries that they must have independent and non-exec directors on those boards. It's also designed to help enable IAG to attract and retain high-quality and suitably qualified independent nonexecutive directors and manage an orderly renewal of the IAG and subsidiary boards. We're therefore pleased to see that shareholders understood this reasoning and supported the increase. On a very sad note today, I paid a tribute to our former Director, David Armstrong, who retired from the Board on 12 September due to illness and passed away shortly after. David joined our Board in September 2021 and was Chair of the Board Audit Committee until he retired. He was also a member of the Board Risk Committee. David's wisdom, curiosity and intelligence contributed greatly to our company. In addition to applying his audit and assurance experience, David willingly shared his knowledge and understanding of financial services regulation and contributed to our understanding of a changing reporting environment. He will be sadly missed by everyone at IAG. So on behalf of the company, we continue to extend our deepest condolences to his family.

I make one final personal comment about our Board. You'll see that I am standing for reelection at this meeting, and I will speak to support that resolution later. While I am seeking reelection, I confirm that this is the final time I will do so, and I'll be happy to take questions when we get to that resolution.

In closing, I thank shareholders for your support of our efforts to make your world a safer place. I also thank our Managing Director and CEO, Nick Hawkins, his leadership team and everyone at IAG for all that you have achieved on behalf of our shareholders. I look forward to your ongoing support. We continue to invest in growth and improving our customers' experience. I will now invite Nick to provide more details about IAG's achievement. Nick?

Thanks, Tom, and good morning, ladies and gentlemen. And I also acknowledge the traditional owners of lands on which we meet the Gadigal people of the Eora Nation, and I pay my respects to Elders past, present and emerging. And of course, I'm very pleased to have the opportunity to talk about how our business is performing, particularly what's ahead of us. And what I see is a really exciting opportunity for your company.

So let's look at where we're at with our strategy and the outcomes. Sort of in summary, we're successfully pursuing the strategy that we set out 5 years ago to create a stronger and a more resilient IAG. We're delivering for our customers and our communities. As Tom said, paying out more than $10 billion in claims and retaining very strong customer engagement scores and retention metrics. We have delivered strong financial outcomes, which have met or exceeded our expectations, and we've delivered scalable technology platforms for our retail businesses. We've set our business up for growth with over 66,000 net new customers in our retail business last year. And we've undertaken 2 significant acquisitions, RACQ and RAC and WA. The RAC acquisition completed on 1 September, and we're excited about providing general insurance products and services to RAC cures 1.7 million members and in fact, all Queenslanders. And I'll build on this high-level overview with more details about what we're doing to continue to deliver strong outcomes for all of our key stakeholders.

So I'll start with all of you, our shareholders. I've listed here the key FY '25 achievements on the slide, but I want to speak today more about the future. Our objective is to continue to deliver strong returns for our shareholders. including through improved share price, increasing dividends and strong financial results. We will maintain our focus on being strongly capitalized because we want to make sure we are always there for our customers when our customers need us. Our strong capital position also supports our growth agenda, and we're funding the capital required for the RACQ and the RAC alliances from organic capital generation. We'll also continue to embrace innovative capital solutions that protect our balance sheet.

Of course, a good example of this is the additional reinsurance protection that has now been in place for a year. This allows us to mitigate natural perils volatility for 5 years and provides adverse protection against our long-tail reserves. This cover benefits you, our shareholders and our customers by providing greater certainty over the cost of natural perils cover, stabilized earnings and reduced capital requirements. In FY '25, we improved our return on equity to 19.4%. And although that was assisted by lower payrolls and some reserve releases. And we maintain our target to deliver 15% reported margin and return on equity of 15% on a through-the-cycle basis.

Moving now to our customers. And here, we continue to focus on improved customer service, new products and community initiatives, a key enabler for delivering these outcomes is our investment in our retail enterprise platform. This single digital platform has reshaped how we serve our millions of retail customers. It's simplifying how we operate enabling us to deliver better experiences for customers and to move and grow faster. That means we can deliver superior experiences and better meet their needs. We're now embarking on a commercial enterprise platform that will deliver a similar transformation for our intermediated businesses. And even though inflationary pressures on supply chain and claims are easing, we know that many of our customers are still experiencing financial stress. To minimize the impact of those premium increases, we are focused on disciplined cost management, technology investments and, of course, service improvements. And we will continue to promote opportunities for customers to receive pricing benefits when they take action to reduce risk and pass on pricing benefits to communities where investment in mitigation has, in fact, reduced risk.

We're heading to FY '26 with customer experience measures remaining high, both in Australia and New Zealand and renewal rates showing signs of improving from already high levels. Importantly, there's some real growth momentum in our retail businesses. Moving to our people. And here, we're building a high-performing workplace by strengthening our culture, fostering a safe, inclusive and a supportive workplace. Through our IAG Academy, we're developing the future really skills our people need to meet customer needs and expectations.

We're transforming our workforce for the future, using a jobs and skills framework and AI-assisted tools that support development, task efficiency and innovation. And we have an inclusive innovation program to equip our people to deliver value through digital and operate with an innovative mindset to help us grow with our customers. And we're working to inspire sustainable action. We want to empower our people to create sustainable value, proactively building our reputation and, of course, managing our risks. This objective includes commitment to gender equity and pay parity, indigenous engagement and accessibility and inclusion.

As the largest general insurer in Australia and New Zealand, we feel we have a responsibility to help communities meet the challenges of a change in climate. To help communities, which are at greater risk, we're working alongside businesses, governments, communities and individuals to deliver on our purpose to make your world a safer place. We're working with others in the industry to advocate the systems-wide approach and delivery of practical long-term solutions. And these include things like investing in flood mitigation, better land-use planning, building more resilient homes, more community education, and addressing taxes and reducing the burden of some of the regulation that we face. We're also using our skills, knowledge and experience to support initiatives and organizations that enhance preparedness recovery and community and financial resilience. As one example, we partner with the Australian Red Cross to run emergency ready workshops to help people prepare for extreme weather events. These benefit everyone in the community.

We're lucky enough to have some of the Red Cross team here today in the Smith room where lunch is being served after the meeting. If you haven't already talked to this team, I strongly recommend a visit. So you can ensure you and your families are as safe as possible. Moving to the environment. Here, by way of example, our focus includes supporting sustainable practices in the repair industry. In Australia, with a pilot program to enhance the use of recycled automotive components by repurposing parts from written-off vehicles in collaboration with automotive dismantlers and selected partner repairs. The program is designed to reduce carbon emissions, supporting sustainable repair practices and extend the life cycle of vehicle components, ultimately, of course, minimizing the environmental impact across our supply chain.

In New Zealand, we are focusing on how we can encourage repair over replacement in our motor supply chain. We're also piloting a parts harvesting initiative in Auckland, salvaging suitable parts from total lost motor vehicles for reuse in repairs. And we continue to transition our tool of trade fleet to low emissions vehicles and we're at 100% within our New Zealand business and just under 50 in Australia. In New Zealand, our AMI Motor hub courtesy car fleet now includes EVs. So customers have an opportunity to trial an EV as part of their claims experience with us.

With regard to responsible investment, we're driving down the carbon footprint and intensity of our Australian and global listed equity investment mandates. And of course, we're continuing with our partnership with the Aboriginal Carbon Foundation which supports the development of First Nations led carbon farming and cultural fire management projects. These deliver environmental, social and economic benefits to indigenous communities right across Australia. Having discussed our financial results and outcomes for our stakeholders. I just want to provide some comments in relation to our FY '26 financial guidance. We initially issued statements around premium growth and profitability to the investment market in August as part of our results presentations. I'm pleased that for the first quarter of this financial year, the underlying businesses continue to provide positive momentum from FY '25 and is tracking in line with our expectations.

Australia and New Zealand commercial and retail insurance markets, of course, are competitive, but our retention rates remain strong, and we continue to see positive customer growth. Profitability has been strong as we have benefited from relatively benign first quarter natural perils experience, However, of course, we're mindful that these conditions can change and have not adjusted our pre RACQ perils expectations for the current financial year. We've also had the benefit of strong investment markets with our high-quality fixed income portfolio, providing positive active returns with no signs of any underlying stress in any of our investment classes.

On 1 September, we announced the completion of the acquisition of RAC Q's insurance underwriting business and commenced a long-term strategic alliance with RAC Q. This marks a key step in the ongoing delivery of trusted locally serviced general insurance products for Queenslanders. Today, we are upgrading our FY '26 guidance to include that transaction. We now expect our premium growth to increase from low to mid-single digit to around 10%, reflecting the acquisition of RAC QI for the 10 months of the current financial year. Additionally, the reported insurance profit guidance has increased by $100 million from a range of $1.45 billion to $1.65 billion to a range of $1.55 billion to $1.75 billion, which includes an increase in payroll's expectations, reflecting the addition of the RACQ portfolio.

Of course, all of this equates to reported margin of 14% to 16%, which has been maintained. I'll finish with this slide, which I showed at last year's Annual General Meeting. It captures the material changes we have made in the way we operate and how we've structured the organization around our retail and our intermediated businesses. We own or partner with some of the best retail insurance brands in the world. And these businesses are well positioned for growth. We have modern leading scalable technology that supports our brands and our partner brands with insurance products that meet customer and member needs. And we're now investing in our commercial businesses, so they can build on the underwriting and claims improvements they've delivered and continue to improve the financial contribution those businesses make to IAG. Our technology investments put us in a better position to partner with other organizations. And this was a significant factor in announcing the 2 strategic alliances with Motor clubs.

While we have completed the acquisition of RACQ's insurance business, the transaction with RAC in Western Australia is still weighting ACCC approval. Together, in combination with RACQ and RAC, we'll be supporting over 10 million Australia and New Zealanders and writing over $21 billion in annual premiums. And we'll continue to work to deliver sustainable shareholder returns, which will be characterized by a stable margin with low volatility, capital efficiency and improving ROE with organic capital generation to fund our growth.

I'd like to thank the 13,000 strong team at IAG for their ongoing commitment to our customers and the communities to which we operate.

I'll now hand back to Tom for the formal items of the business at this meeting. Thank you.

Thank you, Nick. Turning now to the resolutions for today's meetings as set out in the notice of meeting. The first item of business is a nonvoting item to consider the financial statements for the group. Resolutions 2a and relate to the reelection and election of Nonexecutive Directors, who will be -- we will hear from during the meeting. Resolutions 3, 4 and 5 relate to remuneration. We released the proxy results for all the resolutions ahead of the meeting, and these are now shown on the screen. As you can see, all resolutions have solid support. We will now discuss the resolutions in detail.

The first item of business is to receive and consider the financial report, directors' report and auditor's report for the company for the financial year ended 30 June 2025. There is no vote on this item. These statements and reports are published in the 2025 annual report, which was lodged with the ASX on the 13th of August 2025.

The purpose of this item is to provide an opportunity for shareholders to ask questions and make comments about these reports as well as the general business of the company. Shareholders also have the opportunity to ask questions of our auditor, KPMG, related to the conduct of the audit and the auditor's report. All questions to the auditor should be addressed to me as Chair and if appropriate, I will ask our lead partner, Brendan Twining to address the meeting.

If your question relates to another item of business at today's meeting, please ask your question when that item when we come to that item. I now invite comments or questions on the financial statements and reports and the management of IAG. If any shareholders in the room have a question on this item, please make your way to the microphones or raise your hand for the roving microphone.

Good morning, Chair. I would like to introduce Sue House from the Australian Shareholders Association.

Morning. This morning, I'm representing 181 retail shareholders through proxies at the ASA totaling $7.6 million. Mr. Chairman, in light of the progress made with the IT upgrades and the recent acquisitions, could you comment on the likely contribution these will make to the bottom line over the next few years?

Yes, Nick, I'll end up on you.

Thank you, Chair. I mean what we said when the sort of the combined -- I mean, we're trying to -- the financial setting of your company is to make sort of roughly a 15% margin and a 15% return on equity. So the combination, and we continue to invest in our business, your business to deliver those returns because the world continues to move on. In relation to the acquisitions that we've made with RACQ and then in Western Australia, what we said sort of the combined, we expect those 2 businesses to contribute around about a $300 million additional insurance result, about $150 million through each of those businesses. And in fact, what we've done today with financial guidance, we've increased that by about $100 million, which really reflects the first 10 months of that first acquisition of RAC Q. So there's nothing in those financials that I talked about before about Western Australia because we're still waiting for ACCC approval. So you can see we're on the way to delivering against that $300 million with this first acquisition. .

And the IT program?

I think with technology, I mean, that's going to be a constant theme of IAG. In fact, I'm sure all companies that you're investing in. We're going to continue -- we're going to have to -- we're going to we're going to continue to make significant investments in technology. And we've done a lot of that with our retail business and what that does is obviously set ourselves up well. But I think that's going to be a theme going forward. And that will be a key enabler of the sort of growth prospects that we see of our company or your company over the next number of years. .

Chair, I'd like to introduce Mr. Simoni.

Observation point, if I may, through your self chair Pockett. I didn't hear in Mr. Hawkins presentation that Pages 106 and 107, the words, this is as good as it gets. So as ING's core business is the writing of insurance. So what better way to further ensure insurance revenue on those 2 pages and then offer products within proximity of later to 23 degrees, 48 minutes and 002 South and Longitude 133 degrees, 44 minutes and 15 seconds East, a place that will remain, say, the Opera House or the Sydney Harbor Bridge or any Pullman in Australia might be level, but don't have the same guarantee as this place that has seen Australians leaders guarantee it since the ninth of December 1966 to the world's only and current superpower. If not, why not?

Okay? You're going to have to help me with the specific location details. Could you tell me about the places you're referring to. [indiscernible] we don't insure anything out there. I don't know, well no, we don't -- we just don't insure we just ensure houses primarily. So -- our commercial Yes, do you ensure anything yet?

I'm not sure. Yes. No, and sort of in relation to the first part, on sort of the 105, 106 is our 167 million is our financial results summary for those in the room that haven't picked to those pages. And what we said is we've set the company up for sort of a return profile of that 15% margin, 15% ROE, and we're growing. And so sort of your comment around, as you said, I mean, we don't think so. We see the prospects of your company being pretty strong. We've got some acquisitions as well as organic growth. And so we see sort of opportunities to grow and generate future earnings of IAG and are very confident around that. .

Can you ensure a revenue [indiscernible] getting more [indiscernible].

Yes, we're in the business of taking risk, obviously. But what we also do is we share some of that risk with our reinsurance partners. So in a way, remember, reinsurance is, in fact, insurance for insurance companies. So we are both growing at the sort of front of the business and by taking on more risk, and that's sort of what ends up being what growth is.

At the same time, we are continuing to work closely with our reinsurance partners, which is essentially for insurance companies, as I said, where a portion of that, we share with them and getting that, that sort of in the capital management of IAG, we're constantly looking and thinking about the best way to do that. But thanks for the questions.

Chair, I would like to introduce Joe Nagy, shareholder.

My question concerns the -- what you mentioned briefly, the deal is with RAQ and RWA. What happens if those deals come off, don't come off what will happen? How will you react?

RACQ is now completed fine. The Western Australian 1 is in negotiations with the ACCC at the moment. And we'll just have to wait and see whether that is successful or not.

Chair, may I introduce Mr. [indiscernible].

First, I apologize to the Board from arriving here late, but let's get on with it. I've been made aware that the state government is changing some of the planning rules in Sydney in regards to bushfires -- are you aware of this?

We'll be aware of all the planning rules. Is there any changes. Yes.

That will also for fire risk.

I mean we will be aware of the [indiscernible].

Because a person I know is the planning sector has said that they're going to change it from like a rural-based regulation at the moment to a more of a thing we do it out on an individual case. And this is -- there is an independent member state parliament now going to bring -- possibly bring a private members' bill in to because they're not happy the way it is because as I said, has explained to me, it's going to put risk on our risk business and that's what I'm going to be agitated about and concerned -- and I hope the insurance council who is the peak body representative body of the insurance industry can get -- just get something in. I'm sorry, I might chair because I could have spoken to you individually instead of speaking public.

No worries. Look, I can't comment specifically on that piece of legislation. The -- we -- in terms of zoning, which all that relates to. We spent an enormous amount of time with each -- the whole team here at I spent an enormous amount of time working with local, state and federal governments on zoning for a whole raft of reasons. So bushfires, floods, et cetera. And sometimes we're successful and sometimes we are not. So I'll ask -- we have the CEO of direct business here. And after this meeting, I'll ask her about if she knows about the insurance. She's just down here. Thanks, Julien.

Chair, I would like to introduce Mr. David Kingston of Ocean Capital.

Great. Thank you. Good morning, everyone. But my issue is really pertained to the long-term outlook for IAG from a shareholder value perspective. Look, you've had a crack in a couple of years, so well done on that. And thanks for being transparent that clearly 2025 is not repeatable. There are a few one-off issues in there, but you've been very transparent in providing clear outlook for 2026, which is great because you can't replicate '25 with the substantial one-off release from business interruption and also the abnormally good result on national payrolls cost.

But look, I think what you're saying for '26 is pretty fair, low mid-single-digit growth in GWP, now moving up to 10% today with the acquisitions. Nice to hear today, the insurance profit of $1.45 billion to $1.65 billion has been upgraded by $100 million. The margin remains the same because the revenue is higher. So the margin is the same. And look, it's great that you've been forthright about the return on equity target through the cycle of 15%, all looks very reasonable. But I suppose I'm really wanting to get to the -- and I think the shareholders are interested in the medium- to longer-term outlook. We all accept insurance is cyclical. I do think the '25 Annual Report on Page 18, will excite investors by showing TSR, of 3.7% in FY '25 and 29.4% in FY '24.

The other sort of TSRs only tech stocks have been delivering. Well, technically [indiscernible], in my view, those TSRs are somewhat misleading as the stock was coming off very poor earnings in 2020 to '23 years. Also, it's fair to say the share price has fallen in the last couple of months. So currently, the TSR for FY '26 is negative. But to get a real guide on IRG performance and prospects, I go to the 10-year charts on Page 21 of the annual report. It's very comforting to see historical GWP growth premiums -- gross premiums show solid annual growth in each of the 10 years. But it's concerning to see how the earnings were smacked to poor level in each of the 4 years from 2020 to 2023.

Over the 10 years also, when we look at TSR, which is a very important thing for shareholders. The IAG share price has risen in the 10 years from the high fives the currently the high 7s, albeit it's gone up this morning Chair with Nick's announcement. So it's up at $8 a now. But the capital gain over the last 10 years is around about 3% per annum. Adia coupon gives a high single-digit to TSR.

David, I'm going to have to ask you to get to your question. There's a lot of factors. I think you're going to leave everyone in your [indiscernible].

My first question, but then I have a second question, which I can do later if you like. My first question, Chair, is I accept insurance as a cyclical business, but 4 years consecutively at a poor level is unacceptable. Can someone please provide shareholders with a summary of why -- the 4 years of bad results occurred in 2020 to 2023. And is it likely that there will be another period of 4 consecutive years of poor return? Or is that period just a one-off -- that's my first question chair. I'm happy to leave that. And I'll come back with my second.

You may give me a second.

There's a bit of pretty ample chair because you have to give context questions. Otherwise, they're meaningless.

Okay. I'll just deal with your first one. I can't. -- those years you're referring to were the worst natural peril years Australia has experienced. And every year, we have an estimate every year of what those payroll costs will be. And every year because of the severity of natural perils in Australia, the natural peril has exceeded that cost. So over the last 5 years, combined with inflation, we've been repricing premiums. -- to cover the increased risk of perils in Australia. And I'll put you back to my comments and Nick's comments about us working with governments to try and reduce the natural -- the cost of natural perils in Australia.

Will it ever be replicated again? I have no idea, climate changes with us. We have a huge number of people that try to estimate what that cost will be every year going forward. and we price the products accordingly to that. But it's -- we are in an environment of climate change.

I respect that, but they've been out of 10 years, you've had 6 very good years and 4 very bad years. So it's noteworthy when shareholders look at long-term outcomes and risks. My second issue share is the Warren Buffett deal. Ten years ago, Warren invested $500 million in IAG shares at $5.57 per share, which is USD 4.30 at within current exchange rate of $0.67. Based on the current share price in U.S. dollar terms, Warren's investment is $5.11. So his TSR or capital growth actually has been a mere 2% per annum. However, the important issue is he also has a commercial deal chair, as we all know. There's a 20% quota share arrangement. Part of that deal ceased in '23. Part of it is ongoing, I think, until '29. But just very interested in whether the board in hindsight thinks that's a good or a bad deal.

Interestingly, Chair, the annual report talks about IAG being the biggest insurer in Australia. That's correct, but not correct on market cap. Suncor is smaller on GWP, but larger on market cap. I think that's largely to do share with the fact that IAG has carved out a number of -- part of its revenue with quota share arrangements such as 20% with Warren With hindsight, is that a good deal or a bad deal because you are giving away a fair bit of your revenue to Buffett's companies, and I'm just not sure that's been a great deal, but I'd be interested in the Board's view. Thank you.

Yes, the Berkshire Hathaway are a very important part of our reinsurance business. And the quota share allows greater stability in earnings the way it's structured for IAG investors going forward. So that's the structure of it. In bad years, they do worse in good use, they do better. And so it smooths out that process. So investors certainly like it. Nick, do you want to add anything to that?

I mean just a few comments. So sort of -- there's a package there. Firstly, on that volatility that we were talking about over 10 years. And the first question, we have actually got quite a different reinsurance structure in today than what we used to -- we have between '20 and '23. That's part of the reason we did it. And so we now have a 5-year very large reinsurance protection, which actually materially changes that volatility. So we're sort of -- we're management and the Board have taken steps to sort of take away some of that volatility. We can't avoid all of it because that's the nature of what we do. We take your risk. That's our business model. But we're definitely improve that volatility rather than having that the roll case that you were describing.

With Berkshire, I mean they took that volatility, remember, in the '20 to '23 years. So their results for those years also weren't great because the sort of sat behind and took 20% of the good and the bad of that. And when we see them as a very important strategic partner. And we like the idea, as a concept for your company, of what we sort of call capital light. So we're not the same balance sheet structure of some of the other competitors in Australia. We are a lighter equity capital model where we are sharing more with reinsurance partners.

What we get out of that though is, I mean, what they pay us and shareholders get the benefit of that of sort of a fee-for-service almost for a portion of the business. And so that has a lot lower volatility. So some of the results that we're now seeing in IAG is reflective of the way we sort of shifted the earnings profile. So if I look at -- and then sort of the last point around sort of comparison to some of our competitors, that sort of market cap comment is really driven by different structured balance sheets and that you sort of get different outcomes because of that.

At the end of the day, though, you've got $18 billion of gross premium. And you've got net earned premium, I think a touch under $10 billion. So you are giving away a lot of the hard work at the revenue line to other parties.

Yes. And there's -- but shareholders are receiving a fee for that. So it's not sort of transfer at no income to IAG. There's a fee that we're receiving because of that. So the economics of that work for shareholders. .

And just finally, chair, 3 very simple issues. The final 25-year dividend was only franked to 40%. Do you expect enough tax to be paid in future to fully franked dividends. Secondly, do you consider the potential Greensill exposures still impacting on the IAG share price? And finally, what is the impact of lower interest rates, which are moving lower? Probably go further lower on the FY '26 outlook.

Right. The -- what was the first question? The first question was the the 4% range. That's basically because of our mix of tax paid between Australia and New Zealand. It's -- we don't pay all our tax in Australia. The second one was green cell. Greensill. In terms of impact on share price, I'm not going to comment on that. The process of that is just going on. and we resolved in Southam in the future. And the third one -- interest rates well, industries come down. There will be some impact on our shareholders' earnings going forward. I mean, it's just logical. Okay. Thank you.

Like to introduce Mr. Simoni again.

Good morning again. observations in question, if I may, through, again, yourself Chair, Mr. Pockett. On page is 106 and 107 as we spoke before about with regards to ensuring insurance revenue. But this time, we're looking at the whole annual and the activities of IAG. So bearing that in mind and the events from July of 2016 to the eighth of March 2021 with regards to Greenfield Group Capital. Pages 398 to 414 of the misconduct and banking superannuation and financial services industry Royal Commission and Swan Insurance, add-on insurance. then you've got the security industry regulatory agency, Centa on the 13th of February 2023. Then you've got ASIC versus IAG on the third of July 2023 with the $40 million against you -- plus the legal costs. And then you've got this current class action with SladenGord in 2018 to 2024.

And bringing time that all together and looking at the constitution, the amended constitution in 2020 where it spells out what a director is. It's an office and a place of profit. When looking at those events and looking at what was -- whether you consider it, but I consider it the first kind of exon reputation for IG was the Lloyds of London, Censa, where it talked about IAG's failure because you're getting out of Britain or England where you failed with market requirements. And I note in the beginning of the presentation, how you're satisfying capital APRA requirements by building up your capital. But also Lloyd's of London talked about the record keeping, which would refer to all those situations that I referred to.

So with the intent where -- and then play isn't mentioned in the constitution. But what would be the intent of employees if it -- is it -- these events have occurred and you're going to be challenging the later in Gordon one. But your employees are considering as a pyramid of points, which one to tick off first as a place of profit rather than say, what you're putting out as a marketing ploy as IAG to help company, which is help isn't mention anywhere as a word in the constitution. But like all constitution that's backed up in the corporation, the 6 volumes of the Corporations Act, where it help us only mentioned in the -- helping directors help an administrator or a liquidator to wind up the company.

So what -- what's the balance when you -- in 2 to 4 years' time, we're going to be at an AGM, and we're going to be talking about how the intended conduct of employees has caused another green [indiscernible] or another Lloyd London Centre. How can you guarantee that that's like going to a 2 to 3 -- 2 to 4 years' time.

Thank you, Mr. [indiscernible]. Those matters you referred to are all historical matters that IAG and the management team have dealt with, where we got things wrong, which had no intent. It was just mistakes in the process. We immediately found those things, and we corrected any overpayments made to policyholders, and we did that very quickly. So they're pretty much all dealt with.

We have spent the last 5 years, significantly improving all our risk management processes and our systems and our control environment to ensure those mistakes don't happen in the future.

Chair, I would like to reintroduce Mr. Joe Nagy.

Thanks. This may be an error. And if it is, I apologize for raising with you, but I just want to make sure it's right. On Page 15, sorry. On Page 8, you say that IAG was formed in 1865, 160 years. That's 1865. That has to be wrong or am I right.

I don't know. I want to go -- are you referring to the -- the comment about sorry, why your question.

Well, just as to -- I don't -- I believe it's a error. I just want to check with you did a error.

I think -- I'm just look at the page. I know our NI business in New Zealand is around about 160 odd years. So I think that's probably what we're referring to that -- we have had businesses in Australia and New Zealand that go back over 150 years. I think I think [indiscernible] is the oldest 1 that we own, 165 NRMA, we're celebrating 10 years this year. .

Okay. All right. Finally, next question I want to ask, how do you claim this that you claim that you're the ninth strongest brand in Australia and the fourth strongest insurance brand globally. I'd like to hear how you can justify those claims. Thank you.

Okay. I think they're done [indiscernible].

I think we're probably understanding. I think we said some of the leading -- I mean -- when I talk to a lot of other insurance, I mean there's lots of survey companies and no doubt that's where they've come from, and we can certainly share that because there's often processes that sit behind these. I mean what I said in my opening address, and we should be really proud of this. And I hear this all the time when I speak to my peers from other insurance companies around the world, that we are -- shares, we are very lucky with the brands that we have. These are very, very strong brands that that are part of this IAG group that hasn't -- that we've had for some time. Some of them are 165 years, some of them are 100 with the NRMA, and we're very lucky to have them. And that is a key feature of the strength of our business. .

Chair, I'd like to introduce Mr. Brian Upton.

Finally got up over here. Just something I haven't heard mentioned this morning is what your policy or attitude to AI in the company is? Are you using it to replace staff? If so, we not look at a number of directors you have here I think it might be an idea to start there.

Many people have suggested boards to be replaced by AI, make a lot easier. In relation to AI, yes, IAG is utilizing the technology. We're doing it in a very controlled way. We're focusing on particularly the front end of our business in relation to people coming in for policies and for claims processes and making them more efficient. But I'll let the expert here on my right .

I mean it's -- I mean, it's sort of -- it's coming out, I mean, IAG similar to probably what you're experiencing in your lives to AI is coming at us from everywhere. -- it's hard not to engage and utilize because it's sort of in front of us isn't at the whole time. Someone are asking us to predict something every time we pick up our phone now. So the way we are approaching it is that we are sort of leaning into it. What we see is opportunities to, as Tom mentioned, to sort of improve that customer experience they're having with our company.

And also importantly, the experience of our own people because there are systems and processes in IAG, now in other -- many other companies, too, that that are really taking our people away from that sort of main objective of looking after and serving our customers. And some of those can be sometimes tedious. And I think technology is our friend there. So what technology can do is obviously free our people up, all of us from some of the tasks that potentially aren't us engaging with customers to really allow more time for that customer experience. And we are -- as Tom mentioned, we've deployed quite a lot of it at the front of the business to really help our people the way they're engaging with our customers and to make sure they're really serving the customer fully focused and some of the activities they're also doing the -- we can take that away. So we -- I see opportunity to to continue with that, continue to invest in technology and AI as part of that to really continue to improve that experience.

And I mean that's going to be the theme of IAG. That's going to be a theme of many companies. As Tom met just a last comment, and we're going to have to make sure we govern that in a way that we are understanding how that's flowing through our enterprise and implications that's having on our customers and our people.

Will that mean in the long run that you will, were putting people off? And also you will need to be retaining a lot of people in. You'd be needing to retain people as well.

Yes. I mean the sort of -- I mean so a few comments. One, we are growing at IAG. We're growing our business organically as we've got more customers with our existing brands. We're also growing by the acquisitions we've made. So there's about 850-odd people from RACQ that joined us on 1 in September, and we we're hoping through the process with RACW, the early next year that we have another 600 or 700 people. So we're growing a number of people in our company anyway. On that question of training, yes, we are. I mean, training is a huge thing for us. We call it the IAG Academy. I mentioned it in my opening address. And we're seeing a huge appetite.

I mean sort of the Board and the management team are very focused on ensuring we are providing the right sort of forum to effectively help our people continue to scale up. I mean all of us need to be doing this. And we have it through the IAG Academy. And what we're seeing is year-on-year-on-year more and more utilization of the resources of that academy as people are investing in themselves to make sure that the skills that our people are holding are relevant for where the future is going.

One last a little bit. I think most people are concerned about the maybe how reliable AI use and also net out of checking is I think a lot of you realized too. So this has to be taken into account. I'm sure.

Absolutely. And that's a huge part of it. Yes, there's a lot of hype about AI at the moment. And the practical reality is probably a bit behind it. And the governance of what AI produces and what it's produced at from is significant piece of the puzzle.

Chair, I would like to introduce Ms. Natasha Lee, shareholder.

Tom, Mr. Chairman. Firstly, I'd like to congratulate the board on their results, noting that we didn't have any severe or catastrophic climate events. So that helped the results I suppose following on part of my fund that was taken out by the last question. Yes, you are using AI and recruitment as well as the investment in technology and the like. And you talked about the governance of it. I suppose I just want to reinforce the issue that it is fairly well documented that AI has a range of biases, which could include when you're looking at job applications, biases against post code, whether you went to a private school with university you went to all those sorts of things, which might not necessarily be apparent. And I think that -- we just need assurance that there is some proper oversight to ensure that these sort of biases don't creep into the job selection. I know that humans have biases too, which is also will talk to me -- probably more -- maybe more, but it just needs a proper oversight.

As far as the claims processing, the question on the part of the question on that is you said that the claims finalization times have been approved, I suppose, have you got quantification on that? And what sort of return and payback analysis was undertaken in the -- in regards to the investment I've got I've got another question, but I'll let you on those ones.

On claims, we have a raft of metrics on performance and time take claim, et cetera, et cetera, and they're presented to the Board on a very regular basis in the executive presentations to us. So we keep track of it, but Nick and the management team is one of the key things they do. On your AI for Yes. That is -- it's one of the key things here that we don't build biases into the technology, no matter what we do. And sometimes the way we ask questions, we create a bias and we don't even know we're doing it. So that governance process is absolutely critical. What was your third one? Your third one was the...

What sort of returns and payback on the technology?

Well, we had -- we started these IT projects, particularly in our direct business quite a while ago. So we've had business cases. We've had reports back to the Board. And right at the end, we do a washup, which looks at the cost of the whole program where the benefits of that program will be. And we embed it all the future budgets going forward as to where those benefits will come out. And then therefore, that will come out in the results. So that's how we look at it, yes.

Right. I just sort of make another comment and question. And just for transparency, I am involved in Lucy's project, which is a domestic violence charity. And I note that you will want stop 1 story hub is to enable frontline workers to better connect customers experience in domestic and family violence and financial hardship of the range of services -- in relation to Lucy's project, Lucy's project is about ensuring that pits are integrated into decisions because quite often they are an integral part of the family. And I just want to make sure that you're aware in integrating to your policies and processes that you don't overlook the importance of [indiscernible] into the process.

I'm sure Nick will take I think do you want to comment on our process.

As a [indiscernible] very I mean we -- I mean .

I mean yes, we are. I mean it's a good example, and I mentioned in the opening address what we're doing with Red Cross and sort of the emergency ready program. And one of the challenges that offer happens in these natural perils is sort of how people and a lot of stress is how they're managing their pet in some sort of relocation or emergency situation and temporary accommodation and all that, all of that can create a lot -- I mean, that's a very stressful moment anyway. And then if there's an additional stress of how we're going to house the pet and some of the challenges around that sometimes. So yes, I would say that we're very in tune with that. But maybe sort of separately, we might just make sure we're connecting on the specific project that you're talking about. And Julie is fully battery runs our retail business is probably our best point of connection. But yes, we acknowledge the importance that customers have lives and lives includes pets and they're an important element of our well-being. .

Yes, that's great. No, it's -- yes, the charity is called Lucy's project. It's not a specific project as such, but yes. And I suppose we need to get away from an assumption or sort of like the nuclear family and just having awareness of sort of like blended and families of all sorts of shapes and sizes, which cross includes our for babies. Thank you.

Thank you.

Chair. I can see that there are 2 questions from shareholder, Ms. [indiscernible] King. Her first one is thank you for your national leadership on climate change and sustainability as outlined by the Chair and CEO in this meeting and exemplified by the chairs being keynote speaker at the Australian Institute of Company Directors Climate Governance Forum 2025 where he urged directors to bring the same discipline to climate disclosures as financial accounts.

Thank you for comprehensive and transparent reporting. It is most useful and interesting and another area where IAG is leading. It is pleasing to see that the skills matrix in the corporate governance statement this year show substantial improvement in director skills from one year to the next. I note particularly the improvement skills improvement in skills in environment and social and digital technology and cyber categories and yet those categories are still the board's weakest areas. Would you please outline how you are improving Board skills in both of those areas?

Yes. Boards have -- I might just talk about the Board processes. All of the people that sit on your Board also sit on other boards. And all boards, including our Board, have a series of education sessions throughout each year of which particular topics could be on those 2 or it could be on climate or could be in others, where the Board will be educated and will have deep dives and we'll have external approval coming in and advising and educating the board on particular aspects. And why I mentioned that these directors go on to all other boards that all the other boards have the same level of education. But it's also an onus on each of the directors here. Like I did in climate, it wasn't a climate person, but I went down the hole and I found out a lot about climate and all the issues that are facing it. self-education and self-learning and that's an expectation of our directors as well. So I think that covers.

Our second question is also from Ms. Jillian King. She says, thank you for reporting the efforts IAG is making to reducing emissions from and improving sustainability in the automotive claim supply chain. What is IAG doing to reduce emissions and improve sustainability in the buildings claims supply chain. I was staggered at how damage to buildings from the January 2020 hailstorm was handled, and extreme weather increases -- extreme weather increases and worsens as climate change progresses building and contents claims will increase.

Yes, that's a very good question. That goes to sort of our Scope 3 as they're called, focus on how we're going to deal with climate in that supply chain. We're still working through some of those components, and we intend to bring back probably next year, a view on how we're going to deal with those Scope 3. So it's really our supply chain and what we can actually control, what we can influence and what we can't control. So that will cover both motor and building. Nick, do you want to add anything to that?

It's probably just another comment I'd add to that is because the insurance industry and the sort of supply chain of buildings is a lot smaller than the equivalent in repair motor repair. And so we spent quite a lot of time on building standards and to which to which standard we're building to in Australia and try to -- we're trying to influence and impact sort of strength, resilience and sustainability of the building stock of Australia through that. And what sort of standard of tile we need in the house in Australia if we're going to expect more hail storms and therefore, less -- how do we make sure that we're not breaking them the whole time from hailstorms as an example. And so that -- we're trying to impact sort of resilience, sustainability of the industry through initiatives like that as an example. Thanks,. .

Chair, I would like to introduce Mr. Laurence Smith, shareholder.

Thank you very much for the support you give to our community. I was recently at a function or was a workshop and it was about ransomware and data breach. I think what would be surprising to people was that there was about 2,000 data breaches this year. Of that, 38.8% of ransoms were paid. Of that, if they paid it, they got their data back. So for the companies that didn't pay that ransom, [indiscernible]. There was 39 companies that were under that pump. I would speculate that Qantas probably didn't pay the ransom. It's -- the ransom would be between $1 million and $1.5 million. So it's a factor in running a business. You handle very important data for public if you get it wrong, it damages your business reputation as is what's happened upon us. So just put it to you, have you factored in and have policies and strong guidelines and stress testing about data breaches.

Yes. Cyber risk is a big issue for all boards. And we spend a lot of time as a board getting reports at every board meeting about how our cyber defenses are holding up because they're attacked continuously, but the big banks. We also educate our teams about how not to fall into cyber issues. The other component is we have a raft of if touch wood, this never happens to us. If we get one, we have a whole after processes and policies around how best to deal with it. Paying Ransom is a very tricky area. So there's no right or wrong answer here. It depends on how much you would trust the crop. So what I've been told is that the [indiscernible]. Yes, and of course, you all believe that. So it's a big question. So -- but yes, yes, we spend a lot of time. We've actually got a whole team of people that just worry about cyber 24 hours a day.

It also opens up a business opportunity for insurance side.

Cyber issue. Yes, we do have some cyber risk insurance. Yes.

I think we are out of questions. Yes.

Okay. Great. Thank you for your comments and questions in relation to the financial statements and reports.

Next 5 items of business deal with the reelection of myself, Helen Nugent, Scott Pickering and George Savvides as well as JoAnne Stephenson. Separate resolutions will be put for each director's reelection and election. We will deal with my reelection first, and I will ask Wendy Thorpe to chair that aspect of the meeting. We will then deal with the reelection of Helen, Scott, George and the election of JoAnne together. You will hear from each of us before we take comments and questions when you will now chair the portion of the meeting related to my election. Wendy?

Good morning, and thank you, Tom. I will now ask you to address the meeting in connection with your own reelection.

Thank you, Wendy. Ladies and gentlemen, I was appointed to the IAG Board at the 2015 Annual General Meeting. And remember feeling extremely honored and proud to have been asked to join the board of IAG. These feelings have not changed and it is a real privilege to work with the Board and management to further IAG's purpose to make your world a safer place. I was appointed Chair on 22 October 2021. And since that date, I have had the pleasure of working with Nick and the leadership team to evolve IAG into a strongly performing company. We have had some challenges during that time, including years of record peril events. However, it is pleasing to see the company's performance transformed. Today, we have a strong capital position, solid earnings and recognition by our investors of the strength and the strength of our recognition by investors is the strength of our strategy and performance. As I mentioned, a total shareholder return of over 125% over the last 3 years. Today, we'll be the last time I seek reelection to the Board. Should I be reelected today, I look forward to continuing to forge your head with the role that IAG has established in giving confidence to the community that they will be supported and protected in times of crisis and continue to deliver on our strategy. Thank you for your time today, and I look forward to meeting you after the AGM.

Thank you, Tom. We'll now move to questions relating to Tom's reelection. If you do have a question relating to Tom's reelection, please make your way to a microphone or put up your hand. The Board with Tom abstaining, recommends that you vote in his reelection to the Board. And I'd like to start with any questions in the room, please. Thank you.

Thank you. I would like to reintroduce Ms. Natasha Lee.

Thank you. Welcome, Ms. Lee.

Yes. I just want to say, look, I've known Tom for a while. And we have interesting conversations at these meetings, and I'm happy to strongly recommend his reelection. So probably was a bit unusual, and I know that it's probably a bit out of your control to have 5 directors up for reelection, which was like half the Board. It's -- I know that there's probably other factors involved but just make a comment as it potentially puts the company in a difficult sort of position with having so many directors up at the same time.

There's a timing issue. And certainly, the Board does turn its mind to succession on an ongoing basis.

Okay, thank you.

Thank you, number 3?

I want to reintroduce Mr. Simoni.

Mr. Simoni?

Observation in question, if I may, through yourself deputy chair fault. Under the 2020 amended constitution, a director is an office and a place of profit. We've heard about domestic islands, climate change environment. None of this is mentioned in the constitution. And then you can add to that how the directors -- your intention in 1 of the intense attention of Mr. Pockett when he oversees advisers and decisions and including exhibiting empathy, remorse, honesty, integrity, emotional depth. When you look at a hierarchy of things, are these at the forefront? Or is it profit first?

I would say to you that all the qualities you described, I see in Tom all the time.

Yes. I'm not sure whether you're referring to the company or me. But both the company and I have those qualities, especially our frontline teams who have all sorts of difficult situations when people phone in, it's always something has gone wrong. They've got a car axe the house has burned down. And so the empathy and emotional support that our front line teams give is very good.

Thank you, Tom.

Thank you. I'd like to reintroduce Mr. [indiscernible].

He has another question.

Thank you. My question, and I should say my criticism of the people standing is that they have not done enough to increase shareholder returns. At the same time, they're doing a hell of a job increasing executive management show. I think that's great. But I am disappointed as a shareholder that I don't see enough attention being paid to that and I'll talk about this later in that item #4, whatever it is, it comes up. It that's right. Item #3.

I'll just take that as a comment for now. If you have further questions when we get to the remuneration report, I'm sure we'd be happy to take those then.

Thank you, Chair. Mr. David Kingston has another question.

Mr. Kingston.

Just briefly, Shay, you've done a great job, so well done, obviously, very decent person I was just a little bit surprised you repeated the earlier comment you made in the opening address that the TSR over the last 3 years is 125%. That's correct. But I think in my view, it's selective the TSR over the 10-year period is closer to 8%. So I think it's been highly selective. But thank you. You've done a good job well known.

Noted.

Thank you.

Chair, there are no further questions online or on the phone.

Great. Are there any further questions in the room? No? Thank you. The direct votes and proxies received in respect of this resolution ahead of the meeting are now on the slide on the screen. The results are strongly in favor of Tom's reelection to the Board. And I'll hand back to him to chair the rest of the meeting. Congratulations, Tom. Thank you.

Thank you, Wendy. You will now hear from Helen, Scott, which will actually be Penny, [indiscernible], George and JoAnne, and then we'll move to questions for the reelection. Helen?

Thank you, Tom. Good morning, ladies and gentlemen. It is an absolute privilege to offer myself for reelection as a Non-Executive Director of IAG. This is an organization about which I care deeply. Why? Because it matters that Australians are able to ensure their house or they are. It provides them with the peace of mind and reduces the risks they face in terms of increasingly volatile weather events. It matters to the community as they deal with floods, storms and wildfires. It matters to families because it allows them to recover if they are faced with an unwanted home invasion. I also care about ensuring that value is added for you, our shareholders. who provide us with the capital that allows us to deal with the aggregated risk in an increasingly volatile external environment. Our shareholders need to earn an appropriate return on their capital over the cycle. And I care about our hardworking staff who deliver for our customers in their hour of dead. So what do I offer as a Nonexecutive Director that helps us deliver for customers, shareholders and our staff. There are 6 points I'd like to put forward for your consideration.

First, I am relentlessly focused on the customers' experience. That is the primary lens through which I have looked at things, not just as a former partner at McKinsey & Company, but also as an experienced company director, including in consumer goods companies.

Second, I share AG's commitment to helping communities. My understanding comes from my deep involvement over a prolonged period of time with disability, medical research, the arts and education. My contribution in these areas has been recognized with by being made a companion of the order of Australia. And for the past several years, my reach has been broadened through my involvement as Chairman of the Order of Australia Association Foundation. It also means that we have worked extensively with governments, which is increasingly important to maintaining IAG social license to operate.

Third, I deeply understand what the major challenges are that IAG faces particularly extreme weather events as well as the impact of AI, which was mentioned during questions. My role as Chairman of OZ Grid allows me to see the impact of extreme weather events in another context. And being on the Global Advisory Board of the 30,000 people strong digital transformation company, USP, allows me to understand the repinity with which AI is transforming companies.

Fourth, I have a deep and long-standing experience of helping with successful mergers. As a Director of Strategy at Westpac, I was intimately involved as an executive in 3 major retail bank mergers. Similarly, as a Nonexecutive Director of Macquarie Group previously, I had Dominance oversight of multiple successful mergers, including that of Bankers Trust.

Fifth, I have a long history of involvement in the insurance and financial services sector. This includes having been Chairman of Swiss Re Australia, Veda Group, our Equifax and Funds SA as well as having been a Nonexecutive Director of Macquarie Group and Mercantile Mutual, which is now IAG.

Prior to becoming a nonexecutive director, I was Director of Strategy at Westpac Banking Corporation. This background helps me oversee IAG's diverse set of risks which is critical to providing sustainable returns to shareholders.

Sixth, I have a commitment to strong corporate governance. I will always act in IAG's interest including respecting tenure limits. And as I note, it, this will be also for me the last time, I will be seeking election to the IAG Board. I have the time the energy and the commitment to dedicate to your work. I have attended all IAG Board and all committee meetings regardless of whether or not I was a member of that committee.

I thank you in advance for your support and I hope after the AGM, I'll be able to meet a number of you at the informal gathering that we have. Thank you very much.

Thank you, Helen. Now Penny will read out Scott's speech, as I referred to.

Thank you, Tom. This is Scott's reelection speech. And sorry, the he can't be here today. Ladies and gentlemen, I, Scott was appointed to the IAG Board in November 2021. And it is a privilege to stand for reelection at this year's Annual General Meeting. I currently serve as a member of the IAG Board and the IAG Board Audit Committee. By way of background, I bring more than 35 years of global executive experience in the insurance sector. I have held regional and country CEO level roles at Willis Towers Watson, RSA Insurance ACE, now Chob and Inisgnia working across Central and Eastern Europe, the Middle East, Africa, Japan, Southeast Asia, South Africa and Australasia. I, Scott, also served as CEO of the Accident Compensation Corporation. New Zealand data and the entity responsible for comprehensive Nofal personal injury insurance. In my current governance roles, I am Chair of CGA Insurance Australia, and I'm a Non-Executive Director of IAG in New Zealand. Beyond IAG, I, Scott, Chair Fidelity Life Insurance and Evolution Healthcare and I also serve as a Nonexecutive Director of QIWI Group. Capital and Bowls New Zealand Alto. I'm also an external adviser to being co. My previous directorships include Kiwi Bank and Chubb Insurance in Australia and in New Zealand. I am a member of the Australian and New Zealand Institute of Insurance and Finance. And I confirm that my external appointments do not present any conflict with my obligations to IAG. I also confirm I have appropriate time to dedicate to the IAG Board. Since joining the Board, I've been consistently impressed by the commitment of my pile directors and the management team at IAG in furthering their purpose of making the world a safer place. This commitment has been most evident in the way the company has mobilized to support communities impacted by severe weather events, particularly those in recent years. A tangible example of this is our investment in the major event command center in Hurtsville which I had the opportunity to visit with my fellow directors earlier this year. I believe my depth of insurance and leadership experience, combined with my ongoing governance roles, enables me to make a strong contribution to IAG's Board and to the company's future success.

On that basis, I, Scott, respectfully seek your support for my reelection. Thank you.

Thank you, Penny. George?

Thank you, Tom, and good morning, ladies and gentlemen. I joined the IAG Board in June 2019. So this is the second time that I'm standing for reelection. I serve IAG Board as a member of Street committees, the Board Nomination Committee, the Board Risk Committee and the Board, People and Rem Committee, which I shared between 2021 and '24. In September this year, I was appointed Chair of our ACQ Insurance subsidiary of IAG charged with the responsibility of oversighting the integration of our ACQ into IAG. In terms of my background, I was CEO of Sika Company, now Sigma Healthcare between 1996 and 2000 and the CEO of Medibank Private between 2012 and 2016. So from this, I bring 20 years' experience as a CEO in an ASX context, including 14 years as the CEO in the insurance sector. Following my executive career, I've spent 10 years as a nonexec Board member. This has included my appointments to the Board of SBS in 2017, where I joined as Deputy Chair and leading 2020 I took on the chairmanship of SBS and retired after 9 years in July this year.

Apart from IAG, I have 2 other current commercial boards I chair the Board of IMED radiology, having joined that board in September 2022. And I'm also the non-executive board member of BuildIt, SaaS software company based here in Australia and also cheering education resources, not-for-profit charity face values. I hold an industrial engineering degree from New South Wales University and an MBA from UTS and I'm a fellow of the Australian Institute of Company Directors. I believe I bring to the IAG board a strong understanding of the insurance sector, especially in the key areas of brand, customer acquisition, retention and claims management, complemented by 20 years of CEO experience. I have the capacity and time to fulfill the obligations of a Director of IAG. I consider it a privilege to be asked to serve on the IAG Board, and I thank you in advance for your support for my reelection. Thank you.

Thanks, George.

Thank you, Chairman, and good morning, ladies and gentlemen. I'm delighted to have the opportunity this morning to speak with you about my election to the IAG Board. I was appointed to the Board in May this year and serve as a member of the Risk Committee and now as Chair of the Audit Committee. I'm excited to work with this diverse group of people and experienced group of people to further the purpose of to make this world a safer place for our customers and indeed for the broader community that we serve. Just a little about me as it is my first time speaking with you as shareholders regarding my election to the IAG Board. I'm a chartered accountant. And after spinning my executive career with KPMG, I've worked as a Nonexecutive Director for the past 13 years. During that time, I have experience in a number of areas which are relevant and aligned with the IAG business, including financial services through both an insurance focus and also investment focus. So through Challenger and Helia in different parts of the insurance sector and now Qualitas who is a real estate credit manager. I also bring a very strong customer focus including vulnerable customers through Esta, which is an aged residential care provider. Lifestyle Communities, a provider of affordable housing to same years. And then, of course, previously through my role at Myer, a trusted retailer serving Australian communities in both our cities and regions. My educational foundation is in commerce and law. And as I said, my executive career was as a chartered accountant, working for the majority of my career in the insolvency and advisory divisions of KPMG in both Australia and in the U.K. I bring deep experience as a Chair of Audit Committees in most of listers appointments and had the privilege of working closely with David Armstrong after joining the Board through the recent financial year-end as a member of IAG's Audit Kimi. With your support, I believe I can make a strong contribution to both the IAG business and the Board and management in fulfilling the promise of being there our customers during times of crisis. Thank you.

Thanks. And we'll work through each resolution 2b to 2e relate to the reelection of Helen, Scott, George and the election of JoAnne. The Board with the relevant director of staining recommends that you vote in favor for each of these resolutions. I will now move to questions in the room.

Chairman, Mr. David Kingston has another question.

Thank you, Chair. Look, obviously, every director has got excellent experience, but I -- and I don't want to single people out, but I will George, you're on the Board of Ryman, which is Roman Health Care, which is a leading health care company in New Zealand. You stepped down in 2023. Its performance has been terrible. It's share price fell from about $13, $14, down to $2, had an emergency rights issue. So I'd just be interested in -- is that relevant to your continuation here, George, because that's certainly that period where you want alone, almost the entire Board a step down time management changed. So it really was a debacle.

If I may move on to the other one, Chair. JoAnne, again, none of us get [indiscernible].

I'll just take 1 quick time. This is an IAG Board meeting. What's happening in the company that George has now left is probably not particularly relevant for the AGM. George is an excellent director and he continues to provide great insight and guidance to the Board. I don't want to go down on what happened with another company. Please look at to your next question.

That's fine Chair, but there's not much point in talking about CVs if people aren't prepared to engage on the merit of CV. But if you don't want to engage fine, but I'll make a comment on JoAnne clearly. The Myer company has been massively checked history. But more recently, lifestyle it stock price has fallen 75% shown. It's had some massive compliance issues, massive legal issues. Chair, if you don't want to engage, that's your prerogative. But in my view, it's a little bit hypercritical if people are going to put forward their CVs, talk about their background and yet where some of those issues are somewhat checked, not prepared to talk about them. I totally respect that no 1 gets it all right. If you've been on 6 or 8 boards, One of them is probably going to have some real problems. But in my view, it's a little bit hypocritical not to discuss them, but that's your prerogative.

Thank you. Number three.

Chair, I'd like to introduce Mr. Simoni.

Good morning again. Under 2020 amended constitution, a director is an office and a place of profit. And as -- in general, when you're looking at these -- the people here seeking election, what is the balance, what is the hierarchy when climate change, domestic violence, environment, et cetera. not qualities in general, as you pointed out, when I spoke to your election. But the honesty and integrity and responsibility as when you're on the board when a discussion comes up or an agenda item comes up, what takes place first? Is it -- we can add value shareholder value first. And then we can look at domestic wireless and climate change, but it has to be shareholder value/profit first, then we can take care of all the other these other things wire and climate change. Is that the prerogative agenda items when they come up.

Maybe I'll take that. Those -- all those issues are important to our culture is to look after our customers. How we make money is by looking after our customers. And so the outcome of looking after your customers is you make money. So we have an ethical framework in which we operate within IAG, we are very concerned about people that are in stress that call him for a right of reasons, be it the personal circumstances or they have had some peril with the house, et cetera. And those processes to support those people in built into the front end of our business and flow all out to the Board.

Any other questions?

Chair, Ms. Natasha Lee has another question.

Thank you, Chairs. Not so much a question as such. I just want to congratulate you and the Board, you have reasonable female diversity on the board as well as our performance of diversity, particularly ethnic diversity. And I just want to say it's good to see a recently representative board and keep up the good work of maintaining diversity throughout my tenure.

Will do. Thanks, Natasha. Are there any questions?

Chair, there are no further questions online or on the phone.

No other questions. Okay. The direct votes and proxies received in respect of these resolutions ahead than we are now shown on the slide on the screen. The results are strongly in favor of the reelection of Helen, Scott George and JoAnne. Congratulations to all.

Resolution 3 is the adoption of the company's remuneration report for the financial year 30 June 2025. The 2025 remuneration report is set out on Pages 77 to 102 of IAG's 2025 Annual Report and provides disclosures relating to directors and executive remuneration. Before I invite questions on this item, I will make some introductory remarks. There were no changes to IAG's remuneration framework in FY '25.

In terms of FY '25 remuneration outcomes for short-term incentives, the group balance forecast -- sorry, 4 short term incentives of the group balance scorecard, which includes both financial and nonfinancial elements, resulting in a score of 3.95. This resulted in the board approving an FY '25 executive STI pool at 83% of maximum opportunity. For long-term incentives, the FY '22 LTI awards with return on equity and total shareholder return performance were assessed at the end of their full year performance period. The FY '22 ROE performance hurdle was partially met, resulting in 45.6% vesting and the FY '22 TSR performance hurdle was fully met, resulting in a total vesting of 72.8%.

In terms of FY '26 remuneration, the Board regularly reviews executive remuneration so that IAG can continue to attract, retain high-quality and people and drive performance. This year's annual review of executive remuneration resulted in a fixed pay increase of 4% for the CEO and an average fixed pay increase of 4.8% for other executives. No material changes have been made to the executive remuneration for FY '26.

In FY '26, an independent review on the effectiveness of our remuneration framework will be commissioned in accordance with the APRA Prudential Standard CPS 511. The Board's People and Remuneration Committee will consider the outcomes of the review and any recommendations and bring them back to shareholders.

I now invite questions on resolution 3, the adoption of the remuneration report. I'll start with questions in the room.

Chair, Mr. Simoni.

Good morning again. Your money has been made, and hence, you can help. You're a health company, but only after money has been made and money has been made and what is the logic or the reasoning when the money has been made and you can help when it comes to decisions very late notice and very fast decision-making like sponsoring scopes by the sea and not say other programs like domestic Wilander change that you may have had on the books. What's the reasoning behind that decision?

We -- Mr. Simoni, we support a whole raft of community programs. we have money set aside for that, but we also have committed resources and money for all the support programs I've mentioned before. Anything online? Any questions? Any other questions from the floor? No? That concludes the discussion of resolution 3. The direct votes and proxies received for this resolution ahead of the meeting are now shown on the screen. Based on these results, I am pleased to see the support we have received for the 2025 remuneration report.

Resolution 4 seeks approval for the allocation of deferred award rights and executive performance rights to the Managing Director and Chief Executive Officer, Nick Hawkins, under our short-term and long-term incentive plans. There is a detailed explanation of these allocations in the notice of the meeting and the remuneration report. I'll move to questions in the room. Number 2.

Chair, Mr. Jon has a question.

I find it shameful in this report that you did not show total of the salaries of these people. If you had a -- this is what the people would see. They would see that in 1924, total salaries for executive management was $13.8 million, all right? In 1925, the total salaries were $26 million in I find it very hard to see how you can justify. And I'm not against wage increases. They work hard, but I think that's a bit too much, especially when it comes at the expense of us shareholders. But every cent that goes to them as I said does that come to us.

I think that the executive salaries rating at yet. We pay market-based salaries, and the executives do work extremely hard. And you can see over the last 3 to 5 years, they've been working exceptionally hard to produce the returns that we've got. So any questions on to?

No further questions online or on the phone.

Okay.

What you fail -- what most of us fail to understand, this is economics. You are in a very specialized industry, very few -- very low competition, just you and QR and maybe a couple of others. I'm not suggesting your objective is not worth of, but I say put that in context to why you gain so much because there isn't as much competition. It's as simple as that.

Thank you. Number 3. Yes.

Chair, Mr. Simoni.

Thank you once again. When it comes to the ASIC versus IAG on the third of July 2023, a $40 million judgment against plus the legal costs does that come out of shareholder value? Or has it come out of Mr. Hawkins. Is that factored into Mr. Hawkin's remuneration package.

It comes out of the performance of the company, which inadvertently goes through to the performance of the whole executive team indirect values. Any questions online or in the room?

No.

Okay. That concludes the discussion on Resolution 4. The direct votes and proxies received for this resolution ahead of the meeting are now shown on the screen. Based on these results, I am pleased to see the support we have received for the allocation of rights to Nick.

Resolution 5, 6 approval to increase the independent nonexecutive director pool by the cap by $700,000 from $4 million to $4.7 million per annum with effect from 1 July 25. Under the ASX Listing Rules and IAG's constitution, the total aggregate amount available to be paid to independent nonexecutive directors must not be increased without the approval of our shareholders. The primary driver of the proposed increase is to meet APRA requirements that boards of regulated subsidiaries have independent or nonexecutive directors. We previously had 3 APRA-regulated boards. And now we have 5. And hopefully, that will increase the 6 if we obtain the our ACI integration asset in Western Australia. The proposed increase is also designed to help and enable IAG to attract and retain high-quality and suitably qualified independent nonexecutive directors and manage an orderly renewal of the IAG and subsidiary boards. There is a detailed explanation of the reasons for the proposed increase in the notice of meeting. We have a question, I think.

Yes, we did. We received 1 question before the meeting Chair from shareholder, Christine Kelly, who asked what was the basis of the 15% increase to the independent nonexecutive director fee pool decision.

There were -- the fee pool, as I said, was primarily driven by a regulatory change by our regulator, APRA, that requires us to have executive and nonexecutive directors on our Board -- sorry, nonexecutive and independent directors on these new boards. That is a new cost the company didn't occur before, but we need to follow what the APRA rules say because they're regulators.

In terms of increases in directors' fees, the increase in director fees was 4% for this year, which was slightly below the increase for salaries across the whole IAG organization. Thank you, Karl. Number 3.

Chair, Mr. Simoni.

Thank you. And finally, on rewarding the directors with increased fee pool on their performance and guidance and advice. Are we rewarding them on the basis of how rigorous double entry book accounting occurs, the guidance on that within the [indiscernible] group? Or is it -- are we rewarding on how you in the decision-making that occurs in the role the empathy, the remarks, the honesty and integrity, where things like the greenfield and the centers that you have received don't occur, what's the reward for those things over, say, a razor edge on double book accounting and how we can just purely generate profit.

I think I've answered that question before, Mr. Simoni, thank you. Number two?

Chair, Ms. [indiscernible] has another question.

Mr. Chair, I know that we've voted at the ASA against this resolution, and I do understand the changes with the regulator and the subsidiary Boards. But you also have a very large board at the moment and you've just elected a new director on to that. Could you talk about succession planning at Board level than at the senior management level for the company and what the plans might be around that in the next few years, please?

On the Board, the Board has a succession planning process in obviously for me as we're not standing for reelection again. But the Board also has a succession planning in for the rest of Directors we're actually probably through like troop and more than good planning, we actually have a director resigning every year for the next 5 years. So that will allow just because the terms expire. That will allow the Board to act quite a bit of flexibility in ensuring that we maintain our diversity mix but also there may be opportunities to reduce size of the board over that next 5-year period.

In terms of management succession planning, they are extensive management succession planning in place, which the Board reviews really.

Chair, Mr. Simoni.

Please don't ask the same question, Mr. Simoni.

If you don't make the money, is there a strategy to facilitate supporting domestic violence and et cetera, and other climate change. If you don't make the money, it's like if I go to council and they said, well, constitutionally, if you don't give us an issue of rates, roads and rubbish, then go away and you're basically saying, if we don't make the money first, then don't -- we have -- you have no strategy on climate or domestic volunteer any of these social issues if you don't make the mine first. Is that correct?

They are -- all those matters, as I mentioned, are a medical part of our business. It's not 1 or the other. Any other questions? Any questions online?

No questions online or on the phone.

That concludes the discussion on resolution 5. The direct votes and proxies received for this resolution ahead of the meeting are now shown on the screen. Based on these results, I am pleased to see the support we have received for the increase in the Non-Executive Director Fubo.

That now brings us to the end of the formal items of business. I would like to remind shareholders who have not yet cast their votes on any resolutions to do so now as the poll is about to close. We will now pause for a minute while shareholders in the room and online care votes. For those shareholders in the room, Computershare will come around and collect your voting cards. Please wave your card to indicate you are ready.

Now that voting has concluded, I now declare the poll closed. Thank you very much, ladies and gentlemen. The final voting results we provided to the ASX today and will be placed on the company's website along with the webcast of today's meeting. On behalf of your Board of Directors, thank you to everyone who attended in person today and to those who joined us online and by phone. I now declare this meeting closed. For those attending today, the Board looks forward to joining you in the lunch in the Smith room, which is located to the left of the main foyer as you leave this room. Thank you very much.