#1LLOYD'S Australia & New Zealand Market Presentation Chris Mackinnon, Regional Head Lloyd's Australia & New Zealand 6th November 2023#2LLOYD'S Australia & NZ Contrasting fortunes NO SWIMMING 4 1140 Source: https://www.businessinsider.com Source: https://www.newstalkzb.co.nz#3LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Current State of Play Economic, Political & Climate - - Economic 120 Consumer & business 110 confidence is weak Insolvencies rising 100 90 80 Recession looming? © Lloyd's Source 2023 Finity Optima Report 1000 Insolvencies 800 600 400 Consumer Sentiment Index (RBA index) чимит 200 2020 2015 2010 2005 2000 www. 3 2025#4LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Impact on General Insurance Low system growth Higher investment returns Weak economy, reduced demand, affordability Higher ROC Class Property Liability Professional Lines Workers' Comp © Lloyd's Source 2023 Finity Optima Report Claims impact Outlook Additional yield Current state Economic volatility Lower economic inflation Claim propensity Pressures Labour cost Theft and vandalism Wage inflation increases Social inflation / claim propensity Insolvencies Economic downturn Wage inflation increases Medical cost increases RTW reduction 4#5LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Current State of Play Economic, Political & Climate Political Location of medium/high cyclone risk properties (wind zones N or above) - Referendum - Cyclone Reinsurance Pool Lloyd's Source: ARPC Cyclone premium assessment report Nil/minimum risk Low risk Medium/High risk 5#6LLOYD'S Lloyd's in Australia Lloyd's Australia has grown its network to over 160 Coverholders and 11 Service Companies. 11 Service Companies 160+ Over 160 Coverholders in Australia A#7LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Lloyd's in Australia GSP, Net Paid Claims & Classes of Business $4,500,000,000 $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 2015 2016 2017 2018 © Lloyd's Source Qliksense GSP Claims Paid 70.00% 60.00% 50.00% 40.00% 30.00% Lloyd's Australia Classes of Business ($AUD million) A&H $250 Other (Energy, Marine, Aviation & Casualty Treaty) $310 Property Treaty $290 Specialty Other $292 Casualty FinPro $1,393 Property (D&F) $746 20.00% Casualty Other $882 10.00% 0.00% 2019 2020 2021 2022 Ratio Classification: Confidential 7#8LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Market Update Australian General Insurance Industry Lloyd's Source 2023 Finity Optima Report $bn 30 Commercial Lines Market GDP +12% 25 +15% +14% 20 +11% +13% 15 +8% -1% +7% 10 5 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year ending Jun APRA authorised UFIS Lloyd's 8#9LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Market Update Australian General Insurance Industry Underwriting margin Lloyd's Source 2023 Finity Optima Report 20% 15% 10% 5% Overall Reported Profitability 0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 -5% -10% -15% -20% • Excl COVID BI 6#10LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Market Update Australian General Insurance Industry Underlying Profitability & Outlook FY23 view of underlying profitability Cost pressures Corporate Property Profitable, meeting target returns Inflation and Rl costs Rate outlook 7 Increasing, but at a slower pace Standalone Liability Profitable, meeting target returns Inflationary pressures and segment specific issues 7 Increasing but at a slower pace Financial Lines Profitable, meeting target returns Economic environment, class actions and segment specific issues Continuing to moderate Business Packages Profitable, meeting target returns Inflation and Rl costs R (shift from hard to soft market) Increasing at a similar pace Commercial Motor Profitable, meeting target returns Labour and materials inflation 7 Lloyd's Source 2023 Finity Optima Report Increasing, but at a slower pace 10#11LLOYD'S New Zealand - State of Play Source travel2next.com travel2next.com#12LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Current State of Play Economic, Political & Climate • Economic Recession Looming? Lloyd's Source ANZ Quarterly Outlook August 2023 12 10 Annual average % change NON J 01 00 Contributions to GDP Growth -4 -6 -8 T 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Private consumption Gvt. consumption Other Investment Net exports GDP 12#13LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Current State of Play Economic, Political & Climate Political • 2023 Election • COFI Legislation Lloyd's ational 13#14LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Current State of Play Economic, Political & Climate Climate • Cyclone Gabrielle and the Auckland Floods Auckland Department of . Internal Affairs London visit Tasman Sea NEW ZEALAND Christchurch Lloyd's Dunedin Hastings Wellington 14#15Gross Signed Premium LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Lloyd's in New Zealand 600m 400m 306m 200m 333m 423m 586m 504m 497m 483m 0m 2016 2017 2018 2019 2020 2021 2022 Calendar Year Insurance / Reinsurance © Lloyd's Insurance Reinsurance Classification: Confidential Lloyd's NZ Classes of Business ($NZD million) Marine $44 Specialty $30 Casualty $32 Other (A&H, Energy, Aviation & Casualty Treaty) $55 Casualty FinPro $104 Property (D&F) $214 Property Treaty $107 15#16Llo LLOYD'S Aus State of Play Aus Market Update NZ State of Play NZ Market Update ANZ Team Lloyd's Australia & New Zealand - November 2023 Lloyd's Australia Limited Mark Doepel - Non-Exec Chairman Chris Mackinnon - Director, CEO lain Ferguson - Director Peter Montanaro - Director Tracey Bryan - Director, Company Sec New Zealand Steering Committee Scott Galloway Partner, Hazleton Lawyers Lloyd's Legal Representative in NZ Chris Mackinnon Regional Head of Australia / NZ General Representative in Australia General Representative in Vanuatu Tracey Bryan Regional Head of Regulation & Compliance APAC Evan Ainslie Market Development Manager - ANZ Natalie Whitbread Customer Standards Manager - - ANZ Marina Estephan Office Manager Marketing & Events Rema Thompson Operations Associate Peter Plustwik Dispute Resolution Manager - ANZ Trina McGuffog Senior Dispute Resolution Officer Noel Murphy Senior Dispute Resolution Officer Rosita Keyanian Senior Dispute Resolution Officer Joanna Johnstone Senior Dispute Resolution Officer Felia Wijaya Dispute Resolution Associate Dipali Dongre Regulatory & Compliance Manager - ANZ 16#1725 Any questions?