#1This release has been authorised by the IAG Board Financial Results for the year ended 30 June 2023 21 August 2023 Results Presentation | 21 August 2023 iag#2Important information This presentation contains general information current as at 21 August 2023 (unless otherwise stated) and is not a recommendation or advice in relation to any product or service offered by Insurance Australia Group Limited or its subsidiaries (IAG or the Group). It presents financial information on both a statutory basis (prepared in accordance with Australian Accounting Standards which comply with International Financial Reporting Standards (IFRS)) and non-IFRS basis. This presentation is not an invitation, solicitation, recommendation or offer to buy, issue or sell securities or other financial products in any jurisdiction. The presentation should not be relied upon as advice as it does not take into account the financial situation, investment objectives or particular needs of any person. The presentation should be read in conjunction with IAG's other periodic and continuous disclosure announcements filed with the Australian Securities Exchange (available at www.iag.com.au) and investors should consult with their own professional advisers. No representation or warranty, express or implied, is made as to the accuracy, adequacy, completeness or reliability of any statements (including forward-looking statements or forecasts), estimates or opinions, or the accuracy or reliability of the assumptions on which they are based. Any forward-looking statements, opinions and estimates in this report are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. This includes statements regarding IAG's targets, goals, ambitions, intent, belief, objectives, commitments and current expectations regarding IAG's business, results, financial condition, capital adequacy, risk management practices and market conditions. Forward-looking statements may generally be identified by the use of words such as "should", "would", "could", "will", "may", "expect", "intend", "plan", "forecast", "aim", "anticipate", "believe", "outlook", "estimate", "project", "target", "goal", "ambition", "continue", "guidance", "aspiration" or other similar words. Guidance on future earnings or performance are also forward looking statements. While IAG believes the forward-looking statements to be reasonable, such statements involve risks (both known and unknown) and assumptions, many of which are beyond IAG's control (including adverse natural peril events causing losses to exceed forecasts, and uncertainties in the Australian and global economic environment). This may cause actual results, outcomes, conditions or circumstances to differ from those expressed, anticipated or implied in such statements. For further information on IAG's risks see the 'Strategy and risk management' section of IAG's FY23 Annual Report. In addition, there are particular risks and uncertainties associated with implementation of IAG's strategy and related targets, ambitions and goals. As the targets, ambitions and goals span a number of years, they are subject to assumptions and dependencies which have greater levels of uncertainty than guidance given for FY24. IAG's ability to execute its strategy and realise its targets, ambitions and goals will depend upon its ability to respond and adjust its business plans (as and when developed) to any changes in such assumptions and dependencies, including disruptions or events that are beyond IAG's control. Neither IAG, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur and undue reliance should not be placed upon such statements. IAG assumes no obligation to update such information (except as required by law). Past performance is no guarantee or indication of future performance. To the maximum extent permitted by law, IAG and each of its directors, officers, employees, agents and advisers disclaim all liability and responsibility for any direct or indirect loss, costs or damage which may be suffered by any recipient through use of or reliance on anything contained in, implied by or omitted from this presentation. References to currency are to Australian dollars, unless otherwise specified. Prevailing exchange rates have been used to convert local currency amounts into Australian dollars, where appropriate. Further information, including IAG's business structure, portfolio and partnerships is available on IAG's website at https://www.iag.com.au/about-us/what-we-do 2 Results Presentation | 21 August 2023 iag#3Nick Hawkins Chief Executive Officer Introduction iag#4Acknowledgement of Country iag IAG acknowledges Traditional Owners of Country throughout Australia and recognises the continuing connection to lands, waters and communities. We pay our respect to Aboriginal and Torres Strait Islander cultures; and to Elders past and present. We empower Aboriginal and Torres Strait Islander peoples, business and communities.#5Executing on our strategy Purpose We make your world a safer place Strategy Create a stronger, more resilient IAG People Strategic Pillars O Evidence ~132k net customer growth in DIA Grow with our customers Brand rationalisation in WA and SA Our people are the difference: bringing our purpose to life and delivering our strategy Retention rates ~90% to 95% in DIA motor and home & -80% to 90% for NZ Direct motor and home Build better businesses IIA FY23 insurance profit of $209m, on track for at least $250m insurance profit in FY24 Disciplined cost management with admin ratio reduction of 90bps Create value through digital Enterprise Platform rollout ANZ personal lines on Enterprise Platform from July 2023 くく Good progress Manage our risks Reinsurance renewals successfully completed in a challenging market Quota share arrangements locked-in, delivering materially consistent financial outcomes Further Business Interruption provision reduction of $200m in 2H23 Finalisation of pricing and payroll remediations Trade credit / Greensill Good progress Progressing iag#6FY23 results overview $ GWP $14.7bn Up 10.6% in FY23 and 13.7% in 2H23 Reported margin 9.6% Impacted by natural peril costs $297m above allowance Underlying margin¹ 12.6% Strong momentum with 2H23 at 14.6% Net profit after tax $832m Includes post-tax $392m benefit from the Business Interruption provision reduction Final dividend 9cps Total FY23 dividends of 15cps, up 36% FY24 Guidance² GWP growth of low double digits Reported margin of 13.5% to 15.5% Expected margin improvement from earn-through of premium increases and higher investment yields (1) IAG defines its underlying insurance margin as the reported insurance margin adjusted for net natural peril claim costs less the related allowance; prior period reserve releases or strengthening and credit spread movements. (2) Refer to Appendix 1: FY24 Guidance and Outlook for more detail. iag 6 Results Presentation | 21 August 2023#7Divisional highlights • . Direct Insurance Australia (DIA) ~132k growth in customer numbers Accelerating GWP growth (Motor & Home 12% in 2H23) Underlying margin rebound in 2H23, with claims inflation moderating Intermediated Insurance Australia (IIA) ~13% average rate increases 2H23 GWP growth of 16.2% assisted by multi-year policies Strong improvement in underlying margin to 9.8% in 2H23 GWP growth/ underlying margin GWP growth / underlying margin New Zealand • Strong NZ$ GWP growth of ~12% Reported margin of 2.4% due to NZ's 2nd and 3rd largest peril events in history Underlying margin impacted by inflationary pressures and higher reinsurance costs GWP growth / underlying margin 21.8% 19.2% 16.2% 16.8% 16.8% 15.6%15.3% 18.2% 13.2% 9.8% 10.9% 8.9% 13.2% 9.1% 13.8% 7.8% 8.3% 8.1% 9.0% 7.1% 5.9% 5.8% 5.0% 5.1% 3.9% 5.7% 3.3% 3.2% 1H22 2H22 GWP Growth 1H23 -Underlying margin 2H23 1H22 2H22 1H23 2H23 1H22 2H22 1H23 2H23 IGWP Growth -Underlying margin A$ GWP growth - NZ$ GWP growth Underlying margin 7 Results Presentation | 21 August 2023 iag#8• . • Making the world a safer place for our customers Our customer focus has delivered strong Customer Experience NPS across our Australian (+45) and New Zealand (+51) businesses 2 Helping customers in time of need Helped 650,000 customers recover from unexpected loss - up 21% Paid $10.2bn in claims -highest ever Helping New Zealand recover from its two largest ever weather events Supported launch of updated NRMA Australian Red Cross Get Prepared app to help families stay safe when disaster strikes Provided 1.4m essential items through GIVIT to people impacted by extreme weather • • Supporting Communities Major Event Response Team ready 24/7 to support communities during severe weather events Advocated for greater resilience investment and improved land use planning and building codes Built awareness of disaster resilience through the Wild Weather Tracker using claims data and community research O одо Easier and simpler More than 100 new mobile, automation and online customer features: track claims digitally, select repairers, faster claims outcomes, 。 nearly 100% pre-fill and personalisation for NRMA motor and home quotes Enterprise Platform reduces home, motor and small business products from 58 to 14 Total loss motor claims settled in hours, not days, with fastest lodgement to settlement of 27 minutes 8 Results Presentation | 21 August 2023 iag#9Michelle McPherson Chief Financial Officer Financials iag#10Financial summary FY22 FY23 Change GWP ($m) 13.317 14,729 10.6% NEP ($m) 7,909 8,326 5.3% Expense ratio (%) 23.7 23.1 60bps Reported insurance profit¹ ($m) 586 803 37.0% Reported insurance margin (%) 7.4 9.6 220bps Underlying insurance profit ($m) 1,157 1,052 9.1% Underlying insurance margin (%) 14.6 12.6 200bps Net (loss)/profit after tax ($m) 347 832 139.8% Cash earnings ($m) 213 452 112.2% Dividend (cps) 11.0 15.0 36.4% CET1 multiple 0.97 1.12 15pts The FY23 reported insurance profit in this document is presented on a management reported (non-IFRS) basis which is not directly comparable to the equivalent statutory (IFRS) figure in IAG's FY23 Financial Report (Appendix 4E). A reconciliation between the two is provided on page 42 of the Financial Report to comply with the Australian Securities and Investments Commission's Regulatory Guide 230. 10 Results Presentation | 21 August 2023 iag#11Strong GWP growth to drive future GEP growth Reported GWP growth of 10.6%: Group GWP vs GEP growth • Increasing rate rises to counter higher inflation, perils expectation and 14% reinsurance costs . >1% DIA volume growth primarily from 12% Home and Motor in Victoria . Strong retention rates across IAG 10% Underlying GWP growth of 11.1%: 8% Benefit from multi-year workers' comp premiums; offset by 6% IIA portfolio exits; and . depreciation of $NZ in 1H23. 4% 2H23 Reported GWP growth of 13.7% and Underlying GWP growth of 12.6% 2% Gross Earned Premium 2H23 growth 8.2%, expected to increase further in FY24 0% 11 Results Presentation | 21 August 2023 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 ■ GWP growth ■ GEP growth iag#12Underlying margin movement 14.6% 13.9% -0.7% -1.2% 0.3% -2.5% 0.8% 13.4% 2.1% 12.6% FY22 Underlying margin FY22 COVID-19 benefit FY22 Underlying margin ex-COVID Increased perils Underlying claims allowance ratio Expense ratio Investment yield FY23 Underlying margin Reinsurance reinstatements 12 Results Presentation | 21 August 2023 FY23 adjusted underlying margin iag#13Claims ratio increase driven by higher inflation Underlying claims ratio Higher average home and motor claims costs due to inflationary and supply chain pressures Inflation moderating in Australia but remains elevated in New Zealand 54.0% 2.0% Claims ratio benefit in 2H23 from earn- through of premium increases and reduction in claims providing risk margin benefit: . . DIA Home open claims reduced from ~70k (Dec 2022) to ~49k (Jun 2023) • IIA open perils claims reducing from ~18k (Dec 2022) to ~12k (Jun 2023) 13 Results Presentation | 21 August 2023 +4.2% -2.9% 54.2% 10.9% +2.5% 58.2% 56.7% 55.3% 54.5% 53.3% 52.0% 1H22 2H22 1H23 2H23 ■Underlying claims ratio FY22 =COVID benefit FY23 LOSS RATIO 1H22 2H22 1H23 2H23 FY22 FY23 Underlying claims ratio 52.0% 54.5% 58.2% 55.3% 53.3% 56.7% Discount rate adjustment (1.3%) (5.9%) (1.3%) (1.1%) (3.7%) (1.1%) Reserve (releases)/strengthening 0.9% 3.4% 1.2% (0.3%) 2.2% 0.4% Natural perils above allowance 7.6% 1.4% 1.7% 5.4% 4.4% 3.6% Natural perils allowance 9.6% 9.7% 11.0% 10.8% 9.7% 10.9% Reported loss ratio 68.8% 63.1% 70.8% 70.1% 65.9% 70.5% iag#14Cost base ~$2.5bn gross operating cost target achieved for third year FY23 costs down 1.5% which includes $50m in amortisation of technology and system investment FY23 costs down 2.8% excluding amortisation impact Group administration ratio ex-levies expected to reduce further below ~12% 14 Results Presentation | 21 August 2023 2,503 Group expenses 2,531 2,494 12.7 12.7 11.9 FY21 FY22 FY23 Gross operating costs ($m) -Admin ratio ex levies (%) iag#15Higher yields driving improved investment performance Investment yield on technical reserves 5.0% 3.7% 2.4% 56 1.1% 29 18 1H22 2H22 1H23 2H23 (63) Credit spread impact ($m) ―Investment yield 15 Results Presentation | 21 August 2023 ~$12bn Investment Portfolio $7.4bn technical reserves invested in fixed interest & cash Gain of $271m driven by the higher investment yield and narrowing of credit spreads, offset by an increase in risk free rates ~250bps investment yield improvement in FY23 (~4.3%) vs FY22 (~1.8%) $4.4bn shareholders funds with growth asset weighting of -28% • Gain of $212m with positive performance across both growth and defensive assets iag#16Net profit after tax NPAT movement ($m) 317 360 -120 832 -289 FY22 FY23 OTHER LINE ITEMS A$m A$m 217 Interest (93) (145) Profit/(loss) from fee-based business (34) (37) Share of profit/(loss) from associates 17 (13) 347 Non-controlling interests (77) (93) Amortisation (7) (3) Net corporate expense - Lease impairment charge (20) Net corporate expense - Other Total (3) (194) (314) FY22 NPAT Insurance profit Bl provision release (in net corporate expense) Shareholders' funds Other line Income tax FY23 NPAT income items 16 Results Presentation | 21 August 2023 iag#17Strong reinsurance protection for remainder of calendar 2023 Whole of account quota shares arrangements renewed • 32.5% protection with leading global reinsurers • ~5% margin uplift contribution to target financial performance Maximum event retention for first and second event in CY23 of $169m (67.5% of $250m) Additional FY24 reinsurance $m 10,000 500 350 • Aggregate cover providing $250m protection 250 • Third and fourth event covers providing $150m protection 200 17 Results Presentation | 21 August 2023 || Gross catastrophe reinsurance program CY23 Main Catastrophe Program FY24 Third & Fourth event cover FY24 Aggregate Cover $250m protection after $600m erosion 50 0 Event 1st 2nd 3rd 4th 5th onwards iag#18Jun-22 FY23 Earnings 0.97 Dividends paid 18 Results Presentation | 21 August 2023 Strong capital position 0.34 (0.11) Excess tech Share buyback (0.08) Increase in charges (0.05) (0.06) Software capitalisation (0.09) Deferred tax asset AmGeneral sale 0.02 0.06 1.12 0.12 (0.08) Other Jun-23 FY23 final dividend 1.04 CET1 ratio of 1.12 at 30 June 2023 • Above top end of target range ~8pts capital impact on pro- forma from FY23 final dividend • ~$227m (~9pts capital impact) remains of the share buyback limit of up to $350m and is intended to be completed within 12 months Jun-23 Proforma iag#19AASB17 impacts AASB17 not expected to impact IAG's underlying economics, cash flows, capital or strategic direction Minor balance sheet impact on transition: Cost of capital approach to risk adjustment to result in a lower probability of adequacy • Onerous contracts tested at a more granular level IAG will continue to provide existing reporting metrics of GWP, NEP and Insurance Profit which will continue to form the basis of our guidance AASB17 not expected to have a material impact on profitability 19 Results Presentation | 21 August 2023 $6,500m Transitional adjustment at 30 June 2022 +$20-$110m ! AASB1023 Net Assets Risk margin to risk adjustment Onerous contracts Other AASB17 Net Assets Dotted lined are indicative of estimated ranges iag#20Nick Hawkins Chief Executive Officer Closing iag#2121 24 0% Jan-22 Feb-22 5% Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Rate Change Inflation Note: 6 month rolling inflation with home excluding fire losses Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 25% 20% Premium increases driven by inflation, perils and reinsurance DIA Home inflation (non-perils) & premium increases Pricing includes higher perils 15% Increasing natural perils and reinsurance costs and reinsurance costs 20% 3,400 Perils above/(below) allowance (RHS) 10% 19% Gross perils allowance (RHS) 2,900 5% 18% Gross RI costs (RHS) Gross RI & perils allowance/GEP (LHS) 0% 17% 2,400 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 16% 1,900 Rate Change 15% Inflation 1,400 14% DIA Motor claims inflation & premium increases 20% 13% 900 12% 15% 400 11% Pricing includes higher perils 10% and reinsurance costs 10% -100 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24e iag#22FY24 strategic focus We make your world Strategy Create a stronger, more resilient IAG People Our people are the difference: bringing our purpose to life and delivering our strategy Purpose a safer place Strategic Pillars O Grow with our customers Focus Net direct customer growth with progress towards one million goal Strong retention rates across Australia and New Zealand Build better businesses Create value through digital IIA insurance profit of at least $250m in FY24 Disciplined cost management delivering reduction in admin ratio On track for goal of $400m in FY26 claims and supply chain efficiencies Enterprise Platform rollout in NSW, ACT, Qld and NZ delivering customer and financial benefits Commercial Enablement technology program commenced Increase customer interaction via digital channels Manage our risks Ongoing uplift in risk maturity iag#23FY24 guidance' GWP growth of 'low double digit' Reported insurance margin of 13.5% to 15.5% % $ FY23 Reported margin/insurance profit 9.6 803m FY23 Underlying margin/insurance profit 12.6 1,052m FY24 Underlying insurance margin drivers Net Earned Premium growth • . Ongoing claims inflation • Higher investment income • Increase in perils allowance to $1,147m FY24 Reported margin/insurance profit 13.5 to 15.5 1,200m to 1,450m 1 Full details on IAG Guidance, Goals and Ambitions, including assumptions and dependencies, outlined in Appendix 1 23 Results Presentation | 21 August 2023 iag#24Investor Relations Mark Ley Mobile. +61 (0)411 139 134 Email. [email protected] Nigel Menezes Mobile. +61 (0)411 012 690 Email. [email protected] iag Media Amanda Wallace Mobile. +61 (0)422 379 964 Email. [email protected] Insurance Australia Group Limited ABN 60 090 739 923 Level 13, Tower Two, 201 Sussex Street Sydney NSW 2000 Australia Ph: +61 (0)2 9292 9222 iag#25Appendix 1: FY24 Guidance and Outlook IAG's confidence in its strong underlying business is reflected in guidance for FY24 which includes: GWP growth of 'low double digits'. This will be primarily rate driven to cover claims inflation, higher reinsurance costs and an increased natural peril allowance. Modest volume growth and an increase in customer numbers are expected; Reported insurance margin guidance of 13.5% to 15.5% which assumes: О О Continued momentum in the underlying performance of IAG's businesses, supported by increased investment yields; An increase in the natural peril allowance to $1,147 million, which represents an increase of $238 million or 26% on the FY23 allowance; No material prior period reserve releases or strengthening; and No material movement in macro-economic conditions including foreign exchange rates or investment markets. The reported insurance margin guidance is expected to deliver an Insurance Profit of between approximately $1.2 billion and $1.45 billion. This guidance aligns to IAG's revised aspirational goals to deliver a 15% insurance margin and a reported ROE of 13% to 14% on a 'through the cycle' basis. As previously outlined, IAG also has ambitions of: One million additional direct customers; An IIA insurance profit of at least $250 million in FY24; $400 million in value from DIA claims and supply chain cost reductions on a run-rate basis from FY26; and Further simplification and efficiencies to reduce the Group's administration ratio. These goals and ambitions are subject to assumptions and dependencies, including that there are no material adverse developments in macro-economic conditions and disruptions or events beyond IAG's control (for example, natural perils events in excess of IAG's allowances). As they span a number of years, these assumptions and dependencies have a greater level of uncertainty than the FY24 guidance. Refer to the Important Information disclaimer of this presentation for further detail. 25 Results Presentation | 21 August 2023 iag