#1NEW ZEALAND Alistair Smith CFO, New Zealand iag#2A clear market leader ~44% overall market share Strong local brands MARKET-LEADING POSITION achieved through acquisition •State, AMI (consumer) ⚫NZI (business) Affinity relationships with three of major four banks Essentially short tail business Commercial lines predominantly SME and mid-sized organisations Contributes ~20% of IAG's GWP and insurance profit IAG Investor Day | 11 April 2018 1H18 GWP mix 41% 59% 16% 43% 41% ■ Consumer ■ Business ■ Broker/Agent ■ Direct ■ Affinity iag#3NEW ZEALAND MARKET UPDATE Favourable environment. Sound economic and system growth Claims inflation || Growing population Hardening commercial challenges being met market, post-Kaikoura Large presence in consolidated market + 3 IAG Investor Day | 11 April 2018 Strong underlying performance maintained iag#4• New Zealand MARKET ISSUES Key issues in main motor and property portfolios Shortage of housing stock Targeting 100,000 new homes over 10 years Claims inflation building costs, regulation Increased urbanisation More cars in towns and cities ~1,000 new cars a Increased claim costs frequency + average cost Actions Rating actions - pricing for risk Policy revisions - e.g. methamphetamine contamination. Site deductibles Supply chain optimisation IAG Investor Day | 11 April 2018 • week Actions Underwriting: rates, excesses, policy wording Supply chain response • Fleet risk management proposition iag#5LEADERSHIP ROLE Leadership and influencer role on public policy issues Industry Memorandum of Understanding with Earthquake Commission (EQC) ¥20 Kaikoura claims over 97% closed EQC Act changes Home cover raised to NZ$150K; contents excluded; notification limit extended iag#6FUTURE OPPORTUNITIES Profitable growth in core markets CO 6 Customer Expand exclusive repair shop network • Micro SME digital solution Building out data capabilities IAG Investor Day | 11 April 2018 • • Simplification All claims transitioned to Guidewire by 2019 Harmonisation of products - reduce number by half Agility Effective partnering Flexible working practices Activity-based working in reduced property footprint iag#7ZONES iag