Investor Presentaiton
Claims 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
Reserve (releases)/strengthening
(1.3%)
(5.9%)
(1.3%)
(1.1%)
(3.7%)
(1.1%)
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%
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