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Investor Presentaiton

Appendix 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
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