23 October 2012 ABN 60 090 739 923

ANNUAL GENERAL MEETING 2012

Mike Wilkins Managing Director & Chief Executive Officer

HIGHLIGHTS GUIDANCE DELIVERED AND OUTLOOK POSITIVE

SOLID GROWTH

Gross written premium (GWP) growth of 11.7%, above guidance Insurance margin of 10.6%, within guidance

STRONG BUSINESS RESULT Continued strong performance from Australia Direct Further improvement from Australia Intermediated (CGU) Significant increase in profitability from New Zealand UK close to breakeven Sound underlying performance from Asia

MOMENTUM CONTINUES INTO FY13

GWP growth guidance of 9-11% Insurance margin guidance of 11-13%

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FINANCIAL SUMMARY SIGNIFICANT UPLIFT ACROSS KEY MEASURES

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FY11 FY12 CHANGE

GWP ($M) 8,050 8,992 11.7%

NET EARNED PREMIUM ($M) 7,238 7,843 8.4%

INSURANCE PROFIT ($M) 660 832 26.1%

REPORTED MARGIN (%) 9.1 10.6 150bps

NET PROFIT AFTER TAX ($M) 250 207 -17.2%

CASH NPAT ($M) 496 583 17.5%

DIVIDEND (CPS) 16 17 6.3%

CASH ROE (%) 11.1 13.3 220bps

MCR (X) 1.58 1.74 16bps

PROGRESS MADE ON STRATEGIC PRIORITIES MOMENTUM BUILDING

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AUSTRALIA DIRECT CONTINUED STRONG GROWTH

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FY12 RESULT Strong GWP growth of 10.5% mainly in motor and

home portfolios Reflects recovery of increased reinsurance costs as

well as improved customer insights, marketing and enhanced customer experience

Reported margin of 14.3% (FY11:19.5%) lower due

to natural perils and credit spreads

Strong underlying margin of 15.2% OUTLOOK GWP growth and similar margin in FY13

1RACV is via a distribution relationship and underwriting joint venture with RACV Limited

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AUSTRALIA INTERMEDIATED (CGU) CONTINUED IMPROVEMENT IN UNDERLYING PERFORMANCE

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FY12 RESULT GWP growth of 12.0% through rate increases and

acquisitions Reported insurance margin of 10.8% (FY11: 6.5%)

Implementation of a new operating model making it

easier for brokers to do business with CGU OUTLOOK Further GWP growth in FY13 and a double digit

underlying insurance margin

NEW ZEALAND STRONG RECOVERY CONTINUES

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FY12 RESULT GWP growth of 26.6%

Insurance margin of 10.4% (FY11:0.4%)

AMI acquisition enhances our leading position in the

market OUTLOOK Further GWP growth Improved underlying profitability including synergies

from AMI integration in FY13

ASIA ESTABLISHED BUSINESSES PERFORMING WELL

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FY12 RESULT Established Malaysian and Thai businesses

performing strongly at underlying level

Developing businesses on track

– SBI General growing rapidly

– Acquisition of strategic interests in Bohai (China) and AAA Assurance (Vietnam)

OUTLOOK

Modest profit in FY13

Acquisition of Kurnia delivering market leading position in Malaysia

UNITED KINGDOM CLOSE TO BREAKEVEN

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FY12 RESULT

Close to breakeven result

Remedial plan delivering benefits with significant improvement in performance

Strategic review underway, to be completed before the end of calendar year

OUTLOOK

Modest full year profit FY13

CAPITAL, DIVIDEND AND INVESTMENTS

REGULATORY CAPITAL ROBUST POSITION, ABOVE LONG TERM BENCHMARK

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REGULATORY CAPITAL (MCR)

CASH RETURN ON EQUITY (%)

TOTAL DIVIDENDS (CPS)

1.92

1.58 1.74

FY10 FY11 FY12

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11

13

13

16 17

FY10 FY11 FY12 FY10 FY11 FY12

INVESTMENT RETURNS AFFECTED BY VOLATILE MARKETS

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TOTAL INVESTMENT PORTFOLIO – $13.0BN

$9.4bn

$3.6bn

Technical Reserves

Shareholders' Funds

TECHNICAL RESERVE RETURNS ($M)

SHAREHOLDERS’ FUNDS RETURNS ($M)

489

924

FY11 FY12

213

89

FY11 FY12 88% of portfolio in fixed interest and cash

CREATING SUSTAINABLE BUSINESS OUTCOMES FOCUS ON DIVERSITY AND RESILIENT COMMUNITIES

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SUSTAINABILITY PERFORANCE KEY INDICATORS REMAIN STRONG BUSINESS

VOLUME CARBON NEUTRAL

COMMUNITY INVESTMENT

EMPLOYEE TURNOVER

IAG has more than 16 million active policies in force

Net zero greenhouse gas emissions by cutting emissions by more than 30% since 2006

An improvement from last year

16.1m ▼ 30%

▼1.5% $9.7m

Increased from last year’s $8.7m

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OUTLOOK

1Q RESULTS AND FY13 OUTLOOK MOMENTUM CONTINUING 1Q PERFORMANCE

On track to deliver full year guidance

Strong underlying operating performance

Realisation of business initiative benefits:

– Implementation of CGU’s new operating model

– Integration of AMI in New Zealand

Guidance for FY13 assumes over the year net losses from natural perils in line with budgeted allowances of $640m, reserve releases 1-2% of net earned premium and no material movement in foreign exchange rates or investment markets.

FY13 guidance

Insurance margin 11–13%

GWP growth 9–11%

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100% owned unless indicated. 1 RACV is via a distribution relationship and underwriting joint venture with RACV Limited. 2 IAG owns 30% of AAA Assurance Corporation, based in Vietnam. 3 IAG owns 20% of Bohai Property Insurance Company Ltd, based in China. 4 IAG owns 49% of the general insurance arm of Malaysian-based AmBank Group, AmG Insurance Berhad (AmG), which trades under the AmAssurance brand. 5 Acquisition of Kurnia Insurans (Malaysia) Behard by AmG Insurance Berhad completed in September 2012. IAG owns 49% of AmG Insurance Berhad 6 IAG holds 98.6% voting rights in Safety Insurance, based in Thailand. 7 IAG has 26% ownership of SBI General Insurance Company, a joint venture with State Bank of India.