Q&A on the Proposed Transfer of Ami and Lumley

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Q&A ON THE PROPOSED TRANSFER OF AMI AND LUMLEY TO IAG IAG New Zealand Limited (IAG), AMI Insurance Limited (AMI) and Lumley General Insurance (N.Z.) Limited (Lumley) are seeking regulatory approval to transfer the insurance business of AMI and Lumley to IAG. Here are some Q&A to provide more information about the proposed transfer. Why are they seeking to do this? IAG, AMI and Lumley are all part of the same group, ultimately owned by Insurance Australia Group Limited (IAG Group). The proposed transfers are part of an internal reorganisation by IAG Group to reduce the number of licensed insurers it owns in New Zealand from three (IAG, AMI and Lumley) to one (being IAG). I am an AMI or Lumley customer – what will this mean for me? Under this proposal, if you are an AMI or Lumley customer, IAG will become the insurer under your AMI or Lumley insurance policies. IAG will assume the same obligations that AMI and Lumley currently have under your existing policies. Therefore the change will not alter the terms and conditions of your policies. It simply reflects licensing changes following IAG Group’s purchase of AMI and Lumley. What does this mean for the AMI and Lumley brands? AMI and Lumley will continue to operate as distinct brands within IAG’s business in New Zealand. IAG also operates the State and NZI brands and underwrites insurance for other institutions including ASB, BNZ, and the Cooperative Bank. What will determine whether the proposed transfer goes ahead or not? The proposed transfer is subject to the consent of the Reserve Bank of New Zealand. If the transfer is approved, when will it take place? It would be effective soon after receipt of approval from the Reserve Bank of New Zealand (anticipated late 2015). What will this mean for me if I have a claim lodged with AMI or Lumley at the time of the transfer? IAG will assume the same obligations that AMI and Lumley currently have under your existing policies. Therefore the change will not affect how your claim is handled. What does this mean for me if I have a claim lodged with Southern Response? The proposed transfer does not affect any insurance claims for which Southern Response is responsible. Is the backing I have stronger or weaker under the proposed structure? IAG has a current financial strength rating of AA- from approved rating agency Standard and Poor’s’ (AUST) Pty Limited. The same rating is currently held by AMI, therefore AMI customers will have the same level of backing under the proposed structure. Lumley currently has a Standard and Poor’s (AUST) Pty Limited financial strength rating of A+. Visit www.iag.co.nz to see IAG’s current rating and other rating information. How do I provide my feedback to IAG on the proposed transfer? There are three options for providing your feedback: By email: [email protected] By phone: 0800 424 586 In writing: The Company Secretary, IAG, Private Bag 92130, Auckland 1142 Feedback is required by Monday, 24 August 2015. A summary of all feedback will be provided to the Reserve Bank for review as part of its consideration of the proposed transfer. IAG1617/2 07/15.

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