23 April 2013 ABN 60 090 739 923

IAG IN FOCUS NEW ZEALAND IMPORTANT INFORMATION

This presentation contains general information in summary form which is current as at 23 April 2013. It presents financial information on both a statutory basis (which has been prepared in accordance with Australian accounting standards, which comply with International Financial Reporting Standards (IFRS)) and non-IFRS basis. This presentation is not a recommendation or advice in relation to Insurance Australia Group Limited (“IAG”) or any product or service offered by IAG’s subsidiaries. It is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision. It should be read in conjunction with IAG’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange which are also available at www.iag.com.au. No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, IAG, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of IAG, including the merits and risks involved. Investors should consult with their own professional advisors in connection with any acquisition of securities. The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward-looking statements” or statements about “future matters”, the information reflects IAG’s intent, belief or expectations at the date of this presentation. IAG gives no undertaking to update this information over time (subject to legal or regulatory requirements). Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause IAG’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Neither IAG, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance. This presentation does not constitute an offer to issue or sell securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this presentation outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of IAG. Local currencies have been used where possible. Prevailing current exchange rates have been used to convert local currency amounts into Australian dollars, where appropriate. All references starting with “1H” refer to the six months ended 31 December, being the first half of IAG’s financial year. For example, “1H13” refers to the six months ended 31 December 2012. All references starting with “2H” refer to the six months ended 30 June, being the second half of IAG’s financial year. For example, “2H13” refers to the six months ended 30 June 2013. All references starting with “FY” refer to the financial year ended 30 June. For example, “FY13” refers to the year ended 30 June 2013.

2 AGENDA

WELCOME AND IAG OVERVIEW . Mike Wilkins

IAG IN NEW ZEALAND: LEADERSHIP IN A CHANGING MARKET . Jacki Johnson

DIRECT INSURANCE . Craig Olsen

CANTERBURY EARTHQUAKE RECOVERY UPDATE . Video

NZI (INTERMEDIATED) . Karl Armstrong

PANEL DISCUSSION - REINSURANCE . David Priebe – Guy Carpenter . Edouard Schmid – Swiss Re . Julie Batch – IAG Reinsurance

SUMMARY AND Q&A . Mike Wilkins . Jacki Johnson

3 IAG OVERVIEW

Mike Wilkins Managing Director and Chief Executive Officer IAG STRATEGIC PRIORITIES A CLEAR FOCUS ON AUSTRALIA, NEW ZEALAND AND ASIA

5 IAG NEW ZEALAND GROWTH THROUGH ACQUISITION

2,000 17% 2001: 1,900 15% 15% 15% 1,800 15% 14% 1,700 14% 14% 13% 14% 1,600 13% 1,500 1,400 1,300 11% 2003: 1,200 1,100 1,000 900 1,912 800 1,552 700 4% 1,247 2012: 600 1,137 1,187 1,207 500 1,040 1,082 1,087 1,107 400 769 300 200 475 100 168 - NEW ZEALAND NOW FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1H13 REPRESENTS NEARLY 17% (Ann'd) OF THE GROUP’S GWP New Zealand GWP (NZ$m) % Group GWP (ex-UK)

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IAG IN NEW ZEALAND LEADERSHIP IN A CHANGING MARKET

Jacki Johnson Chief Executive Officer New Zealand IAG’S NEW ZEALAND EXECUTIVE TEAM LEADING AND SECURING THE NEW ZEALAND MARKET

Jacki Johnson Chief Executive Officer

Dan Coman Dean MacGregor Karl Armstrong Craig Olsen Tanya Hadfield Allan Dornan Chief Financial Officer EGM Canterbury Recovery EGM NZI EGM Direct Insurance EGM People & Culture Chief Operating Officer

8 NEW ZEALAND ECONOMY SOUND ECONOMIC FUNDAMENTALS

. 2012 GDP growth of 2.5%, forecast average approaching 3% over next two years . Economic growth is solid and broad-based with increases across almost all industries . Canterbury recovery is a key driver – more protracted than originally anticipated . New Zealand’s economic outlook (GDP growth) is similar to Australia

New Zealand Australia New South Wales Victoria

2.7%¹ 2.6%¹ 2.75%² 2.5%²

¹ Consensus Economics (April 2013), calendar 2013 ² State Treasury half-yearly reviews (December 2012), financial year to 30 June 2013

9 OVERVIEW OF THE INSURANCE MARKET SHORT TAIL MARKET – NZ$5BN GWP

. IAG participates in an available GWP pool of NZ$5bn MARKET SPLIT BY SEGMENT - 2012

. Essentially short-tail in nature 5% 9% . Growth of ~35% since 2009, driven by significant rate 26% increases to recover post-earthquake increase in reinsurance costs 10%

. Reinsurance capacity continues to be available

. EQC - statutory scheme covering land and first NZ$100,000 18% of a home in event of an earthquake 27% 5% . High insurance penetration of 77%

. Long tail classes remain government-run (Accident Home Private Motor Other Personal Compensation Corporation (ACC)) Commercial Property Commercial Vehicles Liability Other Commercial

Source: ICNZ, IAG estimates (calendar 2012)

10 COMPETITIVE LANDSCAPE IAG A CLEAR LEADER IN A CONSOLIDATED MARKET

2012 – NZ$5BN NEW ZEALAND MARKET

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10% 3% 4 3% 3% 39% 4% 3 NZ$bn 6% 2 9%

1 23%

0 2009 2010 2011 2012 IAG Vero Lumley QBE Tower AIG FMG Allianz Other

Source: ICNZ, IAG estimates (calendar 2012) Source: ICNZ, IAG estimates

11 REGULATION AND REFORM ACTIVE ENGAGEMENT

Broad and robust engagement Focus on maintaining a sound Support framework that delivers with government on reforms and efficient insurance industry, contractual certainty for insurers with effective management of risk and customers

Industry Risks Customers

. Prudential regulation and licensing . Land-use planning and consents . ‘Unfair’ contract terms . Reform of Earthquake Commission Act . Earthquake-prone buildings . Fair trading . Fire services and funding . Privacy law

12 OVERVIEW OF IAG’S NEW ZEALAND BUSINESS WELL-BALANCED PORTFOLIO WITH STRONG MARKET SHARES

PREMIUM BASE OF ~NZ$2BN

GWP BY CLASS GWP BY CHANNEL

12%

34% Personal Intermediated 44% Commercial Direct

Affinity 66% 44%

Source: IAG results, six months to 31 December 2012

13 BUSINESS PERFORMANCE STRONG UNDERLYING MARGIN

. Underlying performance has been strong, throughout a challenging period

– Dip in FY11 reflects post-earthquake 11.8% reinstatement costs 11.2% 11.5% . Pass-through of steep increase in reinsurance costs 8.5% – From c.8% of GWP in FY10, to 15% in 1H13 14.7% . Reported performance has reflected: 10.4% – Impact of earthquakes in FY11 8.3% – Reserve strengthening in 1H13

. Meeting ROE target 0.4%

FY10 FY11 FY12 1H13

* Underlying margin = reported margin adjusted for: . All prior period reserve movements . Natural perils vs. allowances Reported Margin Underlying Margin*

14 NEW ZEALAND STRATEGY CLARITY OF PURPOSE AND TARGETS

PURPOSE AMBITION STRATEGY TARGETS

What we stand for: Our ambition is: Our strategy is: Our financial targets include:

. As New Zealand’s leading . To be New Zealand’s . To deliver sustainable, . Underlying long term margin general insurer, our insurer of choice by being customer-focused, of c.10% purpose is to help people the easiest to interact with diverse general insurance . GWP growth at least in line manage risk and recover operations that create a with the industry from the hardship of superior experience for unexpected loss our customers, and Our customer targets include: achieve a superior operational performance . Net Promoter Score of 50% . Customer retention

15 STRATEGIC HORIZONS A FOCUS ON SUSTAINABLE AND PROFITABLE GROWTH

HORIZON 1 . Strengthen underlying business 3. Consider new . Integrate AMI / initiate synergy realisation opportunities . Disciplined underwriting / pricing . Product development 2. Consolidate and upgrade systems . Growing people and capabilities and infrastructure HORIZON 2 . Cost focus / simplification . Complete AMI synergy realisation Enterprise value 1. Integrate AMI and . Consolidate and upgrade systems, infrastructure accelerate value . Engage with, and respond to, regulatory changes . Progress towards completion of Canterbury earthquake claims . Leverage scale through focus on customer service HORIZON 3 FY12 FY13 FY14 FY15 . Consider new opportunities

16 HOME INSURANCE CHANGES AWARENESS CAMPAIGN LEADS THE INDUSTRY

CHANGE . Most New Zealand home policies written on unspecified replacement basis . Reinsurers require greater visibility of total exposures - move to specified sum insured . Change across most of industry – up to 1.4m homeowners STRATEGY . Secure accurate sum insured

. Retain customers / protect reputation by helping homeowners

with the change

. Position IAG as being the helpful, knowledgeable, leading and trusted insurer TACTICS . 360O public awareness and customer communication campaign under IAG banner with full brand / partner integration

17 DIRECT INSURANCE DIVISION

Craig Olsen Executive General Manager Direct Insurance Division DIRECT INSURANCE INDUSTRY IN NEW ZEALAND LEADING POSITION IN A NZ$1.5BN MARKET

DIRECT INSURANCE MARKET SHARES SPLIT OF IAG’S DIRECT BUSINESS

7% 6%

11% 28%

13%

14% 27% 94%

State AMI Tower AA FMG Others SME Personal

Source: ICNZ, IAG estimates (calendar 2012) Source: IAG results, six months to 31 December 2012

19 IAG DIRECT INSURANCE IN NEW ZEALAND CRITICAL MASS SECURES POSITION

. Two strong brands with long pedigrees:

– – founded by the New Zealand government in 1905 SHARE OF GWP – AMI – origins as a mutual, dating back to 1926 HOME & CONTENTS 45% 51% . Distinct brands with differing distribution attributes MOTOR 40% 47% . Collective market-leading position: OTHER 15% 2% – 55% market share CHANNEL MIX – Nearly 1 million customers CALL CENTRE 66% 39% – Around 2.2 million policies BRANCH 19% 60% – Over 1,500 employees INTERNET 15% 1%

Six months to 31 December 2012

20 STRATEGIC PRIORITIES SUSTAINED MARKET LEADERSHIP

STRATEGIC PRIORITIES SUSTAINED OUTCOMES . Customer retention

. Profitable customer growth MARKET LEADING . Scope and scale opportunities POSITION

– Customer service

– Operating efficiencies

. Improved market coverage (via two-brand STRONG PROFITABILITY strategy)

. Business transformation

21 TWO-BRAND STRATEGY BUILDING ON THE BEST OF BOTH WORLDS

PROVIDING CHOICE FOR CUSTOMERS ON WHEN AND HOW TO DO BUSINESS WITH US

. Opportunity for new products to AMI customers SHARE OF GWP

– Travel insurance launched 77% 63% NORTH ISLAND . Rationalise and focus marketing activity to improve 23% 37% market coverage and reduce duplication SOUTH ISLAND

. Home insurance product changes

. Excess options and operational initiatives to improve Six months to 31 December 2012 customer experience

. AMI brand position strengthened

22 AMI INTEGRATION TRACKING TO PLAN

SYNERGY BENEFITS BREAKDOWN NZ$30M BY APRIL 2014

80 INTEGRATION PROJECTS UNDER WAY OR 13% COMPLETE

Notable milestones to date: 42% . Shared services integration 29% . Employee contractual transfer complete . HR systems and processes largely integrated

. AMI marketing reinvigoration 16% . AMI travel launched . Improved claims processes Claims & Claims Services Distribution & Procurement . Procurement and supplier contracts consolidated Technology & Reinsurance Other

23 CANTERBURY RECOVERY VIDEO UPDATE

Dean MacGregor Executive General Manager Canterbury Recovery NZI (INTERMEDIATED)

Karl Armstrong Executive General Manager, NZI INTERMEDIATED INSURANCE IN NEW ZEALAND LEADING POSITION IN A NZ$3.5BN MARKET

. Intermediated market of NZ$3.5bn GWP, with significant INTERMEDIATED INSURANCE MARKET SHARES personal lines component

. NZI holds a strong position with a 32% market share: 7% 4% – New Zealand’s oldest insurance company, established in 4% 32% 1859 5%

– GWP of around NZ$1.1bn 9%

. ~80% written through broker network

. ~20% written through affinity (bank) partners 12%

– Over 800 FTE employees 27%

– 2012 “Intermediated Insurance Company of the Year” IAG Vero Lumley QBE AIG Allianz ACE Other

Source: ICNZ, IAG estimates (calendar 2012)

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NZI – BUSINESS OVERVIEW STRONG PERSONAL LINES CONTRIBUTION

NZI GWP SPLIT – BY MARKET SEGMENT NZI GWP SPLIT – BY PRODUCT 1%

Commercial Property 5% 6% Home Owners

Commercial 12% 35% Personal Motor Vehicle 42% Personal Commercial Motor Vehicle

Contents 58% 12% Liability

14% 15% Other Commercial

Other Personal

Source: IAG results, six months to 31 December 2012

27 NZI STRATEGIC PRIORITIES DRIVING FROM THE INSIDE OUT

STRATEGIC PRIORITIES SUSTAINED OUTCOMES Industry leadership . Appropriate pricing and sustainable risk underwriting Results driven . Strong relationships MARKET LEADING . Drive efficiencies through POSITION Customer focus simplification / business improvement / technology Future proofing . Drive consistency across financial institutions and the broker business and in offerings to the end customer . Best people / flexibility to respond to STRONG PROFITABILITY changing business, customer and economic needs . Leverage our scale and expertise

28 STEPPING UP TO THE CHALLENGES ‘CAN DO’

THE BIG THREE . Reorganisation of team to enhance account management 1. Affordability KEY . INITIATIVES Sophisticated pricing precision 2. Capacity . Driving efficiency and continuous 3. Home insurance changes improvements

. Roll out personal lines B2B (Integrate) / website refresh

. need2know partner leverage’

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PANEL DISCUSSION

Jacki Johnson David Priebe Edouard Schmid Julie Batch Chief Executive Officer Vice Chairman Head of Property Group General Manager, New Zealand Guy Carpenter & & Speciality Reinsurance Company LLC Swiss Re IAG

SUMMARY & OUTLOOK

Jacki Johnson Chief Executive Officer New Zealand SUMMARY CLEARLY DEFINED GOALS AND STRATEGIES

SUSTAINED OUTCOMES DIRECT INSURANCE . MARKET LEADING POSITION STRONG PROFITABILITY Customer growth and retention . Two-brand, ‘best of both worlds’ approach . Effective and direct engagement with government, regulators, industry, . Complete AMI integration, deliver synergies business

. Simplicity, fast execution and the customer

. Canterbury rebuild INTERMEDIATED INSURANCE . Focus on pricing and sustainable risk underwriting . need2know campaign . Increase flexibility and drive efficiencies . Leverage scale and expertise . Relationship management

Long term underlying GWP growth at least in Customer Net promoter score margin of c.10% line with industry retention of 50%

32 A MARKET LEADING PRESENCE IN NEW ZEALAND

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