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MANAGEMENT ANALYSIS, FINANCIAL statemeNts & OTHER INFormatION REPORT OF THE Board & EXECUTIVE STAKEHOLDER REPORT 36O IPB Stakeholder & Annual Report 2012 & Annual Report Stakeholder OUR COMMITMENT OUR PEOPLE RONAN FOLEY | ENDA DEVINE | JULIA A sustainable business depends on meeting the needs of all Stakeholders. Our CARMICHAEL | EMILY CHAMBERS | CONN CLEARY continued success depends on meeting TOM DONLON | AOIFE KEENAN | MAIREAD CONwaY and beating expectations. In turn, this means we can truly make a difference to ALAN WOODS | COLM BRYSON | ENDA BRAZEL communities, recognising and rewarding local initiatives in building a better Ireland. JOE REYNOLDS | CAROLINE YOUNG | EDEL BURKE In 2012, IPB delivered its first Social LORRAINE SCANLAN | MYLES BRESLIN | LAURENCE Dividend focusing on educational and community initiatives. CANNING | PETER DOYLE | JOHN SHERIDAN | BARRY WALLacE | SEAN MURPHY | GRAHAM ORR | DEIRDRE RYAN | ADRIAN LEONARD | DAVID CONNOLLY DONAGH REGAN | MAIREAD HEALY | AMY BYRNE “To build a world-class PADDY MORAN | PAUL DOYLE | RORY WALSH MARIA CARROLL | MARIAN WEstON | NAILA ZAFFER business that puts JACINta GILL | ANN RICE | ALISON KINGstON | FIONA you at the centre of CAREY | BRENDAN MAHADY | GER RYAN | CAROLINE QUINN | IAN VELTOM | LOUISE CONLON | JODY our organisation and MURRAY | ANN MARIE KENNEDY | CHristiNE WATERS GER FALLON | JIM LOUGHRAN | AUDREY MCGINLEY society at the heart FIONA MCALEENAN | FIONA WOLFE | ANNE MARIE SHERIDAN | RONAN FOX | ANTOINETTE READE | ELLEN of our goals.” O’CARROLL | PETER KELLY | ADAM SYKES | YVONNE LOUGHRAN | Rita KENNY | MARGARET O’CONNOR Ita THORNTON | JOANNA PAWLAK | MICHELLE RICE PAUL NAVARRO | NICOLA FEWER | PAULINA SOBCZAK OUR MUTUAL VISION As a Mutual we care about people. BRONAGH BARRY | MARIA FINGLETON | PAT MCGINLEY We understand that our progress is dependent on all our Stakeholders NIAMH CORRIGAN | FRANK CUNEEN | DaVE MALONE including our Members, staff, broker LIAM KILMartiN | ROSEMARY RYAN | PAM FINNEGAN partners, clients and the community at large. We are committed to delivering ANN FEELY | FIONA MUrtaGH | GERRY MCAULIFFE innovative, world-class business practices JOHN MONK | SARAH CONNOLLY | CatHERINE HAYES underlined by our ethical approach and our clear vision. DONNA MISKELL | CONOR MCCOUrt | SEAN HARDING STAKEHOLDER REPORT STAKEHOLDER Contents Foreword 2 A Commitment to Quality 4 360 Degree View 6 Our Members 8 Our People 12 Our Clients 15 Our Partners 18 Our Government 19 Our Peers 21 Our Society 22 PBD Grading Strategy 26 CSE – Working to Make a Difference 28 IPB CSE Framework Themes 30 Conclusion 40 IPB 360 FOREWORD It gives me great pleasure to present to you our second combined Stakeholder and Annual Report, IPB 360. Last year, we produced the combined Report to firmly communicate our commitment to all of you who hold a stake in the wellbeing and success of IPB Insurance. The sheer scale and diversity of our Stakeholder audience is the reason we have titled this Report IPB 360, representing our Members at the centre of our Mutual through to our Members’ ultimate patrons, the Irish public. In my Report to you last year I expressed to produce our Annual and Stakeholder my conviction that those of us in leadership Reports as one. We see our business as one positions must use our influence in element of our overall corporate mission and progressing the corporate movement for that is why we have taken a full circle approach, social engagement. or in other words, a 360 degree view. I am delighted to report that there has been CSE Framework – The Gathering a significant increase in activity regarding During the year we began detailing our engagement with all our Stakeholders plans for our Diaspora campaign, the first of throughout the year and we are making solid our five themed categories within the CSE progress in our Corporate Social Engagement Framework. Following extensive discussion (“CSE”) initiatives through our CSE Framework. and collaboration with The Gathering Ireland, it was agreed that a joint approach would be Social Engagement – A pillar of our adopted. IPB committed €1m towards funding business model Gathering events nationwide. It is my firm belief that truly successful organisations are by their nature embedded In response, the Government agreed to in their communities and place strategic match the IPB commitment creating a €2m importance on the principles of CSE. For joint partnership fund, which was officially socially responsible organisations, these launched by An Taoiseach Enda Kenny, T.D. principles must be an integral element of the The public-private partnership approach has overall business plan and not merely a cheque supported over 1,300 communities across writing exercise. Ireland further strengthening The Gathering’s momentum. I am delighted with the positive At IPB, we have an absolute commitment to response to the initiative and with the seeing that CSE features as a strategic element feedback from community leaders, of which within our on-going operational and business nearly 7,500 attended Gathering planning planning. I believe that to ensure we make meetings nationwide. The positivity around effective, long-term social impacts we must the country is particularly satisfying given the build our social objectives into our overall current economic climate. business plan aligned with our operational and commercial goals. Highlights of the year Notwithstanding the scale and impact Underlining our commitment, during the year nationally of The IPB Gathering Fund, we have we established CSE as a departmental function achieved significant progress in rolling out within the Company and the establishment of our CSE activity. A noteworthy development a Steering Committee to oversee the overall during the year included our decision to implementation and governance of the become title partners with Pride of Place, Programme. supporting and recognising community spirit As you will note, this Report has been and volunteerism. We see the IPB Pride of Place compiled along with our annual financial Awards as the perfect platform to encourage results and Report of the Board and Executive greater community cohesion and I would to make it clear that we identify that our like to recognise the work of Co-operation business goals and obligations are built not Ireland as event coordinators for their huge only around our commercial Stakeholders, but contribution to communities across the island for all. That is why we have made the decision over the past decade. 2 IPB Insurance Stakeholder & Annual Report 2012 STAKEHOLDER REPORT STAKEHOLDER Looking ahead, we are excited about the I hope you enjoy reading this Report and ask further roll-out of our CSE Programme for you to remember that it takes just one person 2013 and beyond. This year will see increased to make a difference and that person is you. activity in the areas of Education, Sport, Youth & Community and Business Innovation as we seek to develop new and existing relationships with leading organisations in these sectors. On behalf of our Local Authority Members we look forward to making a difference to Ronan Foley communities nationwide on their behalf. Chief Executive IPB Insurance Stakeholder & Annual Report 2012 3 IPB 360 A COMMITMENT to QUALITY At IPB, we are committed to achieving the highest standards in all of our business practices. One way in which we measure our performance is by demonstrating compliance with ISO 9001, the International Standard for Quality. We initially registered our quality management system to ISO 9001 in 2002 and have successfully retained our registration ever since. The National Standards Authority of Ireland (“NSAI”) undertook the annual surveillance audit of the Quality Management System (“QMS’’) on 17 October 2012. ISO 9001 is the foremost quality management standard in the world and it is used by hundreds of thousands of organisations around the globe. It sets out the essential requirements of a practical and effective QMS, which is ultimately a system for minimising risks and maximizing opportunities. ISO 9001 sets out eight key principles of an effective QMS including aspects that are part of our overall corporate philosophy, including customer focus, leadership, staff engagement and fact-based pragmatic decision making. The focus of the standard is to foster an organisational culture of continual improvement, identifying challenges and opportunities, both real and potential, and responding appropriately. At IPB, we feel one of the primary benefits is the confidence that we are always working to the highest international standards, which is nothing less than you deserve. European Risk Management Awards IPB has a clear mission to build a world-class sustainable business, and we were delighted that our progress was recognised in 2012 at the European Risk Management Awards. The Awards highlight and reward organisations that demonstrate exceptional efforts and measurable results in improving risk management strategies. IPB’s Risk Manager, Rosemary Ryan was presented with the award in recognition of the Company’s work on risk management in the public sector, the only Irish company to be shortlisted as finalists. IPB were recognised at the European Risk Awards 2012. 4 IPB Insurance Stakeholder & Annual Report 2012 Vision REPORT STAKEHOLDER > Strategy > Engagement > Strategy INSIGHT Health & Safety Technical Working Group The Safety Management System is the result of two years of hard work carried out by the Health and Safety Technical Working Group (“H&STWG”)