NEWS RELEASE 23 April 2013

IAG OUTLINES STRATEGY TO SUSTAIN MARKET LEADING POSITION IN NEW ZEALAND

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Insurance Australia Group Limited (IAG) today provided an update on its New Zealand business and outlined its strategy to maintain its leading position and deliver sustainable strong returns in that market. At the briefing in Sydney today, IAG Managing Director and Chief Executive Officer Mr Mike Wilkins said New Zealand remains an attractive market and is of growing importance to the Group, representing 17% of the Group’s gross written premium (GWP). “IAG entered the New Zealand market with the acquisition of State Insurance in 2001, supplemented by the addition of the NZI intermediated business in 2003 and AMI in 2012. As a result, today we are the largest provider of general insurance in the country with an overall market share of nearly 40% and a premium base of around NZ$2 billion. “In New Zealand we are targeting GWP growth at least in line with the industry and an underlying margin1 of around 10% over the longer term, which represents a strong return on capital given the short-tail nature of the business. We anticipate the underlying margin will be slightly higher in the short to medium term, consistent with the business’ recent performance,” Mr Wilkins said. IAG’s Chief Executive Officer for New Zealand, Jacki Johnson, said the nation’s general insurance industry is mid-way through a significant period of change and that IAG is actively engaging with government on the proposed industry reforms to ensure that New Zealand retains a sound and efficient industry. “IAG is proactively communicating with our home customers about the New Zealand-wide move to fixed sum insured home policies, from an unspecified replacement basis, in response to the requirements of reinsurers. Our need2know education campaign was launched in March 2013 and is attracting significant customer interest, with over 1,000 visits to our website each day. “In our direct insurance business we have two leading brands, State and AMI, which allow us to offer a wide range of product and pricing options for customers. We continue to target at least NZ$30 million of annual synergies from the integration of the AMI business by April 2014. “Our intermediated business, NZI, is simplifying the way it does business with its customers and is focused on appropriate price and sustainable risk underwriting. NZI was recently awarded ‘Intermediated Insurance Company of the Year’, a significant achievement given the challenges of the post-earthquake environment. “We believe we have the appropriate strategies in place to ensure IAG sustains its market-leading position and strong profitability in New Zealand over the longer term,” Ms Johnson said.  

1 Underlying margin is the reported insurance margin adjusted for (1) net natural peril claim costs less related allowances and (2) prior period reserve movements.

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About Insurance Australia Group Insurance Australia Group (IAG) is the parent company of an international general insurance group, withoperations in Australia, New Zealand and Asia. Its current businesses underwrite over $9 billion of premium perannum, selling insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC and Swann(Australia); NZI, State and AMI (New Zealand); and Safety and NZI (Thailand). For further information please visitwww.iag.com.au.

Corporate Affairs Andrew Tubb T +61 (0)2 9292 3134 M +61 (0)411 014 771 E andrew.tubb@iag.com.au

Investor RelationsSimon Phibbs T +61 (0)2 9292 8796 M +61 (0)411 011 899 E simon.phibbs@iag.com.au

Insurance Australia Group Limited ABN 60 090 739 923 388 George Street Sydney NSW 2000 Australia T +61 (0)2 9292 9222 www.iag.com.au

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23 April 2013 ABN 60 090 739 923

IAG IN FOCUS NEW ZEALAND

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IMPORTANT INFORMATION

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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.

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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 F

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IAG OVERVIEW

Mike Wilkins

Managing Director and Chief Executive Officer

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IAG STRATEGIC PRIORITIES A CLEAR FOCUS ON AUSTRALIA, NEW ZEALAND AND ASIA

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168

475

769

1,040 1,082 1,087 1,107 1,137 1,187 1,207 1,247

1,552

1,912

4%

11%

13% 14%

15% 15% 15% 15% 14% 14%

13%

14%

17%

- 100 200 300 400 500 600 700 800 900

1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1H13 (Ann'd)

New Zealand GWP (NZ$m) % Group GWP (ex-UK)

2001:

2003:

2012:

NEW ZEALAND NOW REPRESENTS NEARLY 17% OF THE GROUP’S GWP

IAG NEW ZEALAND GROWTH THROUGH ACQUISITION

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IAG IN NEW ZEALAND LEADERSHIP IN A CHANGING MARKET

Jacki Johnson

Chief Executive Officer New Zealand

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IAG’S NEW ZEALAND EXECUTIVE TEAM LEADING AND SECURING THE NEW ZEALAND MARKET

Jacki Johnson Chief Executive Officer

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Dan Coman Chief Financial Officer

Dean MacGregor EGM Canterbury Recovery

Karl Armstrong EGM NZI

Craig Olsen EGM Direct Insurance

Tanya Hadfield EGM People & Culture

Allan Dornan Chief Operating Officer

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NEW ZEALAND ECONOMY SOUND ECONOMIC FUNDAMENTALS

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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 F

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26%

18%

5%

27%

10%

9% 5%

Home Private Motor Other Personal

Commercial Property Commercial Vehicles Liability

Other Commercial

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IAG participates in an available GWP pool of NZ$5bn

Essentially short-tail in nature

Growth of ~35% since 2009, driven by significant rate increases to recover post-earthquake increase in reinsurance costs

Reinsurance capacity continues to be available

EQC - statutory scheme covering land and first NZ$100,000 of a home in event of an earthquake

High insurance penetration of 77%

Long tail classes remain government-run (Accident Compensation Corporation (ACC))

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

Source: ICNZ, IAG estimates (calendar 2012)

MARKET SPLIT BY SEGMENT - 2012

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39%

23%

9%

6%

4% 3%

3% 3%

10%

IAG Vero Lumley QBE Tower AIG FMG Allianz Other

COMPETITIVE LANDSCAPE IAG A CLEAR LEADER IN A CONSOLIDATED MARKET

2012 – NZ$5BN

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Source: ICNZ, IAG estimates (calendar 2012)

0

1

2

3

4

5

2009 2010 2011 2012

NEW ZEALAND GENERAL INSURANCE MARKET

NZ$

bn

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REGULATION AND REFORM ACTIVE ENGAGEMENT

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Industry Risks Customers

Prudential regulation and licensing Reform of Earthquake Commission Act Fire services and funding

Land-use planning and consents Earthquake-prone buildings

‘Unfair’ contract terms Fair trading Privacy law

Broad and robust engagement with government on reforms

Focus on maintaining a sound and efficient insurance industry,

with effective management of risk

Support framework that delivers contractual certainty for insurers

and customers

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44%

44%

12%

Intermediated

Direct

Affinity 66%

34% Personal

Commercial

GWP BY CHANNEL GWP BY CLASS

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PREMIUM BASE OF ~NZ$2BN

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

Source: IAG results, six months to 31 December 2012 For

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Underlying performance has been strong, throughout a challenging period

– Dip in FY11 reflects post-earthquake reinstatement costs

Pass-through of steep increase in reinsurance costs

– From c.8% of GWP in FY10, to 15% in 1H13

Reported performance has reflected:

– Impact of earthquakes in FY11

– Reserve strengthening in 1H13

Meeting ROE target

BUSINESS PERFORMANCE STRONG UNDERLYING MARGIN

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

14.7%

0.4%

10.4% 8.3%

11.2%

8.5%

11.8% 11.5%

FY10 FY11 FY12 1H13

Reported Margin Underlying Margin* For

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NEW ZEALAND STRATEGY CLARITY OF PURPOSE AND TARGETS

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PURPOSE AMBITION STRATEGY TARGETS What we stand for: As New Zealand’s leading

general insurer, our purpose is to help people manage risk and recover from the hardship of unexpected loss

Our ambition is: To be New Zealand’s

insurer of choice by being the easiest to interact with

Our strategy is: To deliver sustainable,

customer-focused, diverse general insurance operations that create a superior experience for our customers, and achieve a superior operational performance

Our financial targets include: Underlying long term margin

of c.10% GWP growth at least in line

with the industry Our customer targets include: Net Promoter Score of 50% Customer retention

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HORIZON 1 Strengthen underlying business Integrate AMI / initiate synergy realisation Disciplined underwriting / pricing Product development Growing people and capabilities HORIZON 2 Cost focus / simplification Complete AMI synergy realisation Consolidate and upgrade systems, infrastructure Engage with, and respond to, regulatory changes Progress towards completion of Canterbury earthquake

claims Leverage scale through focus on customer service HORIZON 3 Consider new opportunities

STRATEGIC HORIZONS A FOCUS ON SUSTAINABLE AND PROFITABLE GROWTH

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FY12 FY13 FY14 FY15

1. Integrate AMI and accelerate value

2. Consolidate and upgrade systems and infrastructure

3. Consider new opportunities

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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

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DIRECT INSURANCE DIVISION

Craig Olsen Executive General Manager Direct Insurance Division

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28%

27% 14%

13%

11%

7%

State AMI Tower AA FMG Others

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DIRECT INSURANCE INDUSTRY IN NEW ZEALAND LEADING POSITION IN A NZ$1.5BN MARKET

DIRECT INSURANCE MARKET SHARES

6%

94%

SME Personal

SPLIT OF IAG’S DIRECT BUSINESS

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

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Two strong brands with long pedigrees:

– State Insurance – founded by the New Zealand government in 1905

– AMI – origins as a mutual, dating back to 1926

Distinct brands with differing distribution attributes

Collective market-leading position:

– 55% market share

– Nearly 1 million customers

– Around 2.2 million policies

– Over 1,500 employees

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IAG DIRECT INSURANCE IN NEW ZEALAND CRITICAL MASS SECURES POSITION

SHARE OF GWP

HOME & CONTENTS 45% 51%

MOTOR 40% 47%

OTHER 15% 2%

CHANNEL MIX

CALL CENTRE 66% 39%

BRANCH 19% 60%

INTERNET 15% 1%

Six months to 31 December 2012

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Customer retention

Profitable customer growth

Scope and scale opportunities

– Customer service

– Operating efficiencies

Improved market coverage (via two-brand strategy)

Business transformation

STRATEGIC PRIORITIES SUSTAINED MARKET LEADERSHIP

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STRATEGIC PRIORITIES SUSTAINED OUTCOMES

MARKET LEADING POSITION

STRONG PROFITABILITY

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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

– Travel insurance launched

Rationalise and focus marketing activity to improve market coverage and reduce duplication

Home insurance product changes

Excess options and operational initiatives to improve customer experience

AMI brand position strengthened

SHARE OF GWP

NORTH ISLAND 77% 63%

SOUTH ISLAND 23% 37%

Six months to 31 December 2012

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80 INTEGRATION PROJECTS UNDER WAY OR COMPLETE

AMI INTEGRATION TRACKING TO PLAN

Notable milestones to date: Shared services integration Employee contractual transfer complete HR systems and processes largely integrated AMI marketing reinvigoration AMI travel launched Improved claims processes Procurement and supplier contracts consolidated

NZ$30M BY APRIL 2014 SYNERGY BENEFITS BREAKDOWN

42%

16%

29%

13%

Claims & Claims Services Distribution & Procurement

Technology & Reinsurance Other For

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CANTERBURY RECOVERY VIDEO UPDATE

Dean MacGregor Executive General Manager Canterbury Recovery

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NZI (INTERMEDIATED)

Karl Armstrong Executive General Manager, NZI

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INTERMEDIATED INSURANCE IN NEW ZEALAND LEADING POSITION IN A NZ$3.5BN MARKET

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

NZI holds a strong position with a 32% market share:

– New Zealand’s oldest insurance company, established in 1859

– GWP of around NZ$1.1bn

~80% written through broker network

~20% written through affinity (bank) partners

– Over 800 FTE employees

– 2012 “Intermediated Insurance Company of the Year”

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32%

27%

12%

9%

5%

4% 4%

7%

IAG Vero Lumley QBE AIG Allianz ACE Other

Source: ICNZ, IAG estimates (calendar 2012) For

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NZI – BUSINESS OVERVIEW STRONG PERSONAL LINES CONTRIBUTION

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58%

42%

Commercial

Personal

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

Source: IAG results, six months to 31 December 2012

35%

15% 14%

12%

12%

6% 5%

1%

Commercial Property

Home Owners

Personal Motor Vehicle

Commercial Motor Vehicle

Contents

Liability

Other Commercial

Other Personal

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NZI STRATEGIC PRIORITIES DRIVING FROM THE INSIDE OUT

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Appropriate pricing and sustainable risk underwriting

Strong relationships Drive efficiencies through

simplification / business improvement / technology

Drive consistency across financial institutions and the broker business and in offerings to the end customer

Best people / flexibility to respond to changing business, customer and economic needs

Leverage our scale and expertise

MARKET LEADING POSITION

STRONG PROFITABILITY

Industry leadership

Results driven

Customer focus

Future proofing

SUSTAINED OUTCOMES STRATEGIC PRIORITIES

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STEPPING UP TO THE CHALLENGES ‘CAN DO’

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Reorganisation of team to enhance account management

Sophisticated pricing precision

Driving efficiency and continuous improvements

Roll out personal lines B2B (Integrate) / website refresh

need2know partner leverage’

1. Affordability

2. Capacity

3. Home insurance changes

THE BIG THREE

KEY INITIATIVES

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PANEL DISCUSSION

Jacki Johnson Chief Executive Officer New Zealand

David Priebe Vice Chairman Guy Carpenter & Company LLC

Edouard Schmid Head of Property & Speciality Swiss Re

Julie Batch Group General Manager, Reinsurance IAG

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SUMMARY & OUTLOOK

Jacki Johnson

Chief Executive Officer New Zealand

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SUSTAINED OUTCOMES MARKET LEADING POSITION STRONG PROFITABILITY

Effective and direct engagement with government, regulators, industry, business

Simplicity, fast execution and the customer

Canterbury rebuild

need2know campaign

Leverage scale and expertise

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SUMMARY CLEARLY DEFINED GOALS AND STRATEGIES

DIRECT INSURANCE Customer growth and retention Two-brand, ‘best of both worlds’ approach Complete AMI integration, deliver synergies

INTERMEDIATED INSURANCE Focus on pricing and sustainable risk underwriting

Increase flexibility and drive efficiencies

Relationship management

Long term underlying margin of c.10%

GWP growth at least in line with industry

Customer retention

Net promoter score of 50% F

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A MARKET LEADING PRESENCE IN NEW ZEALAND

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