STATEMENT OF COMPREHENSIVE INCOME - IAG Limited

1 STATEMENT OFCOMPREHENSIVE INCOMEFOR THEYEARENDED30 JUNE 2015 NOTECONSOLIDATED20152014$m$mPremium revenue411,5259,721 Outwards reinsurance premium expense5(1,196)(1,077)Net premium revenue (i)10,3298,644 Claims expense5(9,363)(7,058)Reinsurance and other recoveries revenue42,4221,857 Net claims expense (ii)10(6,941)(5,201)Acquisition costs5(1,750)(1,386)Reinsurance commission revenue45251 Net acquisition costs(1,698)(1,335)Other underwriting expenses5(924)(752)Fire services levies5(225)(216)Underwriting expenses (iii)(2,847)(2,303)Underwriting profit/(loss) (i) + (ii) + (iii)5411,140 Investment INCOME on assets backing insurance liabilities 4585459 Investment expenses on assets backing insurance liabilities5(23)(20)Insurance profit/(loss)1,1031,579 Investment INCOME on shareholders' funds4231400 Fee and other income4187199 Share of net profit/(loss) of associates46(8)Finance costs5(107)(98)Fee based, corporate and other expenses5(465)(256)Net INCOME /(loss) attributable to non-controlling interests in unitholders' funds5(6)(14)Profit/(loss) before INCOME tax9491,802 INCOME tax (expense)/credit6(119)(472)Profit/(loss) for the year8301,330 OTHER COMPREHENSIVE INCOME AND (EXPENSE), NET OF TAXI tems that will not be reclassified to profit or loss:Remeasurements of defined benefit plans2226 INCOME tax on items that will not be reclassified to profit or loss(7)(8)1518 Items that may be reclassified subsequently to profit or loss.

2 Net movement in foreign currency translation reserve(80)(31) INCOME tax on items that may be reclassified to profit or loss213(78)(18)Other COMPREHENSIVE INCOME and (expense), net of tax(63)-Total COMPREHENSIVE INCOME and (expense) for the year, net of tax7671,330 PROFIT/(LOSS) FOR THE YEAR ATTRIBUTABLE TOShareholders of the Parent7281,233 Non-controlling interests10297 Profit/(loss) for the year8301,330 TOTAL COMPREHENSIVE INCOME AND (EXPENSE) FOR THE YEAR ATTRIBUTABLE TOShareholders of the Parent6651,233 Non-controlling interests10297 Total COMPREHENSIVE INCOME and (expense) for the year, net of tax7671,330 NOTE20152014centscentsEARNINGS PER SHAREB asic earnings per ordinary earnings per ordinary above STATEMENT of COMPREHENSIVE INCOME should be read in conjunction with the notes to the financial IAG ANNUAL REPORT 2015 BALANCE SHEETAS AT30 JUNE 2015 NOTECONSOLIDATED20152014$m$mASSETSCash held for operational purposes22306447 Investments1415,53515,377 Premium receivable153,2513,316 Trade and other receivables15653628 Reinsurance and other recoveries on outstanding claims113,7133,248 Deferred levies and charges116119 Deferred outwards reinsurance expense121,823706 Deferred acquisition costs121,0151.

3 028 Deferred tax assets6499324 Property and equipment235249 Other assets134135 Investment in joint venture and associates26561572 Intangible assets16671700 Goodwill172,8902,899 Total assets31,40229,748 LIABILITIEST rade and other payables181,3211,514 Reinsurance premium payable1,440556 Restructuring provision195950 Current tax liabilities109203 Unearned premium liability136,1566,256 Outstanding claims liability1012,68712,006 Non-controlling interests in unitholders' funds198190 Employee benefits provision27324337 Other liabilities32890 Interest bearing liabilities201,7621,752 Total liabilities24,38422,954 Net assets7,0186,794 EQUITYS hare capital217,2756,775 Treasury shares held in trust(83)(94)Reserves(38)38 Retained earnings(337)(151)Parent interest6,8176,568 Non-controlling interests201226 Total equity7,0186,794 The above balance sheet should be read in conjunction with the notes to the financial OFCHANGES IN EQUITYFOR THEYEARENDED30 JUNE 2015 CONSOLIDATEDSHARECAPITALTREASURYSHARESHE LD INTRUSTFOREIGNCURRENCYTRANSLATIONRESERVE SHAREBASEDREMUN-ERATIONRESERVERETAINEDEA RNINGSNON-CONTROLLINGINTERESTSTOTALEQUIT Y$m$m$m$m$m$m$m2015 Balance at the beginning of the financialyear6,775(94)1028(151)2266,794 Profit/(loss) for the year----728102830 Other COMPREHENSIVE INCOME and(expense)--(78)-15-(63)Total COMPREHENSIVE INCOME /(expense)for the year--(78)

4 -743102767 Transactions with owners in theircapacity as ownersShares issued under placement, net oftransaction costs500-----500 Shares acquired and held in trust-(35)----(35)Share based payment expenserecognised---28--28 Share based remuneration vested-46-(26)(20)--Non-controlling interests in acquisitionsduring the year-----22 Dividends determined and paid----(913)(129)(1,042)Dividends received on treasury sharesheld in trust----4-4 Balance at the end of the financial year7,275(83)(68)30(337)2017,0182014 Balance at the beginning of the financialyear5,353(62)2835(568)2024,988 Profit/(loss) for the year----1,233971,330 Other COMPREHENSIVE INCOME and(expense)--(18)-18--Total COMPREHENSIVE INCOME /(expense)for the year--(18)-1,251971,330 Transactions with owners in theircapacity as ownersShares issued under institutionalplacement, net of transaction costs1,186-----1,186 Shares issued under Share PurchasePlan, net of transaction costs236-----236 Shares acquired and held in trust-(78)----(78)Share based payment expenserecognised---25--25 Share based remuneration vested-46-(32)(14)--Non-controlling interests in acquisitionsduring the year-----88 Dividends determined and paid----(823)(81)(904)Dividends received on treasury sharesheld in trust----3-3 Balance at the end of the financial year6,775(94)1028(151)

5 2266,794 The above STATEMENT of changes in equity should be read in conjunction with the notes to the financial IAG ANNUAL REPORT 2015 CASH FLOW STATEMENTFOR THEYEARENDED30 JUNE 2015 NOTECONSOLIDATED20152014$m$mCASH FLOWS FROM OPERATING ACTIVITIESP remium received11,5039,661 Reinsurance and other recoveries received1,9381,778 Claims costs paid(8,736)(6,898)Outwards reinsurance premium expense paid(1,427)(1,130)Dividends received3938 Interest and trust distributions received555533 Finance costs paid(102)(95) INCOME taxes paid(351)(432)Other operating receipts884736 Other operating payments(3,605)(3,114)Net cash flows from operating activities226981,077 CASH FLOWS FROM INVESTING ACTIVITIESNet cash flows on acquisition of/capital injection to subsidiaries and associates(162)(312)Proceeds from disposal of investments and property and equipment11,31514,543 Outlays for investments and property and equipment(12,845)(14,526)Net cash flows from investing activities(1,692)(295)CASH FLOWS FROM FINANCING ACTIVITIESO utlays for purchase of treasury shares(35)(78)Proceeds from issue of trust units126163 Outlays for redemption of trust units(125)(197)Proceeds from borrowings-347 Repayment of borrowings-(283)Dividends paid to IAG shareholders(913)(823)Dividends paid to non-controlling interests(129)(81)

6 Proceeds from issue of shares, net of transaction costs5001,422 Dividends received on treasury shares43 Net cash flows from financing activities(572)473 Net movement in cash held(1,566)1,255 Effects of exchange rate changes on balances of cash held in foreign currencies(11)39 Cash and cash equivalents at the beginning of the financial year3,0101,716 Cash and cash equivalents at the end of the financial year221,4333,010 The above cash flow STATEMENT should be read in conjunction with the notes to the financial