STATEMENT OF COMPREHENSIVE INCOME - IAG Limited

1 STATEMENT OFCOMPREHENSIVE INCOMEFOR THEYEARENDED30 JUNE 2014 NOTECONSOLIDATED20142013$m$mPremium revenue49,7219,135 Outwards reinsurance premium expense5(1,077)(817)Net premium revenue (i)8,6448,318 Claims expense5(7,058)(5,800)Reinsurance and other recoveries revenue41,857818 Net claims expense (ii)10(5,201)(4,982)Acquisition costs5(1,386)(1,203)Reinsurance commission revenue451-Net acquisition costs(1,335)(1,203)Other underwriting expenses5(752)(644)Fire services levies5(216)(331)Underwriting expenses (iii)(2,303)(2,178)Underwriting profit/(loss) (i) + (ii) + (iii)1,1401,158 Investment INCOME on assets backing insurance liabilities 4459290 Investment expenses on assets backing insurance liabilities5(20)(20)Insurance profit/(loss)1,5791,428 Investment INCOME on shareholders' funds4400371 Fee and other income4199175 Share of net profit/(loss) of associates4(8)(29)Finance costs5(98)(95)Fee based, corporate and other expenses5(256)(245)Net INCOME /(loss) attributable to non-controlling interests in unitholders' funds5(14)(12)Profit/(loss) before INCOME tax from continuing operations1,8021,593 INCOME tax (expense)/credit6(472)(424)Profit/(loss) after tax from continuing operations1,3301,169 Profit/(loss) after tax from discontinued operation-(287)Profit/(loss) for the year1,330882 OTHER COMPREHENSIVE INCOME AND (EXPENSE), NET OF TAXI tems that will not be reclassified to profit or loss.

2 Remeasurements of defined benefit plans2635 INCOME tax on items that will not be reclassified to profit or loss(8)(12)1823 Items that may be reclassified subsequently to profit or loss:Net movement in foreign currency translation reserve(31)82 INCOME tax on items that may be reclassified to profit or loss1340(18)122 Other COMPREHENSIVE INCOME and (expense), net of tax-145 Total COMPREHENSIVE INCOME and (expense) for the year, net of tax1,3301,027 PROFIT/(LOSS) FOR THE YEAR ATTRIBUTABLE TOShareholders of the Parent - continuing operations1,2331,063 Shareholders of the Parent - discontinued operation-(287)Non-controlling interests97106 Profit/(loss) for the year1,330882 TOTAL COMPREHENSIVE INCOME AND (EXPENSE) FOR THE YEAR ATTRIBUTABLE TOShareholders of the Parent - continuing operations1,2331,127 Shareholders of the Parent - discontinued operation-(206)Non-controlling interests97106 Total COMPREHENSIVE INCOME and (expense)

3 For the year, net of tax1,3301,02750 IAG ANNUAL REPORT 2014 STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)NOTECONSOLIDATED20142013cents centsEARNINGS PER SHARE - continuing and discontinued operationsBasic earnings per ordinary earnings per ordinary PER SHARE - continuing operationsBasic earnings per ordinary earnings per ordinary above STATEMENT of COMPREHENSIVE INCOME should be read in conjunction with the notes to the financial SHEETAS AT30 JUNE 2014 NOTECONSOLIDATED20142013$m$mASSETSCash held for operational purposes22447394 Investments1415,37713,616 Premium receivable153,3162,712 Trade and other receivables15628526 Assets discontinued operation996 Reinsurance and other recoveries on outstanding claims113,2312,858 Deferred levies and charges119151 Deferred outwards reinsurance expense12706542 Deferred acquisition costs121.

4 028795 Deferred tax assets6304401 Property and equipment249257 Other assets13123 Investment in joint venture and associates26572577 Intangible assets16700245 Goodwill172,8401,666 Total assets29,65724,859 LIABILITIEST rade and other payables181,5231,263 Reinsurance premium payable556451 Restructuring provision19506 Current tax liabilities203253 Unearned premium liability136,2565,145 Liabilities discontinued operation20106 Non-controlling interests in unitholders' funds190210 Employee benefits provision27335305 Outstanding claims liability1011,93710,474 Other liabilities4138 Interest bearing liabilities201,7521,620 Total liabilities22,86319,871 Net assets6,7944,988 EQUITYS hare capital216,7755,353 Treasury shares held in trust(94)(62)Reserves3863 Retained earnings(151)(568)Parent interest6,5684,786 Non-controlling interests226202 Total equity6,7944,988 The above balance sheet should be read in conjunction with the notes to the financial IAG ANNUAL REPORT 2014 STATEMENT OFCHANGES IN EQUITYFOR THEYEARENDED30 JUNE 2014 CONSOLIDATEDSHARECAPITALTREASURYSHARESHE LD INTRUSTFOREIGNCURRENCYTRANSLATIONRESERVE SHAREBASEDREMUN-ERATIONRESERVERETAINEDEA RNINGSNON-CONTROLLINGINTERESTSTOTALEQUIT Y$m$m$m$m$m$m$m2014 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)

5 -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)2266,7942013 Balance at the beginning of the financialyear5,353(55)(94)26(887)1814,52 4 Profit/(loss) for the year----776106882 Other COMPREHENSIVE INCOME and(expense)--122-23-145 Total COMPREHENSIVE INCOME /(expense)for the year--122-7991061,027 Transactions with owners in theircapacity as ownersShares acquired and held in trust-(28)----(28)Share based payment expenserecognised---27--27 Share based remuneration vested-21-(18)(3)--Dividends determined and paid----(478)(85)(563)Dividends received on treasury sharesheld in trust----1-1 Balance at the end of the financial year5,353(62)2835(568)2024,988 The above STATEMENT of changes in equity should be read in conjunction with the notes to the financial FLOW STATEMENTFOR THEYEARENDED30 JUNE 2014 NOTECONSOLIDATED20142013$m$mCASH FLOWS FROM OPERATING ACTIVITIESP remium received9,6619,543 Reinsurance and other recoveries received1,7781,493 Claims costs paid(6,898)(6,645)

6 Outwards reinsurance premium expense paid(1,130)(692)Dividends received3833 Interest and trust distributions received533615 Finance costs paid(95)(88) INCOME taxes refunded73 INCOME taxes paid(439)(427)Other operating receipts736882 Other operating payments(3,114)(2,927)Net cash flows from operating activities221,0771,790 CASH FLOWS FROM INVESTING ACTIVITIESNet cash flows on acquisition/capital injection to subsidiaries and associates(312)(245)Net cash flows on disposal of subsidiaries-43 Proceeds from disposal of investments and property and equipment14,54314,166 Outlays for investments and property and equipment(14,526)(15,445)Net cash flows from investing activities(295)(1,481)CASH FLOWS FROM FINANCING ACTIVITIESO utlays for purchase of treasury shares(78)(28)Proceeds from issue of trust units163169 Outlays for redemption of trust units(197)(188)Proceeds from borrowings347-Repayment of borrowings(283)(99)Dividends paid to IAG shareholders(823)(478)Dividends paid to non-controlling interests(81)(85)Proceeds from issue of shares, net of transaction costs1,422-Dividends received on treasury shares31 Net cash flows from financing activities473(708)Net movement in cash held1,255(399)Effects of exchange rate changes on balances of cash held in foreign currencies3949 Cash and cash equivalents at the beginning of the financial year1,7162,066 Cash and cash equivalents at the end of the financial year223,0101,716 The above cash flow STATEMENT should be read in conjunction with the notes to the financial IAG ANNUAL REPORT 2014