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TOWER Australia Group Limited (TAL) today reported its new business and inforce premium information for the quarter ended 30 June 2010.

TOWER Australia’s inforce premium exceeded the $1 billion mark for the first time during the June 2010 quarter. This reflected continued, solid individual inforce premium growth and the full inclusion of premium relating to the AustralianSuper new benefit design from the end of May 2010. Individual new business growth was flat year on year reflecting the product transition from 3 product offers down to 1 and a general market slowdown in adviser sales activity impacting on the Retail Life business.

ALI Group will cease writing individual new business of approximately $4 million per quarter with TOWER Australia from August 2010 onwards following the establishment of a new corporate arrangement by that distributor. The impact on TOWER Australia’s value of new business will be negligible. New business growth of 207% in Group Risk over the quarter mainly reflected the inclusion of the new income protection benefits to 700,000 AustralianSuper members increasing premiums by $80 million per annum.

For further information please contact: Philippa Ellis GM Investor Relations & Listed Company Secretary TOWER Australia Group Limited 02 9448 9135.

TOWER Australia Group Limited (TAL) today reported its new business and inforce premium information for the quarter ended 30 June 2010.

TOWER Australia’s inforce premium exceeded the $1 billion mark for the first time during the June 2010 quarter. This reflected continued, solid individual inforce premium growth and the full inclusion of premium relating to the AustralianSuper new benefit design from the end of May 2010. Individual new business growth was flat year on year reflecting the product transition from 3 product offers down to 1 and a general market slowdown in adviser sales activity impacting on the Retail Life business.

ALI Group will cease writing individual new business of approximately $4 million per quarter with TOWER Australia from August 2010 onwards following the establishment of a new corporate arrangement by that distributor. The impact on TOWER Australia’s value of new business will be negligible. New business growth of 207% in Group Risk over the quarter mainly reflected the inclusion of the new income protection benefits to 700,000 AustralianSuper members increasing premiums by $80 million per annum.

For further information please contact: Philippa Ellis GM Investor Relations & Listed Company Secretary TOWER Australia Group Limited 02 9448 9135.

Date Wednesday 28 July 2010 Subject Proposed cancellation of nib shares nib holdings limited (nib) wishes to update the market on its intention concerning the approximate 6.1% shares held in the nib Overseas Policyholders and Unverified Policyholders Trust (Trust).

In 2007, nib health funds limited demutualised and became a wholly owned subsidiary of nib. Under the terms of the demutualisation, shares in nib were issued to the Trust to be held on behalf of the relevant overseas policyholders and unverified policyholders. Since the demutualisation, nib has attempted to contact unverified policyholders on numerous occasions to remind them to verify their details.

In addition, during August 2010, nib will place notices in major Australian newspapers as another way of contacting unverified policyholders. As at 19 July 2010, the trustee of the Trust, Australian Executor Trustees Limited (Trustee), held 30,272,440 shares in nib, which represents approximately 6.1% of nib’s issued share capital. Under the terms of the Trust Deed, as soon as reasonably practicable after the third anniversary of the Demutualisation Date, which was 1 October 2007, the Trustee must dispose of all of the trust property (which includes the shares held by the Trustee, the dividends paid by nib on the shares held by the Trustee and the interest income) in such manner as directed by the Board of nib. The Board of nib has been considering its options as to the treatment of the shares held by the Trustee. The current intention of the Board is to recommend the cancellation of the shares held by the Trustee for nil consideration. The Board intends to seek shareholder approval of such a selective capital reduction at nib’s 2010 annual general meeting to be held on 26 October 2010.

Further details will be provided to shareholders in the notice of meeting. The Board intends to direct the Trustee to pay any other remaining trust property, less any expenses incurred by the Trustee in relation to the Trust, to nib. Are you an unverified policyholder? To be allocated your nib shares and receive any unclaimed dividends payable to you by nib, you must verify your details. This can be done online by visiting www.nib.com.au/shareholders and following the “verify your details” link, or by telephoning 1300 664 316.

To verify your details please reference your nib policyholder number. If you do not verify your details before October 2010 you will no longer be eligible to receive your nib shares.

MEDIA AND INVESTOR RELATIONS Matthew Neat Tel: 02 4914 1777 Mob: 0411 700 006 Email: m.neat@nib.com.au.

IAG announces expected FY10 result, dividend and changes to executive team.

Insurance Australia Group Limited (IAG) today announced it expected to report an insurance margin for the year ended 30 June 2010 of 7.0%, in line with revised guidance, and to determine a fully franked, final dividend of 4.5 cents per share. In addition, the Group has announced changes to its executive team, centred on its UK and New Zealand operations. Based on preliminary results1, IAG expects to announce an insurance profit of $493 million for FY10 (FY09: $515m). This has been achieved on net earned premium of $7.1 billion (FY09: $7.2bn). The Group expects to report gross written premium (GWP) of $7.8 billion, which equates to underlying GWP growth of 3.8%, in line with guidance of 3-5%.

Net profit after tax of $91 million (FY09: $181m) is expected. The insurance profit includes:

Continued improvement in the performance of the Group’s Australian and New Zealand businesses, including the delivery of a higher insurance margin by Australia Direct, a significantly stronger result in New Zealand, and continued improvement in CGU;

As outlined in the announcement on 2 June 2010, a substantial full-year loss in the UK business, including a net charge of $367 million in 2H10 which mainly relates to a significant deterioration in bodily injury claim experience;

Natural peril claim costs of $463 million (FY09: $451m), net of reinsurance recoveries, which was above the budgeted allowance of $350 million;

Prior year reserve releases of $228 million (FY09: $215m), excluding the second half reserve strengthening in the UK; and

A $33 million profit from the narrowing of credit spreads over the course of the year (FY09: loss of $13m).

IAG Managing Director and CEO, Mr Mike Wilkins, said the FY10 result showed a further uplift in the underlying performance of the Group’s Australian and New Zealand businesses during the year. “While this year’s financial result does not reflect the expectations we held at the outset of the year, I’m encouraged by the clear and ongoing improvement in the operational performance of our businesses in our home markets of Australia and New Zealand. The results of these three businesses, which represent almost 90% of our GWP, have improved year on year, providing evidence we’re continuing to benefit from our refined corporate strategy,” Mr Wilkins said. “The second half of the 2010 result has borne in excess of $200 million of net pre-tax claim costs in respect of the unprecedented Melbourne and Perth storms in March 2010, as well as the $367 million charge required in our UK business following the deterioration in bodily injury claim experience.

“I’m confident our performance will improve significantly in FY11. This is evidenced by our guidance which remains unchanged, and comprises an insurance margin of 10.5-12.5%.” Guidance for FY11 assumes losses from natural perils are in line with budgeted allowances of $435 million, no material movement in foreign exchange rates or investment markets, and lower net reserve releases (excluding the UK) than FY10. FY10 dividend It is anticipated that the Board will determine to pay a fully franked, final dividend of 4.5 cents per ordinary share (cps), taking the full year dividend to 13.0cps, fully franked (FY09: 10.0cps).

This is a 30% increase over last year’s dividend and represents approximately 70% of cash earnings for the year. The dividend will be paid on 6 October 2010 to shareholders registered as at 8 September 2010. Cash earnings has been calculated in accordance with the Group’s definition, which adjusts net profit after tax attributable to IAG shareholders for $113 million of amortisation (including the UK write-down of $86 million announced on 2 June 2010) and a net add back of $178 million in respect of unusual items. In addition to those identified at the half year, these items include:

Tax benefits on the restructure of financing arrangements, including intra-group funding of the UK operations;

Reinsurance cover in respect of potential further deterioration of 2009 and prior UK bodily injury claim costs; and

The future tax loss benefit in respect of the UK charge incurred in 2H10, which will not be recognised for accounting purposes in the FY10 results.

“We’re providing this information now, because we wanted to clarify the composition of our cash earnings and the impact on our dividend. After allowing for the final dividend, we remain in a strong capital position,” Mr Wilkins said. The Group will announce full details of its results for the year ended 30 June 2010 on Thursday, 26 August 2010. Executive team changes IAG also announced today that Mr Ian Foy, currently CEO of IAG’s New Zealand business, will return to the United Kingdom to become CEO of IAG’s UK business, succeeding Mr Neil Utley.

Ms Jacki Johnson, currently CEO of IAG’s online business, The Buzz, will succeed Mr Foy as CEO of New Zealand, and Group Executive Ms Leona Murphy will take responsibility for The Buzz. Mr Wilkins said Ian Foy’s successful track record in improving the performance of the Group’s New Zealand business, combined with his experience in the UK intermediated motor market, made him the clear choice to lead IAG’s UK operation. “Ian has extensive insurance industry experience, which will be crucial as he drives the comprehensive remedial action plan we announced last month. Ian has been with IAG for seven years, including two years as CEO of IAG’s New Zealand business and five years running NZI. Prior to this, he spent more than a decade working in various roles in the UK insurance industry with Aviva and General Accident.”

Mr Wilkins said that with the programme of remedial action in place, he and Neil Utley had mutually agreed that now was the appropriate time to introduce new leadership to take the UK business forward. “I would like to thank Neil for his leadership of the business in a challenging market environment during the past three years.” Mr Foy will assume his new role on 1 September 2010 and, to ensure an orderly transition, Mr Utley has agreed to remain with IAG’s UK business until 30 September 2010. IAG’s New Zealand business will be led by seasoned insurance executive, Ms Jacki Johnson, who has been with IAG for the past nine years in various Group Executive positions.

Before joining IAG she had roles with Allianz, HIH and IRS Total Injury Management. “Jacki’s experience in creating a direct business with The Buzz and running an intermediated business, as CEO of CGU’s Business Partnerships, will ensure we continue to build on the strong improvement Ian and the New Zealand team have achieved in this important market, over the past two years. “Additionally, Jacki’s experience in workers’ compensation will be invaluable to the future of the New Zealand business if the Accident Compensation Corporation (ACC) opens up to competition from private insurers,” Mr Wilkins said. Ms Johnson will take on the CEO role on 1 November 2010.

In the interim, Executive General Manager of NZI, Mr Karl Armstrong, will act in the role. Mr Armstrong has more than 35 years’ experience in underwriting and risk management, having joined NZI in 1971. IAG Group Executive Ms Leona Murphy will succeed Ms Johnson as CEO, The Buzz, from 1 November 2010. “Under Leona’s leadership, our innovative and passionate team at The Buzz will continue to build on the great strides this business has taken since launching in May 2009,” Mr Wilkins said. Ms Murphy will retain her other responsibilities, including corporate development and strategy. “I am particularly pleased about the strength of these appointments and that all of them have been sourced from within our business, demonstrating the depth and versatility of our executive team,” Mr Wilkins said. IAG’s new executive team Once all new positions come into effect, IAG’s executive team will be structured as follows: 

Insurance Australia Group Limited (IAG) is an international general insurance group, with operations in Australia, New Zealand, the United Kingdom and Asia.

Its current businesses underwrite approximately $7.8 billion of premium per annum. It sells insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC, Swann and The Buzz (Australia); NZI and State (NZ); Equity Red Star (UK); and NZI and Safety (Thailand). For further information please visit www.iag.com.au. CORPORATE AFFAIRS Angus Trigg T 02 9292 3134 M 0413 946 708 E angus.trigg@iag.com.au INVESTOR RELATIONS Simon Phibbs T 02 9292 8796 M 0411 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 ADDITIONAL INFORMATION IAN FOY – MA (Cantab), MBA, FCII Ian Foy is an experienced insurance executive, having worked extensively in the UK and New Zealand markets, as well as other areas of Europe and in Australia.

Ian has been CEO of IAG’s New Zealand business since 2008. Prior to this role he spent five years as Head of Broker Business & Strategy at NZI. Between 1998-2003 he worked in several roles within Aviva’s insurance business, including Director of Business Operations at NZI and Managing Director of CGU Bonus in the UK.

He commenced his career in the UK insurance industry, spending over a decade with General Accident, where he held a variety of roles. JACKI JOHNSON – BAPPSC (OT), EMBA, GRADDIP SAFETY SCIENCE Jacki Johnson has more than 20 years’ experience in the insurance industry. As IAG’s CEO of The Buzz, Jacki launched one of Australia’s first online insurers. Other positions she has held at IAG include CEO, Business Partnerships, where she was responsible for IAG's risk management and safety services, workers' compensation fee based businesses and third party distribution of CGU and Swann Insurance branded products through financial institutions, affinity groups, motor dealers and motor manufacturers.

Jacki also led the integration of IAG’s and CGU's workers’ compensation businesses. Before joining the Group in 2001, she held senior positions with Allianz Insurance, HIH Insurance and IRS Total Injury Management. She is a director of Community First Credit Union and the Personal Injury Education Foundation, and is a former director of the New South Wales WorkCover Authority. LEONA MURPHY- BCOM Leona Murphy was appointed Group Executive, Corporate Office in July 2008, after joining IAG's executive team as Group Executive, Business Services, in November 2007. She has responsibility for managing a portfolio of central functions, including strategy, business development, risk and compliance, business sustainability, general counsel, technology and group human resources.

Leona has more than 18 years’ experience in the insurance industry including seven years with Promina and Vero. At Promina, she was Executive General Manager, Strategic Implementation, working with the chief executive officer on strategy execution and alignment. Within Vero, she held several senior roles, including Executive General Manager for Strategy and New Business, and General Manager, National Claims.

Prior to joining the Promina Group, she held senior positions with HIH Insurance. KARL ARMSTRONG – ANZIIF (SNR ASSOC), DIP MGMT (OPEN) Karl Armstrong was appointed Executive General Manager of NZI in August 2008. Prior to this he was Head of Risk Management and Underwriting. Mr Armstrong joined NZI in 1971 and spent 18 years working for NZI and General Accident in the UK.

Mr Armstrong returned to New Zealand in 1994, and set up the Accident Insurance division in 1998 when ACC was first opened to competition. Mr Armstrong’s experience includes underwriting and risk management, reinsurance, sales, broker relationship management and marketing. SUMMARY OF NEIL UTLEY’S ENTITLEMENTS ON DEPARTURE In accordance with his contractual arrangements as disclosed in IAG’s Annual Report, Neil Utley will receive his non-performance based entitlements upon departure. These include 12 months’ base salary plus the value of related benefits (pension contributions, health insurance, vehicle allowance, life cover and income protection).

Certain restrictive covenants remain in place in respect of Neil Utley’s ability to compete with IAG’s UK business.

IAG announces expected FY10 result, dividend and changes to executive team.

Insurance Australia Group Limited (IAG) today announced it expected to report an insurance margin for the year ended 30 June 2010 of 7.0%, in line with revised guidance, and to determine a fully franked, final dividend of 4.5 cents per share. In addition, the Group has announced changes to its executive team, centred on its UK and New Zealand operations. Based on preliminary results1, IAG expects to announce an insurance profit of $493 million for FY10 (FY09: $515m). This has been achieved on net earned premium of $7.1 billion (FY09: $7.2bn). The Group expects to report gross written premium (GWP) of $7.8 billion, which equates to underlying GWP growth of 3.8%, in line with guidance of 3-5%.

Net profit after tax of $91 million (FY09: $181m) is expected. The insurance profit includes:

Continued improvement in the performance of the Group’s Australian and New Zealand businesses, including the delivery of a higher insurance margin by Australia Direct, a significantly stronger result in New Zealand, and continued improvement in CGU;

As outlined in the announcement on 2 June 2010, a substantial full-year loss in the UK business, including a net charge of $367 million in 2H10 which mainly relates to a significant deterioration in bodily injury claim experience;

Natural peril claim costs of $463 million (FY09: $451m), net of reinsurance recoveries, which was above the budgeted allowance of $350 million;

Prior year reserve releases of $228 million (FY09: $215m), excluding the second half reserve strengthening in the UK; and

A $33 million profit from the narrowing of credit spreads over the course of the year (FY09: loss of $13m).

IAG Managing Director and CEO, Mr Mike Wilkins, said the FY10 result showed a further uplift in the underlying performance of the Group’s Australian and New Zealand businesses during the year. “While this year’s financial result does not reflect the expectations we held at the outset of the year, I’m encouraged by the clear and ongoing improvement in the operational performance of our businesses in our home markets of Australia and New Zealand. The results of these three businesses, which represent almost 90% of our GWP, have improved year on year, providing evidence we’re continuing to benefit from our refined corporate strategy,” Mr Wilkins said. “The second half of the 2010 result has borne in excess of $200 million of net pre-tax claim costs in respect of the unprecedented Melbourne and Perth storms in March 2010, as well as the $367 million charge required in our UK business following the deterioration in bodily injury claim experience.

“I’m confident our performance will improve significantly in FY11. This is evidenced by our guidance which remains unchanged, and comprises an insurance margin of 10.5-12.5%.” Guidance for FY11 assumes losses from natural perils are in line with budgeted allowances of $435 million, no material movement in foreign exchange rates or investment markets, and lower net reserve releases (excluding the UK) than FY10. FY10 dividend It is anticipated that the Board will determine to pay a fully franked, final dividend of 4.5 cents per ordinary share (cps), taking the full year dividend to 13.0cps, fully franked (FY09: 10.0cps).

This is a 30% increase over last year’s dividend and represents approximately 70% of cash earnings for the year. The dividend will be paid on 6 October 2010 to shareholders registered as at 8 September 2010. Cash earnings has been calculated in accordance with the Group’s definition, which adjusts net profit after tax attributable to IAG shareholders for $113 million of amortisation (including the UK write-down of $86 million announced on 2 June 2010) and a net add back of $178 million in respect of unusual items. In addition to those identified at the half year, these items include:

Tax benefits on the restructure of financing arrangements, including intra-group funding of the UK operations;

Reinsurance cover in respect of potential further deterioration of 2009 and prior UK bodily injury claim costs; and

The future tax loss benefit in respect of the UK charge incurred in 2H10, which will not be recognised for accounting purposes in the FY10 results.

“We’re providing this information now, because we wanted to clarify the composition of our cash earnings and the impact on our dividend. After allowing for the final dividend, we remain in a strong capital position,” Mr Wilkins said. The Group will announce full details of its results for the year ended 30 June 2010 on Thursday, 26 August 2010. Executive team changes IAG also announced today that Mr Ian Foy, currently CEO of IAG’s New Zealand business, will return to the United Kingdom to become CEO of IAG’s UK business, succeeding Mr Neil Utley.

Ms Jacki Johnson, currently CEO of IAG’s online business, The Buzz, will succeed Mr Foy as CEO of New Zealand, and Group Executive Ms Leona Murphy will take responsibility for The Buzz. Mr Wilkins said Ian Foy’s successful track record in improving the performance of the Group’s New Zealand business, combined with his experience in the UK intermediated motor market, made him the clear choice to lead IAG’s UK operation. “Ian has extensive insurance industry experience, which will be crucial as he drives the comprehensive remedial action plan we announced last month. Ian has been with IAG for seven years, including two years as CEO of IAG’s New Zealand business and five years running NZI. Prior to this, he spent more than a decade working in various roles in the UK insurance industry with Aviva and General Accident.”

Mr Wilkins said that with the programme of remedial action in place, he and Neil Utley had mutually agreed that now was the appropriate time to introduce new leadership to take the UK business forward. “I would like to thank Neil for his leadership of the business in a challenging market environment during the past three years.” Mr Foy will assume his new role on 1 September 2010 and, to ensure an orderly transition, Mr Utley has agreed to remain with IAG’s UK business until 30 September 2010. IAG’s New Zealand business will be led by seasoned insurance executive, Ms Jacki Johnson, who has been with IAG for the past nine years in various Group Executive positions.

Before joining IAG she had roles with Allianz, HIH and IRS Total Injury Management. “Jacki’s experience in creating a direct business with The Buzz and running an intermediated business, as CEO of CGU’s Business Partnerships, will ensure we continue to build on the strong improvement Ian and the New Zealand team have achieved in this important market, over the past two years. “Additionally, Jacki’s experience in workers’ compensation will be invaluable to the future of the New Zealand business if the Accident Compensation Corporation (ACC) opens up to competition from private insurers,” Mr Wilkins said. Ms Johnson will take on the CEO role on 1 November 2010.

In the interim, Executive General Manager of NZI, Mr Karl Armstrong, will act in the role. Mr Armstrong has more than 35 years’ experience in underwriting and risk management, having joined NZI in 1971. IAG Group Executive Ms Leona Murphy will succeed Ms Johnson as CEO, The Buzz, from 1 November 2010. “Under Leona’s leadership, our innovative and passionate team at The Buzz will continue to build on the great strides this business has taken since launching in May 2009,” Mr Wilkins said. Ms Murphy will retain her other responsibilities, including corporate development and strategy. “I am particularly pleased about the strength of these appointments and that all of them have been sourced from within our business, demonstrating the depth and versatility of our executive team,” Mr Wilkins said. IAG’s new executive team Once all new positions come into effect, IAG’s executive team will be structured as follows: 

Insurance Australia Group Limited (IAG) is an international general insurance group, with operations in Australia, New Zealand, the United Kingdom and Asia.

Its current businesses underwrite approximately $7.8 billion of premium per annum. It sells insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC, Swann and The Buzz (Australia); NZI and State (NZ); Equity Red Star (UK); and NZI and Safety (Thailand). For further information please visit www.iag.com.au. CORPORATE AFFAIRS Angus Trigg T 02 9292 3134 M 0413 946 708 E angus.trigg@iag.com.au INVESTOR RELATIONS Simon Phibbs T 02 9292 8796 M 0411 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 ADDITIONAL INFORMATION IAN FOY – MA (Cantab), MBA, FCII Ian Foy is an experienced insurance executive, having worked extensively in the UK and New Zealand markets, as well as other areas of Europe and in Australia.

Ian has been CEO of IAG’s New Zealand business since 2008. Prior to this role he spent five years as Head of Broker Business & Strategy at NZI. Between 1998-2003 he worked in several roles within Aviva’s insurance business, including Director of Business Operations at NZI and Managing Director of CGU Bonus in the UK.

He commenced his career in the UK insurance industry, spending over a decade with General Accident, where he held a variety of roles. JACKI JOHNSON – BAPPSC (OT), EMBA, GRADDIP SAFETY SCIENCE Jacki Johnson has more than 20 years’ experience in the insurance industry. As IAG’s CEO of The Buzz, Jacki launched one of Australia’s first online insurers. Other positions she has held at IAG include CEO, Business Partnerships, where she was responsible for IAG's risk management and safety services, workers' compensation fee based businesses and third party distribution of CGU and Swann Insurance branded products through financial institutions, affinity groups, motor dealers and motor manufacturers.

Jacki also led the integration of IAG’s and CGU's workers’ compensation businesses. Before joining the Group in 2001, she held senior positions with Allianz Insurance, HIH Insurance and IRS Total Injury Management. She is a director of Community First Credit Union and the Personal Injury Education Foundation, and is a former director of the New South Wales WorkCover Authority. LEONA MURPHY- BCOM Leona Murphy was appointed Group Executive, Corporate Office in July 2008, after joining IAG's executive team as Group Executive, Business Services, in November 2007. She has responsibility for managing a portfolio of central functions, including strategy, business development, risk and compliance, business sustainability, general counsel, technology and group human resources.

Leona has more than 18 years’ experience in the insurance industry including seven years with Promina and Vero. At Promina, she was Executive General Manager, Strategic Implementation, working with the chief executive officer on strategy execution and alignment. Within Vero, she held several senior roles, including Executive General Manager for Strategy and New Business, and General Manager, National Claims.

Prior to joining the Promina Group, she held senior positions with HIH Insurance. KARL ARMSTRONG – ANZIIF (SNR ASSOC), DIP MGMT (OPEN) Karl Armstrong was appointed Executive General Manager of NZI in August 2008. Prior to this he was Head of Risk Management and Underwriting. Mr Armstrong joined NZI in 1971 and spent 18 years working for NZI and General Accident in the UK.

Mr Armstrong returned to New Zealand in 1994, and set up the Accident Insurance division in 1998 when ACC was first opened to competition. Mr Armstrong’s experience includes underwriting and risk management, reinsurance, sales, broker relationship management and marketing. SUMMARY OF NEIL UTLEY’S ENTITLEMENTS ON DEPARTURE In accordance with his contractual arrangements as disclosed in IAG’s Annual Report, Neil Utley will receive his non-performance based entitlements upon departure. These include 12 months’ base salary plus the value of related benefits (pension contributions, health insurance, vehicle allowance, life cover and income protection).

Certain restrictive covenants remain in place in respect of Neil Utley’s ability to compete with IAG’s UK business.

IAG announces expected FY10 result, dividend and changes to executive team.

Insurance Australia Group Limited (IAG) today announced it expected to report an insurance margin for the year ended 30 June 2010 of 7.0%, in line with revised guidance, and to determine a fully franked, final dividend of 4.5 cents per share. In addition, the Group has announced changes to its executive team, centred on its UK and New Zealand operations. Based on preliminary results1, IAG expects to announce an insurance profit of $493 million for FY10 (FY09: $515m). This has been achieved on net earned premium of $7.1 billion (FY09: $7.2bn). The Group expects to report gross written premium (GWP) of $7.8 billion, which equates to underlying GWP growth of 3.8%, in line with guidance of 3-5%.

Net profit after tax of $91 million (FY09: $181m) is expected. The insurance profit includes:

Continued improvement in the performance of the Group’s Australian and New Zealand businesses, including the delivery of a higher insurance margin by Australia Direct, a significantly stronger result in New Zealand, and continued improvement in CGU;

As outlined in the announcement on 2 June 2010, a substantial full-year loss in the UK business, including a net charge of $367 million in 2H10 which mainly relates to a significant deterioration in bodily injury claim experience;

Natural peril claim costs of $463 million (FY09: $451m), net of reinsurance recoveries, which was above the budgeted allowance of $350 million;

Prior year reserve releases of $228 million (FY09: $215m), excluding the second half reserve strengthening in the UK; and

A $33 million profit from the narrowing of credit spreads over the course of the year (FY09: loss of $13m).

IAG Managing Director and CEO, Mr Mike Wilkins, said the FY10 result showed a further uplift in the underlying performance of the Group’s Australian and New Zealand businesses during the year. “While this year’s financial result does not reflect the expectations we held at the outset of the year, I’m encouraged by the clear and ongoing improvement in the operational performance of our businesses in our home markets of Australia and New Zealand. The results of these three businesses, which represent almost 90% of our GWP, have improved year on year, providing evidence we’re continuing to benefit from our refined corporate strategy,” Mr Wilkins said. “The second half of the 2010 result has borne in excess of $200 million of net pre-tax claim costs in respect of the unprecedented Melbourne and Perth storms in March 2010, as well as the $367 million charge required in our UK business following the deterioration in bodily injury claim experience.

“I’m confident our performance will improve significantly in FY11. This is evidenced by our guidance which remains unchanged, and comprises an insurance margin of 10.5-12.5%.” Guidance for FY11 assumes losses from natural perils are in line with budgeted allowances of $435 million, no material movement in foreign exchange rates or investment markets, and lower net reserve releases (excluding the UK) than FY10. FY10 dividend It is anticipated that the Board will determine to pay a fully franked, final dividend of 4.5 cents per ordinary share (cps), taking the full year dividend to 13.0cps, fully franked (FY09: 10.0cps).

This is a 30% increase over last year’s dividend and represents approximately 70% of cash earnings for the year. The dividend will be paid on 6 October 2010 to shareholders registered as at 8 September 2010. Cash earnings has been calculated in accordance with the Group’s definition, which adjusts net profit after tax attributable to IAG shareholders for $113 million of amortisation (including the UK write-down of $86 million announced on 2 June 2010) and a net add back of $178 million in respect of unusual items. In addition to those identified at the half year, these items include:

Tax benefits on the restructure of financing arrangements, including intra-group funding of the UK operations;

Reinsurance cover in respect of potential further deterioration of 2009 and prior UK bodily injury claim costs; and

The future tax loss benefit in respect of the UK charge incurred in 2H10, which will not be recognised for accounting purposes in the FY10 results.

“We’re providing this information now, because we wanted to clarify the composition of our cash earnings and the impact on our dividend. After allowing for the final dividend, we remain in a strong capital position,” Mr Wilkins said. The Group will announce full details of its results for the year ended 30 June 2010 on Thursday, 26 August 2010. Executive team changes IAG also announced today that Mr Ian Foy, currently CEO of IAG’s New Zealand business, will return to the United Kingdom to become CEO of IAG’s UK business, succeeding Mr Neil Utley.

Ms Jacki Johnson, currently CEO of IAG’s online business, The Buzz, will succeed Mr Foy as CEO of New Zealand, and Group Executive Ms Leona Murphy will take responsibility for The Buzz. Mr Wilkins said Ian Foy’s successful track record in improving the performance of the Group’s New Zealand business, combined with his experience in the UK intermediated motor market, made him the clear choice to lead IAG’s UK operation. “Ian has extensive insurance industry experience, which will be crucial as he drives the comprehensive remedial action plan we announced last month. Ian has been with IAG for seven years, including two years as CEO of IAG’s New Zealand business and five years running NZI. Prior to this, he spent more than a decade working in various roles in the UK insurance industry with Aviva and General Accident.”

Mr Wilkins said that with the programme of remedial action in place, he and Neil Utley had mutually agreed that now was the appropriate time to introduce new leadership to take the UK business forward. “I would like to thank Neil for his leadership of the business in a challenging market environment during the past three years.” Mr Foy will assume his new role on 1 September 2010 and, to ensure an orderly transition, Mr Utley has agreed to remain with IAG’s UK business until 30 September 2010. IAG’s New Zealand business will be led by seasoned insurance executive, Ms Jacki Johnson, who has been with IAG for the past nine years in various Group Executive positions.

Before joining IAG she had roles with Allianz, HIH and IRS Total Injury Management. “Jacki’s experience in creating a direct business with The Buzz and running an intermediated business, as CEO of CGU’s Business Partnerships, will ensure we continue to build on the strong improvement Ian and the New Zealand team have achieved in this important market, over the past two years. “Additionally, Jacki’s experience in workers’ compensation will be invaluable to the future of the New Zealand business if the Accident Compensation Corporation (ACC) opens up to competition from private insurers,” Mr Wilkins said. Ms Johnson will take on the CEO role on 1 November 2010.

In the interim, Executive General Manager of NZI, Mr Karl Armstrong, will act in the role. Mr Armstrong has more than 35 years’ experience in underwriting and risk management, having joined NZI in 1971. IAG Group Executive Ms Leona Murphy will succeed Ms Johnson as CEO, The Buzz, from 1 November 2010. “Under Leona’s leadership, our innovative and passionate team at The Buzz will continue to build on the great strides this business has taken since launching in May 2009,” Mr Wilkins said. Ms Murphy will retain her other responsibilities, including corporate development and strategy. “I am particularly pleased about the strength of these appointments and that all of them have been sourced from within our business, demonstrating the depth and versatility of our executive team,” Mr Wilkins said. IAG’s new executive team Once all new positions come into effect, IAG’s executive team will be structured as follows: 

Insurance Australia Group Limited (IAG) is an international general insurance group, with operations in Australia, New Zealand, the United Kingdom and Asia.

Its current businesses underwrite approximately $7.8 billion of premium per annum. It sells insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC, Swann and The Buzz (Australia); NZI and State (NZ); Equity Red Star (UK); and NZI and Safety (Thailand). For further information please visit www.iag.com.au. CORPORATE AFFAIRS Angus Trigg T 02 9292 3134 M 0413 946 708 E angus.trigg@iag.com.au INVESTOR RELATIONS Simon Phibbs T 02 9292 8796 M 0411 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 ADDITIONAL INFORMATION IAN FOY – MA (Cantab), MBA, FCII Ian Foy is an experienced insurance executive, having worked extensively in the UK and New Zealand markets, as well as other areas of Europe and in Australia.

Ian has been CEO of IAG’s New Zealand business since 2008. Prior to this role he spent five years as Head of Broker Business & Strategy at NZI. Between 1998-2003 he worked in several roles within Aviva’s insurance business, including Director of Business Operations at NZI and Managing Director of CGU Bonus in the UK.

He commenced his career in the UK insurance industry, spending over a decade with General Accident, where he held a variety of roles. JACKI JOHNSON – BAPPSC (OT), EMBA, GRADDIP SAFETY SCIENCE Jacki Johnson has more than 20 years’ experience in the insurance industry. As IAG’s CEO of The Buzz, Jacki launched one of Australia’s first online insurers. Other positions she has held at IAG include CEO, Business Partnerships, where she was responsible for IAG's risk management and safety services, workers' compensation fee based businesses and third party distribution of CGU and Swann Insurance branded products through financial institutions, affinity groups, motor dealers and motor manufacturers.

Jacki also led the integration of IAG’s and CGU's workers’ compensation businesses. Before joining the Group in 2001, she held senior positions with Allianz Insurance, HIH Insurance and IRS Total Injury Management. She is a director of Community First Credit Union and the Personal Injury Education Foundation, and is a former director of the New South Wales WorkCover Authority. LEONA MURPHY- BCOM Leona Murphy was appointed Group Executive, Corporate Office in July 2008, after joining IAG's executive team as Group Executive, Business Services, in November 2007. She has responsibility for managing a portfolio of central functions, including strategy, business development, risk and compliance, business sustainability, general counsel, technology and group human resources.

Leona has more than 18 years’ experience in the insurance industry including seven years with Promina and Vero. At Promina, she was Executive General Manager, Strategic Implementation, working with the chief executive officer on strategy execution and alignment. Within Vero, she held several senior roles, including Executive General Manager for Strategy and New Business, and General Manager, National Claims.

Prior to joining the Promina Group, she held senior positions with HIH Insurance. KARL ARMSTRONG – ANZIIF (SNR ASSOC), DIP MGMT (OPEN) Karl Armstrong was appointed Executive General Manager of NZI in August 2008. Prior to this he was Head of Risk Management and Underwriting. Mr Armstrong joined NZI in 1971 and spent 18 years working for NZI and General Accident in the UK.

Mr Armstrong returned to New Zealand in 1994, and set up the Accident Insurance division in 1998 when ACC was first opened to competition. Mr Armstrong’s experience includes underwriting and risk management, reinsurance, sales, broker relationship management and marketing. SUMMARY OF NEIL UTLEY’S ENTITLEMENTS ON DEPARTURE In accordance with his contractual arrangements as disclosed in IAG’s Annual Report, Neil Utley will receive his non-performance based entitlements upon departure. These include 12 months’ base salary plus the value of related benefits (pension contributions, health insurance, vehicle allowance, life cover and income protection).

Certain restrictive covenants remain in place in respect of Neil Utley’s ability to compete with IAG’s UK business.

IAG announces expected FY10 result, dividend and changes to executive team.

Insurance Australia Group Limited (IAG) today announced it expected to report an insurance margin for the year ended 30 June 2010 of 7.0%, in line with revised guidance, and to determine a fully franked, final dividend of 4.5 cents per share. In addition, the Group has announced changes to its executive team, centred on its UK and New Zealand operations. Based on preliminary results1, IAG expects to announce an insurance profit of $493 million for FY10 (FY09: $515m). This has been achieved on net earned premium of $7.1 billion (FY09: $7.2bn). The Group expects to report gross written premium (GWP) of $7.8 billion, which equates to underlying GWP growth of 3.8%, in line with guidance of 3-5%.

Net profit after tax of $91 million (FY09: $181m) is expected. The insurance profit includes:

Continued improvement in the performance of the Group’s Australian and New Zealand businesses, including the delivery of a higher insurance margin by Australia Direct, a significantly stronger result in New Zealand, and continued improvement in CGU;

As outlined in the announcement on 2 June 2010, a substantial full-year loss in the UK business, including a net charge of $367 million in 2H10 which mainly relates to a significant deterioration in bodily injury claim experience;

Natural peril claim costs of $463 million (FY09: $451m), net of reinsurance recoveries, which was above the budgeted allowance of $350 million;

Prior year reserve releases of $228 million (FY09: $215m), excluding the second half reserve strengthening in the UK; and

A $33 million profit from the narrowing of credit spreads over the course of the year (FY09: loss of $13m).

IAG Managing Director and CEO, Mr Mike Wilkins, said the FY10 result showed a further uplift in the underlying performance of the Group’s Australian and New Zealand businesses during the year. “While this year’s financial result does not reflect the expectations we held at the outset of the year, I’m encouraged by the clear and ongoing improvement in the operational performance of our businesses in our home markets of Australia and New Zealand. The results of these three businesses, which represent almost 90% of our GWP, have improved year on year, providing evidence we’re continuing to benefit from our refined corporate strategy,” Mr Wilkins said. “The second half of the 2010 result has borne in excess of $200 million of net pre-tax claim costs in respect of the unprecedented Melbourne and Perth storms in March 2010, as well as the $367 million charge required in our UK business following the deterioration in bodily injury claim experience.

“I’m confident our performance will improve significantly in FY11. This is evidenced by our guidance which remains unchanged, and comprises an insurance margin of 10.5-12.5%.” Guidance for FY11 assumes losses from natural perils are in line with budgeted allowances of $435 million, no material movement in foreign exchange rates or investment markets, and lower net reserve releases (excluding the UK) than FY10. FY10 dividend It is anticipated that the Board will determine to pay a fully franked, final dividend of 4.5 cents per ordinary share (cps), taking the full year dividend to 13.0cps, fully franked (FY09: 10.0cps).

This is a 30% increase over last year’s dividend and represents approximately 70% of cash earnings for the year. The dividend will be paid on 6 October 2010 to shareholders registered as at 8 September 2010. Cash earnings has been calculated in accordance with the Group’s definition, which adjusts net profit after tax attributable to IAG shareholders for $113 million of amortisation (including the UK write-down of $86 million announced on 2 June 2010) and a net add back of $178 million in respect of unusual items. In addition to those identified at the half year, these items include:

Tax benefits on the restructure of financing arrangements, including intra-group funding of the UK operations;

Reinsurance cover in respect of potential further deterioration of 2009 and prior UK bodily injury claim costs; and

The future tax loss benefit in respect of the UK charge incurred in 2H10, which will not be recognised for accounting purposes in the FY10 results.

“We’re providing this information now, because we wanted to clarify the composition of our cash earnings and the impact on our dividend. After allowing for the final dividend, we remain in a strong capital position,” Mr Wilkins said. The Group will announce full details of its results for the year ended 30 June 2010 on Thursday, 26 August 2010. Executive team changes IAG also announced today that Mr Ian Foy, currently CEO of IAG’s New Zealand business, will return to the United Kingdom to become CEO of IAG’s UK business, succeeding Mr Neil Utley.

Ms Jacki Johnson, currently CEO of IAG’s online business, The Buzz, will succeed Mr Foy as CEO of New Zealand, and Group Executive Ms Leona Murphy will take responsibility for The Buzz. Mr Wilkins said Ian Foy’s successful track record in improving the performance of the Group’s New Zealand business, combined with his experience in the UK intermediated motor market, made him the clear choice to lead IAG’s UK operation. “Ian has extensive insurance industry experience, which will be crucial as he drives the comprehensive remedial action plan we announced last month. Ian has been with IAG for seven years, including two years as CEO of IAG’s New Zealand business and five years running NZI. Prior to this, he spent more than a decade working in various roles in the UK insurance industry with Aviva and General Accident.”

Mr Wilkins said that with the programme of remedial action in place, he and Neil Utley had mutually agreed that now was the appropriate time to introduce new leadership to take the UK business forward. “I would like to thank Neil for his leadership of the business in a challenging market environment during the past three years.” Mr Foy will assume his new role on 1 September 2010 and, to ensure an orderly transition, Mr Utley has agreed to remain with IAG’s UK business until 30 September 2010. IAG’s New Zealand business will be led by seasoned insurance executive, Ms Jacki Johnson, who has been with IAG for the past nine years in various Group Executive positions.

Before joining IAG she had roles with Allianz, HIH and IRS Total Injury Management. “Jacki’s experience in creating a direct business with The Buzz and running an intermediated business, as CEO of CGU’s Business Partnerships, will ensure we continue to build on the strong improvement Ian and the New Zealand team have achieved in this important market, over the past two years. “Additionally, Jacki’s experience in workers’ compensation will be invaluable to the future of the New Zealand business if the Accident Compensation Corporation (ACC) opens up to competition from private insurers,” Mr Wilkins said. Ms Johnson will take on the CEO role on 1 November 2010.

In the interim, Executive General Manager of NZI, Mr Karl Armstrong, will act in the role. Mr Armstrong has more than 35 years’ experience in underwriting and risk management, having joined NZI in 1971. IAG Group Executive Ms Leona Murphy will succeed Ms Johnson as CEO, The Buzz, from 1 November 2010. “Under Leona’s leadership, our innovative and passionate team at The Buzz will continue to build on the great strides this business has taken since launching in May 2009,” Mr Wilkins said. Ms Murphy will retain her other responsibilities, including corporate development and strategy. “I am particularly pleased about the strength of these appointments and that all of them have been sourced from within our business, demonstrating the depth and versatility of our executive team,” Mr Wilkins said. IAG’s new executive team Once all new positions come into effect, IAG’s executive team will be structured as follows: 

Insurance Australia Group Limited (IAG) is an international general insurance group, with operations in Australia, New Zealand, the United Kingdom and Asia.

Its current businesses underwrite approximately $7.8 billion of premium per annum. It sells insurance under many leading brands including NRMA Insurance, CGU, SGIO, SGIC, Swann and The Buzz (Australia); NZI and State (NZ); Equity Red Star (UK); and NZI and Safety (Thailand). For further information please visit www.iag.com.au. CORPORATE AFFAIRS Angus Trigg T 02 9292 3134 M 0413 946 708 E angus.trigg@iag.com.au INVESTOR RELATIONS Simon Phibbs T 02 9292 8796 M 0411 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 ADDITIONAL INFORMATION IAN FOY – MA (Cantab), MBA, FCII Ian Foy is an experienced insurance executive, having worked extensively in the UK and New Zealand markets, as well as other areas of Europe and in Australia.

Ian has been CEO of IAG’s New Zealand business since 2008. Prior to this role he spent five years as Head of Broker Business & Strategy at NZI. Between 1998-2003 he worked in several roles within Aviva’s insurance business, including Director of Business Operations at NZI and Managing Director of CGU Bonus in the UK.

He commenced his career in the UK insurance industry, spending over a decade with General Accident, where he held a variety of roles. JACKI JOHNSON – BAPPSC (OT), EMBA, GRADDIP SAFETY SCIENCE Jacki Johnson has more than 20 years’ experience in the insurance industry. As IAG’s CEO of The Buzz, Jacki launched one of Australia’s first online insurers. Other positions she has held at IAG include CEO, Business Partnerships, where she was responsible for IAG's risk management and safety services, workers' compensation fee based businesses and third party distribution of CGU and Swann Insurance branded products through financial institutions, affinity groups, motor dealers and motor manufacturers.

Jacki also led the integration of IAG’s and CGU's workers’ compensation businesses. Before joining the Group in 2001, she held senior positions with Allianz Insurance, HIH Insurance and IRS Total Injury Management. She is a director of Community First Credit Union and the Personal Injury Education Foundation, and is a former director of the New South Wales WorkCover Authority. LEONA MURPHY- BCOM Leona Murphy was appointed Group Executive, Corporate Office in July 2008, after joining IAG's executive team as Group Executive, Business Services, in November 2007. She has responsibility for managing a portfolio of central functions, including strategy, business development, risk and compliance, business sustainability, general counsel, technology and group human resources.

Leona has more than 18 years’ experience in the insurance industry including seven years with Promina and Vero. At Promina, she was Executive General Manager, Strategic Implementation, working with the chief executive officer on strategy execution and alignment. Within Vero, she held several senior roles, including Executive General Manager for Strategy and New Business, and General Manager, National Claims.

Prior to joining the Promina Group, she held senior positions with HIH Insurance. KARL ARMSTRONG – ANZIIF (SNR ASSOC), DIP MGMT (OPEN) Karl Armstrong was appointed Executive General Manager of NZI in August 2008. Prior to this he was Head of Risk Management and Underwriting. Mr Armstrong joined NZI in 1971 and spent 18 years working for NZI and General Accident in the UK.

Mr Armstrong returned to New Zealand in 1994, and set up the Accident Insurance division in 1998 when ACC was first opened to competition. Mr Armstrong’s experience includes underwriting and risk management, reinsurance, sales, broker relationship management and marketing. SUMMARY OF NEIL UTLEY’S ENTITLEMENTS ON DEPARTURE In accordance with his contractual arrangements as disclosed in IAG’s Annual Report, Neil Utley will receive his non-performance based entitlements upon departure. These include 12 months’ base salary plus the value of related benefits (pension contributions, health insurance, vehicle allowance, life cover and income protection).

Certain restrictive covenants remain in place in respect of Neil Utley’s ability to compete with IAG’s UK business.

UPDATE ON STATUS OF NAB PROPOSAL AXA

Asia Pacific Holdings Limited (AXA APH), AXA SA and National Australia Bank Limited (NAB) have each agreed to extend the period for NAB to satisfy the concerns raised by the Australian Competition and Consumer Commission (ACCC) until the end of the day on 31 August 2010.

On 19 April the ACCC announced that it would oppose the proposal of NAB to purchase the Australian and New Zealand Businesses of AXA APH through acquiring all of AXA APH and divesting the Asian businesses to AXA SA (Proposal). Approval from the ACCC is one of the conditions for the Proposal to proceed. NAB continues to pursue its options in relation to the ACCC’s objections to the Proposal. AXA APH, AXA SA and NAB have agreed for the payment of an interim dividend to AXA APH shareholders of up to 9.25 cents per share if determined by the directors of AXA APH.

The parties have also extended the end date for shareholder and court approval for the Proposal from 31 October 2010 to 31 January 2011.

Further information For Institutional Investors Melissa Heyhoe Group Manager – Investor Relations and Performance Reporting Ph: +61-(0)3 8688 3744 M: +61-(0)421 333 582 For Retail Investors Computershare Investor Services Ph: 1300 157 263 or +61-(0)3 9415 4689 For Media Francine McMullen Group Manager – Strategic Communications Ph: +61-(0)3 8688 4985 M: +61-(0)412 223 485.

UPDATE ON STATUS OF NAB PROPOSAL

AXA Asia Pacific Holdings Limited (AXA APH), AXA SA and National Australia Bank Limited (NAB) are currently in advanced discussions regarding extending the period for NAB to satisfy the concerns raised by the Australian Competition and Consumer Commission (ACCC).

On 19 April 2010 the ACCC announced it would oppose the proposal for NAB to purchase the Australian and New Zealand Businesses of AXA APH through acquiring all of AXA APH and divesting the Asian businesses to AXA SA. In the meantime the agreements between AXA APH, AXA SA and NAB as already disclosed remain in place.

Further information For Institutional Investors Melissa Heyhoe Group Manager – Investor Relations and Performance Reporting Ph: +61-(0)3 8688 3744 M: +61-(0)421 333 582 For Retail Investors Computershare Investor Services Ph: 1300 157 263 or +61-(0)3 9415 4689 For Media Francine McMullen Group Manager – Strategic Communications Ph: +61-(0)3 8688 4985 M: +61-(0)412 223 485.