Accident Compensation Commission (ACC)
ACC is New Zealand's workplace safety authority. Number of injuries accepted by ACC as work related.
Absenteeism
Employee absenteeism is a measure to indicate the absence level in IAG. Absenteeism is determined by dividing the total annual unscheduled absence days by total number of available (rostered) working days for all employees in the year.
Air travel
Distance travelled by IAG employees including domestic, trans–Tasman and international flights booked through the online travel service provider. New Zealand results include brands: State, NZI, Swann Insurance, NAC, DriveRight, Lantern Insurance and Mike Henry.
Business volume
This measures the volume of business at a point in time. The basis of the measure depends on the class of business. In the personal lines class, the relevant volume measure is 'risks in force'. In commercial classes, the volume measure is 'policies in force'. The difference in the definition is required to capture the distinct nature of IAG's business mix. New Zealand brands included in this measurement: State, NZI, Lantern Insurance and Mike Henry Travel Insurance.
CO2e emissions
In this instance, CO2e emissions are calculated for electricity use, office paper and print paper consumption, tool of trade fuel consumption and air travel.
For Australia, emission factors are obtained from the Australian Department of Climate Change 2008 workbook (electricity and fuel); the Greenhouse Gas Protocol 2008 Factors (air travel) and the Australian Paper Industry Council 2005 (paper).
For New Zealand, data factors were obtained from the New Zealand Ministry for the Environment Guidance for Voluntary Corporate Greenhouse Gas Reporting 2007 (electricity and fuel) and as per the Australian sources for air travel and paper. In previous years the tool of trade and electricity emission factors were obtained from the New Zealand Business Council for Sustainable development 'Emission Factors for New Zealand Businesses' and our energy supplier for electricity respectively. New Zealand brands included in this measurement: State, NZI, Swann Insurance, NAC, DriveRight, Lantern Insurance and Mike Henry.
Customer satisfaction index
In Australia, this measures the end to end customer experience when enquiring, taking out, or renewing a policy, or when making a claim for direct personal insurance. Customer satisfaction levels are determined by a third party through telephone interviews with a random sample of customers contacted.
The survey was conducted by a different supplier prior to 2006 and results attained before 2006 are thus not comparable with results attained from 2006 onwards.
In New Zealand, the survey is a random sample of customers who have had Sales and Service contact with State or NZI (e.g. requested a quote, changed their address, taken out a policy) within the last month, or customers whose claim has been closed during the previous month. Satisfaction is measured by a third party survey where the percentage of customers rating 5, 6 or 7 on a 7 point scale are considered to be satisfied (7 = extremely satisfied and 1 = extremely dissatisfied).
Community grants
Cash grants given to community groups through the community grants program. Figures reported are inclusive of GST.
Community Investment
This estimates direct financial support of community groups and programs through sponsorship and donations, as well as indirect support to help promote and raise awareness of these community organisations (including commitments) through research and promotion. In Australia direct IAG management and administration costs related to community investment are also included plus salary costs and on costs for employee volunteering hours recorded in the Human Resources systems. Figures reported are exclusive of GST.
In prior years, this measured direct financial support of community groups and programs, as well as indirect support to help promote and raise awareness of these community organisations, including corporate sponsorships.
Definitions of forms of investment:
- Donations
These include donations made directly by the business where funds are provided to an organisation and there is no obligation on the part of the recipient. Donations must be made with primary aim of improving the quality of life to sections of the community or to provide targeted welfare or other support;
- Sponsorships
These are usually financial support in exchange for something from the receiving organisations, such as provision of advertising. The primary purpose of the sponsorship must be community rather than commercial benefit;
- In kind
This includes the equivalent financial costs of materials/services provided and time volunteered by employees to various community initiatives, events and fundraisers. This will not include volunteering undertaken in personal time unless it is specifically acknowledged by the business;
- Administration
This includes management and administration costs of IAG staff directly involved in community investments; and
- Research
This includes the financial support contributed to research activities. The primary purpose of the research must be community rather than commercial benefit.
Contributions may be made in areas of the environment, social welfare, arts and culture, charitable organisations, community infrastructure or industry specific contributions:
- Community investment aims to capture those expenditures made to benefit the general public or community. Hence, it does not include: expenditure on commercial research;
- support to a business association, registered political party, associated entity or trade union, or community government council or municipal council;
- donations made by customers through the use of brands to promote particular causes;
- any contribution made under a reciprocal arrangement;
- expenditure that relates to fulfilling any legal obligations; and
- any expenditure already included within the environmental expenditures indicator.
Dollar values
Unless otherwise stated all dollar values listed in this report are based on Australian dollars.
Electricity
In Australia, this includes metered electricity consumption for those sites directly owned or controlled by IAG (approximately 85% of all sites). Where metered data is not available, electricity use has been estimated based on an equivalent floor space model using consumption figures for similar known sites.
In New Zealand, all electricity consumption is metered.
Measured in MWh of electricity consumed and per FTE.
Employee engagement score
In the current year, IAG has selected to work with a new third party engagement survey provider. Engagement is determined through eight questions that fall into the Think, Feel, Act and Stay categories. To be engaged employees must have a rational understanding of the organisation's strategic goals, values, and how they fit; an emotional attachment to the organisation; and motivation and willingness to invest discretionary effort to go above and beyond. Participation in the survey continues to be voluntary and is made available to all employees. Engagement is measured by averaging an individual's response to each engagement question. The final engagement score is the total number of engaged employees as a percentage over the total number of respondents.
For New Zealand, this includes the State, NZI, NAC, Lantern Insurance, Swann Insurance, Mike Henry and DriveRight brands.
In previous years, the results were determined through six questions in the 'Your Voice' employee survey conducted by a third party. The survey assessed the extent to which employees consistently said positive things about working at IAG, wanted to stay with IAG and strove to achieve above and beyond what is expected of them. Participation in the survey was voluntary but was made available to all employees. Engagement was measured by averaging an individual's response to each engagement question. The final engagement score was the total number of engaged employees as a percentage over the total number of respondents.
For New Zealand, this includes the State, NZI, NAC, Swann Insurance, Lantern Insurance, Mike Henry and DriveRight brands.
FTE (full time equivalent)
FTE is a measure of the size of IAG's workforce that takes account of part time employees. Full time employees are given a value of one. The value for part time employees is based on their regular hours as a proportion of full time hours. The FTE includes all permanent fulltime and part time employees, employees on a fixed term contract (paid by IAG's payroll) and employees on leave without pay (less than 28 calendar days). It excludes guests (not paid by IAG), casuals and employees on extended leave without pay (more than 28 calendar days) on the day we report on the data.
Fuel consumption
In Australia this is the petrol, diesel and LPG consumed by IAG's tool of trade fleet. In New Zealand only petrol consumption is reported. No adjustments are made for any personal usage of the tool of trade vehicles.
Full time employees versus part time employees (FTE)
Percentage of full time versus part time employees included in headcount. Full time employees work 35 or 37.5 hours per week depending on their Enterprise Agreement. Part time employees work less weekly hours than the full time hours under their enterprise agreement. In New Zealand, full time employees work 37.5 hours per week and part time employees work less than 37.5 hours per week.
Gross written premium
The total amount received by the Group from customers for the payment of their insurance policies.
Headcount
The number of people employed by IAG, regardless of hours worked. Headcount comprises permanent and fixed term employees. It includes employees on extended leave and excludes casuals and contractors (people not paid by IAG).
Insurance margin
Contribution to profit from underwriting and investment income on claims reserves as a percentage of net earned premium.
Lost time injury frequency rate (LTIFR)
The number of lost time injuries for each one million hours worked. A lost time injury is an injury that has resulted in at least one shift/day's absence from work and for which a workers' compensation claim has been lodged and liability accepted. Journey claims and claims on an unpaid break are not included. Million hours worked includes all scheduled hours, plus overtime less leave and also includes the hours worked by casual employees.
Male to female salary ratio
The ratio is determined by dividing mean annual FTE salary for all males by that for all females. FTE salary is used to standardise all salaries to what would be earned if each employee worked 37.5 hours per week and is obtained by multiplying the base salary by a factor (37.5/weekly hours).
Net claims expense
The amount paid out by the Group in claims during the year, as well as an estimate of how much is needed to pay on unsettled claims, plus claims handling costs such as legal and administrative expenses, less recoveries from reinsurers and other parties.
Net earned premium
This is gross earned premium minus reinsurance expense.
Office paper consumption
A3 and A4 office paper consumption as determined through an in house ordering system using two separate suppliers. This excludes glossy paper. In New Zealand, this measures office paper consumption as determined through supplier invoices for paper ordered during the month.
Print paper consumption
Print paper consumption consisting of commercially printed material (booklets, envelopes, brochures and customer documentation such as renewals and certificates of insurance).
Recycled commingled waste
Recycled commingled waste is a measure of paper, cardboard and commingled material collected for recycling across Australia. In previous years, it consisted of waste collected from IAG premises and archived material recycled only. From FY06–07, the measure also included paper sent for secure destruction. From FY07–08 the measure also included printer cartridges and consumables collected.
New Zealand figures included paper and cardboard recycled from most sites, whereas commingled waste was only collected from Auckland, Wellington and, from FY2008, Christchurch sites (brands include State, NZI, Swann Insurance, NAC, Mike Henry, Lantern Insurance and DriveRight.
Return on equity
Net profit attributable to ordinary shareholders as a percentage of the average equity of those shareholders.
Staff turnover
Total turnover indicates the total number of staff terminations as a percentage of headcount. The turnover percentage is the aggregate of turnover for each month, where headcount is as at the end of the month. Staff terminations includes all permanent and fixed term full time and part time employees but excludes casual employees and guests, where the last day of employment was within the reporting period. Terminations do not include non starters and people terminated at the end of a fixed term, but do include fixed term appointments that are terminated earlier than the contract expiry date.
In the current year staff turnover is split between employee and employer initiated turnover.
Women in executive management
For Australia, this measures the total percentage of women on the IAG executive team. For New Zealand, this measures the total percentage of women on the New Zealand executive team.
Women in senior management
Total percentage of females in senior management positions is determined by women in the position of senior manager, head of and executive roles, based on their career band.
Workplace accidents
The number of injuries accepted by the relevant workplace safety authority as work related. [New Zealand—Accident Compensation Corporation (ACC)].
Workplace giving program
The dollars contributed by staff through our payroll deduction scheme.
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