Ann: Appendix 4D and FY21 Half Year Financial Statements, page-11

Hi tim8wilson,

Yes I just got off that call. There was a fair bit of discussion around the weakness in the PI practice. They took some "one-off" writedowns in the VIC WIP, mostly older cases, and also in the Bradley Bayly practice in WA, with one lawyer apparently being quite aggressive in his fee estimates. They do expect both revenues and margin in PI to improve in the second-half. There is some further clean-up to do in the VIC book which they expect to complete by the end of this financial year. Once that's done they expect PI margins to return to normal levels.

In terms of new case files for PI, the flow is actually pretty good in VIC and also in NSW. However there is some competitive pressure in their home market of QLD and they are working hard to try to maintain market share there.

Covid hasn't had the expected negative impact on PI claims as even though the number of accidents has gone down, the claims frequency has gone up. They don't really know why that's the case (maybe people are under more pressure financially).

On class actions, they've got a good pipeline that they are working on. They don't think any of the proposed regulatory changes will have a material negative impact on that practice. They are focused on continuing to grow that business and covid provides some tailwinds (Ruby Princess, aged care).

Only other thing worth noting was that there is a possibility for a special dividend from the proceed of the Mesh case but that will be a Board decision.