At the analyst briefing, slide 15 showed continuing growth in premiums but the CFO called out savings in employment and information technology. These contributed quite significantly to cost savings.
On slide 16, NZ had softer business conditions than in Australia, explaining the slight decrease from NZ.
The Board has approved an increase in maximum permitted gearing to 35 per cent.
Answering questions, re the premium rate cycle, during the first half, there were no fixed across-the-board movements: we said '7.5 to 9' per cent but achieved 7.5 per cent though motor vehicle insurance ran at about 13 per cent.
2H 25 is expected to conservatively see about five per cent premium rises.
Robert Kelly said a 'terrible lie' was put out by the ABC re SDF.
The contribution from international acquisitions and businesses is at less than 10 per cent of revenue. If offshore becomes more prominent, the effective tax rate may decrease a small amount from 30 per cent (the Oz rate).
In SDF's forecast re NPAT and other metrics, there was a slight slowdown estimated in 2H 25. Same bottom line picture as previously suggested.
The consolidated group margin should increase by about 40 basis points as forecast in August 2024. Agency margins may decrease a little.
SDF has put A$400 million into Lloyd's market. For H W Wood, over the next two years $300 million more will go into the binder business.
Organic growth expectations for the full year mirror what's already occurred: 9.5 per cent. It might slow down a touch in 2H 25.
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