and also IAG not trading, page-2

INSURANCE AUSTRALIA GROUP LIMITED
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HOMEX - Sydney
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IAG Unveils details fo $300 million debt issue

Insurance Australia Group today unveiled the details of its A$300
million, dual tranche 10 year Subordinated Note issue.

The issue will qualify as lower Tier 2 regulatory capital under
APRA's general insurance prudential standards and has been assigned a
'AA-' rating by Standard & Poor's.

The issue is part of the group's existing $750 million Debt Issuance
Programme.

The issuer is NRMA Insurance Limited, a wholly owned subsidiary of
Insurance Australia Group Limited.

NRMA Insurance Limited has a 'AA' Insurer Financial Strength and
counterparty rating (outlook stable) from Standard & Poor's.

The issue comprises:

* $250 million fixed rate Subordinated Notes due 27 November 2012,
being marketed at 105-110 basis points over the semi-annual swap
rate; and

* $50 million floating rate Subordinated Notes due 27 November 2012,
being marketed at 105-110 basis points over three month BBSW.

The issuer may redeem the Subordinated Notes on 27 November 2007 and
each subsequent Interest Payment Date, subject to APRA's approval. If
the Subordinated Notes are not redeemed the margin will be increased
by 50 basis points from 27 November 2007.

The funds raised will form part of the arrangements to re-finance the
bridging facility put in place for the acquisition of the general
insurance operations of CGU and NZI.

The issue is due to be priced around 3:30pm today with settlement
scheduled for 27 November 2002.

The joint lead managers are Deutsche Bank AG, UBS Warburg Australia
Limited and Westpac Institutional Bank.

Insurance Australia owns some of Australia and New Zealand's leading
brands - NRMA Insurance (New South Wales, Australian Capital
Territory and Queensland), SGIO (Western Australia), SGIC (South
Australia), State Insurance and Circle (New Zealand) and ClearView
Retirement Solutions.

ends - AAP