6 written questions lodged at 2023 IAG hybrid AGM
October 11, 2023
Here is the text of the 6 written questions lodged at the 2023 IAG hybrid AGM held on October 11, along with some video grabs via Twitter.
Q1. Could the CEO or our resident executive expert comment on our approach to flood mapping. Do we rely on councils, state governments and water authorities to accurately map potential flooding or do we do our own modelling work when pricing policies? How important is the work of the Insurance Council of Australia in this regard and which states are getting it right in terms of reforming Australia's flood mapping system as the climate changes?
Answer:
Q2. Our biggest insurance rival Suncorp did well securing $440 million from listed company AMA for its SMART car repair business in 2019. AMA is now under severe pressure with a market cap of $65 million and share price of just 3.7c. What is our relationship with AMA and have we looked at making a takeover bid to become Australia's biggest car repair business to better control costs in our supply chain for car accident claims? How do we currently source panel beater services across Australia and how important is our current in-house capacity?
Answer:
Q3. For the past 24 years, IAG has managed a joint venture with the RACV in the NSW and Victorian markets called Insurance Manufacturers Australia. We are the senior partner with a 70% stake. Given RACV is a mutual more focused on building resorts, shouldn't we just take them out of the general insurance market? Have we ever offered to do that and what is the situation with pre-emptive rights? If someone makes a bid for IAG, does RACV have the right to buy our 70% stake in IMA and, if so, how is the price of this pre-emptive entitlement calculated? Also, what is the book value of our 70% stake in IMA?
Answer:
Q4. In 2019, Treasury Wine Estates voluntarily moved to annual elections for directors in line with best practice that occurs in both the US and the UK. Dual listed companies like News Corp and Rio Tinto all do this due to the laws in the US and UK and BHP has continued doing it even after its UK DLC ended in 2021. Can the chair and candidate Jon Nicholson comment on whether our company will investigate following this TWE lead and move to annual elections of directors at the 2024 AGM? We're best practice on issues like AGM transcripts and webcasts, why not follow best practice on annual director elections as well?
Answer:
Q5. Retail shareholder voting turnout at AGMs has fallen to less than 5% as we feel powerless in the face of institutional voting. What is the point of voting? Therefore, when disclosing the outcome of voting on all resolutions today, including this item 7, could you please advise the ASX how many shareholders voted for and against each item, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a voluntary disclosure initiative adopted by the likes of Metcash, Altium, Dexus, Webjet, Tabcorp and Myer over the past two years.
Answer:
Q6. Could CEO Nick Hawkins summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcements. It's complicated and the CEO could factually summarise the situation in 60 seconds.
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