Page 2 - Suncorp_Review

Page Chairman’s message 1

Directors’ Report 2 1. Directors 2 2. Company Secretary 4 3. Directors’ meetings 5 4. Remuneration Report 5 5. Principal activities 5 5.1. Suncorp Group’s objectives 5 6. Operating and fnancial review 5 6.1. Overview of the Suncorp Group 5 6.2. Financial position and capital structure 6 6.3. Impact of legislation and other external

requirements 6 6.4. Review of principal businesses 8 6.5. Signifcant changes in the state of affairs 9 6.6. Environmental regulation 9 7. Dividends 9 8. Events subsequent to reporting date 9 9. Likely developments 9 10. Directors’ interests 9 11. Indemnifcation and insurance of offcers 10 12. Non-audit services 10 13. Lead auditor’s independence declaration 10 14. Rounding off 10

Remuneration Report 11

1. Remuneration overview – unaudited 12 2. Remuneration – audited 15 3. Non‑executive director arrangements – audited 31

Lead Auditor’s Independence Declaration 35

Corporate Governance Statement 36

Part 1. Board of Directors 38 Part 2. Board committees and New Zealand subsidiaries 41 Part 3. Senior Executives 43 Part 4. Risk management 43 Part 5. Policies 47

Consolidated statement of comprehensive income 50 Consolidated statement of fnancial position 51 Consolidated statement of changes in equity 52 Consolidated statement of cash fows 53

Page Notes to the consolidated fnancial statements 54

1. Suncorp Group restructure 54 2. Basis of preparation 54 3. Earnings per share (EPS) 55 4. Dividends 55 5. Segment reporting 56 6. General Insurance – Specifc disclosures 62 6.1. Contribution to proft from

General Insurance activities 62 6.2. General Insurance – Net incurred claims 63 6.3. General Insurance – Derivatives 63 6.4. General Insurance – Investment securities 63 6.5. General Insurance assets 64 6.6. General Insurance liabilities 64 6.7. General Insurance – Subordinated notes 69 6.8. General Insurance –

Minimum capital requirement (MCR) 70 7. Banking – Specifc disclosures 71 7.1. Contribution to proft from Banking activities 71 7.2. Banking – Trading and Investment securities 71 7.3. Banking – Derivatives 72 7.4. Banking loans, advances and other receivables 72 7.5. Banking – Provision for impairment on

Banking loans, advances and other receivables 73 7.6. Banking – Deposits and short-term borrowings 74 7.7. Banking – Securitisation liabilities 74 7.8. Banking – Debt issues 75 7.9. Banking – Subordinated notes 75 7.10. Banking – Preference shares 76 7.11. Banking – Capital adequacy 77 8. Life – Specifc disclosures 79 8.1. Contribution to proft from Life activities 79 8.2. Sources of Life business operating proft 80 8.3. Life – Derivatives 81 8.4. Life – Investment securities 81 8.5. Life assets 81 8.6. Life liabilities 82 8.7. Life – Net policy liabilities 83 8.8. Life – Capital and solvency requirements 88 8.9. Life – Managed assets, trustee activities

and mortgage investments 89 9. Revenue 89 10. Expenses 90 11. Income tax 91 12. Share-based payments 93 13. Defned beneft fund obligations 96 14. Derivatives 98 15. Investment securities 99 16. Property, plant and equipment 100 17. Other assets 100 18. Goodwill and intangible assets 102 19. Payables and other liabilities 105 20. Subordinated notes 105 21. Share capital 106 22. Reserves 107 23. Suncorp Group capital management 108 24. Notes to the consolidated statement of cash fows 111 25. Fair values of fnancial instruments 112 26. Parent entity and subsidiaries 115 27. Fiduciary activities 117 28. Changes in the composition of the Suncorp Group 117 29. Key management personnel disclosures 118 30. Other related party disclosures 122 31. Commitments 123 32. Contingent assets and liabilities 124 33. Signifcant accounting policies 125 34. Group risk management 137 35. Auditors’ remuneration 162 36. Subsequent events 162

Directors’ declaration 163 Independent auditor’s report to the members

of Suncorp Group Limited 164 Shareholder information 166

Contents