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Notes to the consolidated fnancial statements (continued)

for the year ended 30 June 2011

6. General Insurance – Specifc disclosures (continued)

6.6 General Insurance liabilities (continued)

6.6.2 Outstanding claims liabilities

CONSOLIDATED

2011 2010 $m $m

Gross central estimate – undiscounted 11,014 7,818 Risk margin 1,247 1,260 Claims handling expenses 396 281 12,657 9,359 Discount to present value (1,680) (1,473) Gross outstanding claims liabilities – discounted 10,977 7,886

Overall risk margin applied 18.4% 18.3% Probability of adequacy of the risk margin (approximately) 90% 90%

(a) Reconciliation of movement in discounted outstanding claims liabilities

GENERAL INSURANCE

2011 2010 $m $m

Net outstanding claims liabilities at the beginning of the fnancial year 6,335 6,059

Prior periods

Claims payments (1,678) (1,614) Discount unwind 194 149 Margin release on prior periods (208) (213) Incurred claims due to changes in assumptions and experience (383) (286) Change in discount rate (3) 119 Change in risk margin percentage – (2)

Current period

Incurred claims 5,145 4,878 Claims payments (3,077) (2,755) Net foreign exchange difference (8) – Net outstanding claims liabilities at the end of the fnancial year 6,317 6,335 Reinsurance and other recoveries on outstanding claims liabilities 4,660 1,551 Gross outstanding claims liabilities (discounted) at the end of the fnancial year 10,977 7,886