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IBISWorld Company Report

Zurich Financial Services Australia Limited This report was provided to Western Sydney University (20749147)

Premium Report by IBISWorld on 24 May 2020 in accordance with their licence agreement with IBISWorld

Balance Date: December 2018

Details ....................................................................................................................................................... 2 Introduction ............................................................................................................................................. 2 History/Background ................................................................................................................................ 3 Brands/Businesses/Products ................................................................................................................. 4 Company Snapshot ................................................................................................................................ 4

Personnel................................................................................................................................................. 5 Other Directorships ............................................................................................................................... 5 Financials ................................................................................................................................................. 7 Financial Growth .................................................................................................................................... 9 Financial Ratios ...................................................................................................................................... 9 Industry Financial Averages .............................................................................................................10 Segments ...............................................................................................................................................11 Operating Divisions ............................................................................................................................... 11 Geographic Locations ........................................................................................................................... 11

Competitive Environment ..................................................................................................................12 Shareholders.........................................................................................................................................14 Subsidiaries...........................................................................................................................................15 Service Providers .................................................................................................................................16

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Details Company Details

ACN Number

K63 - Insurance and Superannuation Funds in Australia 008 423 372

ABN Number

11 008 423 372

ASX Code Incorporated In Incorporation Date Company Type

Australian Capital Territory 4/4/1961 Public Company

Ownership Type Sector

Foreign Non Government

Listed on Stock Exchange? FY Balance Date

No 31-Dec-2018

IBISWorld Rank*

142

Major Business Line

Company Contact Details Company Registered Name Commonly Used Name

Zurich Financial Services Australia Limited Zurich Financial Services

Street Address Floor Street

5 Blue Street

City State

NORTH SYDNEY New South Wales

Post Code Country

2060 Australia

Postal Address PO Box Post Office

Locked Bag 994

City State Post Code Telephone Number

NORTH SYDNEY New South Wales 2059 02 9995 1111

Facsimilie Number Internet Web Address

02 9995 3797 www.zurich.com.au

Introduction Zurich Financial Services Australia Limited is a foreign-owned unlisted public company, deriving revenue from the provision of general insurance solutions, fund management services, investment solutions and superannuation products primarily through brokers and financial planners. The company

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employs approximately 1,080 people, operates in Australia, and is administered from its head office in North Sydney. Zurich Financial Services Australia Limited is a wholly owned subsidiary of Zurich Insurance Group Limited, a Switzerland-based insurance provider.

History/Background 2019 - February: The company and Zurich Australia Limited entered into an agreement with EQT Holdings Limited to sell the company's shares in Zurich Australian Superannuation Pty Limited for approximately $6.2 million. The transaction is expected to complete in March 2019. 2017 - December: Zurich Financial Services Australia announced that it had entered into an agreement with ANZ banking group and others to acquire OnePath Life Australia Holdings Pty Limited, the holding company of OnePath Life Limited and OnePath General I nsurance Pty Limited for an undisclosed amount. The acquisition is subjected to regulatory approval and is expected to complete by May 2019. November: The company sold its shares in Zurich Properties Pty Limited to a third party for an undisclosed amount. April: Zurich Financial Services Australia acquired Cover-More Group Limited, a Sydney-based travel insurance and solutions provider, for a consideration of A$741 million. Also during the month, the company announced the launch of its new app ZLife mobile designed to assist its advisers with client portfolio management. 2016 - October: The company acquired the life risk insurance business of Macquarie Life Limited's Statutory Fund 4, the life risk insurance business, for an undisclosed amount. March: Zurich Financial Services Australia subsidiary, Zurich Australia Limited, entered into an agreement with Macquarie G roup to acquire Macquarie Life's life insurance division for an undisclosed amount. The agreement is subject to regulatory and court approvals. 2015 - December: The company deregistered four of its investment schemes; Zurich Investments Global Thematic Share Retail Fund, Zurich Investments Managed Growth Retail Fund, Zurich Investments Australian Value Share Retail Fund, Zurich Investments Australian Property Securities Retail Fund. 2014 - June: Zurich Financial Services Australia disposed of its Zurich Group Superannuation Fund. 2011 - October: The company sold its associate company DKN Financial Group Limited for an undisclosed amount. June: Zurich Financial Services sold the following subsidiaries: Lonsec Limited, LCS Capital Pty Limited, Lonsec Nominees Pty Limited and Lonsec Nominees (Vic) Pty Limited. March: The company announced the split of its Australian general and life insurance operations into separate businesses, to align the Australian business with the structure of its Swiss parent. 2008 - June: Zurich Financial Services disposed of its shares in Financial Lifestyle Solutions Pty Limited. 2007 - November: The Company acquired 31.55% of DKN Financial Group Limited and disposed of its interest in Lonsdale Financial G roup Limited and Wrap Account Limited. 2005 - December: The company sold Accountants Superannuation Fund Nominees Pty Ltd. August - Zurich Financial Services sold its subsidiary, Zurich Solutions Limited. July: Zurich Financial Services disposed of its 29% interest in eChoice Pty Ltd. 2004 - August: Zurich Financial Services disposed of its 30% interest in Associated Planners G roup Limited. June: The company acquired the remaining 57% equity in International Masterfund Management Pty Ltd. Provided to: Western Sydney University (20749147) | 24 May 2020

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March: Zurich Financial Services sold its 100% interest in McMillan Shakespeare Australia Pty Ltd. February: The company acquired the remaining 50% equity in Associated Marine I nsurers Agency Pty Ltd. 1999 - Zurich Financial Services acquired a 30% interest in Bridgeport Advisors and Asset managers Pty Ltd. During the year Zurich Australian Workers Compensation Victoria Pty Ltd ceased underwriting the Victorian workers compensation scheme. 1997- Zurich Financial Services acquired HFA Financial Services. 1961 - April: Zurich Financial services Australia was established. The company's parent entity, Zurich acquired CGA for an undisclosed amount. 1920 - The Commonwealth General Assurance Corporation Ltd (CGA) was incorporated in New South Wales.

Brands/Businesses/Products Zurich Financial Services Australia Limited operates as an insurer and financial services provider. The company offers the following range of products and services: • Life I nsurance • Investments • Superannuation and Retirement • General I nsurance for various business sizes, including multinational and small to mid-size companies. • Funds Management Services

Company Snapshot Zurich Financial Services Australia Limited is a Public Company that is ranked number 142 out of the top 2000 companies in Australia. The company generates the majority of its income from the Insurance and Superannuation Funds in Australia industry. In 2018 the company generated total revenue of $2,902,312,000 including sales and other revenue. In 2018 Zurich Financial Services Australia Limited had 1077 employees in Australia including employees from all subsidiaries under the company's control. The Chief Executive of Zurich Financial Services Australia Limited is Mr Timothy Bailey whose official title is Chief Executive Officer - Life & Investments Australia. The Chairman of Zurich Financial Services Australia Limited is Mr Paul Bedbrook whose official title is Independent Non-Executive Chairman.

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Personnel Salutation Initials Full Name Mr PJ Paul Bedbrook

Title Independent Non-Executive Chairman* Chief Executive Officer - Life & Investments Australia* Chief Financial Officer - Life & Investments Australia Chief Operating Officer - Life & Investments Australia

Mr

TJ

Timothy Bailey

Mr

M

Mark Henderson

Mr

P

Phil Anderson

Mr

JF

John Mulcahy

Independent Non-Executive Director*

Mr

JI

Jack Howell

Non-Executive Director*

Mr

M

Marc de Cure

Independent Non-Executive Director*

Ms Mr

CA DG

Ms

CA

Mr

DG

Ms

K

Mr

R

Cathy Manolios Joint Company Secretary David Hallahan Joint Company Secretary General Counsel & Head of Corporate Cathy Manolios Governance David Hallahan Senior Legal Counsel Chief Distribution Officer - Life & Kristine Brooks Investments Australia Richard Head of Marketing & Communications Dunkerley Life & Investments

Mr

D

David Stanton

Ms

S

Sue Watson

Ms

S

Sue Maher

Senior HR Business Partner - Life & Investments Australia Country Head of Human Resources

Mr

V

Volker Mayr

Chief Information Officer

Mr

M

Mr

S

Matthew Drennan Scott Watters

Mr

T

Tim Howell

Chief Executive Financial Controller Chief Operating Officer Non-Executive Director Non-Executive Director Non-Executive Director Company Secretary Company Secretary Legal Officer Legal Officer Sales Manager Marketing Manager Procurement Manager

Head of Workplace

Personnel Manager Personnel Manager Computing/IT Manager

Head of Savings & Investments

Other

Head of OnePath Integration Head of Propositions - Life & Investments Australia

Other

Jane Chief Risk Officer McGovern * Appointed to the Board of Directors Ms

Position Type Chairman

J

Other Other

Other Directorships Name Mr Paul Bedbrook Mr Jack Howell Mr John Mulcahy

Company Credit Union Australia Ltd Zurich Travel Solutions Pty Limited GWA Group Limited

Position Title Independent Non-Executive Director Non-Executive Director Non-Executive Deputy Chairman

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Zurich Financial Services Australia Limited

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Financials Balance Date 31-Dec-2018 31-Dec-2017 31-Dec-2016 31-Dec-2015 31-Dec-2014 Accounting Period Date 12 Months 12 Months 12 Months 12 Months 12 Months Currency Units AUD000 AUD000 AUD000 AUD000 AUD000 PROFIT AND LOSS ACCOUNT REVENUE ITEMS Sales Revenue 2,623,487 2,119,275 1,511,425 2,097,228 1,846,512 Other Revenue 278,825 285,766 252,187 284,069 389,776 Total Revenue 2,902,312 2,405,041 1,763,612 2,381,297 2,236,288 Cost of Goods Sold N/A N/A N/A N/A N/A Depreciation 17,440 17,682 14,936 14,806 14,722 R&D Expenditure N/A N/A N/A N/A N/A INTEREST Interest Received 127,975 114,982 112,631 124,511 134,326 Interest Expense N/A N/A N/A N/A N/A PROFIT AND LOSS Share of Profits of N/A N/A N/A N/A N/A Associates EBITDA N/A N/A N/A N/A N/A Profit Before Tax 164,804 190,519 74,203 3,413 131,326 Income Tax Expense 40,494 64,404 23,147 8,568 47,052 Continuing Operations after 124,310 126,115 51,056 -5,155 84,274 Tax Discontinued Operations N/A N/A N/A N/A N/A after Tax Outside Equity Interest 0 0 0 0 0 NPAT 124,310 126,115 51,056 -5,155 84,274 Significant Items 0 0 0 0 0 Dividends 0 20,000 0 0 140,000 AUDIT Audit Fees 1,661 1,955 1,956 1,718 1,120 Audit Other 273 428 709 589 439 Total Audit Fees 1,934 2,383 2,665 2,307 1,559 BALANCE SHEET CURRENT ASSETS Cash At Bank N/A N/A N/A N/A N/A Trade Debtors N/A N/A N/A N/A N/A Inventory N/A N/A N/A N/A N/A Other Current Assets N/A N/A N/A N/A N/A Total Current Assets N/A N/A N/A N/A N/A NON-CURRENT ASSETS Receivables N/A N/A N/A N/A N/A Investments N/A N/A N/A N/A N/A Property & Plant Equipment N/A N/A N/A N/A N/A Intangible Assets N/A N/A N/A N/A N/A Provided to: Western Sydney University (20749147) | 24 May 2020

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Zurich Financial Services Australia Limited

Other Non-Current Assets Total Non-Current Assets Total Assets CURRENT LIABILITIES Trade Creditors Interest Bearing Debt Provisions Other Current Liabilities Total Current Liabilities NON-CURRENT LIABILITIES Interest Bearing Debt Provisions Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities SHAREHOLDERS' EQUITY Share Capital Reserves Retained Earnings Other Total Equity OTHER Number of Employees Qualified Audit Report

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N/A N/A 8,076,374

N/A N/A 7,421,333

N/A N/A 6,573,990

N/A N/A 6,490,806

N/A N/A 7,020,163

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A N/A N/A

N/A

N/A

N/A

N/A

N/A

4,342,556

4,660,278

4,829,273

5,224,249

5,747,671

2,277,273 4,641 1,451,904 0 3,733,818

1,427,273 6,188 1,327,594 0 2,761,055

527,273 8,174 1,209,270 0 1,744,717

101,273 7,070 1,158,214 0 1,266,557

101,273 7,850 1,163,369 0 1,272,492

1,077 No

1,076 No

1,145 No

1,156 No

1,289 No

* I BI SWorld estimate

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Financial Growth Balance Date 31-Dec-2018 31-Dec-2017 31-Dec-2016 31-Dec-2015 Ave 2013-18 (%) Total Revenue Growth 20.7 36.4 -25.9 6.5 2.9 (% change) Sales Revenue Growth 23.8 40.2 -27.9 13.6 5.3 (% change) EBITDA (% change) N/A N/A N/A N/A N/A NPAT (% change) -1.4 147.0 N/A -106.1 -0.5 Shareholders' Funds 35.2 58.3 37.8 -0.5 23.0 (% change) Total Assets (% change) 8.8 12.9 1.3 -7.5 1.9 Employees (% change) 0.1 -6.0 -1.0 -10.3 -4.5

Financial Ratios Balance Date Return on Revenue (ROR) (%) Return on Shareholders' Funds (ROSF) (%) Return on Assets (ROA) (%) Profit Margin (%) Revenue per Employee ($'000 per person) NPAT per Employee ($'000 per person) Effective Tax Rate (%) Gearing (%) Interest Cover (X) Current Ratio (X)

Revenue & NPAT

31-Dec-2018 31-Dec-2017 31-Dec-2016 31-Dec-2015 31-Dec-2014 4.3

5.2

2.9

-0.2

3.8

3.3

4.6

2.9

-0.4

6.6

1.5 6.3

1.7 9.0

0.8 4.9

-0.1 0.2

1.2 7.1

2,694.8

2,235.2

1,540.3

2,060.0

1,734.9

115.4

117.2

44.6

-4.5

65.4

24.6 53.8 N/A N/A

33.8 62.8 N/A N/A

31.2 73.5 N/A N/A

251.0 80.5 N/A N/A

35.8 81.9 N/A N/A

Key Measures (% change)

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Zurich Financial Services Australia Limited

Industry Financial Averages Financial Ratios Return On Shareholders Funds Return On Total Assets Gearing Interest Cover Current Ratio NPAT/Employee Pre-Tax Margin EBITDA Effective Tax Rate Days Stock Held Debtors T/O Creditors T/O Revenue/Employee Net Assets Per Share Dividend Per Share Earnings Per Share Dividend Payout Ratio Asset Turnover Ratio

Industry Zurich Financial Services Unit Average* 31-Dec-2018 9.34 1.30 27.34 2.51 1.32 58 6.51 104,818 21.06 0.08 18.27 6.58 2,401 2.73 0.22 0.22 77.06 0.10

3.33 Percent 1.54 53.77 N/C N/C 115 5.68 N/C 24.57 N/C N/C N/C 2,695 3.40 0.00 0.11 0.00 0.32

Percent Percent Times Times A$ 000 Percent A$ 000 Percent Days Days Days A$ 000 A$ A$ A$ Percent Times

Industry Zurich Financial Services Unit Average* 31-Dec-2018 Revenue Growth -0.93 20.68 Percent NPAT Growth -15.37 -1.43 Percent Asset Growth 8.94 8.83 Percent Employees Growth 0.71 0.09 Percent Dividend Growth Rate 2.20 -100.00 Percent *Companies included in the Industry Averages Calculations operate in the I nsurance and Superannuation Funds in Australia industry. Growth Ratios

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Segments Balance Dat...