Annual Report 2011 - TIO

The Territory way. TIO Annual Report 2010/20116Chief Executive’s OverviewSince joining TIO three years ago we havebeen on a journey to become a strongerand more sustainable business, here tobuild confidence and resilience amongTerritorians. This year we have seennumerous demonstrations that we arewell down the path to achieve this.Net profit after tax has grown 47 percent, mostly driven by improvements inoperational performance. Our people aredelivering more and are more engaged.With that comes a reduced reliance onexternally-driven investment income anda better overall result. All three businesseshave contributed to the profit result, againa pleasing trend.TIO has cemented its place as a companythat supports Territorians in buildingconfidence and resilience.Our commitment to road safety, buildingresilience to extreme weather events andsupporting home ownership have shownTerritorians that TIO is much more than aninsurance and banking business.Nowhere was this displayed moretangibly than our response to CycloneCarlos and associated heavy rainfall in theTop End in February this year. During theaftermath of the event, our Call Centreand Claims Centre staff handled 1,781claims totaling $9.57 million and reassuredcountless other Territorians about theirinsurance cover.I would like to thank our staff whoworked to support our customers duringthis very trying and busy time. Providingunderstanding and reassurance to ourcustomers is as much a part of our roleand value proposition as is handling claimsand issuing insurance policies.Overall PerformanceIt is pleasing to report a net profit after tax across all parts of the business this year, withgroup profit up from $35 million to $52 million after tax.Group Operating ResultsOperating Results08/09$m09/10$m10/11$mUnderlying operating performance 12 34 50Difference between actual investment returnsand expected returns (66) 23 13Change in inflation assumptions and discount rates (3) (17) (8)Restructure and one-off costs (2) (3) -Net profit before tax (59) 37 55Tax (6) 2 3Net profit after tax (53) 35 52