Glossary and GRI Index
Below are details of the definitions used in the content and calculation of data in this report. Unless otherwise stated, the brands include State, NZI, Lantern, Swann, Mike Henry, NAC and DriveRight. Click here to review our GRI index. Absenteeism
Absenteeism measures employee absence level. It is determined by dividing the total annual unscheduled absence days by total annual days worked.
ACC claims
Number of injuries accepted by ACC as work related.
Air travel
Distance travelled by our employees for work-related travel booked through our travel service provider. This includes both domestic and international flights.
Business volume
This measures the volume of our business at 30 June. The basis of the measure depends on the class of business. - For the personal lines classes (such as house, contents and private car insurance), the volume measure is ‘risks in force’. In commercial classes (which includes cover for such things as commercial premise, contents and vehicles, business liability and interruption) the volume measure is ‘policies in force’.
CO² emissions
CO² emissions are calculated for electricity consumption, office and print paper use, vehicle fuel consumption and air travel. Emissions factors are obtained from the New Zealand Business Council for Sustainable Development and the Greenhouse Gas Protocol. The consumption data is converted to give CO² emission equivalents.
Customer renewal rate
Measures the average monthly rate of customers who renew one or more policies based on the premium being paid. This measure includes NZI, State, Lantern and the Business Partners bank customers only.
Note: The definition and method of data calculation changed in 2008 and the 2007 figure has been restated for comparability. The definition and method of calculation was changed to reflect retention at the customer level rather than the previously reported risk and policy level.
Customer satisfaction
Measures customer satisfaction based on the survey of a random sample of customers who have had a sales, service or claims related contact (e.g. requested a quotation, changed their address, taken out a policy, made a claim) as at the last day of each month. Satisfaction is measured where the percentage of customers rating 5, 6 or 7 on a 7-point scale are considered to be satisfied (7 being extremely satisfied and 1 being extremely dissatisfied). This measure includes State and Lantern business only.
Note: This measure was expanded to incorporate claim related contact from 2005. The previous years reported have been restated to meet the changed definition, with the exception of 2004 which includes sales and service satisfaction only.
Electricity
Includes metered electricity consumption for all sites occupied by IAG NZ.
To align with Group reporting, electricity data covers the period June to May, which differs from all other indicators which cover the year from July to June.
Employee engagement score
Determined through six questions in the annual ‘Your Voice’ employee survey which is conducted by a third party. The survey assesses the extent to which employees consistently say positive things about working at IAG NZ; want to stay with IAG NZ, and strive to achieve above and beyond what’s expected of them.
Employees represented by unions
This is the percent of employees that are union members.
Female to male salary ratio
The ratio is determined by dividing the average of male employees' annual FTE salary by the average of female employees' annual FTE salary. To obtain the annual FTE salary, individual salaries are equated to 37.5 hours and the total sum of these full-time equivalent salaries is divided by total female or male headcount.
Full-time equivalent (FTE)
FTE is a measure of the size of our employee pool. It takes account of both full-time and part-time employees and is determined by dividing working hours (excluding overtime) for all employees by the standard full-time hours (37.5 hours per week). The FTE includes all permanent full-time and part-time employees and fixed-term contractors but excludes casual employees, guests, external contractors and employees on extended leave (over 28 consecutive calendar days).
Note: Before 2007, the definition excluded employees on a fixed term contract.
Fuel
Petrol consumed by IAG NZ’s fleet of cars (used by our employees for sales and claims purposes) as reported from Shell fuel card data.
Note: This will include employee's personal use of fleet vehicles.
Full-time employees
This measures the number of full-time employees included in headcount. It includes all employees working 37.5 hours per week, as distinct from part-time employees who work fewer than 37.5 hours per week.
Funds for community investment
This measures direct financial support of community (not-for-profit) groups and programmes, as well as indirect support to help promote and raise awareness of these community organisations and programmes. This does not include salaries or administration-related costs, or sports or business sponsorships.
Note: Before 2006, the figures reported are also included sports and business sponsorship.
Gross Written Premium (GWP)
The total amount received from customers for the payment of their insurance policies.
Headcount
The number of people employed by IAG NZ, regardless of hours worked. Headcount comprises permanent and fixed-term employees. It includes employees on extended leaves and excludes casuals and contractors (people not paid by IAG NZ).
Note: Before 2007, the definition excluded employees on a fixed term contract.
Insurance margin
The insurance pre-tax profit result as a percentage of net earned premium.
Lost time injury frequency rate
This measures the number of work related injuries resulting in a lost time injury, per million hours worked. A lost time injury is an injury that has resulted in at least one shift/day’s absence from work and for which an ACC claim has been lodged and accepted. Million hours worked includes all scheduled hours, plus overtime less scheduled leave (i.e. annual leave) and also includes the hours worked by casual employees.
Market share
Total insurance business market share IAG NZ hold within New Zealand as provided by the Insurance Council of New Zealand.
Net Earned Premium (NEP)
Net Earned Premium is the premium earned (as opposed to paid) within the calendar year minus reinsurance expenses.
Net Claims Expense
Cost of claims made plus expenses associated with handling claims.
Office paper
This measures office paper consumption and is determined by supplier invoices for paper ordered.
Print paper
Print paper consumption consists of commercially printed material (booklets, envelopes, brochures and customer documentation such as policies and renewal offers of insurance).
Recycled waste
This measures of paper, cardboard and commingled material (glass, plastic and tin) collected for recycling. Paper and cardboard is collected from most IAG NZ sites whilst commingled waste is collected from Auckland, Wellington and Christchurch sites only.
Return on equity
Net profit after tax attributable to ordinary shareholders as a percentage of the equity of those shareholders.
Standard and Poor’s risk rating
Standard and Poor’s provide independent credit ratings, indices, risk evaluation, investment research and data.
Staff turnover
Staff turnover is the percentage of the turnover rates determined by dividing the total number of terminations by headcount each month. Termination includes all permanent full-time and part-time employees but excludes casual employees, guests and employees on a fixed-term contract. Turnover counts staff initiated terminations only.
Women in executive management
The total percentage of women on the NZ executive team.
Women in senior management
Total percentage of women in senior management positions is determined by women in the position of Senior Manager, Head of and Executive roles based on their being on a senior management employment contract.
Note: Prior to 2007 this figure was based on organisational structure not contract.
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