STEADFAST GROUP LIMITED — Investor Presentation 2016

Feb 22, 2016

24 February 2016

Presented By:

Robert Kelly – Managing Director and CEO Stephen Humphrys – Chief Financial Officer

This presentation has been prepared by Steadfast Group Limited ("Steadfast").

This presentation contains general information in summary form which is current as at 23 February 2016. This presentation is not a recommendation or advice in relation to Steadfast or any product or service offered by Steadfast or its subsidiaries and associates. It is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). It should be read in conjunction with Steadfast's other continuous and periodic disclosure announcements filed with the Australian Securities Exchange, ASX Limited, and in particular the Steadfast 2016 Half Year Financial Report. These disclosures are also available on Steadfast's website at investor.steadfast.com.au.

To the maximum extent permitted by law, Steadfast, its subsidiaries and associates and their respective directors, employees and agents disclaim all liability for any direct or indirect loss which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of Steadfast, including the merits and risks involved. Investors should consult with their own professional advisors in connection with any acquisition of securities.

The information in this presentation remains subject to change without notice. Steadfast assumes no obligation to provide any recipient of this presentation with any access to any additional information or to notify any recipient or any other person of any other matter arising or coming to its notice after the date of this presentation.

To the extent that certain statements contained in this presentation may constitute "forward-looking statements" or statements about "future matters", the information reflects Steadfast's intent, belief or expectations at the date of this presentation. Steadfast may update this information over time. Any forward-looking statements, including projections or guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside Steadfast's control and may cause Steadfast's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Neither Steadfast, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance. Possible factors that could cause results or performance to differ materially from those expressed in forward looking statements include the key risks on pages 26-27 of Steadfast's 2015 Annual Report.

Certain non-IFRS financial information has been included within this presentation to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. Steadfast uses these measures to assess the performance of the business and believes that the information is useful to investors. Non-IFRS information, including underlying P&L items, pro-forma P&L items, EBITA, NPATA and Cash EPS (NPATA per share), have not been subject to review by the auditors. FY13 and FY14 results are pro-forma and assume the Pre-IPO Acquisitions and the IPO Acquisitions were included for the full reporting period (all of the IPO Acquisitions completed on 7 August 2013). Prior period cash EPS have been adjusted to reflect the re-basing of EPS post the February/March 2015 1:3 rights issue. All references to Aggregate refer to the 100% aggregation of all investees' results regardless of Steadfast's ownership interest.

This presentation does not constitute an offer to issue or sell securities or other financial products in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this presentation outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of Steadfast.

Local currencies have been used where possible. Prevailing current exchange rates have been used to convert local currency amounts into Australian dollars, where appropriate. All references starting with "FY" refer to the financial year ended 30 June. All references starting with "1H FY" refer to the financial half year ended 31 December.

Strong earnings growth in 1H FY16 vs 1H FY15

• Underlying NPATA 81% to $37.9m
• Underlying Cash EPS 26% to 5.10 cps
• Statutory NPATA 159% to $50.2m

Flat market conditions

• Pricing has moved from soft to flat (0.1% increase in 1H FY16)
• Volume growth continuing

Solid organic performance

• Organic result held firm with 3.9% drop in pricing (since 1H FY15) offset by 3.5% increase in volume

• Margin squeeze in complementary businesses offset by increases in profit from brokers and agencies

• Acquisitions overall performing ahead of expectations

  • Realised acquisition synergies of $1.5m pre tax in 1H FY16
  • Future acquisition growth supported by balance sheet capacity of $114m

Interim dividend up 20% pcp

Board declares fully franked dividend of 2.4 cps, up from 2.0 cps in 1H FY15

FY16 guidance re-affirmed

• Underlying cash EPS guidance range of 10.8 -11.2 cps or 10-14% growth
• Underlying NPATA guidance range of $80- $83m

Continued earnings growth

Statutory and Underlying NPATA

Statutory and Underlying 1H FY16 financial highlights

Note: Statutory results include non-trading items; refer to slides 13 and 36 for NPATA and revenue reconciliations to underlying results.

Network GWP and price movement

Price and total growth in Network GWP1

Pricing moved from soft to flat; volume growth continues

• Price growth flattened to +0.1% in 1H FY16 compared to 2H FY15 (-4.0%)
• Volume growth continuing at 1.7% for 1H FY16, following 1.8% growth 2H FY15

"The current insurance cycle resembles a bath tub and we are now past the plug hole." Robert Kelly

1 Data based on year-on-year change in average price per premium and total GWP placed by Steadfast Network Brokers excluding new brokers and New Zealand.

Size Scale Steadfast

Largest general insurance broker network in Australia and New Zealand

Current run rate annual GWP

$4.6 billion 343Steadfast Network Brokers Largest underwriting agency group in Australia and New Zealand

Current run rate annual GWP $765 million 22Steadfast Underwriting Agencies

Complementary businesses

Steadfast NetworkCollects Marketing &Administration (M&A) Fees,100% owned	Specialist life insurancebroker, 50% owned	Technology service arm,100% owned	Back office serviceprovider, 100% owned
50% joint venture inpremium funder	Reinsurance broker,50% owned	Steadfast Virtual Underwriter,electronic transaction solution,100% owned	Insurance legal practice,25% owned

Network Brokers GWP growth

Volumes increases have mitigated price reduction

Insight brokers should add further $160m annual GWP3

1 GWP excludes fire service levies which generate no income for brokers. 2 Based on 1.0m policies in 1H FY16.

3 Excluding pet and group life insurance.

Underwriting Agencies GWP growth

Steadfast Underwriting Agencies

Gross Written Premium (GWP)

• GWP growth enhanced significantly by Calliden and the QBE agency acquisitions
• On track to generate annual GWP of $765m+
• Steadfast is the largest underwriting agency group in Australia

• 1.3% organic growth (+$0.5m) in EBITA pre Corporate Offices expenses
  • Brokers: due to solid revenue gains, cost control, benefits from hubbing and bolt-on acquisitions
  • Agencies: due to strong sales and margin improvement
  • Complementary businesses: remain a core part of our DNA and benefit the broker and agency divisions through revenue and cost synergies but are continually under market pricing pressures

Operating highlights from FY15 acquisitions

Performance exceeded our initial expectations

Acquisitions	Actual vsnormalisedhistorical EBITA	Impact toearn out	Operatinghighlights
			Managed by CEO of Steadfast Underwriting Agencies
Callidenagencies	+$1.2m	-	Cost savings generated from staff and systems rationalisation
			New management invigorating business
			Continuedsupport of strata managers
			Expanding broker channel distribution
CHU	+$0.5m	referencedtonet F&C, not	Created cost synergies through transition off QBE IT systemsahead of schedule
		EBITA	Benefiting from rise in multiple housing developments,particularly on the East Coast
			Benefits from infrastructure boom in NSW and QLD more thanmitigates the decline in mining sector
UAA	+$0.9m	butless thanoriginal	Additional revenue opportunities being created by expanding intoNew Zealand and Asia
		estimate	Management buy-in completed
Other	-$1.1m		Actual EBITA less than normalisedhistorical EBITAwhich led toreduced purchaseprice
Total	+$1.5m	-$16.0m

Strong growth from acquisitions

Six months ended 31 December	Underlying1H FY16	Underlying1H FY15	Year-on-yeargrowth %	Organicgrowth %	Growth fromacquisitions, &hubbing%1
Revenue ($m)	226.1	108.4	108.6%	6.3%	102.3%
EBITA pre CO expenses($m)	66.0	37.9	74.4%	1.3%	73.1%
EBITA1($m)	60.4	34.9	73.3%	1.4%	71.9%
NPAT ($m)	26.6	15.3	74.1%
Reported EPS (cents)	3.58	2.94	21.8%
NPATA ($m)	37.9	21.0	80.8%
Cash EPS (cents)	5.10	4.03	26.4%

• Continued cash EPS growth for shareholders despite flat market
• Strong growth from acquisitions; 1H FY16 includes full impact of recent acquisitions including Calliden and QBE agencies
• Solid organic performance complemented by bolt-on acquisitions
  • Bolt-on acquisitions transacted by individual brokers and therefore viewed as organic

1 Includes growth from associates converted to consolidated entities in FY15.

Statutory vs Underlying NPATA Reconciliation

• Statutory profit includes "non-trading" items (which have no operating cash flow impact):
  • Gain from adjustments to deferred consideration estimates (primarily relate to the QBE agency acquisitions)
  • Only assets with a reduced deferred consideration had an "accounting" impairment
  • Acquisitions overall tracking to plan in terms of expected earnings
  • Final consideration for QBE agency acquisitions to be determined in April 2017

• Organic result held firm with 3.9% drop in pricing, mitigated by increased volume
• Organic result impacted by investments to create future cost synergies including redundancy costs of $0.4m and offshoring costs of $0.2m
• Significant impact from FY15 acquisitions

1 Hubbing reflects the impact of acquiring a greater interest in a hubbed equity broker and as a result converting associates into consolidated entities.

Track record of strong earnings growth

EBITA pre Corporate Office expenses

2H FY16 NPATA and Cash EPS split expected to be 53%+ assuming flat market conditions and no material acquisitions

Cash EPS

EBITA margin improvement primarily due to agency acquisitions

12 months ended 30June	1H FY14	1H FY15	1H FY16
Consolidated & equity accountedbrokers1	28.0%	26.2%	25.9%
Underwriting agencies2	25.5%	23.2%	43.3%
TotalEBITA margin (Brokers & Agencies)2	27.8%	25.8%	31.2%

• Broker margins impacted by price reductions and acquisitions with a seasonally stronger 2H
• Agency margins boosted by acquisitions; also improved organically

1 Excludes wholesale broker commission expense gross-up in the calculation of margin.

2 Excludes commission expense gross-up and profit sharing in the calculation of margin.

Broking operations (Aggregate)

Brokers (Consolidated & Equity Accounted)

Six months ended 31December	Underlying1H FY16	Underlying1H FY15	1H FY16 vs1H FY15growth %	Organicgrowth %	Growth fromacquisitions &hubbing%1
Fees & Commissions	134.5	113.2	18.8%	3.9%	14.9%
Ofwhichwholesalebrokercommissionexpense	58	00	n/a	n/a	n/a
Other income	20.1	17.5	14.7%	7.4%	7.4%
Total revenue	154.5	130.7	18.2%	4.3%	13.9%
EBITA pre CO	38.5	34.2	12.4%	5.4%	7.0%

• Organic revenue growth of 4.3% and EBITA growth of 5.4%
• Excluding bolt-ons, organic revenue and EBITA growth of 2.0% and 1.6%, respectively, despite price -3.9% for the period
• Total organic margin improvement of 0.3%
• Total margin expected to improve as recent acquisitions have stronger seasonality bias to 2H

Aggregate Broker EBITA margins

1 Includes growth from associates converted to consolidated entities.

Brokers' organic performance

Brokers on an aggregate basis realised revenue and cost synergies

	Sales pcp	Costs pcp
Price	-3.9%	n/a
Volume	+3.5%	+1.4%
Inflation	n/a	+1.7%
Expectation	-0.4%	+3.1%
Actual	+2.0%	+2.1%
Variance	+2.4%	+1.0%

• Organic revenue growth (excluding bolt-ons) of 2.0% despite relatively flat GWP growth
• Organic costs (excluding bolt-ons) held firm due to cost savings from scale, hubbing and cost control

Underwriting agencies (Aggregate)

Agencies (Consolidated & Equity Accounted)

Six months ended 31December	Underlying1H FY16	Underlying1H FY15	Year-on-yeargrowth %	Organicgrowth %	Growth fromacquisitions %
Fees & Commissions	122.4	33.8	262.1%	4.5%	257.6%
1Ofwhichcommissionexpense	596	143	3159%	60%	3099%
Of which profit sharing	0.7	1.1	-42.0%	-42.0%	0.0%
Other income	3.8	0.8	370.7%	22.5%	348.2%
Total revenue	126.2	34.6	264.6%	4.9%	259.7%
EBITA pre CO	29.2	5.6	422.5%	5.2%	417.3%

• Organic revenue growth of 4.9% and EBITA growth of 5.2%
• Profit share generally subject to loss ratios and in line with expectations. Excluded from margin analysis
• Organic margin improvement of 2.3%
• Total margin uplift from recent acquisitions

1 Broker commission expense included in both revenue and expenses; nets to zero in EBITA; excluded from margin analysis.

Statutory cash flow statement

Six monthsended 31 Dec, $ millions	1H FY16	1H FY15
Cash flows from operating activities
Receipts from customers	178.9	111.9
Payments to suppliers and employees, and networkbrokerrebates	(130.7)	(95.3)
Dividends received from associates and joint venture	6.6	9.9
Interestreceived/(paid) net of interest and otherfinance costs paid	(1.1)	0.4
Income taxes paid	(6.6)	(5.8)
Net cash from operating activities beforecustomer trust accounts movement	47.1	21.1
Net movement in customer trust accounts	41.8	1.3
Net cash from operating activities	88.9	22.4
Net cash used in investing activities	(50.2)	(53.7)
Net cash from financing activities	17.1	87.8
Net increase/(decrease) in cash and cashequivalents	55.8	56.5
Cash and cash equivalents at 1 July	239.2	114.6
Cash and cash equivalents at 31 December	295.0	171.1
splitCashheldinto:intrust	215.1	116.7
Cashon hand	79.9	54.4

• 100% of underlying NPATA converted into cash flow

• Collected prior year NPATA and portion of 1H FY16 profits
• Cash used in investing is shown net of cash balances acquired – including trust cash

Statutory balance sheet

$ millions	31 Dec 15	30 Jun 15
Cash and cash equivalents	79.9	67.6
Cash held on trust	215.1	172.2
Receivables & other	266.1	343.3
Totalcurrent assets	561.1	583.1
Equity accounted investments	126.6	122.4
Property, plant and equipment	28.9	25.8
Identifiable intangibles	173.1	181.0
Goodwill	684.0	669.3
Deferred tax assets & other	48.5	33.9
Total non-current assets	1,061.1	1,032.4
Total assets	1,622.2	1,615.5
Trade and other payables	394.8	429.0
Loans and borrowings	1.5	1.1
Deferred consideration	7.3	27.5
Other	64.7	59.4
Total current liabilities	468.3	517.0
Loans and borrowings	195.6	160.9
Deferred consideration	16.4	27.8
Deferred tax liabilities & other	71.1	68.2
Total non-current liabilities	283.1	256.9
Total liabilities	751.4	773.9
Net assets	870.8	841.6
Non-controlling interests	22.8	18.7
Gearingratio (Corporate)1	17.1%	14.9%

1

• Corporate gearing ratio1 at 17% versus maximum target gearing ratio of 25%
• $285m syndicated debt facility with 3 and 5 year tranches, established in Aug15
• Significant headroom in financial debt covenants
• ~$114m capacity for future acquisitions and deferred consideration post Apr16 cash dividend (estimated at $18m)

Gearing ratio calculated as corporate debt/(corporate debt plus equity).

Fully franked interim dividend of 2.4 cents, up 20%

• In line with dividend payout ratio target of 65% to 85% of underlying net profit after tax and a minimum of 50% of net profit after tax before amortisation and impairment of intangibles
• 1H/2H target dividend split 40%/60%
• Dividend Reinvestment Plan (DRP) to apply to interim dividend; no discount
• DRP shares will be acquired on market
• Key dates for interim FY16 dividend

	Ex date:	8 March 2016
	Dividend record date:	9 March 2016
	DRP record date:	10 March 2016
	DRP pricing period:	14-24 March 2016
	Payment date:	14 April 2016

All dividends are fully franked

Australian General Insurance Statistics1

Premiums and Claims by Class of		Houseowners/householders			Domestic motor vehicle			CTP motor vehicle
Business	Year End Dec2014	Year End Dec2015	Trend	Year End Dec2014	Year End Dec2015	Trend	Year End Dec2014	Year End Dec2015	Trend
Number of risks	11,331,000	11,662,000	Up	13,992,000	14,738,000	Up	11,340,000	11,465,000	Up
Average premium per risk	666	664		568	559		312	317
Outwards reinsurance expense	2,212,000,000	2,390,000,000	Up	1,353,000,000	1,487,000,000	Up	452,000,000	511,000,000	Up
Net U/W combined ratio	81%	99%	Up	94%	96%	Up	107%	73%	Down

	7,544,000,000	7,744,000,000	Up	7,942,000,000	8,241,000,000	Up	3,535,000,000	3,634,000,000	Up
Number of risks	11,331,000	11,662,000	Up	13,992,000	14,738,000	Up	11,340,000	11,465,000	Up
Average premium per risk	666	664		568	559		312	317
Outwards reinsurance expense	2,212,000,000	2,390,000,000	Up	1,353,000,000	1,487,000,000	Up	452,000,000	511,000,000	Up
Net U/W combined ratio	81%	99%	Up	94%	96%	Up	107%	73%	Down
		Commercial motor vehicle			Fire and ISR
Premiums and Claims by Class ofBusiness	Year End Dec2014	Year End Dec2015	Trend	Year End Dec2014	Year End Dec2015	Trend
Gross written premium	2,096,000,000	2,079,000,000	Down	3,729,000,000	3,765,000,000	Up
Number of risks	1,451,000	1,510,000	Up	1,394,000	1,502,000	Up
Average premium per risk	1,444	1,377		2,675	2,507
	142,000,000	203,000,000	Up	1,672,000,000	1,680,000,000	Up
Outwards reinsurance expense
Net U/W combined ratio	94%	100%	Up	107%	136%	Up
		Public and product liability			Professional indemnity
Premiums and Claims by Class ofBusiness	Year End Dec2014	Year End Dec2015	Trend	Year End Dec2014	Year End Dec2015	Trend
Gross written premium	2,239,000,000	2,252,000,000	Up	1,543,000,000	1,595,000,000	Up
Number of risks	9,336,000	9,447,000	Up	533,000	573,000	Up
Average premium per risk	240	238		2,894	2,785
Outwards reinsurance expense	463,000,000	528,000,000	Up	451,000,000	448,000,000	Down

		Public and product liability			Professional indemnity
Premiums and Claims by Class ofBusiness	Year End Dec2014	Year End Dec2015	Trend	Year End Dec2014	Year End Dec2015	Trend
Gross written premium	2,239,000,000	2,252,000,000	Up	1,543,000,000	1,595,000,000	Up
Number of risks	9,336,000	9,447,000	Up	533,000	573,000	Up
Average premium per risk	240	238		2,894	2,785
Outwards reinsurance expense	463,000,000	528,000,000	Up	451,000,000	448,000,000	Down
Net U/W combined ratio	94%	93%	Down	92%	82%	Down

Steadfast shows resilience in a soft market

Insurance profits down

1H FY16 vs 1H FY15 >-20% (Suncorp, IAG)

FY15 vs FY14 -24% (KPMG GI Review 2015)

APRAstatistics1	Dec2014	Dec2015	Change
Net earned premium	$31.7b	$31.3b	-1.3%
Net incurred claims	$20.8b	$20.9b	+0.3%
Underwriting result	$2.6b	$2.2b	-16.2%
Investment income	$4.2b	$2.2b	-47.5%
Net profitafter tax	$4.1b	$2.4b	-42.2%

Outlook comments

"The vast majority of respondents expect conditions to improve next year, with 86% forecasting a profit increase, four points higher than in 2013."

Macquarie Benchmarking Survey, January 2016, based on ~170 insurance broking firms across Australia

"The environment, as everyone knows, is highly competitive at this stage. But I think pricing has stabilised. We've been able to achieve some good inflationary level increases that have gone through."

Michael Cameron, Suncorp MD & CEO, 11 February 2016

"December renewal activity has provided some indication that a bottoming of the prolonged cyclical downturn is now occurring."

Peter Harmer, IAG MD & CEO, 17 February 2016

1 Source: Australian Prudential Regulation Authority (APRA) Quarterly General Insurance Performance Statistics December 2015 (issued 18 February 2016).

Back office IT systems at Steadfast

Investing in common broking and accounting systems for brokers and agencies to realise cost synergies

Rollout for back office systems

Vietnam back office support

• FY16 underlying Cash EPS growth guidance range of 10-14%, driven by:
  • Uplift from 2H FY15 acquisitions
  • Organic growth
• FY16 underlying NPATA guidance range of $80- $83m, up 41-46%
• Key assumptions include flat market conditions and no material acquisitions2
• 2H NPATA split expected to be 53%+ in FY16
• Strong pipeline of acquisition opportunities continues unabated
• Increased volumes position us for any upturn in pricing cycle

1 FY13 and FY14 are both pro-forma; FY15 and FY16 estimate are both underlying.

2 Also refer to the key risks on pages 26-27 of Steadfast's 2015 Annual Report

• Continuing to deliver strong earnings growth throughout the insurance cycle
• FY15 acquisitions overall performing ahead of expectations
• Achieving efficiencies from scale and cost savings initiatives such as hubbing and offshoring
• Strong conversion of profits to cash
• Healthy balance sheet with $114m debt funding capacity for acquisitions and deferred consideration
• FY16 guidance re-affirmed assuming flat market conditions and no material acquisitions1
• Strong pipeline of acquisition opportunities but remaining disciplined
• Well positioned for further upside when the cycle hardens
• Diversified business with unified culture stronger together

1 Also refer to the key risks on pages 26-27 of Steadfast's 2015 Annual Report

Steadfast Network Brokers' GWP mix1,2,3

• 87% of customer base relates to small to medium size enterprises (SMEs) less pricing volatility
• Focus is on advice
• Low exposure to Corporate (2%) more significant pricing pressure
• Low exposure to retail insurance markets (11%) dominated by direct players

1 Based on 1H FY16 GWP excluding New Zealand.

2 Allocation based on policy size (retail <$1k, small $1k – $9.9k, medium $10k – $299k and corporate $300k+).

3 Metrics above consist of non-IFRS financial information used to measure the financial performance and condition of Steadfast.

• Rural & Farm 4% Construction & Engineering 4%
• Marine & Aviation 3% Accident & Health 3%

1 Based on 1H FY16 Steadfast Network Broker GWP of $2.2 billion.

2 Geography is based on head office location of each Steadfast Network Broker; a small number of Steadfast Network Brokers had overseas operations in 1H FY16.

Statutory P&L

$ millions	1H FY16	1H FY15
Revenue
M&A fees	16.6	15.6
Revenuefrom wholly owned entities	169.9	83.7
Shareof profits of associates and joint venture	5.2	4.7
Otherrevenue	0.3	1.1
Total revenue	191.9	105.1
EBITA from core operations (post CO)	60.4	34.5
Amortisation	(12.3)	(6.7)
Finance costs	(4.6)	(2.3)
Income tax expense	(13.5)	(7.7)
Profit after income tax and before non-tradingitems	30.0	17.8
Net gain on re-estimation and settlement of deferredconsideration	16.0	0.0
Impairment loss calculated with reference to thedeferred consideration re-estimates	(3.9)	0.0
Net profiton change in value of investments	0.0	(1.4)
Due diligence and restructure costs	0.0	(0.8)
Share based payment expense on share optionsand executive loans and shares	0.2	0.7
Net profit after tax before non-controllinginterests	42.3	16.3
Non-controlling interests	(3.3)	(2.6)
Net profit after tax attributable to Steadfastmembers	39.0	13.7
Other comprehensive income after tax	0.2	0.3
Total comprehensive income after tax	39.2	14.0
Net profit after tax and before amortisation	50.2	19.4

Reconciliations to underlying revenue on slide 36 and to underlying NPATA on slide 13.

Statutory vs Underlying Revenue Reconciliation

Cash EPS restated to reflect 1:3 rights offering in February/March 2015

Bonus factor of 3.704% applied to reflect bonus shares issued at discounted exercise price

Cents per share	1H FY16	2H FY15	1H FY15	2H FY14	1H FY14	2H FY13	1H FY13
NPATA	37.9	35.7	21.0	22.4	18.8	18.2	17.0
Previous weighted average share #	n/a	579.8	501.3	501.1	501.0	501.0	501.0
Revised weighted average share #	743.5	621.2	519.9	519.7	519.5	519.5	519.5
Previous Cash EPS	n/a	6.17	4.18	4.48	3.75	3.63	3.39
RevisedCash EPS	5.10	5.76	4.03	4.32	3.62	3.50	3.27

1 When calculating Cash EPS, treasury shares have been ignored.

Statement of income (Adjusted IFRS view)

Sixmonths ended 31 Dec, $ millions	1H FY16	1H FY15	growth%	Organicgrowth2 %	growthfrom%acquisitionshubbing3&
Fees and commissions¹	189.0	78.2	141.7%	5.3%	136.4%
M&A Fees	16.6	15.6	6.5%	6.5%	00%
Interest income	3.4	2.5	36.5%	(40%)	40.5%
Other revenue	17.0	12.1	409%	14.9%	260%
Revenue –Consolidated entities	226.1	108.4	108.6%	6.3%	102.3%
Employment expenses	(71.3)	(42.3)	688%	5.4%	63.4%
Occupancy expenses	(6.3)	(3.8)	656%	(12%)	668%
Other expenses¹	(92.2)	(34.2)	1700%	12.1%	157.9%
Expenses –Consolidated entities	(169.9)	(80.2)	111.7%	7.9%	103.8%
EBITA –Consolidated entities	56.2	28.2	99.5%	1.7%	97.8%
Share of EBITA from associates and joint ventures	9.8	9.7	1.5%	(0.1%)	1.5%
EBITA –Pre Corporate Office expenses	66.0	37.9	74.4%	1.3%	73.1%
Corporate Office expenses	(5.6)	(3.0)	870%
EBITA –PostCorporate Office expenses	60.4	34.9	73.3%
Net financingexpense	(4.6)	(2.3)	1028%	1	Wholesale broker and agency
Amortisationexpense –consolidated entities	(10.5)	(4.6)	1306%		commission expense (paid tobrokers) included in revenues
Amortisationexpense –associates	(1.7)	(1.9)	(12.4%)		and other expenses so impact
Income tax expense	(13.6)	(8.2)	669%		to EBITA is nil ($56.7m in 1H
Net profit after tax	29.9	17.9	67.1%		FY16; $10.5m in 1H FY15)
Non-controlling interests	(3.3)	(2.6)	26.1%	2	Includes bolt-on acquisitions
Net profit attributable to Steadfast members	26.6	15.3	74.1%	3	Includes growth from
Amortisationexpense –consolidated entities	9.6	3.7	1562%		associates converted to
Amortisationexpense –associates	1.7	1.9	(12.4%)		consolidated entities
Net Profit after Tax and before Amortisation	37.9	21.0	80.8%

Revenue and EBITA pre CO expenses (Aggregate view)

$ millions	Underlying1H FY16	Underlying1H FY155	%Growth	Organicgrowth3%	Growth%fromacquisitions&hubbing4
Gross writtenpremiums
Consolidated brokers	411.1	287.2	432%	1.3%	41.9%
Equity accounted	241.9	268.8	(100%)	1.2%	(112%)
GWP from brokers	653.1	556.0	17.5%	1.3%	16.2%
Underwriting agencies	378.2	101.4	2729%	0.7%	2722%
Total GWP from investees	1,031.3	657.4	56.9%	1.2%	55.7%
Revenue
Consolidated brokers1	86.9	58.6	48.4%	5.8%	426%
Equity accounted	67.7	72.2	(62%)	32%	(9.4%)
Revenue from brokers	154.5	130.7	18.2%	4.3%	13.9%
Underwriting agencies2	126.2	34.6	2646%	4.9%	259.7%
Ancillary	16.0	13.0	23.1%	198%	3.4%
Premium funding	26.8	29.0	(7.5%)	(7.5%)	00%
Steadfast	19.6	17.7	108%	108%	00%
Total revenue	343.1	225.0	52.5%	4.3%	48.2%
EBITA (pre CO expenses)
Consolidated brokers	21.0	16.6	266%	69%	19.7%
Equity accounted	17.5	17.6	(09%)	4.1%	-4.9%
EBITA from brokers	38.5	34.2	12.4%	5.4%	7.0%
Underwriting agencies	29.2	5.6	422.5%	5.2%	417.3%
Ancillary	1.3	1.5	(79%)	(15.5%)	7.6%
Premium funding	4.8	5.7	(15.4%)	(15.4%)	00%
Steadfast	5.8	5.7	23%	23%	00%
TotalEBITA (pre CO exps)	79.7	52.7	51.2%	2.2%	49.0%

1 Includes gross up of wholesale broker commission expense of $5.8m in 1H FY16 (nil in 1H FY15 as acquired in 2H FY15)

Includes gross up of agency commission expense ($59.6m in 1H FY16 and $14.3m in 1H FY15)

3 Includes bolt-on acquisitions

2

4 Includes growth from associates converted to consolidated entities

5 1H FY15 revenue and EBITA numbers have been restated to remove intercompany transactions in order to show like-for-like with 1H FY16 (no change to total EBITA)

Statement of income (Adjusted IFRS view)

Six months ended 31 December, $ millions	Underlying1H FY16	Underlying2H FY15	Underlying1H FY15	Pro-forma2H FY14	Pro-forma1H FY14
Fees and commissions	189.0	156.0	78.2	65.9	52.4
M&A Fees	16.6	14.0	15.6	12.7	13.7
Interest income	3.4	3.1	2.5	1.4	1.3
Other revenue	17.0	17.1	12.1	14.1	11.8
Revenue –Consolidated entities	226.1	190.3	108.4	94.1	79.2
Employment expenses	(71.3)	(59.0)	(42.3)	(33.5)	(30.8)
Occupancy expenses	(6.3)	(5.5)	(3.8)	(2.9)	(2.8)
Other expenses	(92.2)	(75.6)	(34.2)	(33.1)	(24.4)
Expenses –Consolidated entities	(169.9)	(140.1)	(80.2)	(69.5)	(58.0)
EBITA –Consolidated entities	56.2	50.2	28.2	24.6	21.2
Share of EBITA from associates and jointventures	9.8	10.7	9.7	12.7	11.8
EBITA –Pre Corporate Office expenses	66.0	61.0	37.9	37.4	33.1
Corporate Office expenses	(5.6)	(5.4)	(3.0)	(4.9)	(3.2)
EBITA	60.4	55.6	34.9	32.4	29.9
Net financingexpense	(4.6)	(3.1)	(2.3)	(0.6)	(0.6)
Amortisationexpense –consolidated entities	(10.5)	(8.3)	(4.6)	(4.0)	(3.8)
Amortisationexpense –associates	(1.7)	(1.6)	(1.9)	(1.0)	(1.0)
Income tax expense	(13.6)	(12.5)	(8.2)	(7.2)	(8.8)
Net profit after tax	29.9	30.1	17.9	19.6	15.7
Non-controlling interests	(3.3)	(3.3)	(2.6)	(1.6)	(1.2)
Net profit attributable to Steadfastmembers	26.6	26.8	15.3	18.0	14.5
Amortisationexpense –consolidated entities	9.6	7.3	3.7	3.5	3.3
Amortisationexpense –associates	1.7	1.6	1.9	1.0	1.0
Net Profit after Tax and beforeAmortisation	37.9	35.7	21.0	22.4	18.8

Other revenue

$millions	1H FY16	1H FY15	Variance
Fee income for other professional services	10.6	8.6	2.0
Legal fee disbursements	1.4	1.3	0.1
Other income	5.1	2.2	2.9
Total other revenue	17.0	12.1	4.9

Other expenses

$millions	1H FY16	1H FY15	Variance
Rebate to Steadfastbrokers	5.2	4.3	0.9
Selling expenses	7.9	4.4	3.4
Commission expense1	56.7	10.5	46.2
Legal fee disbursements	1.4	1.3	0.1
Administrationexpenses	19.5	12.5	7.1
Depreciation of PP&E	1.6	1.1	0.5
Total other expenses	92.2	34.2	58.1

1 Commission expense:

• Commission paid by wholesale broker and agencies to brokers
• Grossed up in "fees & commissions" and deducted in "other expenses" so nil impact to EBITA
• Significant increase due to Calliden and QBE agency acquisitions

		Houseowners/householders		Domestic motor vehicle		CTP motor vehicle
Premiums and Claims by Class of Business	Year End Dec	Year End Dec	Year End Dec	Year End Dec	Year End Dec	Year End Dec
	2014	2015	2014	2015	2014	2015
Gross written premium ($m)	7,544	7,744	7,942	8,241	3,535	3,634
Number of risks ('000)	11,331	11,662	13,992	14,738	11,340	11,465
Average premium per risk ($)	666	664	568	559	312	317
Outwards reinsurance expense ($m)	2,212	2,390	1,353	1,487	452	511
Gross earned premium ($m)	7,785	8,029	7,874	8,071	3,489	3,586
Cession ratio	28%	30%	17%	18%	13%	14%
Gross incurred claims (current and prior years)
($m)	3,438	5,406	5,659	5,779	3,327	2,357
Gross earned premium ($m)	7,785	8,029	7,874	8,071	3,489	3,586
Gross loss ratio	44%	67%	72%	72%	95%	66%
Net incurred claims (current and prior years) ($m)	2,948	3,983	4,756	4,889	2,878	1,872
Net earned premium ($m)	5,573	5,640	6,521	6,584	3,037	3,075
Net loss ratio	53%	71%	73%	74%	95%	61%
Underwriting expenses ($m)	1,574	1,576	1,396	1,427	381	364
Net earned premium ($m)	5,573	5,640	6,521	6,584	3,037	3,075
U/W expense ratio	28%	28%	21%	22%	13%	12%
Net U/W combined ratio	81%	99%	94%	96%	107%	73%

1 Source: Australian Prudential Regulation Authority (APRA) Quarterly General Insurance Performance Statistics December 2015 (issued 18 February 2016).

		Commercial motor vehicle		Fire and ISR		Public and product liability		Professional indemnity
Premiums and Claims by Class of Business	Year End Dec	Year End Dec	Year End Dec	Year End Dec	Year End Dec	Year End Dec	Year End Dec	Year End Dec
	2014	2015	2014	2015	2014	2015	2014	2015
Gross written premium ($m)	2,096	2,079	3,729	3,765	2,239	2,252	1,543	1,595
Number of risks ('000)	1,451	1,510	1,394	1,502	9,336	9,447	533	573
Average premium per risk ($)	1,444	1,377	2,675	2,507	240	238	2,894	2,785
Outwards reinsurance expense ($m)	142	203	1,672	1,680	463	528	451	448
Gross earned premium ($m)	2,104	2,089	4,051	3,974	2,252	2,257	1,506	1,549
Cession ratio	7%	10%	41%	42%	21%	23%	30%	29%
Gross incurred claims (current and prior years)
($m)
(net of non-reinsurance recoveries revenue)	1,401	1,495	2,192	3,891	1,529	1,415	1,041	1,046
Gross earned premium ($m)	2,104	2,089	4,051	3,974	2,252	2,257	1,506	1,549
Gross loss ratio	67%	72%	54%	98%	68%	63%	69%	68%
Net incurred claims (current and prior years) ($m)	1,322	1,370	1,552	2,089	1,098	1,055	725	661
Net earned premium ($m)	1,961	1,887	2,379	2,294	1,789	1,728	1,055	1,101
Net loss ratio	67%	73%	65%	91%	61%	61%	69%	60%
Underwriting expenses ($m)	526	520	988	1,035	590	552	249	239
Net earned premium ($m)	1,961	1,887	2,379	2,294	1,789	1,728	1,055	1,101
U/W expense ratio	27%	28%	42%	45%	33%	32%	24%	22%
Net U/W combined ratio	94%	100%	107%	136%	94%	93%	92%	82%