Suncorp Group Limited (SUN) Earnings Call Transcript & Summary

Welcome to the 2021 Annual General Meeting of Suncorp Group Limited. My name is Belinda Speirs, and I'm Suncorp's Group General Counsel. Before I introduce your Chairman, I'd like to cover some procedural aspects of today's meeting. The online platform we're using today is the same platform we used for our 2020 AGM. If you are a shareholder or proxy holder and wish to vote or ask a question today, please ensure you are familiar with the platform. For those shareholders who wish to ask a question early rather than using the online platform, a questions-and-comments phone line is available during the AGM. Further details about how to ask questions and make comments using the platform or the phone line are contained in the online AGM guide. You can access the guide through a link at the bottom of your screen or on our Suncorp group website. If you encounter any technical difficulties with the platform at any time during the meeting, please contact the share registry's online AGM support team on 1 (800) 990-363. This phone number will remain visible on your screen throughout the meeting. In the unlikely event that technical issues prevent the meeting from proceeding as planned, Suncorp will make announcements via the ASX and our website. I'd now like to briefly cover the meeting procedures that the Chairman will follow today. Firstly, this is a meeting of Suncorp shareholders. As set out in the notice of meeting, only shareholders or proxy holders are entitled to vote on the resolutions, ask questions or make comments. The Chairman will allow a reasonable opportunity for members as a whole to address the questions they have received from shareholders and proxy holders as each item of business is considered. Please ensure your question or comment is relevant to an item of business and to shareholders as a whole. The Chairman also respectfully asks you to observe a 2-question limit, to ensure as many shareholders as possible have an opportunity to ask questions. If you have a matter you'd like to raise as a customer, please contact our customer team using the contact details on the last page of the notice of meeting. Any customer-related questions specific to an individual will be referred to our customer team for response and will not be addressed during the AGM. When taking questions and comments, the Chairman will first cover relevant questions received prior to the meeting if they have not already been covered in the Chairman's and Group's CEO's formal addresses. The Chairman will then address questions received during the meeting. First, those received through the online platform and then from any shareholders who have registered to use the questions and comments phone line. With your similar questions, the Chairman will aim to acknowledge those who have asked the question. However, the Chairman will provide a single response in order to streamline today's proceedings. Questions or comments that are offensive in any way will be taken as being out of order and will not be acknowledged at all during or following the AGM. To help with the smooth running of the AGM, we would like to ask any shareholders or proxy holders with prepared questions or comments to submit them now via the online platform or to log them via the phone line. The Chairman will then address them when we come to the relevant point during the meeting. If you are voting today and need to leave the meeting early, you can submit your voting card before you leave. And if you'd like to use the subtitle function throughout today's meeting, please follow the instructions on your screen to turn this on. Finally, a reminder to please contact the online AGM support team on 1 (800) 990-363 if you encounter any technical issues with the platform at any point throughout the meeting. I'll now introduce your Chairman, Christine McLoughlin.

Thank you, Belinda, and welcome, everyone. As Chairman of your Board, I am informed at this stage of the meeting, we have 287 shareholders and other attendees participating in our online AGM today. As a quorum is clearly present, I declare the meeting open. The decision to hold the AGM online again this year was made with the health and safety of our shareholders, employees and the community as our top priority. I am delighted that this has again enabled shareholders from many different locations to be able to participate. While we will continue to offer ways for shareholders to participate online for future AGMs, your Board and I also look forward to the time and opportunity when we can engage again in person. On behalf of the Board, I would like to acknowledge the Gadigal people of the Eora Nation and pay my respects to their elders and all elders, both past and present, and acknowledge the traditional custodians of the many lands we are all meeting from virtually today. We are very fortunate to have Uncle Shannon Ruska, a proud descendant of Australia's First Nations people of Brisbane City for the Welcome to Country today. Those of you who joined us for the Suncorp's 2019 AGM in Brisbane will remember how Uncle Shannon led us through a dance for his Welcome to Country that year. Uncle Shannon is a bloodline descendant of the Yuggera, Turrbal, Nunukul, Gorenpul and Yugembir peoples, and he joined us to record a message on their behalf.

Thank you, Chairman. [Foreign Language] Ladies and gentlemen, my name is Shannon Ruska and my aboriginal name is Yuan Yuggera. Yuan being the black saltwater goanna, and Yuggera being the language that I speak in the country that I come from here in Brisbane City. I descend from the Yuggera people, which stretches from the mouth of the Brisbane River out to the Great Dividing Range, near Warwick and Toowoomba at the foothills. Our Northern Border goes to up around Caboolture River and then south to the Logan River. We meet different tribes around those areas as we go out the mouth of the river. We meet the Quandamooka people, or [ Jandai ] language speakers and in their language, you would be greeted with the word [Foreign Language]. If we head over the Logan River, there's the Yugambeh people and the Kombumerri clan occupied Surfers Paradise, they would greet you with the word [Foreign Language]. Modern day, they changed it to [Foreign Language]. If we go out over the ranges at Samford Valley, Cherbourg, Murgon, places like that, they will greet you with the word [Foreign Language]. If we go up to where Australia Zoo is up to the north, across the Caboolture River, they're going to greet you with the word [Foreign Language]. But here, we say [Foreign Language] just means good day. It was a word that was used when the new people come. We adapted to the new ways as well. My job in this time is to be able to educate many of you. And although we can't be here together, it's a strong feel that, not only with the aboriginal connections, but the nonaboriginal connections all gather, no matter how we do that, and we're all here today. So I'd like to share a song with you, a song passed down through the generations, a song about the Brisbane River, which is a blessing song, not only for my people, but we can bless you as well. This song [Foreign Language] meaning Brisbane, [Foreign Language], meaning the ancestors or the spirit of the land. [Presentation]

Ladies and gentlemen, I hope you have a great gathering today. And on behalf of the Yuggera-Turrbal people of Brisbane City, in our language for hello, we say [Foreign Language].

[Foreign Language] uncle Shannon, and thank you very much for your virtual presence with us today. I would like now to introduce your Board of Directors who are all present at today's meeting, but who are participating from their home locations given the current lockdowns, border closures and restrictions on travel. In addition to their significant Board experience, each director brings a mix of financial services and significant other relevant experience and expertise that enables your Board to be effective in governing Suncorp. You all know Steve Johnston, your Group CEO and Managing Director; and Steve is today participating from our Brisbane office where we're hosting this meeting. I'll invite Steve to speak later during the meeting. Doug McTaggart is also with Steve in our Brisbane office. Doug has an extensive background in financial markets and deep academic and commercial experience. He represents the Suncorp Board on our New Zealand subsidiaries, and including as Chairman of AA Insurance, which is a Suncorp joint venture with the New Zealand Automobile Association. Doug is seeking reelection today and will also chair the AGM today when my reelection is being considered. Next, the Board and I are pleased to welcome Duncan West, whose appointment as a director by your Board will become effective today -- became effective today. Duncan has almost 4 decades of experience in the financial services industry. He will seek your support to continue as a director through the usual election process later during the meeting, and I will speak more about Duncan then. Sylvia Falzon, who brings to Suncorp valuable experience in a range of regulated and customer-facing industries, including financial services, health, aged care, retail and e-commerce. Sylvia is seeking reelection today. Elmer Funke Kupper, Elmer has significant financial services experience as well as experience in navigating demanding regulatory environments and transforming business models. He has served as CEO on 2 ASX-listed companies. And Ian Hammond. Ian is Chairman of the Board Audit Committee and brings to Suncorp extensive knowledge of the financial services industry as well as expertise in financial reporting and risk management. Sally Herman chairs the Board Risk Committee. Sally has strong expertise in running retail banking and insurance products, setting strategy for financial services businesses and working with customers, shareholders, regulators and government. And Simon Machell. Simon is joining us from Singapore today. Simon is Chairman of the Board, People and Remuneration Committee. He has deep strategic and operational knowledge of the insurance industry and brings to Suncorp an international perspective on current and emerging industry trends. And Lindsay Tanner. Lindsay is Chairman of the Board Customer Committee. Lindsay has worked at the highest levels of government and business for almost 4 decades and is a recognized authority on corporate governance. Lindsay is also seeking reelection today. Suncorp's executive team is also with us today, virtually again. Belinda Speirs, however, is in the room with me, Belinda is responsible -- she is our Group General Counsel and is responsible for our legal, corporate governance and internal fraud functions. And she has joined me here in Sydney to moderate the questions from shareholders and proxy holders during today's meeting. I can confirm that we are both following all safety protocols and are both fully vaccinated. Adam Bennett, Adam joined Suncorp in July last year and is our Group Chief Information Officer. Adam and his team are focused on driving transformation of our end-to-end customer experience and creating value for our shareholders through technology innovation. Adam also leads our strategy team. And Stuart Cameron, Stuart has been acting Chief Risk Officer since June and has been with Suncorp since 1998, most recently as the CRO of Insurance and Financial Risk. Lisa Harrison is the CEO of Product -- Insurance Product and Portfolio, which covers distribution channels customer strategy, brand and marketing, product and portfolio management for our Australian insurance businesses. And Paul Smeaton is our Insurance Chief Operating Officer, which covers all aspects of Suncorp's claims management and operations as well as real estate management and procurement. Lisa, Paul and their teams are focused on delivering valued outcomes for our Australian insurance customers. Jeremy Robson. Jeremy is our Group Chief Financial Officer. Jeremy and his team are responsible for financial reporting, taxation, capital and investment management, reinsurance and the actuarial function. The Board does not underestimate how challenging it has been for our CFO and the teams who support him to successfully deliver all of our financial reporting obligations while working in a lockdown environment. So thank you, Jeremy and team. Fiona Thompson was appointed Group Executive of People, Culture and Advocacy in June and has been with Suncorp since 2001. This new role recognizes the strong alignment between Suncorp's people and culture objectives and our advocacy program and the strategic importance of advocacy to deliver better outcomes for our business and customers. Clive van Horen has been the CEO of our Banking and Wealth business since August last year. He and his team have a big program of initiatives for our banking business and are also working with Jeremy's team to complete the sale of the wealth business to LGIAsuper. Shareholders will agree that Clive has been doing a tremendous job since joining us. And Jimmy Higgins is joining us from New Zealand. Jimmy was appointed as CEO in October of last year. Jim and his team are responsible for the strategic and operational management of our Vero, Asteron Life, AA Life brands in New Zealand. I'm also pleased that David Flacks is able to join us virtually also today from New Zealand. David chairs our New Zealand Boards and would normally attend our AGM in person as well. Unfortunately, due to border closures, we've not had the opportunity to see David or Simon, our Singapore-based Director, in person over the past 18 months. We really look forward to the time when we can all travel again. I want to take this opportunity on behalf of the Board to thank each member of the leadership team and their teams for their huge efforts during yet another intensely challenging year. As you will hear from our group CEO shortly, Suncorp has been through a period of significant change, made more challenging by the current pandemic. Before I invite Steve to speak to you, I'll begin today's proceedings with some initial comments. So while we find ourselves with a very different AGM this year as a consequence of the perils of the Delta strain of COVID and related border closures and movement restrictions, we are delighted to join you. Not only are we interacting with you, our shareholders, in an online medium, but all of my Board colleagues, including our Group CEO, and I are in different locations. We really feel for you and your families, as you navigate the uncertainty we are all living through at present. There is no doubt that the past 18 months have been a testing period for everyone. We appreciate the understanding of our shareholders during this challenging situation as your Board and the team at Suncorp continue ourselves to adapt to ever-evolving scenarios. Australia and New Zealand have continued to face headwinds from the global pandemic. The ongoing lockdowns are having far-reaching impacts on our community, remote working, the hardship being experienced by small businesses and community groups, the mental health toll, particularly on the young, the challenges of prolonged home schooling and dealing with other life issues, including not being able to be with our families and friends. We are also mindful of the extraordinary sacrifices being made by those working in our health care systems in the cities and regions most impacted. The past year also brought with it 23 natural disasters across Australia and New Zealand, with many devastating impacts for homes, families and communities. We're particularly thinking of you, our 2,300 strong Suncorp team in Victoria and our Victorian shareholders, customers and communities following yesterday's earthquake. It is clearly an extremely challenging time for many Victorians given ongoing lockdowns and the violent protests of recent days now topped off by what has been reported as the largest earthquake in the state's recorded history. We are thinking of you. We certainly can't underestimate how tough it is for Victorians right now. From an insurance perspective, we are fortunate that the epicenter of the earthquake was in the regional area of Mansfield, which is not densely populated. This is in contrast to the 1989 Newcastle, New South Wales earthquake. Newcastle is New South Wales second most populated city. That earthquake was of a similar magnitude, but resulted in a significant loss of life and damage. We are all grateful this was not the case yesterday. Your group CEO will also comment in his address on the situation in Victoria. In the face of all these challenges, I am proud of the way that Suncorp has responded. This has not only meant continuing to deliver seamless service to all of our customers, but also extending support to those in need, including relief packages and support for insurance and bank customers impacted by COVID-19. This also extends to support for our own team members, many of whom are also contending with the consequences of lockdowns each day. Our leadership team have been truly extraordinary in the way they have endeavored to stay in touch with our people and the way our teams have adapted and come together while being a part has been truly impressive. There is hope on the horizon with rising vaccination rates across the country, and it remains the view of your Board that Australia and New Zealand recovery rests on the successful vaccination of our populations and indeed, the world. Your Board and leadership team are firmly committed to supporting the rapid, safe and effective delivery of the COVID-19 vaccination program. As we approach summer, which unfortunately brings with it natural disaster season, it is vital for our communities that our teams of essential workers alongside other emergency workers are able to move freely and safely to the areas where support is needed immediately. As Queensland's largest company, we are committed to doing our part. Suncorp provides support to our employees to get vaccinated with paid leave. I'm pleased to report that all members of the Board and leadership team came forward for vaccinations as soon as they or we were eligible. We are committed to maintaining a safe environment for our customers and team members, whether it be in our branches, on-site for assessments or in our offices. In spite of the uncertainties and challenges of the past 18 months, our leadership team has delivered good financial results for our shareholders. In August, we announced strong results for the 2021 financial year, testament to the group's streamlined operating model and strategy to simplify and align around our core business banking -- businesses of banking and insurance. Net profit after tax was $1.03 billion, an increase of 13.1% on the previous year. The result was driven by increased profit in the Australian insurance business and Suncorp Bank. Profit in New Zealand was down on last year, impacted by a range of factors, including increased natural hazard costs. Given the strength of these results, your Board was pleased to declare a fully franked total ordinary dividend of $0.66 per share for the full financial year. This incorporated a final dividend of $0.40 per share, which was paid yesterday. Suncorp has also paid a fully franked special dividend of $0.08 per share, and we are also undertaking an on-market share buyback of up to $250 million. Your Board believes these dividend payments and share buyback strike the right balance between providing returns to our shareholders while maintaining a strong capital position. We are well positioned for potential uncertainty in the broader economy as our countries begin to steer out of lockdowns over the coming months. While navigating the opportunities and challenges of today, it's also important to consider the longer-term risks and opportunities for our business, particularly through the lens of environmental, social and governance commitments and goals, often referred to as ESG. Your Board understands that Suncorp's future success and sustainability rests on understanding and meeting the expectations of a range of stakeholders. This is particularly the case in a highly regulated industry like financial services. Our latest materiality assessment conducted earlier this year, has helped us further refine the social and environmental topics that matter most to our business and our stakeholders. Front and center as the most material issue at Suncorp is climate change and the rising incidence and severity of natural disasters like floods, hail and bushfires. In his latest annual letter, the Head of the world's largest investor, BlackRock's Larry Fink, said that confronting the global threat of climate change in a more forceful way had become an imperative. He said, and I quote, "In the past year, people have seen the mounting physical toll of climate change in fires, droughts, flooding and hurricanes. They are also increasingly focused on the significant economic opportunity that the transition will create as well as how to execute it in a just and fair manner. No issue ranks higher than climate change on our clients' list of priorities. They ask us about it every day," he says. Your Board also believes that acting on climate is vital to preserve economic stability, maintain vibrant communities, help insurance remain affordable and support our banking customers with an orderly transition. That is why at the end of last month, we released our updated climate change action plan following its first publication in 2018. Through this plan, we will take an orderly and collaborative approach in partnership with our customers, suppliers, government and industry to transition to a low-carbon future. Suncorp is already working with agribusiness customers like the Hughes family, who, through the Lachlan Hughes Foundation, which they established, are committed to regenerative agriculture and creating sustainable and resilient farming practices. Based near Miles in Queensland, the Hughes family are leaders in this field, which focuses on reducing the impacts of extreme climate variability. Phil Hughes summed it up when we were chatting saying, "Everybody can talk about it. We believe in doing it. If you can rebuild your soils, you can rebuild your community." This pragmatism is reflective of the approach we have taken in our own climate change action plan. I was able to visit Springfield outside of Brisbane in June this year, to meet with customers and survey the devastating damage to homes and property from major hail and storms that took place in October last year. Seeing firsthand the impacts of events like this only strengthened Suncorp resolve to continue to advocate and work with government to drive public and private investment in disaster mitigation and community resilience measures. An issue that is increasing in materiality for Suncorp and our stakeholders is cybersecurity. As the world becomes more technology enabled, robust processes must be in place to manage customer data, security and privacy. Additionally, with financial scams and frauds increasing, we are committed to educating our customers on being extremely vigilant to these risks. Another important issue is the accessibility of our products and services, particularly for diverse communities. We continue to work closely with partners like Multicultural Australia, who we have partnered with since 2018, to build financial literacy and provide capable -- cultural capability training to our people. Your Board believes it's important that we head beyond the boardroom to hear directly from our teams and customers about their issues and aspirations. While border closures made this more difficult this year, we seized the opportunity whenever the rules allowed. This included the opportunity to meet with a range of business customers, team members and local political and industry figures in Cairns in May this year, with most of the Board and executive team then able to travel to Far North Queensland. In addition to Cairns, most Board members were able to meet in person in Newcastle, north of Sydney, where one of our large call centers is based. We were also able to meet at our headquarters in Brisbane and in our Sydney offices. I was also pleased to visit Toowoomba in June to attend an annual fundraising event hosted by the Toowoomba Hospital Foundation, allowing me the opportunity to meet some of our local banking customers across agriculture and small business and other community stakeholders. Suncorp is a large employer in the Toowoomba region where we had not only the bank branch, but a contact and claims center that employs team members supporting insurance across multiple brands. Given the challenges we have faced in recent times, I would like to thank my fellow directors for their continued adaptability and ongoing commitment over the past year. I would also like to extend my gratitude to our group CEO, Steve Johnston and his team. Steve and the entire Suncorp team continue to deliver on our plan to strengthen our core banking and insurance businesses and put our customers at the heart of everything we do. On behalf of the Board and shareholders, I would like to thank you for your commitment, not only to our customers, but to each other. We are mindful of the importance of continuing to focus on delivering long-term value to you, our shareholders. I would like to thank you, our shareholders, for your ongoing support. I believe we've all learned to interact in a very different way in the past 18 months. Let's make the best of that and integrate it into a more normal life in the very near future. As I said at the outset of today's meeting, it is extremely unusual for me to be standing here addressing you with other members of the Board in other locations. As your Chairman, I have the privilege of serving alongside 9 extraordinary directors, and I'm personally extremely grateful for the support each of them provides me. I will now ask our CEO, Steve Johnston, to address the meeting. Thank you.

Well, thank you, Chairman, and let me join you in welcoming everyone this afternoon and paying my respects to the traditional owners of the land on which we meet, particularly in Brisbane today. Now I want to start the meeting by taking you back to our 2019 AGM, which was held just 2 weeks after my appointment as your CEO. Now at that meeting, I talked about the importance and purpose and I outlined the 4 key pillars around which I would build my leadership of Suncorp. I established a set of immediate priorities that were designed to improve customer and shareholder outcomes. And not long after that meeting concluded, we were dealing with the first bushfire of a summer like no other. By the time the last fire of that fateful summer had been extinguished, and as we commenced the task of repairing homes, of rebuilding lives and providing hope, we confronted perhaps the greatest challenge we'll ever face. I remember first being told of a rogue virus that was emanating from China and had the potential to go global. I wondered if there was a management textbook which described how one went about leading through a pandemic. Now of course, there wasn't. We, like so many others, have had to do our best to write that textbook in real time. And we know there's still a few chapters left to be written. Throw in a La Niña weather system and another 50,000 insurance claims, and it certainly has been an eventful 2 years. And in the last 24 hours, we've yet again been reminded that both Mother Nature and geoscience are indiscriminate in their timing. Indeed, they both have an exquisite tendency to strike during periods of peak vulnerability. As if the people of Victoria need anything more thrown at them at this time. While as of this morning, we've only received a relatively small number of claims, and we don't expect it to be a big event from an insurance perspective, it's a timely reminder of the value of the product we offer and the peace of mind that it provides. Now today, as shareholders, you have an opportunity to review our performance over the FY '21 year. The value we have created can be measured in profits, dividends and valuations. It can also be measured in terms of lives restored, communities supported and futures that have been built and assured. The latter reflects our purpose. It's why Suncorp exists. The former is a measure of how well our 13,000 people have lived that purpose, supported each other and delivered for our customers. It remains both a great responsibility and a huge privilege to lead this organization, particularly at a time when we are now needed more than ever. Now when addressing you today about our performance and our plans for the future, it's important to do so in the context of what I've set out in that AGM presentation 2 years ago. Our immediate priority was to align everyone at Suncorp around improving the way we deliver insurance and banking products to our customers, both in Australia and New Zealand. Now I'm pleased to report we've made great progress against this priority. We have simplified our portfolio of assets and our products to enable management to focus on a realistic set of priorities that all of our people can get behind. Following the sale of the Australian Life business and Capital SMART in 2019, this year, we announced the sale of our wealth business to LGIAsuper, and we expect this will be finalized in early 2022. In July, we confirmed the sale of our 50% interest in RACT Insurance, our joint venture in Tasmania. We also exited several portfolios where returns were suboptimal, and customer outcomes were unsatisfactory. Now we believe each of these divestments and exits represents good outcomes for our customers, for our people and for you, our shareholders. In July last year, we announced a new operating model to align our 13,000 people to our core insurance and banking businesses. And importantly, the programs of work that we needed to focus on to improve performance. We've worked hard to embed that model throughout the course of the year. And pleasingly, our people now have a much greater outcome and greater understanding of their role in delivering for our customers. Our refreshed executive team are clear on their accountabilities. We are committed to building on the strong foundations of this business, and we are united in the strategic direction of our organization. Together as a team, we then set about designing a plan for a strong and growing business. Our 3-year plan to support this ambition focuses on those 4 same strategic pillars that I outlined 2 years ago. We will be customer-led through digital and personalized experiences. Everything we do will be enabled by technology and modern platforms and supported by a reimagined workforce. And lastly, we will have a strong and authoritative voice for both advocacy and change. Now that plan is supported by 12 business initiatives that are attached to clear financial metrics and outcomes. In Insurance Australia, we're focused on revitalizing growth. On optimizing pricing and risk selection and being digital-first in distribution and best-in-class in claims. In New Zealand, we'll grow our brands and our strategic partnerships, digitize and automate our processes. And as in Australia, we'll deliver best-in-class claims outcomes for our New Zealand customers. In banking, our focus is on winning in home lending, simplifying our products and processes, optimizing distribution, accelerating digital and everyday banking and driving targeted growth in our business bank. The changes we've made to reset our business and our disciplined approach to achieving our plan through a singular focus on these 12 initiatives is delivering. Now as I outlined at the full year results presentation in August, the group delivered growth in its core Australian insurance and banking businesses. And this combined to result in a 42% increase in group cash earnings after tax to $1.064 billion. Importantly, we were able to return capital to our shareholders through share buybacks, through a special dividend and ordinary dividends that were paid out at the top end of our payout ratio range. And as the Chairman mentioned just before, those payments have been made in the last 24 hours. Our Australian insurance business has delivered its best full year revenue growth in almost a decade. Good progress has been made in reinvigorating our brands, improving our customer offerings and our marketing. We're investing in pricing and risk selection through the rollout of a new pricing engine, and we will continue to invest in digital and data and will meet our customers' increased appetite to interact with us digitally, both through COVID and post-COVID. In New Zealand, we've made good progress growing our brands and our partnerships. We're continuing to automate, reduce manual processes and importantly, simplify those claims journeys. In the bank, for the first time in 2 years, we're consistently achieving growth in home lending, all while significantly reducing turnaround times. Digital engagement at the bank has also increased with now over 600,000 digitally active customers and over 1 million Suncorp App logins each and every week. Our purpose guides the way we support the communities that we live and work in and the issues on which we advocate for change. Our advocacy framework includes 5 key focus areas. Each of these tightly align to our business. These are climate change and natural hazard resilience, financial well-being, mental health, diversity and inclusion and advocating for well-designed and fair policies and regulation. But we recognize that to have a voice in these debates, that means we have to match words with actions. This year, you may have seen Suncorp collaborated with leading experts to design and test what we call One House, which is one of Australia's most disaster-resilient homes. We also introduced a new insurance product feature called Build it Back Better. It does what it says, provides options for eligible customers lodging a claim to improve their homes' resilience to natural hazards as well as water, fire and theft. I'm personally very proud of the new community partnership that we announced during the year with the Queensland State Emergency Service, and it complements our long-standing partnership with the Victorian SES. I'm proud because the volunteers of these organizations are often the first responders when disasters hit. During the financial year, we invested more than $9 million in communities across Australia and New Zealand, including $1.2 million through our employee giving program. And we recently announced up to $1 million to support the FRRR, which is the Foundation for Rural & Regional Renewal in a dedicated grants program. This program will help support Australian communities in their long-term recovery and resilience-building efforts following natural disasters. Shareholders, our voice is increasingly being heard in Canberra and by state governments across Australia. We have developed and argued strongly for a 4-point plan to build a more resilient Australia. This 4-point plan sees us advocating strongly for firstly, greater investment in mitigation infrastructure, government funding for households to make their dwellings more resilient, enhanced building codes and better planning laws, and the removal of inefficient taxes and charges from insurance policies. And finally, we launched our second reconciliation action plan in November 2020, further strengthening our commitment to building an inclusive, prosperous and resilient society for Australia. Now balancing the needs and demands of today with the longer-term needs, expectations and trends has never been more important. The year ahead is one of critical importance for Australia and New Zealand. So much hinges on achieving a vaccinated population, enacting that agreed national plan and learning to live with the COVID virus. We will continue to prioritize the safety and well-being of our people and our customers. And to this end, we're encouraging increased levels of vaccination across both our workforce and in the communities we operate in. The vast majority of our team, including Rhonda and Ketut, who you'll hear from in a moment, have either rolled up their sleeves or are waiting their turn. The reason for that is because we want to get on with the job. We know we have far too many customers with valid insurance claims who we can't get to, given the current restrictions and the lockdowns. Add to that the claims that emerged from yesterday's earthquake. And as each day passes, we inch ever closer to the peak natural hazard season. We need national cabinet to turn its mind to this issue and put in place a framework for all insurance companies to safely get on with dealing with these claims. We should not be scrambling after the event. We need a national framework and we need it quickly. For Suncorp, in addition to achieving our 3-year plan, we're already looking over the horizon, adapting to the rapidly evolving trends and digital revolution that is shaping all of our futures. We have both a realistic plan and an ambition to do much, much more. So in concluding, I'd like to extend my sincere thanks to you, our shareholders, for your ongoing support and the trust that you've placed in our company and in me. I'd also like to thank our Board, our leadership team and of course, everyone at Suncorp for their ongoing resilience and their dedication. I'll now hand back to the Chairman. But before I do, let's hear from the team at AAMI. [Presentation]

Thank you, Steve. We've had overwhelming support around the return of Rhonda and Ketut. And we hope that they help get Australia vaccinated. Now to the formal part of the meeting. All resolutions for consideration today will be put to a poll, which I now declare open. The direct and proxy votes that have been received prior to the AGM will be shown on your screen as we vote on each resolution. Your Board supports all resolutions for consideration today and recommends shareholders vote in favor of each resolution. As also set out in the notice of meeting, I intend to vote all undirected proxies in favor of each of the 6 resolutions that I chair. The first item of business today is to receive and consider the financial report, directors' report and auditor's report for the Suncorp Group Limited and its controlled entities for the year ended 30 June 2021. David Kells and Tanya Gilerman are joining us today via phone. They are partners with KPMG, Suncorp's external auditor and are available to answer any questions you may have about the auditor's report or the conduct of the audit. On behalf of the Board, I would like to acknowledge the efforts of the KPMG team who work to meet their obligations as our auditor despite the challenges of the current lockdowns. David, as the lead audit partner, would you like to say a few words about KPMG's audit of Suncorp's accounts this year?

Thank you, Chairman. Yes, I will take a moment to draw the members' attention to some important matters. And firstly, notwithstanding the many challenges that the Chairman and CEO have already outlined, Suncorp was able to complete their annual reporting process and delivery of results as planned. And from a KPMG perspective, we were also able to complete our audit and issue an unmodified report as seen in the annual report. That report highlighted the key audit matters, which were the focus of our procedures. And in that context, I can also confirm that the financial statements were appropriately prepared in accordance with applicable accounting standards. And finally, I can also confirm our ongoing independence as reflected in my unmodified independence declaration in the annual report. And I'll now pass back to the Chairman.

Thank you, David. And again, thanks to you, Tanya and the KPMG team for your extraordinary efforts this year. I will now address questions and comments about the reports or Suncorp's performance generally. Belinda, could you first -- could you please read our first shareholder question?

Thank you, Chairman. We have received several general questions and comments from shareholders in advance of the meeting. We have a number of questions from Ms. Shirley Watson, a proxy holder representing the Australian Shareholders' Association. Ms. Watson has requested that we read the following comment ahead of her questions. "firstly, Chairman, congratulations. Despite unprecedented disruption and change presented by COVID-19 as well as adverse weather events, your group has achieved significantly improved results while making the care and the needs of people a priority." Ms. Watson's first question is, "What do you see as any lasting change, cost-saving or benefit in the structure of your workforce resulting from COVID-19?"

Thank you, Ms. Watson, for your kind comments and your question. I would like to acknowledge the important and valuable role that the Australian Shareholders' Association plays in flying the flag for retail shareholders. Now Suncorp had a flexible work culture in place well before the pandemic, but we've been very proud of the way our people have risen to the challenges brought about by COVID and our teams have embraced innovative ways of working to continue supporting our customers. This includes virtual assessments for insurance purposes and using technology to stay connected with our customers in new ways. The pandemic has certainly accelerated our transition to a hybrid model of working for our teams. We're seeing improvements in how we measure productivity and engagement through the combination of remote and office-based work. We are mindful of the toll that current restrictions and remote working are taking on people and our priority is to provide ongoing support to our teams to also manage their well-being. The leadership group has introduced resilient seminars, coaching sessions and targeted workshops on ways to prioritize mental health and relationships with family members and teammates in lockdown. Although many of our teams are currently in lockdown, what we have noticed is that our leaders are making extra efforts as to how they lead and engage their teams respectfully when they are working remotely. Reality is we're going into a lot of people's homes where they're working. Suncorp will move into new Brisbane headquarters in early 2022, which will set a new standard for post-pandemic workplaces and reduce our Brisbane CBD physical footprint by consolidating 3 offices into 1. It's been designed to be a workplace of the future with smart technology embedded into the building and with more collaboration spaces to allow teams to choose a workspace best suited to the project they're focused on. Suncorp offices remain a critical hub of connectivity for our workforce to form social connections, learn and drive innovative thinking through collaboration. So another question, Belinda?

Thank you, Chairman. Ms. Watson from ASA also has another question with regard to cybersecurity. As with all financial businesses, cybersecurity is a real concern, both to the company and its stakeholders. As Suncorp Group is becoming increasingly technology enabled, how do you rate this risk to Suncorp and what is being done to mitigate this risk?

Again, thank you, Ms. Watson. As I spoke about in my address, we understand and are deeply concerned about the increasing need to be extremely vigilant to the risks surrounding cybersecurity. I believe that globally, cyber breaches have increased by over 400% over the past 18 months of the pandemic. At Suncorp, we are investing in advanced data analytics and fraud detection technology. We're also running education programs to support customers impacted by financial scans. Suncorp has a dedicated cybersecurity team, which oversees our security strategy and operations for the group with regular reporting to the management team and the Board and the Risk Committee, which, as I say, is chaired by my colleague, Sally Herman. We also partner with external organizations with specialist skills, including threat intelligence and forensics to respond effectively to changing external threat landscapes and identify the key considerations for Suncorp. We found in recent times, as a Board, it's been really helpful to invite experts in from time to time to discuss with us what they are seeing externally. Our security strategy considers industry frameworks and regulatory requirements, and we are definitely committed to ongoing investment in our cyber capabilities for quite some time. So thank you again, Ms. Watson and to your colleagues at the Australian Shareholders' Association for your interest.

We have received several similar questions on climate change. The first set of questions comes from Mr. [ Ian ], company can accelerate its response to global warming, making it a leader, not just doing the average?

Thank you to each of your shareholders for the -- your questions. As I acknowledged in my address, your Board believes that the most material ESG issue facing Suncorp is climate change and the resulting rising incidence and severity of natural disasters. And Suncorp certainly appreciates the importance of understanding and meeting the growing expectations of all stakeholders. We do across the group have a robust approach in place, we have integrated climate change considerations into governance, risk management and strategy processes in line with the task force on climate change, climate-related financial disclosures framework. We're also committed to reducing our greenhouse gas emissions, preparing for the physical impacts of climate change and supporting the transition to an economy that achieves net zero emissions by 2050. As I mentioned in my opening remarks, the Board recently approved our second climate change action plan. And this plan provides a framework for us to respond to the risks and opportunities posed by the change in climate. The climate plan includes a commitment to accelerate our progress against our Scope 1 and Scope 2 emission reduction targets of 51% by 2030. This is supported by our renewable energy strategy and commitment to purchase 100% renewable electricity by 2025. We have reduced our exposure to emissions-intensive industries by strengthening our sensitive sector standard that will see the group phase out exposure to thermal coal sectors in underwriting and investments by 2025 and exposure to oil and gas in underwriting by 2025. We have also applied a shadow carbon price to manage the risk of stranded assets across our investment portfolios. There is no doubt that there is a role for all of us to play in proactively addressing this. Next question please, Belinda.

The next question is also on climate change from Mr. Pablo Brait of Market Forces as a proxy holder representing shareholders, [ Mr. Andrew Lucas; and Mr. Peter Gilbank ]. Mr. Brait's question is, worsening extreme weather is creating vast and growing areas where insurance costs are increasingly becoming unaffordable for many households. Insurance companies like Suncorp should play a critical role in educating the public and lobbying government on the need to urgently act on the climate crisis and the consequences and costs of delaying the phaseout of fossil fuels, which are the main source of carbon emissions fueling this extreme weather. Does Suncorp recognize its responsibility and self-interest to take on that role? And is it willing to, for example, provide information on fossil fuels, climate and extreme weather to customers via insurance certificates, quotes and product disclosure statements.

Thank you, Mr. Brait. Again, we value having a constructive relationship with organizations like Market Forces. And I do recall your attendance at our 2019 AGM in Brisbane. And I'm glad to see that we have you participating today in our virtual AGM. Look, you are right that the insurance and banking sectors are crucial to enabling the global economic transition to net zero and this starts with awareness through education. Suncorp has regular interactions with households and businesses across Australia and New Zealand. So we are in a strong position to help educate and support our customers in the transition. You may have seen our One House project from earlier this year, which we featured in our annual report, and it was designed to do exactly what you suggest, help educate our customers and other stakeholders about the need for better building codes to address the impacts of our changing climate. And again, as I said in my opening remarks, through our climate change action plan, we will continue to work with our customers, employees and the broader community to move on this transition opportunity while helping to strengthen customer and community resilience from the impacts of extreme weather. Suncorp has also had a long interest in effective customer disclosure. And as Steve said in his address, it's part of our advocacy framework. And in recent years, we've provided submissions to treasury and regulator reviews into effective disclosure regimes. Treasury itself has found that the current regime is not assisting the large numbers of Australians who, for various reasons, find the information provided on product disclosure statements and renewal notices complex. We will always explore innovative ways of conveying the growing cost of climate change and believe broad-based customer campaigns like One House are currently the best approach to engage our customers on these important issues. Next question, please, Belinda.

Thank you, Chairman. We now have a question on our investment in niche brands from shareholder, [ Mr. Barry Moore ], who asks, will we see reinvestment into niche brands, considering the record profits these brands generated?

Thank you for raising this question, [ Mr. Moore ]. I'll make a couple of remarks, and then I might ask our CEO, Steve Johnston, to elaborate. It is a key priority for us to revitalize growth across all of our brands. And as a multi-brand manager, we're focused on ensuring there are clear value propositions for each brand and targeted investments in marketing and new product innovation. Our investment in both niche and mass brands have been showing promising results. And Steve, you might just like to add a little bit more color to that for [ Mr. Moore ] and other shareholders.

Thank you, Chairman. It's a very good question because one of the key priorities that we've focused on over the past 2 years and probably the number one priority is to be -- has been to reinvigorate our brand infrastructure. And that includes making sure the customer segmentation is right and improve the quality of our marketing. And that's been number one priority for us. Key to that has been the niche brands and also our AAMI brand, and you've seen us come to market with different propositions in the AAMI brand and different marketing campaigns and the like. We're incredibly pleased with the performance of our niche brand infrastructure, most particularly Shannons and the growth that we saw in Shannons over the past year has been extraordinary, ahead of 10%. And we've had a very consistent, very methodical approach to the way that we have executed our marketing around channels, but also the customer service and the customer obsession that the team has to support their customer base. So what you'll see from us over the next little while is to establish AAMI as our national mass market brand and continue to invest in that. Our regional champion brand infrastructure, that's Suncorp in Queensland and GIO in New South Wales and then continue to invest strongly in that -- those niche brands, much particularly into Shannons, APIA, pensioners insurance agency brand and also the Bingle brand, which is our fully online brand, which, again, has seen good growth over the past 12 months. Back to you, Chairman.

Thanks, Steve. Is there another question, Belinda?

There is indeed. Thank you, Chairman. Our next question is from shareholder, [ Mr. Joseph Feller ]. Why don't shareholders get a discount when insuring with your companies?

Thank you, [ Mr. Feller ]. As I said earlier, we appreciate the ongoing support of our shareholders, yourself included. With respect to shareholder discount, our preference is to price our products competitively and reward our shareholders through improved profits and dividends at a company level. And we believe this is in line with our track record of delivering high ordinary dividend as well as special dividends and other forms of capital management. But of course, I would encourage you if you are a customer of the group that you look at what multi-policy discounts may be available. Next question please, Belinda.

Our next question is from [ Ms. Natasha Lee ]. I note there is a 40% target for female representation on the Board, which is considered to be global best practice, though the company has fallen short in this measure. Companies that have at least 40% female representation on Boards have been shown to have better performance overall. How seriously does the company take this target? And when will it commit to achieving it?

Thank you for highlighting the importance of Board diversity with your question, [ Ms. Lee ]. I know I speak on behalf of the entire Board and executive team when I say that we are strongly committed to a diverse and inclusive workforce, both in the boardroom and through our entire workforce. Regarding the Board, our gender diversity currently sits at 33% against the target, which we remain committed to of 40%. When completing the search to find new directors of Suncorp, we consider male and female candidates from diverse backgrounds. Looking ahead, both the Board and I remain committed to achieving a 40% target for females on the Board. I think it's important that I mention that the Board also sees it is critical to develop female talent through the management ranks and pursuing our gender diversity targets at all levels of the organization. In 2021, Suncorp was recognized as an employer of choice for gender equality by the Workplace Gender Equality Agency for the 8th consecutive year. I'm proud of the emphasis that is placed on gender diversity throughout the whole of Suncorp, including talent succession for senior leadership roles as well as dedicated recruitment and retention strategies. I might mention also that I have been the private sector representative on the Global G20 EMPOWER initiative, which addresses the issues of global gender equality and Suncorp's track record on gender diversity was recently showcased in that forum. And the depth of our commitment over a long period of time was acknowledged. Next question please, Belinda.

We have another question from [ Ms. Natasha Lee ]. I note that there is a higher proportion of at-call deposits compared to term deposits, which is understandable in the current interest rate environment. However, does this post -- pose a funding liquidity risk and how is the company managing this risk?

Thanks, [ Ms. Lee ]. I'll make a couple of comments, and I'll again invite our CEO to add some color for you. We've had great success in growing our at-call deposits via our digital channels, and we expect this will continue. And this allows us to target the bank's optimal funding mix, including a managed reduction in term deposits which are a more expensive funding alternative. And we believe the bank strategy, including the most recently announced buy now pay later product, will create more loyal customers and assist with greater stability in our at-call balances. Steve, would you like to make a comment on the way we approach liquidity risk?

Yes, Chairman. I think historically, Suncorp has a very conservative position around liquidity and certainly has had that for the past decade as we've significantly improved the quality of our liability portfolio. Obviously, there's transaction accounts, there's savings accounts, there's term deposits. And then there's a suite of funding both onshore and offshore funding sources that we have available to us. And one of the key elements of improving that mix of funding has been the adoption of digital and our capacity as an organization to have invested in that and create a significant uptick in our transaction volumes, which we -- I believe are the highest quality for a bank like ours. So we've done all of that over the past 3 years. We're in a very strong position. We have a very conservative stable funding ratio, amongst the best in the market. So we think those steps have all put us in a very strong position, a very strong and conservative position for today and into the future. Back to you, Chairman.

Thanks, Steve. Is there another question, Belinda?

Yes, Chairman. We've received a number of inquiries from shareholders regarding Suncorp's AGM being held online. While we have dealt with each inquiry directly, we wanted to acknowledge these with a general question that reflects the inquiries received. With regard to electronic AGMs, notices of meeting, voting and other communication that is now digital, how is Suncorp ensuring shareholders who are not computer literate or do not have Internet access are being considered and not disadvantaged?

Thank you, Belinda, and I'm pleased this has been raised because I think it is important that we address this. When considering this year's AGM and the planning for the AGM, as you will appreciate, starts many, many months in advance of the actual date. But the health and safety of our shareholders and employees is our number one priority. And then as the year unfolded and the Delta strain of the COVID virus proved to be so infectious, it was obvious it was necessary for us to hold our AGM virtually, again. And as I mentioned at the outset in an even more virtual setting than last year, given that none of my Board colleagues are sitting with me here today, I truly hope that that's not the case next year. This year, we provided a phone line to enable shareholders to listen and ask live questions as an alternative to the Internet and details of how to participate by phone were included in our notice of meeting. But I do understand that there are quite a few questions coming in online anyway, which suggests that the process is effective for shareholders. Our team has been on hand to provide support and instructions on how shareholders can access electronic documents and best participate in this year's AGM, and they are also able to provide paper copies of the notice of meeting when requested. Regarding other shareholder communications, we're still providing paper copies as usual when shareholders have chosen this as an option. I suspect in the future, we will have shareholders that would like to see a blended model for AGMs as we do know that a hybrid form does make it easier for people in remote locations to participate. I will shortly update you on how many people we now have participating in this meeting to give you a sense of that. Perhaps before I move to the next item of business, I'll do that. Next question please, Belinda.

Thank you, Chairman. That concludes the general questions received in advance. We will now answer questions received today, firstly via the online platform and then via the phone line. [Operator Instructions] The first question via the online platform is received from [ Mr. Stephen Hart ]. We also note that a similar question has been received from Mr. Stephen Mayne. We have selected the question from [ Mr. Stephen Hart ] as it best reflects the theme communicated. Some companies such as Wesfarmers and Coles, Woolworths and Endeavor have demerged businesses allowing shareholders to hold different amount of shares in different businesses. Further, some banks no longer have direct interest in insurance companies. Has Suncorp considered demerging its insurance and banking businesses, allowing shareholders to have shares in insurance and/or banking? Has Suncorp considered whether a stand-alone Suncorp Bank will provide better opportunities for mergers and acquisitions in the financial services industries?

Thank you, [ Mr. Hart ] and Mr. Mayne. Look, the Suncorp Bank remains core to the Suncorp Group. The Board and management team are aligned on the objective of improving performance of the bank, and the Board has endorsed a 3-year plan to drive growth and indeed to improve the cost-to-income ratio. I mentioned in my earlier address that we -- recently, Clive van Horen joined the team as the CEO of the bank, and he has proven to be an exceptional leader of that business and has built a very, very strong team around him. And the bank has turned a corner in terms of growth, delivering home lending growth of almost 1% in the second half of the financial year and lodgements and settlements have increased significantly. We've also seen a significant improvement in digital engagement over the past year. So whilst the Board also always consider strategic organic and inorganic opportunities, we are very focused on delivering on our operating plan. Next question please, Belinda?

Thank you, Chairman. We have received another question from [ Henrik Kay ], who asks, are you going to mandate that all staff be vaccinated?

Sorry, who is, the question from?

[ Henrik Kay ].

Thank you, [ Mr. Kay ]. Look, we spoke -- both Steve, the CEO, and myself spoke about how strongly we feel around the importance of vaccination for our country -- countries in which we operate and in fact, for the world. And the CEO showed the -- one of the mini ads we have under the AAMI brand, encouraging vaccinations. We are strongly advocating for free, safe and effective COVID-19 vaccines for all. And we all know it's well documented that it's a ticket to a more normal existence. We're supporting Suncorp employees to get their vaccine as they become eligible and when vaccines are available. And this includes offering leave to enable people to attend vaccination and medical appointments. We will continue to monitor the situation closely, particularly for those members of our team in direct customer-facing roles to ensure we're taking reasonable steps to protect their safety and well-being. And we also have very active dialogues with the various state governments and country governments in which we operate to understand the position taken in relation to vaccination.

Thank you, Chairman. We have another question from [ Mr. Stephen Burrow ]. I'm interested, and I hope other shareholders, to understand why the risk margin for outstanding claims fell from 16.2% to 15.1%. As a percentage, this is the lowest risk margin used by Suncorp in the past 5 years. If the risk margin stayed at 16.2%, profit before tax would have been $80 million or more less than reported. Can you provide more detail as to what the probability of adequacy was to 1 decimal point in the current year and previous year? Approximately 90% doesn't cut it for me, particularly when Sun is more precise.

Thank you, [ Mr. Burrow ]. That's quite a detailed question. I'm going to make a comment and then I'm going to ask our CEO or our CFO to speak to that. I'll refer to the CEO. Look, I guess the opening remark is we have not made any changes to our underlying reserving assumptions. But Steve, do you want to add some color for [ Mr. Burrow ]?

As the next CFO, I'll do my best to answer and if I need the support from the current CFO, I'll reach out for it. But it's a very important question in the context of our reserving principles and policies and you've indicated which is absolutely the case that we have made no adjustments to our underlying reserving assumptions, which I think in the market are very much recognized to be incredibly conservative. And if I give you an explanation as to -- for shareholders that are on the call today, an explanation as to the various basis upon those reserving assumptions, you have your central estimate, which is circa or around the 50th percentile. You've got a 75th percentile calculation, which is a regulatory calculation. And then on top of that, you build a risk margin on top of that 75th percentile to reach a probability of adequacy of around -- we say around 90%. I don't think it's -- I don't have the 2 or 3 decimal place point, but it is around 90% to provide that level of sufficiency or probability of adequacy, which I think in the market is a reasonably conservative approach. We've made no adjustments to that assumption over time. And the risk margin does move around from period to period. And the explanation for that is the composition of the portfolio are different -- portfolios obviously have different compositions to them. And the two material changes or one material change I could point to relative to last year is the continued evolution of the New South Wales CTP scheme, which has moved significantly closer to a defined benefit scheme, which means that risk margin calculation is lower relative to what it might have been 12 months ago and certainly what it was 2 or 3 years ago. That's one example. The other example is the composition of natural hazard costs at any particular balance date. Now obviously, when you have natural hazard events very close to the end of the balance date, you have a large volume of claims and a large volume of risk margin, and you haven't worked your way through satisfying those claims at the point at which the accounts are struck, and that hasn't been the case in the year FY '21, but was the case 12 months previously. So the simple answer is that no change to the reserving assumption. It's a very conservative level of sufficiency that we apply to that. It's around 90%, the risk margin will move around, and it will move around simply because of the composition of the portfolio and the timing of natural hazards in any particular reporting period. But it's a great question. And not one we usually get in a shareholder meeting, but -- or an AGM, but it's a very relevant question. Back to you, Chairman.

Thanks, Steve. Look, while we're on the numbers, it's terrific to see we now have 496 shareholders who've joined us online. So to the earlier question today about participation, that's a very similar number to what we would usually have in person if we were in one place in Brisbane. So that's a terrific participation. So thank you for those shareholders who are taking the time to join us online. We'll try to make it interesting for you. Next question please, Belinda.

Thank you, Chairman. We have another question from Mr. Stephen Mayne, who says, well done in securing $440 million from AMA for our car repair and car parts business 2 years ago. AMA is now under severe pressure with a market capitalization of just $440 million. Would it make sense for us to buy the business back or provide a cornerstone shareholding in AMA's hour of need?

Thanks, Mr. Mayne. Look, the decision to sell SMART was made on a long-term view of whether we were a natural owner of a smash repair business and I guess, our expectations for longer-term motor vehicle repairs and trends. And the specialist smash repairer is better placed to navigate the long-term challenges for this industry. We do retain a Board seat on the SMART board and continue to work closely with the AMA management, to ensure that customers are getting high-quality services and repair outcomes. AMA are, as you say, taking steps to strengthen their financial position, and we are supportive of this. And I'm not sure whether -- Steve, whether you wanted to add anything to that?

I mean if I just recap the rationale for the divestment of SMART, it's been -- it was a very successful part of our business and grew from next to nothing to be a very well-regarded part of our business and also a valuable part of our business and was acquired by AMA on that basis. The reason we divested it was simply because we couldn't see it -- we couldn't -- didn't have enough claims within our own infrastructure to allow it to grow. And the realm of motor vehicle repair was becoming heavily technically and technology-focused. We saw an opportunity to have a business that was growing under the AMA banner. We are very pleased with the AMA capital raising. We do recognize that there's particular challenges at the moment around motor vehicle, smash repair more broadly right across the industry, and this applies not only to AMA but to other smash repairers that are our partners, and we are looking very favorably and try and find some pathway to support them through these particular periods of time where mobility is down, accident frequency is down, therefore, the volume of smash repairs is also down. And we continue to be supportive of AMA and we'll continue to work with them constructively around how we work through this period of time. And we're very pleased that that capital raise and the activities they've undertaken to strengthen their balance sheet over the past little while has occurred successfully. Back to you, Chair.

Thanks, Steve. Is there another question, Belinda?

Indeed, Chairman, we have another question from Mr. Stephen Mayne. He asks, in the interest of full transparency, could you please follow the lead of companies like Crown Resorts, Transurban, Woolworths and AGL by publishing a full video archive of today's AGM on your website, along with the full transcript of proceedings?

Thanks, Mr. Mayne. Look, different shareholder groups have different views on whether this is best released before or after taking questions. We do provide shareholders with full access to the AGM proceedings, including we have archived the webcast on the group website. Obviously, we follow the practice of ASX disclosure of our voting results at the end of our meeting. And we also provide a summary of a Q&A on the group website. So I think at the moment, that -- our view is that that is being more than transparent. Next question, Belinda.

Thank you, Chairman. We have a question by [ Helen Beasley ]. Suncorp's guidelines only mentioned oil and gas production. Does this mean that Suncorp is willing to underwrite the construction and operation of new fossil gas-fired power stations and pipelines?

Thank you, Ms. Beasley. Our fossil fuel guidelines apply to businesses that are direct sources of greenhouse gas emissions. This includes thermal coal extraction and electricity generation and new or additional oil and gas exploration or production. We understand the need for an orderly transition, so we will phase out our existing exposures, which are very small by 2025. Our insurance exposure to fossil fuels is minimal. I think at June 30, '21, fossil fuel extraction and electricity generation activities were less than 0.1% of our general insurance. GWP and Suncorp Bank is not an institutional bank. So it doesn't lend to large-scale projects like new pipelines.

Thank you, Chairman. We have another question from [ Mr. Henrik Kay ]. He asks, in relation to the One House project, was disabled access taken into account in the design of the house, as 19.6% of Australians have a disability? Those are ABS figures.

Thanks, [ Mr. Kay ]. Look, I'll pass to our CEO, but I'll just make a couple of comments. First, I mean the One House is an architectural concept with a range of resilient building innovations and it's not a finalized and approved home. But I think it's important that you know that given the business that we are in, particularly with our workers' compensation and our CTP businesses, we are very mindful of the number of Australians who have disabilities. And -- which is leading edge. I might just ask our CEO to make a couple of additional comments.

Yes. Thank you, Chairman. I don't know that I would have a huge amount to add to that. Just to make -- reiterate your point that disability access and accessibility broadly across our group is a very important matter for us. We take it very seriously. We've considered it within the Board Customer Committee process in recent times and made some changes to particularly the way we apply our mobile tellers and various other of our cash teller machines. So it's a very important topic for us as is climate change and resilience. And the One House project, which, again, you pointed out is architectural design. So obviously, if it were to be rolled out on scale and built to scale, then there would be disability access taken into account in that. But it's very much an effort on our part to put something constructive into the debate. And we backed it up with a product initiative, which effectively -- and I talked to this in my presentation, which effectively allows the customer when they do have a significant claim, we provide a buffer to them to be able to make some pretty pragmatic and practical applications, some new products and design based on the One House principle that when they rebuild, they build it back better. And I think this is a very important topic for all Australians to focus on. We are increasingly seeing claims cost increase. We're increasingly seeing people displaced through major weather events and the extent to which we can improve the quality of our public infrastructure from the government perspective, but importantly, our private infrastructure and our homes, it's a very important initiative. And if you spend as much time as the Chairman and I have talking to customers who have been displaced through major weather events, you could just see how important that is. This campaign has resonated very much with that group of people who've been displaced and gone through the emotional and mental health trauma associated with big weather events. Back to you, Chair.

Thanks, Steve. Belinda, do we have any more questions on this item?

We do. Chair, we have a question from [ Brian Ang ], who asks, I'd like to know Suncorp's progress in preparing for IFRS 17 financial reporting, which commences in May -- sorry, in financial year 2023, my questions are, one, what is the status of Suncorp's preparation for IFRS 17? Two, when does Suncorp expect to publish transitioned IFRS 17 results? Three, is IFRS 17 expected to have a material impact on Suncorp's financial result?

Thank you for the question. Look, I wish that the Chair of the Audit Committee, Ian Hammond was here with me because this is really in his sweet spot. But I'm pleased to say that we are well placed to ensure compliance with IFRS 17, which I think is in the financial year '24. That's the first year that is required to be implemented for Suncorp along with comparatives for FY '23. In line with the various requirements, we'll be providing qualitative information on the impact of IFRS 17 in our accounts ahead of that. IFRS 17 does represent a significant development in the accounting standards for insurance, and we're working through the quantitative work impacts as part of the implementation work out. And we certainly intend to ensure the market is appropriately updated as we work through the new standard. So perhaps next year, Ian will be in the room and he can add the -- add to that. Do we have any more questions on this general business, Belinda?

Chairman, that concludes the general questions received via the online platform. I can also confirm that there are no shareholders who wish to ask a general question on the telephone lines.

Thank you, Belinda, and thank you, shareholders, for taking the trouble to submit those questions. It certainly makes the meeting more interesting. So having addressed all the general questions and comments, we'll now move to the 2, then I will provide a reasonable opportunity for shareholders or proxy holders to ask any questions or make any comments they may have on these resolutions. We will then proceed to vote on these resolutions. The first resolution relates to the remuneration report. This is an advisory vote on the 2020, 2021 remuneration report, which all shareholders have had the opportunity to review. The Board is confident that the remuneration arrangements, as outlined in the remuneration report, are strategically aligned and reinforce executive accountability, responsible business practices, effective risk management and our purpose-led culture. The Board has demonstrated over recent years the award of fair and reasonable short-term incentive outcomes for the group CEO and executive leadership team and with exercise judgment where required. We also have a program of active engagement with institutional investors, proxy advisers and the Australian Shareholders' Association, and we have received helpful and supportive feedback from shareholders more generally. The Board will continue to review Suncorp's remuneration arrangements to ensure that we continue to be compliant and are compliant with upcoming regulatory requirements and that we maintain an ongoing focus on the attraction, motivation and just as importantly, the retention of critical skills to deliver for our shareholders, our customers and our people. This retention is a heightened concern given the ongoing impacts of COVID-19, not just the lockdowns but related border closures and the high demand for critical capabilities and talent migration, in fact, away from regulated financial service entities. The second remuneration-related item of business is to seek shareholder approval for the grant of 182,051 performance rights to your group CEO and Managing Director, Steve Johnston. These performance rights will represent the group CEO's long-term incentive remuneration for the 2022 financial year. The aim of Suncorp's long-term incentive remuneration is to focus the executive leadership team on our long-term business strategy, align their interest with those of shareholders and support the creation of long-term shareholder value, and also importantly, provide a retention mechanism. Changes to the long-term incentive performance measures may be required in the future as regulatory requirements are still being clarified. For that reason, we've made minimal adjustments to the structure this year. You will see that for the 2022 financial year, 3 equally weighted performance measures will apply to the long-term incentive. The first is relative total shareholder return against a broad-based peer group. The second is a new relative TSR measure with a customized peer group of 12 ASX 100 financial organizations. And the third, cash return on tangible equity, which replaces the previous cash return on equity measure. While shareholder approval is not technically required, the Board has chosen to seek it in recognition of the importance of shareholder engagement on the remuneration of the group CEO. The Board, with Steve Johnston abstaining, recommends shareholders vote in favor of this resolution. Details of direct votes and proxies lodged prior to the AGM in relation to these resolutions now appear on your screen, which shows both resolutions have been well supported by our shareholders. Belinda, do we have any shareholder questions or comments on either the remuneration report or the proposed grant of performance rights to the group CEO?

Thank you, Chairman. I will start with the remuneration-related questions that we received in advance of the meeting. We have received similar questions on executive remuneration from [ Mr. Nigel and Mrs. Wendy Lampert ], [ Mrs Jeanette Javis ] and [ Mr. Anand Kumria ]. The following question from [ Mr. Kumria ] reflects the themes that were communicated by these shareholders. What is the pay ratio for each member of the executive compared to the member worker in the company? When do you expect to include this ratio calculation in your annual report?

Thank you again to this group of shareholders for this question. As I mentioned, Suncorp aims to provide fair and competitive pay levels to all of our employees and our People and Remuneration Committee, which is chaired by Simon Machell, takes into account a range of factors. And while we do look at the multiple of pay between our employees and executives, our primary focus is to ensure that remuneration levels for each role are fair and competitive and that takes into account capability needed, the experience of executives, the accountability that executives in financial services, in particular, carry and, of course, benchmarked market data because that is who we are competing with. The multiples of pay for our executive leadership team compared to the medium employee based on FY '21 pay ranges between 10.5x and 40x for fixed pay plus short-term incentive. I would like to point out that our group CEO executive remuneration takes into consideration their capability, accountability, experience, and is set in the context of market remuneration levels. Oh, sorry, I should also add it for you. We will consider whether there's value in disclosing these multiples in our annual report. But I note that given that such a decision has so many complexities, particularly given the competitive market for attracting people at present, it's probably not the current inclination of the People and Remuneration Committee. But I'll certainly take that back to the Committee Chairman for deliberation. Thank you.

Thank you, Chairman. Following on from the last question on remuneration, we also have the following question from [ Mr. and Mrs. Lampert ], which also reflects the themes that were communicated. Paying excessive amounts to senior staff as a phenomenon seen over recent decades in Australia, yet we have seen some deplorable outcomes on many occasions. Suncorp could become a trendsetter by paying only base salaries and distributing the amount spent on incentives more equitably across all employees. With the Board and senior staff, please look into such an arrangement?

Thank you for your comments and suggestion, [ Mr. and Mrs. Lampert ]. And again, I wish that the Chairman of the People and Remuneration Committee was not closed out from Australian borders and was able to speak with you on this because Simon and the People and the Remuneration Committee have spent a significant amount of time looking at what the most appropriate structure for our remuneration is. And I assure you that the Board takes this issue very seriously. We use independent benchmarking to decide on the appropriate level of pay to ensure that we have the most capable executives who can deliver value for our shareholders, can be attracted and retained in what we know is an incredibly competitive market. So we believe strongly that the remuneration structure and outcomes at Suncorp are appropriate. The Board believes that incentives are needed to be competitive with other organizations and drive a high-performance culture. And short-term incentives only payable once challenging pre-agreed financial, customer risk and people and culture measures are achieved. And similarly, long-term incentives only vest if challenging pre-agreed relative total shareholder returns and cash return on equity measures are achieved. So I'm comfortable that we are addressing this in an appropriate way at Suncorp. But thank you for the question. Next question please, Belinda.

Thank you, Chairman. That concludes the remuneration questions received in advance. I can also confirm that we have received no questions via either the online platform or via the telephone.

As that addresses all questions and comments on the remuneration report and the proposed grant of performance rights to the group CEO, would you please now vote using the voting card in the online portal if you have not lodged your vote prior to the AGM. Details of direct votes and proxies lodged prior to the AGM in relation to these resolutions are again shown on your screen, and you can see that they have been overwhelmingly supported. So I'll just give you a moment. [Voting]

Thank you. So I can see that the resolutions have been carried. Before I move on to the next items of business, I want to acknowledge Simon Machell's contribution as Chair of the Board People and Remuneration Committee for the last 3 years. As I mentioned before, Simon is based in Singapore, but pre-COVID, was always on a plane heading here for our meetings or to the U.K. for meetings of Boards that he sits on in those jurisdictions and is an incredible contributor to our Board and will continue to be. And Simon has worked tirelessly to oversee our remuneration outcomes and disclosures as well as other programs that are critical for our people and culture initiatives. But Simon, in his own words, is handing over the reins of chairing the People and Remuneration Committee to Sylvia Falzon, which is consistent with our practice of rotating committee chairs every 3 or 4 years. So thank you, Simon. You'll be pleased with the voting outcomes for this year's remuneration report and CEO LTI grant. The next items of business are to consider the election and reelection of 5 members of your Board, including myself. At this point, I will ask Doug McTaggart, who has been appointed by the Board as Deputy Chairman of this AGM to chair the meeting while my reelection is being considered. I realize that this will result in a change of order from what is shown in the notice of meeting and on your voting cards. However, this change is proposed to ensure that the remaining meeting procedures are as streamlined as possible which will, in turn, minimize the risk of any technology issues. And I'm assured by our group general counsel that this approach is legally acceptable and in no way invalidates any of the meeting procedures. I will now hand over to Doug.

Thank you, Christine, and good afternoon, shareholders. Christine's background and experience are detailed in the notice of meeting. Christine is a highly respected company director with an extensive Board and executive career that includes domestic and international experience, both within and outside the financial services sector. Since joining your Board in 2015 and following her appointment as Chairman in 2018, Christine has made a strong contribution to Suncorp and to the committee and the deliberations of the Board and its committees. As mentioned earlier today, Suncorp has made a great deal of progress with its customer, sustainability and broader strategic initiatives during Christine's tenure. Christine's significant contributions to business, the not-for-profit sector and women were recognized earlier this year when she was awarded a Member of the Order of Australia. I and her other fellow directors are pleased that she is standing for reelection today. I will now invite Christine to make some comments in support of her reelection.

Thanks, Doug. I wish I was with you in Brisbane today. Shareholders, it's been a privilege to serve as your Chairman for the past 3 years and to have been a member of the Suncorp Board since February 2015. And like most of you, I am both a Suncorp shareholder and customer. Throughout my tenure serving on your Board, Suncorp has advanced to be a more customer-led and sustainable business, supporting our customers in their times of need. And as I've already said, I'm proud of the way that Suncorp has successfully navigated the unprecedented challenges of the past 18 months with a global health pandemic that continues to have far-reaching consequences for our teams, our customers and our communities. In the past 3 years, as your Chair, I have overseen the realignment of Suncorp's strategy under Steve Johnston's leadership, to simplify our business and focus on our core insurance and bank offerings in Australia and New Zealand. We are all pleased that our latest financial results show the progress we are making, and we have the momentum to drive stronger performance in the years to come. Suncorp has put much focus and effort into understanding and responding to the material environment, sustainability and governance risks that impact our business. I remain committed to continuing to deepen our understanding of a broad range of stakeholder views and our advocacy in areas like natural hazard resilience and climate change, all evidence of our commitment to support our people, our customers and our communities. We've recently, as I mentioned before, refreshed the group's climate change action plan to ensure we're well positioned to respond to the challenges and opportunities presented by climate change. While supporting our customers through the transition to net zero, we're also working to build more resilient households and communities that can withstand increased severity and frequency of weather events. Since being appointed Chairman, the establishment of Suncorp's Customer Committee has been an initiative that I'm particularly proud of. As one of the first financial services companies with the Customer Committee, this provides the Board, your Board, with a forum to get a deeper understanding of the experience of our customers in dealing with us. Lindsay Tanner is the Chairman of the Customer Committee, and he'll speak more about how we're using that forum effectively later in the meeting. My Executive Board experience spanned leading ASX-listed companies in health, financial services, medical technology, resources and infrastructure. I have also served on government Boards and in the education sector. I've always been involved in the not-for-profit sector. In more recent years, focusing on my passion for sport and the role it plays in developing leaders and building communities. I'm currently a Director of Cochlear, Chancellor of the University of Wollongong, Chairman of Destination New South Wales and Chairman of the Minerva Network, a not-for-profit I cofounded to support the development of professional career paths for professional women athletes. I also serve as the elected Australian private sector representative to the G20 EMPOWER Council, which is focused on women's economic representation globally. I believe that each of these roles adds to my perspective as your Chairman and complements the other skills and experience of the other Board Directors. Be assured that I realize the support of our shareholders as we seek to build and deliver long-term value for you is an important part of my responsibilities. With Suncorp's purpose of building futures and protecting what matters at the core of our business, I look forward to your ongoing support as Chairman of your Board. Thank you. Thank you, Doug.

Thank you, Christine. Details of direct votes and proxies lodged prior to the AGM in relation to Christine's reelection now appear on your screen, which shows it has been well supported by shareholders. Belinda, do we have any shareholder questions or comments on Christine's reelection?

Thank you. I can confirm we did not receive any questions in advance relating to this item of business. I will now move to questions received via the online platform. We have one question received via the online platform, and that was from Mr. Stephen Mayne, who says, "Well done on removing the previous CEO, but does the Chair agree that his payout was too generous? As a Suncorp shareholder, did the Chair participate in the recent capital notes offer?"

Christine, would you like to address this question?

Sure, Doug. Thanks, Mr. Mayne. So the previous share -- the previous CEO had contractual entitlements, which were paid on his departure. I did not participate in the recent capital notes offer, but I have participated in previous capital notes offers.

Thank you. That concludes the questions received by the online platform. I can also confirm that we have not received any questions via the telephone line.

As that addresses all questions and comments on Christine's reelection, would you please now vote using the voting card in the online portal, if you have not lodged your vote prior to the AGM. Details of direct votes and proxies lodged prior to the AGM in relation to this resolution are again shown on your screen. As the Chairman -- and you can see the results are very strong in favor of Christine's reelection. As Chairman of the AGM for this resolution, I confirm I intend to vote all undirected proxies in favor of this resolution. Taking into account the direct and proxy votes shown on the screen, and the total number of shares being voted today, it appears this resolution will be passed. Congratulations, Christine. I will now vacate the role of Chair for this AGM and pass you back to your reelected Chairman.

Thank you, Doug, and thank you, shareholders, for your support. I am very privileged to continue as your Chairman. We will now move to the 4 remaining items of business, which relate to the election of Duncan West and to the reelection of Sylvia Falzon, Doug McTaggart and Lindsay Tanner. I will introduce each resolution, and you will have the opportunity to hear comments from each director. Each director has prerecorded these comments given they are joining from different locations due to current travel restrictions and that we wanted to ensure we had minimal chance of a technical glitch. Then I'll provide a reasonable opportunity for shareholders or proxy holders to ask any questions or make any comments they may have on all 4 resolutions. We'll then proceed to vote on these resolutions. First, as I mentioned earlier, Duncan West seeks confirmation of his appointment to your Board through seeking election by shareholders today. To add to my earlier comments, Duncan's extensive financial services expertise spans general and life insurance, banking and wealth management, both in director and senior executive roles in Australia and overseas. As disclosed in the Notice of Meeting, I can confirm Duncan's retirement as Chairman and Director of The Hollard Insurance Company takes effect from today and that he will also retire as Chairman and Director of Lawcover Insurance from next week. As a result, the Board is satisfied that Duncan is an independent non-executive director and fully supports his election today. I'd now like to introduce Duncan.

Thank you, Chair, and good afternoon, fellow shareholders. Like many of you, I am a loyal and long-standing customer of Suncorp Group. It is a great pleasure to be with you virtually today. I wish that I'd be able to meet you in person, but this is just not possible. I do hope that we'll be able to meet face-to-face next year. I would like to thank you for the opportunity to offer myself for election to your Board today. I realize that you may not know me, and so I thought it would be helpful to offer you a little insight into my background, my values and how I will look to serve you if I am elected. I joined the insurance industry in the U.K. 38 years ago last week. I must admit it was not an industry I knew much about before I joined, but I rapidly felt at home. You see it was and still is important to me that the work I do has a true purpose, a way to help people when they're in trouble or to help them achieve their dreams. At Suncorp, we talk about building futures and protecting what matters, and it is this vital role that we play for our customers and our community that has motivated me throughout my career. I joined a company called Royal Insurance. And after working in the U.K. and India, I arrived in Australia in 1998. In 2003, the local business undertook an IPO and became known as Promina and some 4 years later was purchased by Suncorp. Whilst I moved to other senior roles in the insurance market, I retained a deep connection with this business, its people and customers. Having held several CEO roles, including at CGU Insurance and MLC Insurance, in 2013, I decided the time was right to move into Board roles, and I have since gained governance experience. I am currently a Director of Challenger Financial Services and Genworth Mortgage Insurance Australia. In addition to bringing my deep insurance and financial services knowledge to the Board, I hope to be able to bring the leadership experience and insight I have from being involved with innovative, entrepreneurial and fast-growing new insurers. With your support, I also hope that my passion for the noble purpose of insurance and banking to build futures and protecting what matters will add to the success of your company. Thank you.

Thank you, Duncan. I'll now move to the reelection of Sylvia Falzon. Sylvia joined your Board in 2018. Sylvia's background and experience are detailed in the notice of meeting, including, as I mentioned earlier, the Board's unanimous decision that Sylvia will succeed Simon as Chair of the People and Remuneration Committee with effect from tomorrow. The Board and I are confident that Sylvia will continue to make a valuable contribution to the Board, both in this capacity and more broadly. On a personal note, I'd like to thank Sylvia for her diligence and preparedness to always go the extra mile. Her contribution to our Board is highly valued. I will now share Sylvia's prerecorded comments in support of her reelection.

Thank you, Chairman, and good afternoon, ladies and gentlemen and fellow shareholders. I would like to start by acknowledging the extraordinary efforts of our people over the past 12 months. Not only have they continued to be there for our customers and communities in Australia and New Zealand for the moments that matter, but they have worked tirelessly to provide much-needed support during the pandemic. Their resilience, care and passion for our customers is core to the culture at Suncorp. At the same time, your Board and executive team continue to ensure our people's safety and well-being is of paramount importance. Last year, your Chairman and Board were hopeful we could gather together this year in Brisbane for an in-person AGM. Sadly, this is not the case. We do, however, remain optimistic with vaccination rates continuing to increase across the country to see you in person next year. I joined your Board in September 2018. It's been an eventful 3 years with a royal commission, numerous natural disasters; changes in our senior leadership and a global pandemic. Despite all these challenges, your organization, led by our Chairman and CEO, has relentlessly stayed focused on delivering for our customers and our people. We accept we don't always get it right, but I am heartened by the way in which issues are dealt with in an open and transparent way and the overall desire to do better and improve. So for me, I'm proud to be a director of Suncorp, as I've seen firsthand the important role we play in our communities across Australia and New Zealand. Since joining Suncorp, I believe my skills and experience gained as a senior executive and as a non-executive director have allowed me to make a meaningful contribution alongside my Board colleagues. As an executive, I held senior positions within the financial services sector for major insurance and asset management organizations spanning over 30 years. While an executive and now as a non-executive director, I have gained valuable insights working across a range of consumer-facing businesses, predominantly within highly regulated industries. These sectors include insurance, banking, asset management, health care, residential aged care, e-commerce and retail. Since becoming a non-executive director in 2010, I've also been involved in a number of strategic business transformations, mergers and acquisitions and divestment activities. In addition to Suncorp, I also serve as a non-executive director of ASX-listed companies, Premier Investments, Regis Healthcare and Zebit, Inc. I'm looking forward to taking over from Simon Machell as Chairman of the People and Remuneration Committee at Suncorp, and I'm delighted Simon will continue to serve on that committee. I also serve on Suncorp's Risk and Customer Committees. In the not-for-profit sector, I am the Chairman of Cabrini Australia Limited, a mission-led major private health care provider in Melbourne, founded by the global Missionary Sisters of the Sacred Heart of Jesus. So in closing, I would like to thank my Board colleagues under Christine's leadership for supporting my nomination. If elected today, I commit to serve our shareholders, our customers and staff to the best of my ability. Thank you.

Thank you, Sylvia. And as I mentioned earlier, shareholders, there will be an opportunity to ask questions in relation to each of these reelections and elections at the end of this. We're doing it in this way to minimize the technology risks of delivering this meeting. So the next item of business is the reelection of Doug McTaggart. Doug joined our Board in 2012. Doug's background and experience are detailed in the notice of meeting, Doug is Queensland-based and has significant domain expertise in finance, economics and funds management. As our longest-serving director, he brings important corporate memory to the Board's deliberations. He is also a tireless contributor to our Board and Committee discussions and debates and I and the Board can attest that he conducts himself with clear independence of judgment. Doug has also made a tremendous contribution to the governance of our New Zealand businesses during his tenure and is a common director between our New Zealand businesses and our group Board. And we are delighted that Doug has agreed to seek reelection for a further 3-year term. I'll now share Doug's prerecorded comments in support of his reelection.

Good afternoon. My name is Doug McTaggart. I have been a non-executive director of Suncorp since 2012. I am based in Brisbane. I'm a member of the Board Audit Committee, having been Chair for a number of years up to 2018. I'm a member of the People and Remuneration Committee, and I sit on the Boards of Suncorp's New Zealand businesses. This includes Chairing a joint venture between Suncorp and the New Zealand Automobile Association called AA Insurance, a highly trusted and dynamic business, manufacturing and directly distributing consumer insurance products. Many of you will know my background. But briefly, it includes a career in academia as an economics professor, time as Under Treasurer in charge of the Queensland Treasury Department and 14 years as CEO growing Queensland Investment Corporation into a major national wholesale fund manager. Since 2012, I've been a non-executive director sitting on a number of listed and unlisted company Boards. Currently, in addition to my Suncorp duties, I am Chair of Spark Infrastructure, a listed company, Chair of Indigenous Business Australia Asset Management, an unlisted business, and I sit on the council of the ANU. I continue to bring to your Board a strong background in finance, economics and funds management, long experience as a CEO, including extensive experience in dealing with diverse stakeholder groups. In addition, I have spent many years working with the federal government and state governments in the fields of competition policy, including long stints on the National Competition Council and COAG Reform Council as well as working in economic development, public sector reform and more recently with Indigenous Business Australia and the Indigenous Land Corporation, promoting indigenous business development. My time as a non-executive director has seen significant change in the focus of Boards in direct response to changing community expectations. While Boards remain focused on delivering consistent shareholder returns, we can only do this by fully incorporating broader concerns around ESG matters as they affect the wider community. Suncorp has adapted to these changes extremely well over recent years. The extent of this engagement is expertly laid out in our most recent annual report. In looking to shareholders for their ongoing support for my reelection to the Board, my commitment to you is to continue to maintain and further grow the momentum that has been built in the business, delivering increasing shareholder value while continuing to support the rest of the Board and management in meeting community expectations around broader issues. I will be particularly focused on ensuring the New Zealand part of the business continues to add significant shareholder value. Thank you.

Thank you, Doug. So as I said, that was a prerecorded message from Doug. So when he spoke earlier, took over Chairing the meeting, he was live from Brisbane. So he didn't run out and change his tie between events. Our last item of business is the reelection of Lindsay Tanner. Lindsay joined your Board in 2018. Lindsay's background and experience are detailed in the notice of meeting. Lindsay has made a significant contribution to the Board, including as Chairman of the Customer Committee, where he has worked to significantly lift the work of that community. The Board and I are pleased that he is standing for reelection today. I'll now ask if we can hear from Lindsay.

I've been proud to serve on the Suncorp Board over the past 4 years, particularly during the pandemic, when the company has faced enormous challenges and successfully navigated its way to relative stability and decent performance. Many of the most prominent of these challenges now facing Suncorp such as more interventionist governments, ever more active regulators, uncertainty regarding the shape and dynamics of the future workplace and increasing uncertainty and volatility in the economic outlook, connect directly with the experiences and expertise that I bring to the Board. While much effort has inevitably been dedicated to dealing with the effects of the pandemic, we have also made a great deal of progress over the past couple of years in making the company more fit for purpose, including streamlining our lines of business, increasing digitization and escalating our commitment to good customer outcomes. I'm very keen to renew my contribution to these efforts, particularly in my capacity as Chairman of the Board Custom Committee. This committee is at the heart of our efforts to intensify Suncorp's commitment to doing the right thing for customers. And I believe that as its work develops, it will not only contribute to better outcomes for customers, it will also lead to better outcomes for shareholders.

Thank you, Lindsay. And again, the Board and management team would like to thank you for all the work you're doing with the Customer Committee. The committee has a deep focus on key matters of relevance to customers, as you say, as well as strong engagement with other customer-focused stakeholders under your stewardship. And we also value as a Board, your wise contribution around emerging trends and opportunities. Shareholders' details of direct votes and proxies lodged prior to the AGM in relation to these 4 resolutions now appear on your screen, which shows that each have been well supported by shareholders. Belinda, do we have any shareholder questions or comments on the election of Duncan or the reelection of Sylvia, Doug or Lindsay. I'll just take questions on Duncan first, please.

Chairman, we first have a pre-submitted question before we go to the online questions. And that question comes from Ms. Shirley Watson on behalf of the Australian Shareholders' Association regarding Duncan West's election to the Board. Ms. Watson asks, "The Australian Shareholders' Association remains interested in the workload of directors in challenging times. With his election today, Duncan West will be a director on 7 entities. Noting Mr. West's considerable and concentrated experience in the insurance and financial sectors, how was it decided that this level of commitment would not adversely affect the time and performance he has available with the Suncorp Board?"

Thank you again, Ms. Watson, for your interest and your question. We do not see any issue with Duncan having the necessary time to devote to his role as a Suncorp director. Duncan, as I said earlier, is retiring from his Board position with The Hollard Insurance company today, and he will retire from the Lawcover Board next week. So Duncan assures us and assured me that he is absolutely committed to taking on this role and has. We'll benefit from his extensive executive and Board experience in our industry. And as I say, he's confirmed to the Board that he has sufficient time to undertake his responsibilities. Next question, Belinda?

Thank you, Chairman. We have received no further questions in advance on these items. I'll now move to the questions we've received via the online platform. The first question comes from Mr. Stephen Mayne."Does Duncan West agree that each individual director elections should be dealt with separately rather than as a group of 5? These director resolutions should be resolutions 3 to 7, not 3A to 3E. In future AGMs, can each resolution have its own number and separate debate rather than this unsatisfactory job lot approach?"

Thank you, Mr. Mayne. Look, as I mentioned -- I'm going to take this question, I'm not going to ask -- not going to West to answer it. It's really my responsibility as the Chairman. But look, as I mentioned earlier, the reason we are doing this in this way is that we -- because of COVID, because of border closures, because of social distancing restrictions and lockdowns, we have had to conduct our AGM in this virtual manner. And so what we've tried to do is minimize the risk of technology failure disrupting the meeting and also to make this as efficient and as effective as we can for shareholders. And I think it's obvious from the numbers of questions that have come through pre-submitted and online that shareholders are participating appropriately. We'll certainly take on Board for consideration your question around the numbering 3 to 7 or 3A to 3E. And we can certainly -- when we're not purely online with me in a room on my own look at having each item dealt with separately. But I think most shareholders are giving us feedback that this format is working for them. Next question, Belinda.

Thank you, Chairman. We have another question from Mr. Stephen Mayne regarding Resolution 3E. "Lindsay Tanner reelection. Mr. Tanner's CV shows that he is the long-term President of Essendon Football Club which continues to resist the push by rival AFL clubs such as Melbourne, Collingwood and the Western Bulldogs to get out of the poker machines business. Could Mr. Tanner please explain his personal approach to ESG? And could the Chair also, please comment on whether Suncorp will stop AAMI sponsoring the Victorian Spring Racing Carnival given its association with gambling and animal welfare?"

I will give Lindsay Tanner an opportunity to comment shortly, Mr. Mayne. But firstly, I'll just make a couple of comments myself. This is a Suncorp meeting, so I actually don't want to get distracted by the business of other organizations, but I'm sure Lindsay will happily make a brief comment. Secondly, we no longer sponsor the Victorian Racing Carnival, we exited that partnership over a year ago. Thank you. Lindsay, are you online. This is where we get to test whether our technology is working. Are you on the phone line, Lindsay? Are you able to comment on Essendon and the areas of concern Mr. Mayne has expressed? Do you need Belinda to repeat that?

Thanks, Christine. I stepped down from the Essendon Board approximately a year ago, so I can't account for the organization's current position. I would just point out that under my stewardship, we adopted a formal policy of reducing reliance on our gaming venues and that we set in place a structure for long-term development of alternative commercial investments, noting that an overnight exit from the 2 venues we have would not only throw a large number of people out of work, it would also be financially devastating for the club. But of course, as I pointed out, I'm no longer an officeholder with Essendon Football Club. On the broader question, I regard ESG issues as fundamental for the governance of any company, particularly companies such as Suncorp and the often overlooked duty in the ESG of governance in particular. That's why I'm really proud to Chair the Customer Committee, which is a very innovative attempt in financial services to really focus on doing the right thing by customers. But I'd also note that the ESG questions that are often pursued with large companies typically lead to some quite complex and challenging questions. I don't think, for example, too many people would argue that Suncorp should refuse to provide car insurance to somebody just because they work for one of those gaming venues that Essendon Football Club owns, for instance. So I will be delighted to have the opportunity to continue to pursue these challenges, but I'm very committed, as are the rest of the Suncorp Board, to ensuring that Suncorp is a good corporate citizen and that it fulfills its responsibilities on all those domains. Back to you, Belinda.

Thanks, Lindsay. Are there any more questions, Belinda?

Thank you, Chairman. We have another question from Mr. Stephen Mayne. With regard to Doug McTaggart, his question is, "Having been a senior Queensland public servant when Suncorp was privatized, could Doug please comment on whether there are any residual legislative or constitutional constraints that requires Suncorp to have its head office in Queensland or a certain number of Queensland-based directors? Are we free to follow AGL's lead and relocate our head office to Melbourne? Can we be taken over without Queensland government approval?"

Thanks, Mr. Mayne, and I don't propose to ask Doug McTaggart to answer that question based on his previous employment because I don't actually think that's relevant. There is -- there are obligations for Suncorp under the Suncorp Metway Act, which is all in the public domain, including that we have our head office in Queensland and that our CEO resides in Queensland. And we do meet the obligations under the act. Normally, for my own part as the Chairman, I have an office in Brisbane, I have a family home in Sydney as well as Brisbane. But due to the lockdowns, I have not been able to be in Queensland and the Queensland Treasurer and the Queensland government are well aware of that. Thank you. Belinda, any more questions?

Thank you, Chairman. We have another question from Mr. Stephen Mayne. "When disclosing the outcome of the 5 Board elections and all other resolutions today on your website, could you please advise how many shareholders voted for and against, similar to what happens with a scheme of arrangement? This will provide a better gauge of retail shareholder sentiment on all resolutions and was a disclosure initiative recently adopted by Metcash after its AGM."

Thank you, Mr. Mayne, for your question again. This must be the first AGM for the season, I think. There is a requirement, as you know, to disclose proxy votes when we disclose the outcomes of the AGM voting and this is done after the AGM once we tabulate all the votes. We don't disclose the number of shareholders. We can certainly look at this. But at the moment, we tend to follow the technical requirements and the prevailing practice. But I'm happy to take that on Board and give it some consideration for the future. But no, it won't happen today. Thank you. Are there any more questions, Belinda?

Yes, Chairman. We have another question from Mr. Stephen Mayne. This is in regard to Sylvia Falzon. "Did Suncorp qualify for JobKeeper? The scheme was widely criticized for being rorted by major corporates and Premier Investments, where Sylvia serves on the Board, was one of the most criticized companies. Could she please comment on the ethics of Premier claiming more than $100 million in JobKeeper?"

Thanks, Mr. Mayne. As I mentioned previously in the context of one of your other questions, I don't propose to use a Suncorp shareholder meeting to discuss the decisions or positions of other companies. And as you will appreciate, there are confidentiality obligations in place between directors and each company in which they serve. Suncorp did not receive or apply for JobKeeper. I think that really covers the question. Are there any more questions, Belinda?

Thank you, Chairman. We have another question from Mr. Mayne regarding Doug McTaggart. "Having been the longest-serving Suncorp director since 2012, is this Doug's last term? Does Suncorp have tenure limits? Doug is an excellent director, but could he please advise his age and also whether he participated in the recent capital notes offer?"

Thank you, Mr. Mayne. You are correct in that Doug has been the longest-serving Suncorp director. And this is Doug's last term. We have loose tenure guidelines. We don't have strict limits. And some months ago, the Board, without Doug being present, met to discuss whether we would ask him to stand for reelection for another term, which will be longer than the 9-year term. We decided, again, as a Board without Doug present that we would. Several reasons. Firstly, we turned our mind to whether he is independent, and he is certainly an independent director. Secondly, he has very deep domain expertise and very significant corporate memory and is a known and respected expert in his field. Importantly, he has been serving for the last couple of years on our New Zealand subsidiaries, as I mentioned earlier, and with COVID and the change of CEO last year in our New Zealand business. So Paul Smeaton, who was the CEO of New Zealand business, came back to take on a leadership role in the Australian insurance business and Jimmy Higgins, who's joining us online today, took on the role of the CEO of the New Zealand business, and we believed it was important and invaluable to have continuity there, particularly with COVID travel restrictions again between New Zealand and Australia. And finally, and importantly, Doug is based in Queensland as is our CEO and Director, Steve Johnston, he's highly regarded in that state as well as across Australia and other markets. So we were very pleased that Doug agreed to serve an extra term. I don't actually know what Doug's age is. I'm not going to force him to disclose it, but if he's comfortable. Doug, I've got to throw it to you now that you can decline. You can plead the fifth, if you like, on your age or you can disclose it. And also, I do not believe that Doug participated in the recent capital notes offer. But Doug, perhaps you can confirm that as well.

Thanks, Christine. I'm glad the camera came on. No, I didn't participate in the most recent notes, although I wish I had, I didn't act in time. And Mr. Mayne, I'm glad you asked the question because I'm pleased to say, and I know it doesn't show, but I am 68. Thank you very much.

Okay. Thank you, Doug. So I think, Steve, you're just going to say a few words, back in Brisbane.

Thank you, Chairman. I think there are a few questions that I think Mr. Mayne might have asked during the general business area that -- and others asked that I just wanted to cover off. I think the first one was around NAB's takeover of Citi's Australian credit card business, which is currently going through regulatory approvals. Obviously, we exited the manufacturing of a Citi -- of our credit card business many years ago. And Citi have been doing that on our behalf. We've got a very strong long-term relationship with Citi, have had with Citi, and we expect to have with the acquirer of that business. Obviously, that's going through a process at the moment. So I won't presuppose what the regulatory outcomes are, but we have currently got no intention to move back into manufacturing credit cards, albeit we acknowledge there's an ongoing role for them from our customers and others. So what we have been doing, particularly in the last little while and have announced in recent times under Clive's leadership, is a buy now, pay later product, which is called PayLater, which will be based off of our debit card, Visa debit card, and that will be in the market in the next couple of months. So I'd encourage all shareholders and all customers to keep an eye out for that. I think there was another question on the term funding facility that Mr. Mayne certainly saw it on Twitter, was asking around Suncorp participating in the term funding facility, and we have outstandings of around $4 billion. I think his question was to the extent suggesting that why had we tapped into that facility, given the size of our business? Well, I think I don't need to reprise the rationale for the term funding facility, the encouragement from the government regulators to participate in it to make sure that we created a liquid credit environment through this very particularly difficult period of time. I think if I recall correctly, and correct me if I'm wrong, it was around $190 million -- $190 billion, B for billion, of outstandings in that TFF at 30 June. So if you think about that context around the $4 billion that we have access from that facility, that's around, I think, 2.5% of that facility, 2.5%, 3% of that facility, and that pretty much equates to our market share. So we haven't done anything extraordinary relative to anyone else in the market. We are conscious that as that facility rolls off, we need to replace that with organically generated funding sources, which, again, we have, as I talked earlier, a very wide volume of access to funding, particularly on the wholesale funding side, both domestically and offshore. So we're very conscious of that, being a transition that we need to make over the next little while, and we've already been taking steps to do that. I think unless there's any other questions that need to be addressed -- yes, another question on the demerger piece that the Chairman answered very eloquently earlier around the bank. And this question is relates to the ME Bank sales process this year, which was won by a rival, if not were we in the mix for that asset? If not, why not, I'm not going to comment on any aspects of M&A, whether we're in processes or not. We have a very strong organic plan as a business, particularly in the bank. We -- as I mentioned earlier, the programs, the initiatives that Clive is leading in their banks, 5 key initiatives, which we're focused exclusively on delivering. On the demerger piece that was raised earlier. Again, you would expect us to -- every year, to be looking at all aspects of our banking business strategically, and we continue to do that. We will always act in the best interest of shareholders and we believe the organic plan that we've got in place will create value for the shareholders over time. And I'd make one point about the demerger, which we didn't mention earlier, which is that the bank has an A+ rating, and that's a very, very valuable rating in the market for a regional bank. It's -- if the bank was demerged from the group, it would sit there with the BBB -- BBB+ rating. And again, it can be a bit [indiscernible] about credit ratings and funding sources in times where there is a very deep access to funding, but that may not always be the case. So the benefit of the bank sitting in the group as opposed to demerge that many shareholders know about is the fact that it generates an A+ credit rating, which gives us access to that pool of funding that is very valuable to us. So Chairman, I think they were the 3 questions that had come through earlier that we didn't get to in the first round. So if that's all, I'll hand back to you.

Thanks, Steve. And look, one of the technology issues that I was referring to before was exactly that. Those questions that Steve just answered came in late. So they have been answered. We probably would have normally liked to answer them a bit earlier in the meeting. But thanks for picking those up, Steve. So I just need to loop back to make sure that we actually vote on the resolutions concerning the election of Duncan, the reelection of Sylvia, Doug and Lindsay. So shareholders, would you please now vote using the voting card in the online portal if you haven't lodged your vote prior to the AGM. And details of direct votes and proxies lodged prior to the AGM in relation to these resolutions are again shown on your screen. That's a pretty impressive result there, Duncan. Taking into account the direct and proxy votes shown on the screen and the total number of shares being voted today, it appears that each of these resolutions will be passed. Congratulations, Duncan, Sylvia, Doug and Lindsay. Belinda, can I confirm that we have addressed all of the meeting questions that have come in online or by phone before I conclude the business of the meeting?

Thank you, Chairman. I can confirm that no additional questions have been received, and all questions received have been answered.

Thank you. Thank you. So that concludes the business of the meeting. The poll will remain open for a further 10 minutes to enable you to complete and submit your voting card. Again, if you need assistance, please contact the share registry's online AGM support team on 1800-990-363. Once the share registry has counted the votes cast during the meeting, the results of the poll will be advised to the ASX later today and will also be available on our Suncorp Group website. A replay of today's AGM webcast will also be available on the Suncorp Group website. As that now concludes the business of the meeting, I declare the meeting closed. So thank you for being a part of our online AGM. Your Board and the executive leadership team look forward to engaging you -- with you in person when it's safe for everyone. But until then, we hope you and your loved ones keep safe and well and that you're ready for a return to a more normal life in the near future, we hope. Thank you very much.