Suncorp Life & Superannuation Limited

Suncorp Life & Superannuation Limited ABN: 87 073 979 530 Financial report For the financial year ended 30 June 2015 Contents Directors report...2 Lead auditor s independence declaration...4 Statement of comprehensive income...5 Statement of financial position...6 Statement of changes in equity...7 Statement of cash flows...8 Notes to the financial statements...9 1. Reporting entity...9 2. Basis of preparation...9 3. Dividends...9 4. Income tax... 10 5. Investment securities... 11 6. Derivative financial instruments... 11 7. Receivables... 11 8. Payables... 12 9. Life policy liabilities... 12 10. Other life insurance and investment contract disclosures... 17 11. Subordinated notes... 20 12. Share capital... 20 13. Capital management... 21 14. Notes to statement of cash flows... 22 15. Statutory fund segment information... 22 16. Financial instruments... 26 17. Risk management... 28 18. Subsidiaries... 36 19. Key management personnel disclosures... 36 20. Other related party disclosures... 37 21. Auditor s remuneration... 38 22. Contingent liabilities... 38 23. Significant accounting policies... 38 24. Subsequent events... 43 Directors' declaration... 44 Independent auditor s report to the members of Suncorp Life & Superannuation Limited... 45 Page SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/2015 1

Directors report Directors report The Directors present their report together with the financial report for Suncorp Life & Superannuation Limited (the Company) for the financial year ended 30 June 2015 and the auditor s report thereon. Directors The Directors of the Company at any time during or since the end of the financial year are: Non-executive: Dr Zygmunt E Switkowski AO (Chairman) Director since 2005, Chairman since 2011 William J Bartlett Director since 2003 Michael A Cameron Director since 2012 Audette E Exel AO Director since 2012 Ewoud J Kulk Director since 2007 Christine F McLoughlin Director appointed 11 February 2015 Dr Douglas F McTaggart Director since 2012 Geoffrey T Ricketts CNZM Director since 2007 Ilana R Atlas Director since 2011, resigned 20 August 2014 Executive: Patrick J R Snowball (Managing Director) Director since 2009 Principal activities The principal activities of the Company are the provision of life insurance, superannuation and investment products and related services to the retail, corporate and commercial sectors in Australia. Dividends No dividend was paid or declared during the financial year ended 30 June 2015. Dividends totalling $508.0 million were paid during the financial year ended 30 June 2014. Further details of dividends paid are set out in note 3 to the financial statements. Operating and financial review Profit after income tax for the financial year was $95.3 million (2014: loss after income tax of $95.2 million). Life insurance premium income increased by $32.8 million to $780.3 million for this financial year and life insurance claims expense decreased by $50.6 million to $444.5 million due to favourable claims and lapse experience. Investment income decreased by $199.4 million to $535.5 million for the year due to lower returns from equity securities than the previous year. Operating expenses were marginally down reflecting the continued focus on cost management. The Company issued an additional $35.0 million of ordinary shares to its parent entity as a result of an increase in target surplus capital effective from 30 June 2015. The financial strength of the Company is reflected by the coverage of the Prudential Capital Requirement, as prescribed by the Australian Prudential Regulation Authority (APRA). The prescribed capital amount (PCA) coverage ratio for the statutory funds was 2.0 times as at 30 June 2015 (2014: 1.7 times). Significant changes in state of affairs In the opinion of the directors there were no significant changes in the state of affairs of the Company that occurred during the financial year. Events subsequent to reporting date There has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/2015 2

Statement of comprehensive income for the financial year ended 30 June 2015 Statement of comprehensive income Note 2015 2014 $m $m Revenue Insurance premium revenue 780.3 747.5 Reinsurance recoveries income 215.1 201.6 Interest income on - financial assets not at fair value through profit or loss 7.5 6.3 - financial assets at fair value through profit or loss 114.8 109.5 Net gains on financial assets at fair value through profit or loss 301.0 500.0 Dividend and trust distribution income 112.2 119.1 Fees and other income 13.6 11.2 Total revenue 1,544.5 1,695.2 Claims and expenses Claims expense (444.5) (495.1) Change in life insurance contract policy liabilities (47.3) (549.8) Change in life investment contract liabilities 9.1 (298.1) (375.8) Change in unvested policyholder benefits liabilities 9.1 37.6 58.0 Outwards reinsurance premium expense (246.0) (40.9) Policy acquisition expenses (194.8) (190.9) Policy maintenance expenses (160.0) (169.3) Investment management expenses (22.1) (12.3) Interest expense (5.1) (5.0) Total claims and expenses (1,380.3) (1,781.1) Profit (loss) before tax 164.2 (85.9) Income tax expense 4.1 (68.9) (9.3) Profit (loss) for the financial year attributable to owners of the Company 95.3 (95.2) Total comprehensive income (loss) for the financial year attributable to owners of the Company 95.3 (95.2) The statement of comprehensive income is to be read in conjunction with the accompanying notes. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/2015 5

Statement of financial position as at 30 June 2015 Statement of financial position Note 2015 2014 $m $m Assets Cash and cash equivalents 14.2 434.9 384.7 Derivatives 6 8.8 5.8 Investment securities 5 6,399.6 6,419.5 Receivables 7 82.3 117.8 Reinsurance recoveries receivable 121.9 93.9 Gross policy liabilities ceded under reinsurance 9.1 465.7 502.6 Deferred tax assets 4.2 39.3 23.9 Total assets 7,552.5 7,548.2 Liabilities Derivatives 6 9.7 6.9 Amounts due to reinsurers 23.6 11.4 Payables 8 346.9 316.3 Life insurance contract liabilities 9.1 2,362.6 2,452.5 Life investment contract liabilities 9.1 3,214.1 3,258.2 Unvested policyholder benefits liabilities 9.1 267.7 305.3 Subordinated notes 11 100.0 100.0 Total liabilities 6,324.6 6,450.6 Net assets 1,227.9 1,097.6 Equity Share capital 12 698.7 663.7 Retained profits 529.2 433.9 Total equity 1,227.9 1,097.6 The statement of financial position is to be read in conjunction with the accompanying notes. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/2015 6

Statement of changes in equity for the financial year ended 30 June 2015 Statement of changes in equity Note 2015 2014 $m $m Share capital Balance at the beginning of the financial year 663.7 663.7 Issue of share capital 12 35.0 - Balance at the end of the financial year 698.7 663.7 Retained profits Balance at the beginning of the financial year 433.9 1,037.1 Profit (loss) for the financial year 95.3 (95.2) Total comprehensive income (loss) for the financial year 95.3 (95.2) Dividends paid 3 - (508.0) Balance at the end of the financial year 529.2 433.9 Total equity at the end of the financial year 1,227.9 1,097.6 The statement of changes in equity is to be read in conjunction with the accompanying notes. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/2015 7

Statement of cash flows for the financial year ended 30 June 2015 Statement of cash flows Note 2015 2014 $m $m Cash flows used in operating activities Premiums received 1,022.1 1,047.2 Claims payments under policies paid (1,129.6) (1,140.4) Reinsurance and other recoveries received 187.1 183.8 Reinsurance premiums paid (233.8) (44.8) Investment income received 227.6 242.9 Fees and other operating income received 4.0 32.8 Operating expenses paid (385.0) (335.1) Income tax paid (57.0) (22.6) Net cash used in operating activities 14.1 (364.6) (36.2) Cash flows from investing activities Net proceeds from the sale and purchase of investment securities 379.8 499.1 Net cash from investing activities 379.8 499.1 Cash flows from (used in) financing activities Proceeds from issue of ordinary shares 12 35.0 - Proceeds from issue of subordinated notes 11-100.0 Dividends paid on ordinary shares to owners of the company 3 - (508.0) Net cash from (used in) financing activities 35.0 (408.0) Net increase in cash and cash equivalents 50.2 54.9 Cash and cash equivalents at the beginning of the financial year 384.7 329.8 Cash and cash equivalents at the end of the financial year 14.2 434.9 384.7 The statement of cash flows is to be read in conjunction with the accompanying notes. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/2015 8

Notes to the financial statements 1. Reporting entity Suncorp Life & Superannuation Limited (the Company) is a company domiciled in Australia. Its registered office is at Level 28, 266 George Street, Brisbane, QLD 4000. The Company s parent entity is Suncorp Life Holdings Limited and the ultimate parent entity is Suncorp Group Limited (SGL).Suncorp Group is defined to be SGL and its subsidiaries. The principal activities of the Company are the provision of life insurance, superannuation and investment products and related services to the retail, corporate and commercial sectors in Australia. The financial statements for the financial year ended 30 June 2015 were authorised for issue by the Board of Directors on 27 August 2015. 2. Basis of preparation The Company is a for-profit entity and its financial statements have been prepared on the historical cost basis unless the application of fair value measurements are required by the relevant accounting standards. These financial statements are presented in Australian dollars which is the Company s functional and presentation currency. As the Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998, all financial information presented has been rounded to the nearest one hundred thousand unless otherwise stated. The statement of financial position is prepared in a liquidity format. Amounts expected to be recovered or settled no more than twelve months after the reporting period, are classified as current otherwise they are classified as non-current. Significant accounting policies applied in the preparation of these financial statements are set out in note 23. Where necessary, comparatives have been restated to conform to changes in presentation in this financial report. The presentation of the financial statements and disclosure notes were changed to improve the quality of disclosures. 2.1. Statement of compliance The financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The financial statements comply with the International Financial Reporting Standards and interpretations adopted by the International Accounting Standards Board. 2.2. Use of estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the amounts reported in the financial statements. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Estimates and underlying assumptions are reviewed on an ongoing basis. Where revisions are made to accounting estimates, any financial impact is recognised in the period in which the estimate is revised. Significant estimates, judgments and assumptions are discussed in the following notes: Life insurance contracts policy liabilities (refer note 9.2) Valuation of financial instruments and fair value hierarchy disclosures (refer note 16). 3. Dividends 2015 2014 $ per share $m $ per share $m Dividend payments on ordinary shares Final dividend - - 1.2 158.0 Special dividend - - 0.8 100.0 Special dividend - - 1.6 207.0 Interim dividend - - 0.3 43.0 Total dividends on ordinary shares paid to owners of the Company - - 3.9 508.0 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 9

4. Income tax 4.1. Income tax expense 2015 2014 $m $m Profit (loss) before tax 164.2 (85.9) Income tax expense (benefit) using the domestic corporation tax rate of 30% (2014: 30%) 49.3 (25.8) Increase in income tax expense due to: Effect of policyholder tax adjustment 24.0 35.6 73.3 9.8 Under provision in prior financial years (4.4) (0.5) Income tax expense on profit (loss) before tax 68.9 9.3 Income tax expense recognised in profit (loss) consists of: Current tax expense Current year 84.4 51.2 Adjustments for prior financial years (0.1) 3.5 84.3 54.7 Deferred tax expense Origination and reversal of temporary differences (15.4) (45.4) Total income tax expense 68.9 9.3 Included in income tax expense is $68.3 million (2014: $8.8 million) attributable to the statutory funds. This is partly determined on a product basis and partly determined on a profit basis. The income tax expense has been determined after aggregating various classes of business, each with different tax rates. The rates of taxation applicable to the taxable income of significant classes of business are as follows: 2015 2014 % % Applicable tax rates for classes of business Annuity and pension business (1) Exempt Exempt Complying superannuation business (2) 15 15 Ordinary class of business 30 30 Shareholder funds 30 30 Notes 1. Segregated Exempt Assets (SEA) 2. Includes Virtual Pooled Superannuation Trust (VPST) Basis of income tax apportionment A notional income tax expense is calculated for each product as if the product was invested within a standalone statutory fund. The difference between the notional and actual tax expense is apportioned to products having regard to their contribution to the difference. 4.2. Deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: 2015 2014 2015 2014 2015 2014 Deferred tax assets Deferred tax liabilities Net $m $m $m $m $m $m Investment securities - - 48.5 52.9 (48.5) (52.9) Gross policy liabilities 81.3 71.7 - - 81.3 71.7 Other items 6.5 5.1 - - 6.5 5.1 Deferred tax assets and liabilities 87.8 76.8 48.5 52.9 39.3 23.9 Set-off of tax (48.5) (52.9) (48.5) (52.9) - - Net deferred tax assets 39.3 23.9 - - 39.3 23.9 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 10

5. Investment securities 2015 2014 $m $m Financial assets designated at fair value through profit or loss Interest-bearing securities 550.6 608.5 Unit trusts: Equity securities 3,120.8 3,245.2 Interest-bearing securities 2,535.9 2,389.5 Property 177.6 158.9 Other 14.7 17.4 Total investment securities 6,399.6 6,419.5 6. Derivative financial instruments 2015 2014 Notional Fair value Notional Fair value value Asset Liability value Asset Liability $m $m $m $m $m $m Interest rate-related contracts Interest rate swaps 599.7 6.7 6.7 253.1 3.5 3.4 Interest rate futures 263.1 0.3 0.1 601.2 0.9 2.3 862.8 7.0 6.8 854.3 4.4 5.7 Exchange rate-related contracts Forward foreign exchange contracts 364.3 0.5 1.2 296.4 1.3 1.2 Cross currency swaps 2.6-0.8 - - - 366.9 0.5 2.0 296.4 1.3 1.2 Equity contracts Equity futures 172.6 1.3 0.9 56.9 0.1 - Listed property trust futures 2.7 - - - - - 175.3 1.3 0.9 56.9 0.1 - Total derivative exposures 1,405.0 8.8 9.7 1,207.6 5.8 6.9 Derivatives are used in investments as well as hedging of fluctuations in foreign exchange rates, interest rates and equity and property prices. To prevent derivatives being used as a source of gearing, all derivatives have to be wholly or partly cash covered depending on the type of risk undertaken. The investment mandates specifically prohibit the use of derivatives for leveraged trading. Leverage here is defined as creating a portfolio which would have sensitivity to an underlying economic or financial variable which is greater than could be achieved using only physical securities. Derivatives are used within the investment portfolios where it is more efficient to use derivatives rather than physical securities. The use of derivatives is consistent with the objectives of the overall investment strategies and is one of the means by which these strategies are implemented. 7. Receivables 2015 2014 $m $m Investment receivable 20.2 72.4 Premiums receivable 9.2 3.1 Policyholders loans 17.5 18.4 Other receivables 35.4 23.9 Total receivables current 82.3 117.8 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 11

8. Payables 2015 2014 $m $m Policy claims in process of settlement 168.3 164.5 Sundry creditors and accrued expenses 58.8 61.8 Premiums in advance 7.1 5.6 Amount due to related parties 97.3 62.0 Other payables 15.4 22.4 Total payables current 346.9 316.3 9. Life policy liabilities 9.1. Net policy liabilities The following table shows the movements in net life insurance and investment contract liabilities. Liability Asset Insurance contracts Unvested policyholder benefits Investment Gross policy contracts liabilities Gross policy liabilities ceded under reinsurance Net policy liabilities $m $m $m $m $m $m Balance as at 30 June 2013 1,926.6 363.3 3,190.8 5,480.7 436.7 5,044.0 Movement in policy liabilities recognised in profit or loss 615.7-375.8 991.5 65.9 925.6 Contributions and premiums recognised in policy liabilities 89.0-196.8 285.8-285.8 Withdrawals and claims expense recognised in policy liabilities (178.8) - (505.2) (684.0) - (684.0) Movement in unvested policyholder benefits - (58.0) - (58.0) - (58.0) Balance as at 30 June 2014 2,452.5 305.3 3,258.2 6,016.0 502.6 5,513.4 Movement in policy liabilities recognised in profit or loss 10.4-298.1 308.5 (36.9) 345.4 Contributions and premiums recognised in policy liabilities 100.6-145.8 246.4-246.4 Withdrawals and claims expense recognised in policy liabilities (200.9) - (488.0) (688.9) - (688.9) Movement in unvested policyholder benefits - (37.6) - (37.6) - (37.6) Balance as at 30 June 2015 2,362.6 267.7 3,214.1 5,844.4 465.7 5,378.7 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 12

9.1. Net policy liabilities (continued) The following table summarises the maturity profile based on the estimated timing of discounted cash outflows. Carrying amount 1 year or less 1 to 5 years Over 5 years No term Investment linked Total cash flow s $m $m $m $m $m $m $m 2015 Life insurance contract liabilities (net of reinsurance) 1,896.9 151.5 577.9 1,167.5 - - 1,896.9 Life investment contract liabilities 3,214.1 3.1 7.3 12.9-3,190.8 3,214.1 Unvested policyholder benefits liabilities 267.7 - - - 267.7-267.7 Total 5,378.7 154.6 585.2 1,180.4 267.7 3,190.8 5,378.7 2014 Life insurance contract liabilities (net of reinsurance) 1,949.9 128.2 566.8 1,254.9 - - 1,949.9 Life investment contract liabilities 3,258.2 4.5 11.5 8.9-3,233.3 3,258.2 Unvested policyholder benefits liabilities 305.3 - - - 305.3-305.3 Total 5,513.4 132.7 578.3 1,263.8 305.3 3,233.3 5,513.4 9.2. Life policy liability estimation process Policy liabilities in Australia have been calculated in accordance with APRA Prudential Standard LPS 340 Valuation of Policy Liabilities issued under section 230A(1) of the Life Insurance Act 1995 (Life Act). The policy liability calculations are performed by actuarial personnel, using policy data, and are approved by the Appointed Actuary, Mr Joshua Corrigan (Fellow of the Actuaries Institute of Australia). Life insurance contract policy liabilities are determined using statistical or mathematical methods, which are expected to give approximately the same results as if an individual liability was calculated for each contract. The computations are made by suitably qualified personnel on the basis of recognised actuarial methods, with due regard to relevant actuarial principles and standards. The methodology takes into account the risks and uncertainties of the particular classes of life insurance business written. Life insurance contract policy liabilities are determined to cover future expected claims, expenses and premiums, and ensure a release of profits as services are provided under the contracts. The profits release is controlled by a profit carrier. The profit carriers for the major business types of life insurance contracts are as follows: Business type Conventional participating Participating and non-participating investment account and allocated pension Lump sum risk and accidental cash back Disability income Other Profit carrier Supportable bonuses Interest credits Expected premium payments Expected benefit/claims payments Expected benefit/claim payments SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 13

9.3. Actuarial assumptions, judgments and estimates used in calculating life insurance contract liabilities Experience is examined in detail on at least an annual basis, with assumptions set having regard to the Company s experience, observed trends and future outlook.the key factors affecting the determination of the policy liabilities and the critical assumptions and judgments made, as well as significant changes since 2014 (if applicable) are set out below: Investment earnings and discount rates: based on ten-year Australian Government bond yields. Adjustments made as necessary for participating contracts. Voluntary discontinuance: rates are based upon recent internal investigations. Allowance is also made for cash withdrawals. Mortality: individual risk products: rates are based upon recent internal investigations. Rates are expressed as a multiple of standard mortality tables developed by the local actuarial bodies. Mortality: annuitants: rates are based upon recent internal investigations. Mortality rates for annuitants have been determined using the standard table IM/IF80 with adjustments for assumed future age-related improvements. Table IM/IF80 was developed by the Institute and Faculty of Actuaries based on UK annuitant lives experience from 1979 to 1982. Morbidity: rates are based on recent internal investigations. For total and permanent disablement policies, rates are expressed as a multiple of industry and population experience. For trauma policies, assumed incidence rates are based on Australian population statistics with adjustments to reflect experience and policy conditions. The following table shows the ranges of the adjustments to the base industry tables, ranges of investment earnings and actual annual lapse rates for 2014 and 2015. 2015 2014 % % Investment earnings pre-tax for participating business 4.0-4.7 4.5-5.2 Risk free pre-tax discount rates for non-participating business 2.0-3.8 2.5-4.0 Annual lapse rate (voluntary discontinuance) 4-40 4-40 Mortality individual risk products adjustment 50-121 50-121 Mortality annuitants adjustment 60 60 Future improvements in mortality annuitants adjustment 97 97 Group claims ratio 90-120 95-130 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 14

9.4. Life insurance contract policy liabilities Current Basis (4) Previous Basis (5) 2015 2015 2014 (6) $m $m $m Best estimate liability Value of future policy benefits (1) 4,425.9 4,285.6 4,107.4 Value of future expenses 1,724.9 1,580.9 1,522.2 Value of unrecouped acquisition expenses (961.5) (958.7) (868.8) Balance of future premiums (4,046.1) (3,822.1) (3,773.7) 1,143.2 1,085.7 987.1 Value of future profits Policyholder bonuses (2) 413.4 430.8 570.5 Shareholder profit margins 232.3 281.6 250.6 645.7 712.4 821.1 Total value of declared bonuses (3) 108.0 108.0 141.7 Total net insurance policy liabilities 1,896.9 1,906.1 1,949.9 Gross policy ceded under reinsurance 465.7 489.1 502.6 Gross insurance contract liabilities 2,362.6 2,395.2 2,452.5 Policy liabilities subject to capital guarantee 1,588.0 1,566.2 1,438.5 Notes 1. Future policy benefits include bonuses credited to policyholders in prior periods but exclude current period bonuses and future bonuses. Where business is valued by other than projection techniques, future policy benefits includes the account balance. 2. Future bonuses exclude current period bonuses. 3. Declared bonuses are valued in accordance with APRA Prudential Standard LPS 340 Valuation of Policy Liabilities issued under Section 230A(1) of the Life Act. 4. Using the actuarial methods and assumptions relevant at the current reporting date on current in-force business. 5. Using the actuarial methods and assumptions relevant at the previous reporting date, but on current in-force business. 6. Prior year actuarial methods and assumptions applied on the prior year in-force business. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 15

9.5. Sensitivity analysis on life insurance contract liabilities The following table illustrates the impact in the current period of changes in key assumptions as at 30 June 2015 with all other variables remaining constant. The change in liability and profit (loss) after tax are shown net and gross of reinsurance. There is no impact to equity reserves. 2015 Note 1. Sensitivity changes are relative to current best estimate assumptions. The following table illustrates the effects of changes in actuarial assumptions (ignoring reallocation of provisions to policy liabilities and modelling changes) from 30 June 2014 to 30 June 2015. Note Change in life insurance contract policy liabilities Net of reinsurance Gross of reinsurance 1. Numbers shown are gross of tax, except for the effect on future profit margins for risk business. Profit (loss) after tax Net of reinsurance Gross of reinsurance Variable Change (1) $m $m $m $m Maintenance expenses 10% increase 13.5 16.0 (9.4) (11.2) Mortality and lump sum 10% increase morbidity 79.8 217.5 (55.8) (152.3) Morbidity disability income 10% increase in incidence and decrease in recovery rates 88.3 261.5 (61.8) (183.1) Discontinuance rates 10% increase 97.7 94.9 (68.4) (66.4) 2014 Maintenance expenses 10% increase 19.9 19.9 (13.9) (13.9) Mortality and lump sum 10% increase morbidity 96.1 200.0 (67.2) (140.0) Morbidity disability income 10% increase in incidence and decrease in recovery 119.4 323.8 (83.6) (226.6) rates Discontinuance rates 10% increase 107.2 38.2 (75.1) (26.7) Future profit margins (shareholder) increase/decrease) Policy liabilities increase/(decrease) Assumption category $m $m Discount and earning rate (risk business) 9.6 (16.4) Discount and earning rate (participating business) (4.4) - Mortality and morbidity lump sum - (4.9) Morbidity income - (11.2) Maintenance expense (52.0) (5.0) Total (46.8) (37.5) SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 16

10. Other life insurance and investment contract disclosures 10.1. Summary of shareholder s interests A policyholder is one who holds a policy with the Company. The shareholder represents the Company s interest in the statutory funds. A statutory fund is a fund of a life company that relates solely to the life insurance business of that life company as defined by the Life Act. 2015 2014 2015 2014 2015 2014 Statutory funds Shareholder fund Total $m $m $m $m $m $m Shareholder's retained profits at the beginning of the financial year 486.1 1,080.6 (52.2) (43.5) 433.9 1,037.1 Operating profit (loss) after tax 94.0 (96.4) 1.3 1.2 95.3 (95.2) Transfers of profits between funds 2.0 (498.1) (2.0) 498.1 - - Dividends paid (note 3) - - - (508.0) - (508.0) Shareholder's retained profits at the end of the financial year 582.1 486.1 (52.9) (52.2) 529.2 433.9 Share capital (note 12) - - 698.7 663.7 698.7 663.7 Capital transfers to statutory funds 644.6 609.6 (644.6) (609.6) - - Total shareholder's equity (note 15.4) 1,226.7 1,095.7 1.2 1.9 1,227.9 1,097.6 Components of shareholder's interests in statutory funds: Shareholder's retained profits participating business 114.7 101.7 Shareholder's retained profits nonparticipating business 467.4 384.4 Shareholder's capital 644.6 609.6 1,226.7 1,095.7 Shareholder s access to the retained profits and shareholder s capital in the statutory funds is restricted to the extent that these monies are required to meet prescribed minimum and target surplus requirements. 10.2. Allocation of operating profit The general principles adopted in the allocation of operating profit to participating policyholders and the shareholder, which are in accordance with the Life Act and the Company s Articles of Association, are as follows: Participating business All profits, including net investment returns on policyholders retained profits and shareholder participating retained profits, are allocated 80 percent to policyholders and 20 percent to the shareholder. Non-participating business All profits, including net investment returns on shareholder capital and shareholder non-participating retained profits, are allocated to the shareholder. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 17

10.3. Details of operating profits 2015 2014 2015 2014 2015 2014 Policyholders' Shareholder's Total statutory interest interest funds $m $m $m $m $m $m Operating profit (loss) after tax - - 94.0 (96.4) 94.0 (96.4) Bonuses provided for or paid in the current period: Decrease in policyholder retained profits (37.6) (58.0) - - (37.6) (58.0) Bonus declared and paid 108.0 145.4 - - 108.0 145.4 Life Act operating profit after tax 70.4 87.4 94.0 (96.4) 164.4 (9.0) Sources of the operating profit: From non-investment linked business: Participating business 70.4 87.4 17.6 21.9 88.0 109.3 Non-participating business - - 65.2 (119.5) 65.2 (119.5) From investment linked business: Non-participating business - - 11.2 1.2 11.2 1.2 70.4 87.4 94.0 (96.4) 164.4 (9.0) 10.4. Distribution of retained profits The general principles adopted in the distribution of retained profits to participating policyholders and the shareholder in accordance with the requirements in Section 62 of the Life Act are as follows: Shareholder s retained profits in a statutory fund may be transferred to the shareholder fund subject to the statutory fund s capital requirements being maintained and the shareholder s retained profits from participating business being at least 25 percent of policyholders retained profits. Distributions of profits to participating policyholders are made in the form relevant to the type of policy. Conventional business profits are distributed by way of reversionary and terminal bonuses and investment account business profits are distributed by way of crediting interest to policyholders. Bonuses and interest credit for individual product lines are determined by the Company on the principle of the equitable treatment of participating policyholders. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 18

10.5. Details of retained profits 2015 2014 2015 2014 2015 2014 Policyholders' Shareholder's Total statutory interest interest funds $m $m $m $m $m $m Retained profits at the beginning of the financial year - - 486.1 1,080.6 486.1 1,080.6 Liability for unvested policyholder benefits (note 9.1) 305.3 363.3 - - 305.3 363.3 Life Act retained profits at the beginning of the financial year 305.3 363.3 486.1 1,080.6 791.4 1,443.9 Life Act operating profit after income tax (note 10.3) 70.4 87.4 94.0 (96.4) 164.4 (9.0) Transfer from (to) shareholder's fund from non-participating business (note 10.1) - - 2.0 (498.1) 2.0 (498.1) Provision for bonuses to participating policyholders (108.0) (145.4) - - (108.0) (145.4) Life Act retained profits at the end of the financial year 267.7 305.3 582.1 486.1 849.8 791.4 Policyholder retained profits at the end of the financial year (note 9.1) (267.7) (305.3) - - (267.7) (305.3) Retained profits at the end of the financial year - - 582.1 486.1 582.1 486.1 Components of Life Act retained profits at the end of the financial year: Policyholders' interests (note 9.1) 267.7 305.3 - - 267.7 305.3 Shareholder's interests in participating business - - 114.7 101.7 114.7 101.7 Shareholder's interests in nonparticipating business - - 467.4 384.4 467.4 384.4 267.7 305.3 582.1 486.1 849.8 791.4 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 19

10.6. Statement of sources of operating profit 2015 2014 Life insurance contracts Life insurance contracts Other Other contracts Total contracts $m $m $m $m $m $m Life Act shareholder's operating profit (loss) after tax in the statutory funds Represented by: - Investment earnings on shareholder's retained profits and capital 47.6 0.6 48.2 65.4 0.5 65.9 Emergence of shareholder's planned profits 34.7-34.7 46.9-46.9 Experience profit (loss) 6.6-6.6 (67.7) - (67.7) Losses capitalised (6.1) - (6.1) (142.2) - (142.2) Management services profit - 10.6 10.6-0.7 0.7 82.8 11.2 94.0 (97.6) 1.2 (96.4) Life Act policyholders' operating profit after tax in the statutory funds Represented by: Investment earnings on retained profits 14.0-14.0 23.7-23.7 Emergence of policyholder planned profits 60.3-60.3 61.7-61.7 Experience (loss) profit (4.1) - (4.1) 2.0-2.0 Losses reversed 0.2-0.2 - - - 70.4-70.4 87.4-87.4 Total Note: 1. Total cumulative capitalised losses carried forward at 30 June 2015 was $179 million (30 June 2014: $162 million). 2. Life Act shareholder s operating profit (loss) after tax includes profit after tax from shareholder s fund $1.3 million for the financial year 2015. 11. Subordinated notes Due date First call 2015 2014 $m $m Financial liabilities at amortised cost Floating rate notes 22 August 2023 22 August 2018 100.0 100.0 Total subordinated notes non-current 100.0 100.0 The subordinated notes were issued by the Company with a maturity of 10 years, first callable option of the issuer after 5 years. The notes are unsecured obligations of the Company. Payments of principal and interest on the notes have priority over the Company s dividend payments only. In the event of the winding-up of the Company, the rights of the note holders will rank in preference only to the rights of ordinary shareholders. 12. Share capital 2015 2014 No of shares $m No of shares $m Balance as at 1 July 129,283,248 663.7 129,283,248 663.7 Issue of share capital 3,500,000 35.0 - - Balance as at 30 June 132,783,248 698.7 129,283,248 663.7 The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the shareholders meeting. In the event of winding-up of the Company, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any proceeds of liquidation. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 20

13. Capital management The Company is part of the Suncorp Group. The capital management strategy of the Suncorp Group is to optimise shareholder value by managing the level, mix and use of capital resources. The primary objective is to ensure there are sufficient capital resources to maintain and grow the business, in accordance with risk appetite. The Suncorp Group s Internal Capital Adequacy Assessment Process (ICAAP) provides the framework to ensure that the Suncorp Group as a whole, and each regulated entity, is capitalised to meet internal and external requirements. The Company is required to hold prudential reserves over and above its life insurance contract and investment contract liabilities, as a buffer against adverse experience and poor investment returns. All life insurance companies that conduct insurance business in Australia are authorised by APRA and are subject to Prescribed Capital Amounts (PCA). The PCA is the minimum level of capital that the regulator deems must be held to meet policyholder obligations. The Company calculates the PCA using the standardised frameworks in accordance with the relevant APRA Prudential Standards. In addition to the regulatory capital requirements, the Company maintains a target surplus providing additional capital buffer against adverse events. The Company uses internal capital models to determine its target surplus, with the models reflecting the various key risks of the business. These mainly include the risk of adverse asset movements relative to the liabilities and of worse than expected claims costs. The PCA requirements and coverage ratio of the Company are as follows: Statutory Fund No. 1 2015 Statutory Fund No. 2 Total Statutory Funds Shareholder Fund Total $m $m $m $m $m Capital base Net assets as per the Life Act 1,209.0 17.7 1,226.7 1.2 1,227.9 Total regulatory adjustments to net assets (975.1) - (975.1) - (975.1) Tier 2 capital 100.0-100.0-100.0 Total capital base (A) 333.9 17.7 351.6 1.2 352.8 Prescibed capital Insurance risk capital charge 45.8-45.8-45.8 Asset risk charge 67.0-67.0-67.0 Operational risk charge 29.6 8.4 38.0-38.0 Less aggregation benefit (24.4) - (24.4) - (24.4) Combined stress scenario adjustment 45.6-45.6-45.6 Total PCA (B) 163.6 8.4 172.0-172.0 PCA coverage ratios (times) (A/B) 2.0 2.1 2.0 50.2 2.1 2014 Capital base Net assets as per the Life Act 1,076.2 19.5 1,095.7 1.9 1,097.6 Total regulatory adjustments to net assets (849.7) - (849.7) - (849.7) Tier 2 capital 100.0-100.0-100.0 Total capital base (A) 326.5 19.5 346.0 1.9 347.9 Prescibed capital Insurance risk capital charge 54.5-54.5-54.5 Asset risk charge 74.9-74.9-74.9 Operational risk charge 28.2 8.1 36.3-36.3 Less aggregation benefit (28.3) - (28.3) - (28.3) Combined stress scenario adjustment 61.2-61.2-61.2 Total PCA (B) 190.5 8.1 198.6-198.6 PCA coverage ratios (times) (A/B) 1.7 2.4 1.7 371.6 1.8 Sensitivity tests are performed on a quarterly basis to ascertain the ability of the Company to withstand various adverse asset shock scenarios. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 21

14. Notes to statement of cash flows 14.1. Reconciliation of cash flows from operating activities 2015 2014 $m $m Profit (loss) for the financial year 95.3 (95.2) Non-cash items Changes in fair value of investment securities and derivatives (301.0) (500.0) Change in assets and liabilities (Increase) decrease in receivables (23.6) 52.9 Increase in reinsurance recoveries receivable (28.0) (17.8) Increase in payables 30.6 103.8 Increase (decrease) in amounts due to reinsurers 12.2 (3.9) (Decrease) increase in net policy liabilities (97.1) 527.4 Decrease in unvested policyholder benefits liabilities (37.6) (58.0) Net movement in tax assets and liabilities (15.4) (45.4) Net cash flow used in operating activities (364.6) (36.2) 14.2. Reconciliation of cash and cash equivalents to the statement of cash flows 2015 2014 $m $m Cash at bank 256.5 167.8 Cash held directly through unit trusts 166.7 166.4 Other money market placements 11.7 50.5 Total cash and cash equivalents 434.9 384.7 15. Statutory fund segment information 15.1. Restrictions on assets Investments held in the life insurance statutory funds can only be used within the restrictions imposed under the Life Act and the constitution of the Company. The main restrictions are that the assets in a fund can only be used to meet the liabilities and expenses of that fund, to acquire investments to further the business of the fund, or as distributions. Profit distributions to the shareholder and policyholders are restricted by the Life Act. Profit distributions from participating assets can be made subject to the limit on the shareholder s share of participating profits, including historic participating retained profits. Profit distributions from non-participating assets can be made provided the Company covers its minimum prescribed capital requirements, and where the distribution exceeds current year retained profits, approval is required from APRA. In addition to the Life Act requirements, profit distributions are subject to the Target Surplus Policy and Appointed Actuary advice. 15.2. Segment information The economic entity operates principally in the life insurance industry in Australia. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 22

15.3. Statutory funds information Details of the separate statutory funds established to account for the different types of life insurance business written by the Company are as follows: Types of policies written No. 1 Statutory Fund Fully or partially capital guaranteed, ordinary and Superannuation business No. 2 Statutory Fund Investment-linked ordinary and superannuation business Major products Individual: Whole of Life, Endowment, Term Life, Investment Account, Trauma, Disability Group: Group Life Annuities: Immediate, Deferred Individual: Investment-linked products Group: Investment-linked products Annuities: Investment-linked: Deferred All policies written and major products are offered within Australia only. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 23

15.4. Abbreviated financial statements at fund level for the year ended 30 June 2015 2015 Statutory Fund No. 1 Statutory Fund No. 2 Total Statutory Funds Shareholder Fund Total $m $m $m $m $m Income Statement Insurance premium revenue 780.3-780.3-780.3 Reinsurance recoveries income 215.1-215.1-215.1 Investment revenue 189.0 346.4 535.4 0.1 535.5 Other revenue (1.9) 13.3 11.4 2.2 13.6 Total revenue 1,182.5 359.7 1,542.2 2.3 1,544.5 Claims expense (444.5) - (444.5) - (444.5) Change in life insurance contract policy liabilities (47.3) - (47.3) - (47.3) Change in life investment contract policy liabilities (0.7) (297.4) (298.1) - (298.1) Increase in policyholder retained profits 37.6-37.6-37.6 Outwards reinsurance premium expense (246.0) - (246.0) - (246.0) Operating expenses (341.6) (34.9) (376.5) (0.4) (376.9) Interest expense (5.1) - (5.1) - (5.1) Total claims and expenses (1,047.6) (332.3) (1,379.9) (0.4) (1,380.3) Profit before tax 134.9 27.4 162.3 1.9 164.2 Income tax expense (52.1) (16.2) (68.3) (0.6) (68.9) Profit after tax 82.8 11.2 94.0 1.3 95.3 Statement of financial position Cash and cash equivalents 314.5 122.9 437.4 (2.5) 434.9 Investment securities and derivative assets 3,251.6 3,150.4 6,402.0 6.4 6,408.4 Gross policy liabilities ceded under reinsurance 465.7-465.7-465.7 Other assets 234.2 6.9 241.1 2.4 243.5 Total assets 4,266.0 3,280.2 7,546.2 6.3 7,552.5 Other liabilities 303.4 71.7 375.1 5.1 380.2 Gross policy liabilities 2,385.9 3,190.8 5,576.7-5,576.7 Unvested policyholder benefit liabilities 267.7-267.7-267.7 Subordinated notes 100.0-100.0-100.0 Total liabilities 3,057.0 3,262.5 6,319.5 5.1 6,324.6 Net assets 1,209.0 17.7 1,226.7 1.2 1,227.9 Share capital - - - 698.7 698.7 Capital transfers 620.5 24.1 644.6 (644.6) - Retained profits / accumulated losses 588.5 (6.4) 582.1 (52.9) 529.2 Total equity 1,209.0 17.7 1,226.7 1.2 1,227.9 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 24

15.5. Abbreviated financial statements at fund level for the year ended 30 June 2014 2014 Statutory Fund No. 1 Statutory Fund No. 2 Total Statutory Funds Shareholder Fund Total $m $m $m $m $m Income Statement Insurance premium revenue 747.5-747.5-747.5 Reinsurance recoveries income 201.6-201.6-201.6 Investment revenue 309.0 425.8 734.8 0.1 734.9 Other revenue (0.1) 8.9 8.8 2.4 11.2 Total revenue 1,258.0 434.7 1,692.7 2.5 1,695.2 Claims expense (495.1) - (495.1) - (495.1) Change in life insurance contract policy liabilities (549.8) - (549.8) - (549.8) Change in life investment contract policy liabilities (6.0) (369.8) (375.8) - (375.8) Increase in policyholder retained profits 58.0-58.0-58.0 Outwards reinsurance premium expense (40.9) - (40.9) - (40.9) Operating expenses (326.5) (45.2) (371.7) (0.8) (372.5) Interest expense (5.0) - (5.0) - (5.0) Total claims and expenses (1,365.3) (415.0) (1,780.3) (0.8) (1,781.1) Profit (loss) before tax (107.3) 19.7 (87.6) 1.7 (85.9) Income tax benefit (expense) 11.4 (20.2) (8.8) (0.5) (9.3) Profit (loss) after tax (95.9) (0.5) (96.4) 1.2 (95.2) Statement of financial position Cash and cash equivalents 163.3 223.1 386.4 (1.7) 384.7 Investment securities and derivative assets 3,232.9 3,191.0 6,423.9 1.4 6,425.3 Gross policy liabilities ceded under reinsurance 502.6-502.6-502.6 Other assets 205.8 28.2 234.0 1.6 235.6 Total assets 4,104.6 3,442.3 7,546.9 1.3 7,548.2 Other liabilities 145.7 189.5 335.2 (0.6) 334.6 Gross policy liabilities 2,477.4 3,233.3 5,710.7-5,710.7 Unvested policyholder benefit liabilities 305.3-305.3-305.3 Subordinated notes 100.0-100.0-100.0 Total liabilities 3,028.4 3,422.8 6,451.2 (0.6) 6,450.6 Net assets 1,076.2 19.5 1,095.7 1.9 1,097.6 Share capital - - - 663.7 663.7 Capital transfers 585.5 24.1 609.6 (609.6) - Retained profits / accumulated losses 490.7 (4.6) 486.1 (52.2) 433.9 Total equity 1,076.2 19.5 1,095.7 1.9 1,097.6 SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 25

16. Financial instruments 16.1. Comparison of fair value to carrying amounts The following financial assets and liabilities are recognised and measured at fair value and therefore their carrying value equates to their fair value: investment securities; and derivatives. Subordinated notes are carried at an amortised cost of $100.0 million (2014: $100.0 million). Its fair value is $102.5 million (2014: $104.5 million) derived based on a quoted price of a comparable security (Level 2). For all other financial assets and liabilities not recognised and measured at fair value, their carrying value is a reasonable approximation of fair value. 16.2. Fair value hierarchy Financial assets and liabilities that are recognised and measured at fair value are categorised by a hierarchy which identifies the most significant input used in the valuation methodology: Level 1 derived from quoted prices (unadjusted) in active markets for identical financial instruments Level 2 derived from other than quoted prices included within Level 1 that are observable for the financial instruments, either directly or indirectly Level 3 fair value measurement is not based on observable market data. 2015 Level 1 Level 2 Level 3 Total $m $m $m $m Financial assets Investment securities 1,654.8 4,744.8-6,399.6 Derivative 1.6 7.2-8.8 1,656.4 4,752.0-6,408.4 Financial liabilities Life investment contract liabilities - 3,214.1-3,214.1 Derivative 1.0 8.7-9.7 1.0 3,222.8-3,223.8 2014 Level 1 Level 2 Level 3 Total $m $m $m $m Financial assets Investment securities 1,970.8 4,448.7-6,419.5 Derivative 1.4 4.4-5.8 1,972.2 4,453.1-6,425.3 Financial liabilities Life investment contract liabilities - 3,258.2-3,258.2 Derivative 2.4 4.5-6.9 2.4 3,262.7-3,265.1 There have been no significant transfers between Level 1 and Level 2 during the 2015 and 2014 financial years. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 26

16.3. Master netting or similar arrangement The following table sets out the effect of netting arrangements of financial assets and financial liabilities that are offset in the statement of financial position, or are subject to enforceable master netting arrangements, irrespective of whether they are offset in the statement of financial position. Derivative assets and liabilities Offsetting has been applied to derivatives in the statement of financial position where the Company has a legally enforceable right to set-off and there is an intention to settle on a net basis. Certain derivatives are subject to the International Swaps and Derivatives Association (ISDA) Master Agreement and other similar master netting arrangements. These arrangements contractually bind the Company and the counterparty to apply close out netting across all outstanding transactions only if either party defaults or other pre-agreed termination events occur. As such, they do not meet the criteria for offsetting in the statement of financial position. The cash collateral pledged or received is subject to ISDA Credit Support Annex and other standard industry terms. 2015 Amounts subject to master netting or similar arrangements Amounts not Related amounts not subject to offset on the SOFP (1) master netting or Gross Offsetting Financial Cash similar amounts applied instruments Collateral Net Exposure arrangements Total $m $m $m $m $m $m $m Financial assets Derivatives 8.4 - (4.4) (1.7) 2.3 0.4 8.8 Financial liabilities Derivatives 9.1 - (4.4) (2.5) 2.2 0.6 9.7 Total (0.7) - - 0.8 0.1 (0.2) (0.9) 2014 Financial assets Derivatives 5.8 - (3.3) (1.0) 1.5-5.8 Financial liabilities Derivatives 6.9 - (3.3) (2.4) 1.2-6.9 Total (1.1) - - 1.4 0.3 - (1.1) Note: 1. SOFP denotes statement of financial position. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 27

17. Risk management 17.1 Risk management objectives and structure The Company is an entity within the Suncorp Group, and follows the Suncorp Group risk management objectives and structure as described below. The Suncorp Group Limited Board (SGL Board) and management recognise that effective risk management is considered to be critical to the achievement of the Suncorp Group s objectives. The Board Risk Committee (Risk Committee) has delegated authority from the SGL Board to carry out the oversight of the adequacy and effectiveness of the risk management frameworks and processes within the Suncorp Group. An Enterprise Risk Management Framework (ERMF) is in place for the Suncorp Group. It is subject to an annual review, updated for material changes as they occur and is approved by the Board. The ERMF comprises: the Suncorp Group's risk appetite framework and its link to strategic business and capital plans; accountabilities and governance arrangements for the management of risk within the Three Lines of Defence model; and the risk management process. The Three Lines of Defence model of accountability involves: Line of Defence Responsibility of Accountable for First Manage risk and comply with Suncorp Group frameworks, policies and risk appetite Second Independent functions own and monitor the application of risk frameworks, and measure and report on risk performance and compliance All business areas (and staff) All risk functions (Suncorp Group and business units) Identify and manage the risks inherent in their operations Ensure compliance with all legal and regulatory requirements and Suncorp Group policies Promptly escalate any significant actual and emerging risks for management attention. Design, implement and manage the ongoing maintenance of Suncorp Group risk frameworks and related policies Advise and partner with the business in the design and execution of risk frameworks and practices Develop, apply and execute business units risk frameworks that are consistent with Suncorp Group for the respective business areas Facilitate the reporting of the appropriateness and quality of risk management. Third Independent assurance over internal controls and risk management practices Internal auditors Decides the level and extent of independent testing required to verify the efficacy of internal controls Validates the overall risk framework Provides assurance that the risk management practices are functioning as intended. The Board has delegated authorities and limits to the Group CEO to manage the business. Management recommends to the Board, and the Board has approved, various frameworks, policies and limits relating to the key categories of risk faced by the Suncorp Group within the Group CEO s authorities and limits. The Senior Leadership Team, comprising the Group CEO, Line of Business CEOs and all Senior Executives, provides executive oversight and direction-setting across the Suncorp Group, taking risk considerations into account. The Group Chief Risk Officer, a member of the Senior Leadership Team, is charged with the overall accountability for both ERMF and risk management capability. The Suncorp Group has in place a number of Management Committees, each with its own charter, to execute specific responsibilities in the risk framework. Management asset and liability committees are in place to provide effective governance over aspects of the risk framework designed to optimise the longterm returns achieved by asset portfolios within the risk appetite or parameters established by the Board. SUNCORP LIFE & SUPERANNUATION LIMITED FINANCIAL REPORT 2014/15 28