AUB Group Limited Annual Report 2023

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT YEAR ENDED 30 JUNE 2023

– Adroit Insurance and Risk, based in regional Victoria and Albury holds strong community values at the heart of their organisation. The team has raised over $2m for local community organisations and foundations since it was established in 1978. In the reporting period, Adroit made donations to a variety of local community groups, organised and hosted many fundraising events and volunteered over 400 hours of staff time. Adroit has proudly supported foundations and their projects including, The Power In You Project who help those affected by substance, mental health or justice related challenges, Ballarat Health Services by raising funds to purchase two new infant resuscitation cots – for the Emergency Department and the Operating Theatre, and The Border Trust Foundation – various projects within the Albury Wodonga region including, financially assisting families to get their children back to school. We also provided donations to, and sponsorship of, community and sporting clubs around Australia, including AllKids, the St George Australia Football Club, Primary Club of Australia and Drummoyne Water Polo Club. Commitment to fair tax contributions AUB recognises that without taxes, communal investment including development of future talent through formal education opportunities would suffer. We benefit from this communal investment and as such believe we have an obligation to pay a fair share of taxes. AUB’s Board has a strict policy to operate within the law and not to take aggressive tax positions, or operate within tax havens. Our aim is to avoid any tax controversies and to pay a fair share of our profits as taxes in each country we operate in. In FY23 the Group paid $32.34m (FY22: $26.9m) in income tax, and $21.9m (FY22: $6.7m) in payroll tax. In addition, our associates (companies we don’t control) pay taxes at similar rates. The Effective Tax Rate for the Year Ended 30 June 2023 was 28% (2022: 18%). The Group’s tax rate is below the main effective tax rate in Australia of 30% largely as a result of the $9m tax impact of entities that are accounted for on an equity basis. Entities accounted for on an equity basis are fully tax paying in Australia, however for accounting purposes the related tax expense is reflected in the net return on the investment rather than the tax expense of the Group. This is offset by a $4m increase in the tax charge resulting from expenses that are not deductible for tax purposes which principally relate to fees incurred when acquiring new businesses in the year. The increase in the effective tax rate of 10% is largely the result of a net loss on the adjustment to carrying value of investments in 2022 (see Note 4f of the Notes to the Financial Statements), that did not have an associated tax credit, which did not recur in 2023. The main impact on the tax rate in future years is expected to be the continued profitability of the business accounted for under the equity accounting rules as discussed above, the change in geographic profile of the earnings of the Group and any changes in tax legislation.

5.2 SUPPORTING OUR CUSTOMERS Our customers are at the heart of everything we do. Our approach is based on our commitment to high-quality service and seeks to support our customers in safeguarding their future. Every day we provide valuable support through market leading technology and products backed by strong customer service. Customer Engagement Our partners and their employees actively engage with our customers and earn their long-term trust by providing high standards of customer service. We strive to provide all our customers with products that are appropriate to their financial objectives and circumstances. We do this as part of our customer service standards and to ensure we are compliant with the relevant financial services laws. As part of our commitment to high quality customer service, our partner businesses must also ensure robust dispute resolution processes are in place to handle complaints in a timely and fair manner. AUB Group provides all partner firms with access to up-to-date resources on these requirements and provides support, as and when required, to meet regulatory notification and ongoing reporting obligations. Customer complaints are monitored by Group Risk and Compliance, and are reported to the Group Board Audit and Risk Committee on a regular basis. Technological Transformation To deliver a stable, reliable and secure service to our partner businesses, we provide an opt in centrally managed network and infrastructure services. This centralised technology service leverages our scale and helps partners better serve their clients confidently. All data is backed up and secured in our dedicated Sydney data centre with a second back up datacenter site in Melbourne. AUB Group has made several strategic acquisitions which uniquely position us to transform our broker platform experience. We now have the building blocks to create a cohesive modern suite of digital broker solutions. In addition, our Underwriting Agencies have transitioned to a new digital platform which will better enable them to serve brokers and clients. Product Access and Innovation We keep abreast of product innovation to ensure our partners are constantly meeting our customers’ needs. We provide our partners with insurance services that enhance their ability to support their customers including claims services, specialist estimating, forensic and investigation support. Further to enable our partners to concentrate more on their customers we provide a range of opt-in administrative support services in accounting, payroll, tax and analytics. We also assist our partners to optimise their businesses by facilitating financial advice, legal advice, management support, succession advice and support, funding, mergers and acquisitions support, and strategy formulation and execution.

AUB GROUP ANNUAL REPORT 2023

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