RAA Group Reward Framework

In FY24, RAA Group’s Reward Framework (Framework) was developed to anchor our remuneration strategy and associated policies and practices. Our Framework is designed to attract, motivate, and retain talented people needed for our diverse workforce to deliver on the Group’s strategic objectives, and ensure financial and non-financial risks are effectively managed, achieve sustainable performance outcomes and promote the Group’s long-term soundness.

The RAA Group is committed to working with a sound risk culture where the decisions and behaviour of colleagues are aligned to the Group’s strategy which contribute to sustainable outcomes for its members. Our Framework includes processes to identify, investigate, and determine remuneration consequences, if any, for an employee where a performance and/or conduct issue is substantiated. Importantly, RAA has linked performance to reward, by ensuring that employees must achieve their performance goals and demonstrate RAA’s values as defined in the Performance for Purpose Framework to be eligible for annual incentive payments.

Principles

The principles of our Reward Framework are that our performance, reward and governance practices:

• Support our purpose and alignment to member value
• Promote accountability and risk management
• Are simple, fair and equitable
• Are flexible and transparent
• Support attraction and retention of talent
• Reduce our financial and non-financial risk.

In applying the Framework, RAA Group balances a range of internal and external factors:

• Robust market data, independent advice
• RAA Group financial performance and stakeholder expectations
• Economic environment, market competitors and skills shortages
• Business stability, attraction, retention, turnover of required talent and business impacts
• Individual capability, performance contribution and succession.

Governance

The RAA Group Board and RAA Insurance Board are ultimately accountable for the Reward Framework and its effective application on the recommendation of the Governance and Remuneration Committees, and where required the Risk and Audit Committees.

Board and Committee Members must exclude themselves from any decisions where they are the subject of the review, and must declare any potential conflict of interest to ensure this is appropriately managed.

The effectiveness of our Framework will be assessed as part of the annual reviews (or on a needs basis).