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AIG Australia Limited (AIG Australia) is a general insurance company and is regulated by the Australian Prudential Regulation Authority (APRA).

To improve policyholders’ and other market participants’ understanding of AIG Australia’s capital adequacy position, APRA’s Prudential Standard GPS110 Capital Adequacy requires AIG Australia to publish its capital adequacy position on an annual basis.

AIG Australia’s capital adequacy position has been calculated as at 31 December 2022 and is provided below:

AIG Australia’s Capital Base

($’000)

Net Assets

508,028

Net Surplus/(deficit) relating to Insurance Liabilities

83,437

Regulatory Adjustments to Common Equity Tier 1 Capital

(62,215)

Common Equity Tier 1 Capital

527,315

Additional Tier 1 Capital

0

Regulatory Adjustments to Additional Tier 1 Capital

0

Tier 2 Capital

0

Regulatory Adjustment to Tier 2 Capital

0

Capital Base

527,315

 

AIG Australia’s Prescribed Capital Amount

($’000)

Insurance Risk Charge

139,064

Insurance Concentration Risk Charge

7,591

Asset Risk Charge

159,965

Asset Concentration Risk Charge

0

Operational Risk Charge

32,272

less Aggregation Benefits

(68,964)

Prescribed Capital Amount

269,928

 

AIG Australia’s Capital Adequacy Multiple

($’000)

Capital Base

527,315

 

divided by

Prescribed Capital Amount

269,928

Capital Adequacy Multiple

1,95