Capital Position

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 2020 and is provided below:

AIG Australia’s Capital Base

($’000)

Net Assets

441,658 

Net Surplus/(deficit) relating to Insurance Liabilities

50,835

Regulatory Adjustments to Common Equity Tier 1 Capital

(11,131)

Common Equity Tier 1 Capital

481,362

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

481,362

 

AIG Australia’s Prescribed Capital Amount

($’000)

Insurance Risk Charge

105,317

Insurance Concentration Risk Charge


4,957

Asset Risk Charge

172,664

Asset Concentration Risk Charge

0

Operational Risk Charge

29,474

less Aggregation Benefits

(60,251)

Prescribed Capital Amount

252,161

 

AIG Australia’s Capital Adequacy Multiple

($’000)

Capital Base

481,362

 

divided by

Prescribed Capital Amount

252,161

Capital Adequacy Multiple

1.91