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 2021 and is provided below:

AIG Australia’s Capital Base

($’000)

Net Assets

489,414

Net Surplus/(deficit) relating to Insurance Liabilities

75,074

Regulatory Adjustments to Common Equity Tier 1 Capital

(31,969)

Common Equity Tier 1 Capital

532,519

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

532,519

 

AIG Australia’s Prescribed Capital Amount

($’000)

Insurance Risk Charge

127,441

Insurance Concentration Risk Charge


1,318

Asset Risk Charge

197,633

Asset Concentration Risk Charge

0

Operational Risk Charge

34,849

less Aggregation Benefits

(69,845)

Prescribed Capital Amount

291,396

 

AIG Australia’s Capital Adequacy Multiple

($’000)

Capital Base

532,519

 

divided by

Prescribed Capital Amount

291,396

Capital Adequacy Multiple

1.83