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 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 |
1.953540724 |