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 2019 and is provided below:

AIG Australia’s Capital Base

($’000)

Net Assets

370,911 

Net Surplus/(deficit) relating to Insurance Liabilities

50,644

Regulatory Adjustments to Common Equity Tier 1 Capital

(11,614)

Common Equity Tier 1 Capital

409,941

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

409,941

 

AIG Australia’s Prescribed Capital Amount

($’000)

Insurance Risk Charge

95,240

Insurance Concentration Risk Charge

-

Asset Risk Charge

133,861

Asset Concentration Risk Charge

0

Operational Risk Charge

29,850

less Aggregation Benefits

(49,967)

Prescribed Capital Amount

208,984

 

AIG Australia’s Capital Adequacy Multiple

($’000)

Capital Base

409,941

 

divided by

Prescribed Capital Amount

208,984

Capital Adequacy Multiple

1.96