The Australian Reinsurance Pool Corporation (ARPC) has released its annual report for the 2023-24 financial year, showing solid financial and operational performance.
ARPC reported $1.1 billion in gross written premiums, with an operating result of $710.1 million. Total net assets under management reached $1.67 billion.
In its report, ARPC chief executive Dr Christopher Wallace highlighted the organization’s recent growth, noting that ARPC had "operationalized the cyclone pool" while maintaining the terrorism pool and improving overall efficiency.
“In this reporting period, ARPC has made significant progress on strategic projects including transitioning terrorism insurer customers to PACE (Protecting Australians for Catastrophic Events), ARPC’s insurer customer system and uplifting other systems, processes and resources for the cyclone pool,” he said.
By June 30, 2024, 18 insurers had joined the cyclone pool, providing coverage across 98% of eligible home insurance policies, nearly 100% of strata insurance policies, and 87% of small-to-medium enterprise (SME) policies.
ARPC also said that it met its legislative requirement to have all major insurers writing cyclone business in northern Australia participate in the cyclone pool by the end of 2023 and expects additional insurers in the region to join by Dec. 31, 2024.
For the 2023 to 2024 cyclone season, there were five tropical cyclones, generating approximately $155 million in claims costs to the cyclone pool. ARPC reported that claims payments have been processed within the corporation’s established service standards.
Additionally, the terrorism pool maintained 225 insurer participants, providing reinsurance for commercial property and business interruption related to declared terrorism events.
Wallace reaffirmed ARPC’s commitment to collaborating with insurers, reinsurers, government, and community stakeholders to enhance insurance accessibility and affordability for terrorism and cyclone risks.
“Our annual report shows the efforts of all the ARPC team members who together have made this result possible,” he said.
What are your thoughts on this story? Please feel free to share your comments below.
