The COVID-19 pandemic has impacted many insurers in Australia, but the Australian Reinsurance Pool Corporation (ARPC) has not only survived but also remained strong despite the challenging environment.
ARPC’s 2019 to 2020 Annual Report highlighted the company’s strong operational and financial performance during the financial year despite the impacts of the pandemic.
ARPC performed well against the targets set in its 2019 to 2023 Corporate Plan. Its financial performance for the financial year was better than expected, primarily thanks to rate rises in underlying commercial insurance premiums – with an operating result of $69.1 million, which is $42.5 million better than its forecast.
The annual report also highlighted the ARPC Scheme’s $13.7 billion funding capacity for claims, which was provided through a combination of $521 million ARPC net assets, $3.45 billion retrocession reinsurance cover purchased from 71 global reinsurers, and the $10 billion Commonwealth guarantee.
“During this difficult time, ARPC has engaged with our insurer customers to listen to their concerns, provide information, and answer questions. We have regularly engaged with Treasury and offered our insurance expertise as required,” said ARPC chief executive officer Dr Christopher Wallace.
“We stand with our insurer and government stakeholders affected by the COVID-19 pandemic, an event which has dominated headlines and our professional and personal lives here in Australia since March 2020.”
ARPC also completed key strategic projects this financial year, including the cyber terrorism research project with the OECD and Cambridge Centre for Risk Studies, as well as the geospatial catastrophe modelling project that covers all Australian mainland commercial property assets and locations.
