1

Providing reinsurance for eligible terrorism losses

ARPC’s total premium income
(as per ARPC’s functional obligation as prescribed by section 10 of the TI Act).

Measure 1 –
Gross Written Premium income.²

Exceeded

GWP $234.3 million vs target of $140 million.

ARPC’s scheme capacity and total funding available; and Level of insurance market involvement.

Measure 2 – Scheme capacity, before the Commonwealth guarantee, per calendar year.³

Exceeded

Retrocession capacity of $3.45 billion versus target of $2.5 billion.

2

Encouraging private sector participation through retrocession

The number and quality of retrocessionaires on ARPC’s retrocession program to encourage private sector participation.

Measure 3 – Private sector participation.⁴

Exceeded

71 reinsurers participated on the 2020 program vs a target of 15. 59.7% of participants are APRA regulated against a target of 50%.

3

Compensating the Government

ARPC is to pay the Australian Government a fee for use of the Commonwealth guarantee.

A capital holding fee is also to be paid to recognise the capital ARPC is holding to fund future claim payments.

An additional temporary dividend of $10 million for three years – 2018-19, 2019-20 and 2020-21. This additional dividend was a recommendation of the 2018 Triennial Review in December 2018.

Measure 4 – Payments to Government.⁵

Met

$100.0 million payment by the due date comprising a $10.0 million dividend, a $55.0 million guarantee fee and a $35.0 million capital holding fee.

4

Maintaining financial sustainability and organisational resilience

ARPC must maintain sufficient net assets to support targets within ARPC’s Capital Management Policy.

Measure 5 –
Net Assets against ARPC target and minimum capital.⁶

Exceeded

Net assets at

June 2020 – $520.5 million vs a minimum of $310 million and a target of $370-$450 million.

ARPC aims to build capability and knowledge to fulfil its strategic priorities.

Measure 6 – Complete and/or progress major projects according to plan to advance ARPC’s strategic priorities.⁷

Met

Each major project has been delivered on time and within budget or is on track to be completed on time and within budget.

5

Engage, understand and collaborate with stakeholders

ARPC committed to developing a stakeholder survey to measure stakeholder engagement outcomes and to establish a benchmark for future surveys.

Measure 7 – Develop and launch baseline stakeholder survey and use results to improve stakeholder outcomes.⁸

Partially met

Stakeholder survey designed in consultation with ORIMA and will be launched during 2020/21.