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
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
Retrocession capacity of $3.45 billion versus target of $2.5 billion.
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
71 reinsurers participated on the 2020 program vs a target of 15. 59.7% of participants are APRA regulated against a target of 50%.
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
$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.
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
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
Each major project has been delivered on time and within budget or is on track to be completed on time and within budget.
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
Stakeholder survey designed in consultation with ORIMA and will be launched during 2020/21.