ARPC’s 2019-2020 Annual Report has been tabled in Parliament.
“The Report showcases strong operational and financial performance during the financial year,” said Dr Christopher Wallace, ARPC CEO. There were 227 insurer customers covered by ARPC for terrorism risk for commercial property and business interruption policies.
The ARPC Scheme had funding capacity for claims of $13.7 billion. This capacity 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. ARPC performed well against the targets set in the 2019-23 Corporate Plan. The financial performance for 2019-20 was better than expected, largely due to rate rises in underlying commercial insurance premiums, with an operating result (surplus) of $69.1 million, $42.5 million better than forecast.
Key strategic projects were completed including the cyber terrorism research project with the OECD and Cambridge Centre for Risk Studies; and the geospatial catastrophe modelling project which covers all Australian mainland commercial property assets and locations; while substantial progress was made on work with Standards Australia on a new handbook HB 188 for terrorism risk mitigation for businesses.
Read the 2019-2020 Annual Report here.