ARPC releases 2025 Financial Outlook Report

22 October 2025 

Australian Reinsurance Pool Corporation (ARPC) today released its 2025 Financial Outlook Report for the Cyclone Reinsurance Pool (cyclone pool), providing insights into recent performance, future projections, and key risks.

ARPC’s Chief Executive, Dr Christopher Wallace said the outlook for the cyclone pool remains consistent with expectations, despite Tropical Cyclone Alfred being the most significant event the pool has experienced to date with $1.8 billion in claims costs for the 2024-25 financial year.

“The cyclone pool’s operating result and accumulated position will fluctuate year to year given the volatile nature of cyclone events. One of our legislative objectives is to be cost neutral or to breakeven in the long term,” Dr. Wallace explained.

Despite this event, the cyclone pool is expected at this time to meet claims payments from existing assets and future premiums without requiring support from the terrorism pool or the Commonwealth guarantee.

The premium rates have also been assessed as being adequate and continuing to meet the cyclone pool’s legislative objectives. ARPC released updated premium rates in September 2025 with no material increase to the overall level of rates. This stability reflects the pool’s design to absorb volatility and maintain affordability for households and businesses in cyclone-prone regions.

“A key focus for the cyclone pool is providing incentives to help mitigate cyclone and related flood risk,” Dr Wallace said.

Annual premium discounts for Home (residential) mitigation have increased from $6.3 million in 2023-24 to $7.9 million in 2024-25. Mitigation discounts for Strata have been effective since 1 April 2025 and will be in place for Small to Medium-sized Enterprises (SME) from 1 April 2026.

For media inquiries, please contact Alexander Drake, Head of Public Affairs and Communications on (02) 8223-6777 or [email protected]