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AIG Australia Limited (AIG Australia) is a general insurance company and is regulated by the Australian Prudential Regulation Authority (APRA).

To improve policyholders’ and other market participants’ understanding of AIG Australia’s capital adequacy position, APRA’s Prudential Standard GPS110 Capital Adequacy requires AIG Australia to publish its capital adequacy position on an annual basis.

AIG Australia’s capital adequacy position has been calculated as at 31 December 2023 and is provided below:

AIG Australia’s Capital Base

($’000)

Net Assets

571,766

Net Surplus/(deficit) relating to Insurance Liabilities

(91,436)

Regulatory Adjustments to Common Equity Tier 1 Capital

127,823

Common Equity Tier 1 Capital

608,153

Additional Tier 1 Capital

0

Regulatory Adjustments to Additional Tier 1 Capital

0

Tier 2 Capital

0

Regulatory Adjustment to Tier 2 Capital

0

Capital Base

608,153

 

AIG Australia’s Prescribed Capital Amount

($’000)

Insurance Risk Charge

144,839

Insurance Concentration Risk Charge

12,164

Asset Risk Charge

118,125

Asset Concentration Risk Charge

0

Operational Risk Charge

28,056

less Aggregation Benefits

(60,561)

Prescribed Capital Amount

242,623

 

AIG Australia’s Capital Adequacy Multiple

($’000)

Capital Base

608,153

 

divided by

Prescribed Capital Amount

242,623

Capital Adequacy Multiple

2.50