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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 2024 and is provided below:

AIG Australia’s Capital Base

($’000)

Net Assets

710,074

Net Surplus/(deficit) relating to Insurance Liabilities

(118,345)

Regulatory Adjustments to Common Equity Tier 1 Capital

157,611

Common Equity Tier 1 Capital

749,340

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

749,340

 

AIG Australia’s Prescribed Capital Amount

($’000)

Insurance Risk Charge

154,854

Insurance Concentration Risk Charge

13,241

Asset Risk Charge

136,301

Asset Concentration Risk Charge

0

Operational Risk Charge

32,941

less Aggregation Benefits

(67,756)

Prescribed Capital Amount

269,581

 

AIG Australia’s Capital Adequacy Multiple

($’000)

Capital Base

749,340

 

divided by

Prescribed Capital Amount

269,581

Capital Adequacy Multiple

2.78

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