Boral Insurance Pty Limited (the “Company”) is authorised by APRA to conduct run-off business under the following conditions:
- The Company may only provide insurance to related bodies corporate as defined in the Corporations Act 2001 (Cth).
- The Company may only conduct insurance business in Australia for the sole purpose of discharging liability that arose under policies entered into prior to 1 July 2002.
- The Company shall at all times maintain its capital base in excess of: a) $2,000,000 or b) Prescribed capital amount as per risk factors calculated in accordance with Prudential Standard GPS 110, whichever is the greater.
The Company does not write new or renewal business nor does it act as an insurance agent, broker or underwriting agent for other general insurers.
In accordance with the requirements of paragraph 40 of the Prudential Standard GPS 110:
- The amount of Common Equity Tier 1 capital is $3,746,000. This comprises of share capital $3,600,000 and retained earnings $146,000.
- The aggregate amount of any regulatory adjustments applied in the calculation of Common Equity Tier 1 capital is Nil.
- There is no Additional Tier 1 Capital. The aggregate amount of any regulatory adjustments applied in the calculation of Additional Tier 1 capital is Nil.
- The amount of Tier 2 capital is Nil. The Company is not required to maintain Tier 2 capital. The aggregate amount of any regulatory adjustments applied in the calculation of Tier 2 capital is Nil.
- The total capital base of the Company is $3,746,000.
- The prescribed capital amount is $2,000,000.
- The components of the prescribed capital amount consists of Asset risk charge $14,000 and there is no adjustment to prescribed capital amount as the minimum prescribed capital amount for Category E insurer is $2,000,000.
- The capital adequacy multiple of the Company is 1.873.