Territory Stories

Statement of Corporate Intent MAC Business 1 July 2006 to 30 June 2009

Details:

Title

Statement of Corporate Intent MAC Business 1 July 2006 to 30 June 2009

Other title

Tabled paper 822

Collection

Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT

Date

2007-02-22

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/283640

Citation address

https://hdl.handle.net/10070/410715

Page content

3.8 Sensitivity Analysis TIO Group and in particular MAC Business's financial performance is highly sensitive to a number of input parameters. Some of these are external to the control of the organisation, thereby making reliable forecasting difficult. As a result, a profit sensitivity analysis as per the below table provides a useful business tool for identifying the potential impacts of these factors, especially in the case of Long Tail Outstanding Claims Estimates for MAC. Financial sensitivity analysis shows the change in profitability caused by a change in a factor, while keeping all other factors constant. Table 1 summarises the expected changes in profit for a movement of 1.0% in the combined ratio for MAC and, more significantly, a movement of 1.0% in future interest rates taking into account the likely impact on the return on interest-sensitive investments. Table 2 shows the expected changes in profit for a movement of 20% in share price in the equities market. Table 3 shows the cumulative effect in surplus of sensitivities estimated in Tables 1 and 2 and has the assumption that in a falling share market interest rates are increasing. The impact of the various scenarios on surplus sensitivity has been translated into solvency ratios to highlight the flow-on effect on other financial measures. Table 1 MAC Surplus/(loss) $m 1.0% Increase in Interest Rates & Combined Ratio 21.8 1l Budget 8.4 1.0% Decrease in Interest Rates & Combined Ratio -8.4 Solvency % 1.0% Increase in Interest Rates & Combined Ratio 47.7 Budget 38.2 1.0% Decrease in Interest Rates & Combined Ratio 28.2 28 Statement of Corporate Intent - MAC


Aboriginal and Torres Strait Islander people are advised that this website may contain the names, voices and images of people who have died, as well as other culturally sensitive content. Please be aware that some collection items may use outdated phrases or words which reflect the attitude of the creator at the time, and are now considered offensive.

We use temporary cookies on this site to provide functionality.
By continuing to use this site without changing your settings, you consent to our use of cookies.