Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)
Tabled paper 1556
Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT
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Northern Territory Motor Accidents (Compensation) Commission Notes to the Financial Statements - 30 June 2015Annual Report 2015 Page 93 Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 79 33. Risk management and financial instruments information continued The following table provides information about MACCs capital resources: 2015 2014 MACC TIO Insurance & Banking MAC Fund TIO TIO Insurance & Banking MAC Fund $000 $000 $000 $000 $000 $000 Contributed equity (note 26) - - - 39,340 39,340 - Asset revaluation reserve - - - 18,569 - 3,904 Catastrophe reserve - - - 6,353 6,353 - Road Safety reserve - - - 5,000 - 5,000 Retained earnings 148,475 - 148,475 337,687 91,450 260,900 Hedging reserves - - - (173) (173) - Total capital resources 148,475 - 148,475 406,776 136,970 269,804 Insurance and Banking The TIO Board requires TIO Insurance and Banking to maintain the minimum levels as determined by the prudential standards as well as a capital requirement for each business unit. Although TIO Insurance and Banking divisions are not regulated by APRA, the Northern Territory Government has imposed compliance requirements in line with APRA regulations. MAC Fund The MACC Commissioner requires MAC to maintain the minimum levels of capital taking into account regulation 19 (2) (b) of the Motor Vehicles Regulations. These regulations set a minimum solvency level which the MAC Scheme must comply with. Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 78 33. Risk management and financial instruments information continued e) Capital Management MACC manages its capital requirements by assessing capital levels on a regular basis. The capital management objectives have been determined to protect policy holders, depositors and creditors from unexpected losses, and to avoid premium volatility for the MAC scheme. The capital policy has been designed to: ! Ensure compliance with the Motor Accidents (Compensation) Commission Act, and prudential standards of the regulator (Northern Territory Government), ! Provide policies that will be consistent with an APRA regulated organisation. Prior to its transfer to owners, TIO Banking business measures a capital adequacy ratio in accordance with APRA prudential standard APS 110, and has at all times exceeded the minimum regulatory capital adequacy ratio of 10% for the current financial year. As above TIO Insurance business measures a Prudential Capital Requirement (PCR) ratio in accordance with APRA prudential standard GPS 110, and has at all times exceeded the minimum regulatory PCR ratio of 120% for the current financial year. The adequacy of the MAC Funds capital is measured as a solvency ratio of retained earnings to net outstanding claims. Although there is no minimum regulatory capital ratio to which the MAC Fund is required to comply, the minimum target set by the Northern Territory Government has been exceeded at all times during the current financial year.
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