The Australian Reinsurance Pool Corporation (ARPC) has published its annual report for FY2024-25.
During the reporting period, ARPC wrote A$1.1bn ($720m) in gross written premiums and held a position on net assets of A$772m. Due to the large scale of tropical cyclone Alfred, there was an operating deficit for the period of A$891m. ARPC currently remains in a strong financial position and is operating as the legislation intends.
“Over the past year, the terrorism and cyclone pools have effectively fulfilled their purpose, despite an above average season of tropical cyclone weather,” said ARPC chief executive Christopher Wallace.
ARPC declared five cyclone events during the 2024-25 cyclone season, including Alfred, the costliest event since the cyclone pool’s inception in 2022. Alfred accounted for A$53.7m of the A$130.7m in claims paid by ARPC during the year, with an estimated ultimate claims cost of A$1.86bn for the event.
“Alfred was a pivotal moment for the cyclone pool, serving as a significant test of its resilience and operational effectiveness, said Dr Wallace.
“The event demonstrated the pool’s preparedness and capacity to respond efficiently to significant weather events.”
As of 31 December 2024, all eligible insurers had joined the cyclone pool, as mandated. The pool has led to improvements in the affordability and availability across high cyclone risk areas, as confirmed by ARPC’s 2025 premium assessment report.
ARPC also has 231 terrorism reinsurance agreements in place (up from 225 in 2023-24), providing cover for commercial property and business interruption in the event of declared terrorism incidents.
“While the nature of terrorism risk continues to evolve – becoming more complex and less predictable – the terrorism pool remains well-positioned to respond to such events,” Dr Wallace said.
ARPC’s annual report can be accessed here, and the 2025 Cyclone Reinsurance Pool Premium Assessment can be accessed here.