Australia's Cyclone Reinsurance Pool has passed A$1bn ($702m) in claims paid since commencing operations in 2022, as the Australian Reinsurance Pool Corporation (ARPC) today released its 2025-26 Annual Report.
The milestone follows the busiest cyclone season since the pool commenced, with nine Declared Cyclone Events during 2025–26.
ARPC Chief Executive Dr Christopher Wallace said the year demonstrated the importance of maintaining strong and effective reinsurance arrangements for cyclone and terrorism risks.
“This was a significant year for both pools. The cyclone pool experienced its busiest season since commencement and passed $1bn in claims paid since inception, while two terrorism incidents were declared for the first time since 2014,” said Dr Wallace.
“We are seeing clear evidence that the cyclone pool is helping improve insurance affordability in communities facing the highest cyclone risk, where cost pressures have historically been greatest.”
He said, “Despite a high level of cyclone activity, ARPC met all claims and financial obligations without drawing on the Commonwealth guarantee, demonstrating the financial strength and resilience of the schemes we manage.”
Other statistics
As of 30 June 2026, the cyclone pool covered approximately 3.2m buildings across home, strata and SME properties, helping insurers provide protection for households and businesses in cyclone-prone regions.
ARPC also met all five performance targets for the year, covering premium effectiveness and affordability, data and insights, financial resilience, operational efficiency and insurer satisfaction.
Lastly, ARPC recorded gross written premiums of A$1.09bn during the period and net assets of approximately $1.82bn as of 30 June 2026, maintaining a strong financial position and meeting all obligations throughout the year without drawing on the Commonwealth guarantee.
The Terrorism Reinsurance Pool
The year also highlighted the ongoing importance of the Terrorism Reinsurance Pool, with two terrorism incidents declared for the first time since 2014, following events at Bondi Beach in December 2025 and Perth in January 2026.
ARPC did not pay terrorism reinsurance claims in relation to either incident.
Looking ahead, ARPC will continue to focus on the effective operation of both pools, strengthening its data and analytics capability, supporting awareness of cyclone mitigation incentives, and ensuring the schemes remain financially and operationally resilient.
ARPC will also continue working with insurers, governments and industry stakeholders to support improved insurance affordability and resilience in cyclone-prone communities.
ARPC’s Annual Report can be accessed here.