Media Statements

Insurance Commission records profit for 2005-2006

Statement Released: 28 September 2006

The Insurance Commission of Western Australia has reported a consolidated after tax profit of $170.6 million for the 2006 financial year (2005: $155.1 million).

At the end of the 2006 financial year, the Insurance Commission’s total consolidated assets were $2.29 billion (2005: $1.99 billion) and its net assets increased to $577.2 million (2005: $384.2 million).

As the State’s sole Compulsory Third Party (CTP) insurer, the Insurance Commission provided Western Australian family motorists with the lowest CTP Insurance premiums in Australia for the ninth consecutive year.

Furthermore, the State Government agreed to reduce CTP premiums by 10% for the majority of vehicle classes for the 2007 financial year. This will result in a saving of at least $25 per vehicle for most Western Australian motorists who will continue to enjoy the lowest CTP Insurance premiums for a private motor vehicle in Australia,” Insurance Commission of Western Australia Chairman Michael Wright said.

The Third Party Insurance Fund (TPIF) recorded an after tax profit of $174.8 million (2005: $188.7 million) and remains fully funded. Net assets of the Fund at balance date were $442.0 million (2005: $457.3 million).

During the 2006 financial year, the Insurance Commission paid $318.7 million (gross) in motor vehicle personal injury claims.

The Insurance Commission also manages RiskCover on behalf of the State Government, comprising two components:

• The RiskCover Fund - the self-insurance fund of the Government of Western Australian which commenced on 1 July 1997; and
• The RiskCover Division - a business division of the Insurance Commission of Western Australia established to manage the RiskCover Fund.

Mr Wright said that RiskCover’s purpose is to minimise the cost of risk to the Government of Western Australia, allowing State Government agencies to focus on their core business, producing greater business efficiencies.

In the 2006 financial year, the RiskCover Fund, underwritten by the Government of Western Australia, ended the year with a profit of $59.2 million (2005: $33.6 million profit).

“The State Government has identified risk management as a key feature of the operation of the public sector for many years, and the benefits of employing Risk Management programs are clearly paying dividends for the Western Australian Government and its agencies," Mr Wright said.

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