Key financial results

Comcare achieved an operating surplus of $253 million in 2015–16. The result exceeded budget expectation and represents the third successive operating surplus since Comcare embarked on a medium term strategy to restore the premium scheme to a fully funded position.

The significant operating surplus was mainly due to actuarial release as a result of favourable claims experience over the past 12 months. The favourable valuation was due to Comcare’s continued focus on liability management and administrative efficiency. During the year, strategic projects targeting return to work outcomes, efficient and effective claims management processes, and risk based file reviews have contributed to a significant reduction in premium claims costs and outstanding claims liabilities.

Consequently, the funding ratio of the premium paying sector rose from 76 per cent to 84 per cent in 2015–16 as Comcare moves towards its objective of a fully funded premium scheme.

Table 6: Comcare operating results

  2015–16 2014–152013–142012–13
  $m $m$m$m
Workers’ compensation premiums 414.7 491.8 411.1 341.7
Other cost-recovery revenue 36.0 35.3 36.5 34.3
Interest and other revenue 29.5 28.3 22.1 22.2
Revenue from government 66.2 65.3 74.0 81.5
Claim payments (281.8) (293.4) (306.2) (309.1)
Administration expenses (business as usual) (99.7) (100.1) (104.7) (100.8)
Administration expenses (projects) (7.5) (2.9) (3.1) (7.0)
Surplus of revenue over expenses 157.4 224.3 129.7 62.8
Movement in claims provisions and appropriations receivable
Provisions for outstanding claims liabilities 75.3 (86.0) (70.8) (136.6)
Available funding from movement in claims provisions 20.4 26.5 (4.3) (24.5)
Surplus/(deficit) on continuing operations 253.0 164.8 54.6 (98.3)
Net equity (452.1) (709.4) (881.9) (936.6)
Cash and cash equivalents 820.3 677.6 422.3 289.8