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
|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|
|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)|
|Cash and cash equivalents||820.3||677.6||422.3||289.8|