Asbestos (Tables)
|
12 Months Ended |
Mar. 31, 2023 |
|---|
| Asbestos [Abstract] |
|
| Asbestos Adjustments |
The Asbestos adjustments loss included in the consolidated statements of operations and comprehensive income comprise the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Years Ended 31 March |
| (Millions of US dollars) |
2023 |
|
2022 |
|
2021 |
| Change in estimates: |
|
|
|
|
|
| Change in actuarial estimate - asbestos liability |
$ |
56.0
|
|
|
$ |
145.6 |
|
|
$ |
33.0 |
|
| Change in actuarial estimate - insurance receivable |
(0.1) |
|
|
(5.3) |
|
|
(2.0) |
|
| Change in estimate - AICF claims-handling costs |
1.2
|
|
|
0.6 |
|
|
1.5 |
|
| Subtotal - Change in estimates |
57.1
|
|
|
140.9 |
|
|
32.5 |
|
| Effect of foreign exchange on Asbestos net liabilities |
(45.9) |
|
|
(13.2) |
|
|
123.0 |
|
| Loss (gain) on foreign currency forward contracts |
24.5
|
|
|
5.3 |
|
|
(11.7) |
|
| Other |
1.3
|
|
|
(1.3) |
|
|
0.1 |
|
| Asbestos adjustments loss |
$ |
37.0
|
|
|
$ |
131.7 |
|
|
$ |
143.9 |
|
|
| Central Estimates, Net of Insurance Recoveries |
The following table sets forth the central estimates, net of insurance recoveries, calculated by KPMG as of 31 March 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 31 March 2023 |
| (Millions of US and Australian dollars, respectively) |
US$ |
|
A$ |
| Central Estimate – Discounted and Inflated |
1,012.0 |
|
|
1,508.0 |
|
| Central Estimate – Undiscounted but Inflated |
1,289.0 |
|
|
1,920.8 |
|
| Central Estimate – Undiscounted and Uninflated |
895.6 |
|
|
1,334.6 |
|
The following table summarizes the results of the analysis:
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 31 March 2023 |
| (Millions of US and Australian dollars, respectively) |
US$ |
|
A$ |
Discounted (but inflated) - Low |
783.5 |
|
|
1,167.5 |
|
Discounted (but inflated) - High |
1,581.8 |
|
|
2,357.0 |
|
|
|
|
|
Undiscounted (but inflated) - Low |
978.3 |
|
|
1,457.8 |
|
Undiscounted (but inflated) - High |
2,114.9 |
|
|
3,151.4 |
|
|
| Numbers of Open Claims, New Claims and Closed Claims and Average Settlement Per Settled Claim and Case Closed |
The following table shows the activity related to the numbers of open claims, new claims and closed claims during each of the past five years and the average settlement per settled claim and case closed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
For the Years Ended 31 March |
| |
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
| Number of open claims at beginning of period |
365
|
|
|
360 |
|
|
393 |
|
|
332 |
|
|
336 |
|
| Number of new claims |
|
|
|
|
|
|
|
|
|
| Direct claims |
403
|
|
|
411 |
|
|
392 |
|
|
449 |
|
|
430 |
|
| Cross claims |
152
|
|
|
144 |
|
|
153 |
|
|
208 |
|
|
138 |
|
| Number of closed claims |
561
|
|
|
550 |
|
|
578 |
|
|
596 |
|
|
572 |
|
| Number of open claims at end of period |
359
|
|
|
365 |
|
|
360 |
|
|
393 |
|
|
332 |
|
| Average settlement amount per settled claim |
A$303,000 |
|
A$314,000 |
|
A$248,000 |
|
A$277,000 |
|
A$262,000 |
Average settlement amount per case closed 1
|
A$271,000 |
|
A$282,000 |
|
A$225,000 |
|
A$245,000 |
|
A$234,000 |
|
|
|
|
|
|
|
|
|
|
| Average settlement amount per settled claim |
US$208,000 |
|
US$232,000 |
|
US$178,000 |
|
US$189,000 |
|
US$191,000 |
Average settlement amount per case closed 1
|
US$186,000 |
|
US$208,000 |
|
US$162,000 |
|
US$167,000 |
|
US$171,000 |
1 The average settlement amount per case closed includes nil settlements.
|
|
| Summary of Net Unfunded AFFA Liability, Net of Tax |
The following is a detailed rollforward of the Net Unfunded AFFA liability, net of tax, for the fiscal year ended 31 March 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Millions of US dollars) |
Asbestos
Liability |
|
Insurance
Receivables |
|
Restricted
Cash and
Investments |
|
Other
Assets
and
Liabilities |
|
Net
Unfunded
AFFA
Liability |
|
Deferred
Tax
Assets |
|
Income
Tax
Payable |
|
Net
Unfunded
AFFA
Liability,
net of tax |
Opening Balance - 31 March 2022 |
$ |
(1,143.7) |
|
|
$ |
45.7 |
|
|
$ |
261.6 |
|
|
$ |
(1.1) |
|
|
$ |
(837.5) |
|
|
$ |
360.1 |
|
|
$ |
43.9 |
|
|
$ |
(433.5) |
|
| Asbestos claims paid |
106.8 |
|
|
— |
|
|
(106.8) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Payment received in accordance with AFFA |
— |
|
|
— |
|
|
109.6 |
|
|
— |
|
|
109.6 |
|
|
— |
|
|
— |
|
|
109.6 |
|
| AICF claims-handling costs incurred (paid) |
1.1 |
|
|
— |
|
|
(1.1) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| AICF operating costs paid - non claims-handling |
— |
|
|
— |
|
|
(1.5) |
|
|
— |
|
|
(1.5) |
|
|
— |
|
|
— |
|
|
(1.5) |
|
| Change in actuarial estimate |
(56.0) |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
(55.9) |
|
|
— |
|
|
— |
|
|
(55.9) |
|
| Change in claims handling cost estimate |
(1.2) |
|
|
— |
|
|
— |
|
|
— |
|
|
(1.2) |
|
|
— |
|
|
— |
|
|
(1.2) |
|
| Impact on deferred income tax due to change in actuarial estimate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17.1 |
|
|
— |
|
|
17.1 |
|
| Insurance recoveries |
— |
|
|
(6.2) |
|
|
6.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Movement in income tax payable |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(41.1) |
|
|
1.0 |
|
|
(40.1) |
|
| Other movements |
— |
|
|
— |
|
|
1.8 |
|
|
— |
|
|
1.8 |
|
|
(1.2) |
|
|
0.3 |
|
|
0.9 |
|
| Effect of foreign exchange |
115.9 |
|
|
(4.6) |
|
|
(25.1) |
|
|
0.5 |
|
|
86.7 |
|
|
(36.3) |
|
|
(4.5) |
|
|
45.9 |
|
Closing Balance - 31 March 2023 |
$ |
(977.1) |
|
|
$ |
35.0
|
|
|
$ |
244.7
|
|
|
$ |
(0.6) |
|
|
$ |
(698.0) |
|
|
$ |
298.6
|
|
|
$ |
40.7
|
|
|
$ |
(358.7) |
|
|
| Schedule of Remaining Time Deposits |
The following table represents the investments outstanding as of 31 March 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Date Invested |
|
Maturity Date |
|
Interest Rate |
|
A$ Millions |
| February 2023 |
|
13 July 2023 |
|
4.74% |
|
70.0 |
| February 2023 |
|
13 October 2023 |
|
4.74% |
|
40.0 |
| February 2023 |
|
13 January 2024 |
|
4.74% |
|
39.0 |
| February 2023 |
|
13 February 2024 |
|
4.74% |
|
1.0 |
| April 2022 |
|
5 April 2024 |
|
2.75% |
|
54.0 |
| January 2022 |
|
25 January 2024 |
|
1.41% |
|
30.0 |
| October 2021 |
|
6 October 2023 |
|
0.60% |
|
30.0 |
|