Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Asbestos (Tables)

v3.22.1
Asbestos (Tables)
12 Months Ended
Mar. 31, 2022
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) 2022 2021 2020
Change in estimates:
Change in actuarial estimate - asbestos liability $ 145.6  $ 33.0  $ 133.8 
Change in actuarial estimate - insurance receivable (5.3) (2.0) (5.7)
Change in estimate - AICF claims-handling costs 0.6  1.5  (0.1)
Subtotal - Change in estimates 140.9  32.5  128.0 
Effect of foreign exchange on Asbestos net liabilities (13.2) 123.0  (69.0)
Loss (gain) on foreign currency forward contracts 5.3  (11.7) (0.8)
Other (1.3) 0.1  — 
Asbestos adjustments loss $ 131.7  $ 143.9  $ 58.2 
Central Estimates, Net of Insurance Recoveries
The following table sets forth the central estimates, net of insurance recoveries, calculated by KPMGA as of 31 March 2022:
Year Ended 31 March 2022
(Millions of US and Australian dollars, respectively) US$  A$
Central Estimate – Discounted and Inflated 1,213.8  1,622.3 
Central Estimate – Undiscounted but Inflated 1,499.1  2,003.6 
Central Estimate – Undiscounted and Uninflated 1,040.0  1,389.9 
The following table summarizes the results of the analysis:
As of 31 March 2022
(Millions of US and Australian dollars, respectively) US$ A$
Discounted (but inflated) - Low
932.8  1,246.7 
Discounted (but inflated) - High
1,914.8  2,559.1 
Undiscounted (but inflated) - Low
1,131.5  1,512.2 
Undiscounted (but inflated) - High
2,471.2  3,302.8 
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
   2022 2021 2020 2019 2018
Number of open claims at beginning of period 360  393  332  336  352 
Number of new claims
Direct claims 411  392  449  430  422 
Cross claims 144  153  208  138  140 
Number of closed claims 550  578  596  572  578 
Number of open claims at end of period 365  360  393  332  336 
Average settlement amount per settled claim A$314,000 A$248,000 A$277,000 A$262,000 A$253,000
Average settlement amount per case closed 1
A$282,000 A$225,000 A$245,000 A$234,000 A$217,000
Average settlement amount per settled claim US$232,000 US$178,000 US$189,000 US$191,000 US$196,000
Average settlement amount per case closed 1
US$208,000 US$162,000 US$167,000 US$171,000 US$168,000
 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 2022:
(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 2021 $ (1,135.8) $ 49.5  $ 131.5  $ (1.9) $ (956.7) $ 367.4  $ 35.2  $ (554.1)
Asbestos claims paid1
117.6  —  (117.6) —  —  —  —  — 
Payment received in accordance with AFFA —  —  248.5  —  248.5  —  —  248.5 
AICF claims-handling costs incurred (paid) 1.2  —  (1.2) —  —  —  —  — 
AICF operating costs paid - non claims-handling —  —  (1.3) —  (1.3) —  —  (1.3)
Change in actuarial estimate (145.6) 5.3  —  —  (140.3) —  —  (140.3)
Change in claims handling cost estimate (0.6) —  —  —  (0.6) —  —  (0.6)
Impact on deferred income tax due to change in actuarial estimate —  —  —  —  —  42.3  —  42.3 
Insurance recoveries —  (8.3) 8.3  —  —  —  —  — 
Movement in income tax payable —  —  —  —  —  (43.3) 8.4  (34.9)
Other movements —  —  (7.4) 1.0  (6.4) 0.1  —  (6.3)
Effect of foreign exchange 19.5  (0.8) 0.8  (0.2) 19.3  (6.4) 0.3  13.2 
Closing Balance - 31 March 2022 $ (1,143.7) $ 45.7  $ 261.6  $ (1.1) $ (837.5) $ 360.1  $ 43.9  $ (433.5)
___________
1Claims paid of US$117.6 million reflects A$159.1 million converted at the average exchange rate for the period based on the assumption that these transactions occurred evenly throughout the period.
Schedule of Remaining Time Deposits The following table represents the investments entered into or maturing during the fiscal year ended 31 March 2022:
Date Invested Maturity Date Interest Rate A$ Millions
January 2022 25 January 2024 1.41% 30.0
January 2022 25 January 2023 0.79% 100.0
October 2021 6 October 2023 0.60% 30.0
October 2020 2 July 2021 0.59% 35.0