SAICORP

In reply to the Hon. I.F. EVANS (Davenport) (29 June 2011) (Estimates Committee A).

The Hon. J.J. SNELLING (Playford—Treasurer, Minister for Workers Rehabilitation, Minister for Defence Industries, Minister for Veterans' Affairs): SAFA, through its insurance division SAICORP, maintains solvency reserves or free reserves in its Insurance Fund 1 to meet potential risks such as catastrophes, random fluctuations in individual claims experience, unanticipated trends or changes in the collective claims experience and investment and economic risks.

The level of free reserves is determined by an actuarial based calculation based on several risk components.

SAFA aims to maintain its actual level of free reserves within a target range of 65 per cent to 135 per cent of the actuarially determined level.

Any change to this target range requires the Treasurer's approval.