The Australian Prudential Regulation Authority (APRA) requires private health insurers to hold a certain level of capital so that the community can have confidence that insurers will be able to meet their financial commitments under all reasonable circumstances.

At 30 June 2024, the amount of capital held by Mildura Health was 4.82 times the minimum amount required by APRA. Mildura Health’s Capital Adequacy Multiple is higher than the industry average, demonstrating a strong capital position. Mildura Health manages its capital to ensure the ability to continue as going concern for members and to comfortably meet regulatory capital requirements.

The below table presents Mildura Health’s capital adequacy position at 30 June 2024:

Note that Mildura Health’s private health insurance business is operated in the Health Benefits Fund. Mildura Health is required to consolidate Mildura Health Foundation Limited, a registered charity in accordance with accounting standards to give a total enterprise view. The assets of the Foundation can only be distributed for charitable purposes under the constitution of Mildura Health Foundation Limited and at no point in time are available to the Mildura Health Benefits Fund or its members. Mildura Health Foundation Limited is operated in the General Fund.