Asbestos (Tables)

12 Months Ended

Mar. 31, 2023

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