Combined Life Insurance Company of Australia Limited (Combined Life) engages the services of Chubb  Insurance Australia Limited (Chubb) in carrying out its operations. For the purposes of CPS 511, Combined Life  adopts and relies on Chubb’s remuneration framework disclosures as follows: 

Chubb’s Remuneration Framework and Practices Disclosure 

Chubb Holdings Australia Pty Limited, via its operating subsidiary, Chubb Insurance Australia Limited (Chubb), have established a comprehensive remuneration framework and practices that align with its business strategy  and comply with Prudential Standard CPS 511 Remuneration. This framework is an integral part of Chubb’s risk  management framework and is overseen by the Board to ensure remuneration arrangements are  appropriately designed and managed, and consistently applied, across Chubb.  

Governance and Oversight 

To assist the Board in fulfilling its obligations, the Nomination and Remuneration Committee (NRC) has been  established as the main governing body for key people and remuneration issues at Chubb in accordance with  Chubb’s Remuneration Policy. The NRC meets quarterly (i.e. four times in a financial year) and is responsible  for reviewing the Remuneration Policy at least annually, with final approval by the Board.  

Remuneration Framework, Policy and Structure 

Chubb’s Remuneration Policy is designed to ensure competitiveness in attracting and retaining talent, consistent with its culture, business plan, strategic objectives and risk management framework. It promotes  effective management of financial and non-financial risks, sustainable performance, long-term soundness, and  supports the prevention and mitigation of conduct risk.  

The Remuneration Policy outlines several remuneration objectives, such as attracting high-quality talent and  ensuring fair compensation for all employees. To achieve these objectives, Chubb considers various factors in  designing and assessing performance-based remuneration. 

The remuneration structure for Chubb employees includes a fixed component (salary, statutory  superannuation and packaged benefits) and two variable performance-based components for eligible  employees: an Annual Incentive Plan (AIP) and a Long-Term Incentive Plan (LTIP). The AIP provides a cash  reward for achieving financial and non-financial objectives, while the LTIP offers equity awards for significant contributions, with a prohibition on hedging. Bonus and equity pool distributions consider both financial  results and non-financial measures, aligning remuneration outcomes with Chubb’s business plan, strategic  objectives and risk management framework. 

Key Executives and Specified Roles 

The Remuneration Policy details the variable remuneration terms for key executives in specified roles, such as  the Country President, Chief Financial Officer, Chief Risk Officer, Chief Actuary, and Heads of Property & Casualty, Distribution and Operations. These executives receive both fixed and variable remuneration, as  outlined above, balancing long-term and short-term rewards based on performance, and encouraging decision-making aligned with Chubb’s business plan, strategic objectives and long-term interests and financial  soundness.  

Separate arrangements are in place for non-executive directors.  

Board Responsibilities and Risk Management 

The Board is ultimately responsible for approving variable remuneration outcomes for senior managers and  executives, and on a cohort basis for highly paid material risk-takers, other material risk-takers, and Risk and  Financial Control Personnel. The Remuneration Policy empowers the Board to apply ‘clawback’ and ‘malus’ provisions for employees responsible for material breaches, risk management failures, or misconduct, thereby aiding in the prevention and mitigation of conduct risk. 

The NRC reviews remuneration arrangements and has various discretions regarding remuneration, including  setting amounts, limits, terms and conditions, based on comprehensive information provided by relevant  stakeholders. The NRC, guided by its obligation to ensure financial soundness of Chubb and appropriate risk  management, may consider adjustments to performance-based remuneration, including the ability to adjust  remuneration downwards, potentially to zero, if necessary. 

This disclosure ensures compliance with CPS 511 and aligns with Chubb’s Remuneration Policy, supporting  Chubb’s commitment to sound governance and risk management practices.