Document ID: chunk:federal_register_of_legislation:F2023L00733:reg:7
Version: federal_register_of_legislation:F2023L00733
Segment Type: reg
Provision Reference: reg 7
Character Range: 25561–26347

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73.         The default factors for reinsurance recoverables from non-APRA-authorised reinsurers arising under reinsurance contracts incepting on or after 31 December 2008 are as specified in Table 4 below (in replacement of those specified in Table 2 in paragraph 66) to each reinsurance recoverable on and from the second annual balance date after the event giving rise to the reinsurance recoverable occurred.[7] This treatment applies only to the extent that the reinsurance recoverables are not supported by collateral, a guarantee or a letter of credit as specified in Attachment B.[8]
    Table 4: Default factors for reinsurance recoveries from non-APRA authorised reinsurers on and from the second balance date
Counterparty grade  Default factor (%)