Document ID: chunk:federal_register_of_legislation:F2023L00644:body:0:p7
Version: federal_register_of_legislation:F2023L00644
Segment Type: other
Provision Reference: 
Character Range: 20615–25702

results in a net payable position to the cedant. If there is not a legal right of set-off, report the amount payable without set-off. Also refer to the definition of premiums receivable.
                                                                                                            Claims payable is netted against insurance contract assets or added to insurance contract liabilities under AASB 17.
                                                                                                            This must exclude any amount already allowed in insurance liabilities determined under HPS 340 to avoid double counting.
Common Equity Tier 1 Capital                                                                                This is the highest quality component of capital held by the private health insurer as determined under the eligibility characteristics set out in HPS 112, net of all regulatory adjustments.
                                                                                                            Common Equity Tier 1 Capital is calculated as the sum of:
                                                                                                                   * paid-up ordinary shares;
                                                                                                                   * mutual equity interests;
                                                                                                                   * retained earnings;
                                                                                                                   * undistributed current year earnings;
                                                                                                                   * accumulated other comprehensive income and other disclosed reserves;
                                                                                                                   * net surplus / (deficit) relating to insurance liabilities;
                                                                                                                   * regulatory adjustments to Common Equity Tier 1 Capital for accounts receivables; and
                                                                                                                   * adjustments and exclusions to Common Equity Tier 1 Capital
                                                                                                            less:
                                                                                                                   * regulatory adjustments to Common Equity Tier 1 Capital for accounts payables; and
                                                                                                                   * regulatory adjustments to Common Equity Tier 1 Capital.
Common Equity Tier 1 Capital ratio                                                                          Common Equity Tier 1 Capital ratio is calculated as:
                                                                                                                * Common Equity Tier 1 Capital;

                                                                                                            divided by:
                                                                                                                * prescribed capital amount.

Cost of reinsurance for future business not yet written                                                     This is the amount of the total cost of reinsurance that relates to business that has not yet been written. This amount represents the cover that an insurer has under a particular reinsurance contract, which is available for future business, written up to the end of the reinsurance contract. This amount can be used to increase the surplus (or decrease the deficit) in the PL surplus / (deficit). Amounts must not be included in this item where the underlying reinsurance arrangement is not an executed and legally binding contract.
Cumulative unrealised gains or losses on hedges offsetting gains or losses in Common Equity Tier 1 Capital  This is the cumulative unrealised gains or losses on hedges offsetting the gains or losses of components of Common Equity Tier 1 Capital.
                                                                                                            This includes cumulative unrealised gains or losses on effective cash flow hedges as defined in the Australian Accounting Standards and any fair value gains or losses on derivatives representing effective economic hedges of assets.

D
Deficit in defined benefit superannuation fund  This is the value of deficit (if any) in a defined benefit superannuation fund where the private health insurer is an employer-sponsor.

E
Eligible Tier 2 Capital instruments                          This is the value of capital instruments issued by the private health insurer that meet the eligibility criteria for Tier 2 Capital in