Document ID: chunk:federal_register_of_legislation:F2023L00671:body:0:p8
Version: federal_register_of_legislation:F2023L00671
Segment Type: other
Provision Reference: 
Character Range: 19384–21074

2 or 3  No limit
(b)  Exposures to reinsurers with a counterparty grade of 4          50% of capital base
(c)  Exposures to reinsurers with a counterparty grade of 5, 6 or 7  25% of capital base

Table 2: Non-reinsurance exposures

     Exposure – asset, counterparty or group of counterparties                          AUD limit
(a)  Governments with a counterparty grade 1 or 2[1]                                    No limit
(b)  Related parties that are APRA-regulated or part of an APRA-regulated group[2]      Greater of $22.5 million and 100% of capital base
(c)  Unrelated parties that are APRA-regulated or part of an APRA-regulated group[3]:
            (i)            Short-term exposures[4]

                                                                                        Greater of $22.5 million and 100% of capital base
            (ii)         Long-term exposures[5]                                         Greater of $11.2 million and 50% of capital base
                                                                                        Greater of $22.5 million and 100% of capital base

            (iii)       Total exposure
(d)  All other exposures                                                                25% of capital base

[1]  This includes assets with a counterparty grade 1 or 2 that are guaranteed by the Commonwealth Government, Australian state and territory governments and foreign governments.
[2]  As defined in paragraph 9 of this Prudential Standard.
[3]  As defined in paragraph 9 of this Prudential Standard.
[4]  As defined in paragraph 10 of this Prudential Standard.
[5]  As defined in paragraph 10 of this Prudential Standard.