Document ID: chunk:federal_register_of_legislation:F2023L00641:body:0:p12
Version: federal_register_of_legislation:F2023L00641
Segment Type: other
Provision Reference: 
Character Range: 37717–42577

For a non-category C insurer, net assets plus Additional Tier 1 Capital ratio is calculated as the sum of:

                                                                                 * Additional Tier 1 Capital; and
                                                                                 * net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2

                                                                             divided by:

                                                                                 * prescribed capital amount.
Net assets ratio                                                             For a non-category C insurer, net assets ratio is calculated as:

                                                                                 * net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2

                                                                             divided by:

                                                                                 * prescribed capital amount.
Net surplus / (deficit) relating to insurance liabilities                    This is the total technical provisions in surplus or deficit of those required by GPS 340. Technical provisions refer to the accounting insurance and reinsurance liabilities and assets.

                                                                             Net surplus / (deficit) relating to insurance liabilities is calculated as the sum of:

                                                                                 * OCL surplus / (deficit);
                                                                                 * PL surplus / (deficit); and
                                                                                 * cost of reinsurance for future business not yet written;

                                                                             less:

                                                                                 * tax effect of net OCL and PL surplus / (deficit).

Non-reinsurance recoveries receivable                                        This is the value of non-reinsurance recoveries on paid claims.

                                                                             Non-reinsurance recoveries receivable is netted against insurance contract liabilities or added to insurance contract assets under AASB 17.

                                                                             This must exclude any amount already allowed in insurance liabilities determined under GPS 340 to avoid double counting.

O

OCL surplus / (deficit)                                                                  For incurred claims, this is the insurance and reinsurance contract liabilities after deducting insurance and reinsurance contract assets determined under Australian Accounting Standards in surplus (positive figure) or deficit (negative figure) to the net outstanding claims liabilities determined under GPS 340.

Other adjustments to net assets in Australia                                             This is the value of deductions from assets in Australia that the reporting insurer must make as required under any prudential standards other than GPS 112.

Other accounts payable on insurance contracts issued                                     Other accounts payable on insurance contracts issued reflects any other amounts due but not paid relating to insurance contracts. This may include (but is not limited to) levies, taxes, rebates, fees and commissions.

                                                                                         Other accounts payable on insurance contracts issued 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 GPS 340 to avoid double counting.

Other accounts receivable on insurance contracts issued                                  Other accounts receivable on insurance contracts issued reflects any other amounts due but not received relating to insurance contracts. This may include (but is not limited to) levies, taxes, rebates, fees and commissions.

                                                                                         Other accounts receivable on insurance contracts issued is netted against insurance contract liabilities or added to insurance contract assets under AASB 17.

                                                                                         This must exclude any amount already allowed in insurance liabilities determined under GPS 340 to avoid