Document ID: chunk:federal_register_of_legislation:F2023L00641:body:0:p9
Version: federal_register_of_legislation:F2023L00641
Segment Type: other
Provision Reference: 
Character Range: 26279–31083

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 does not comply with the threshold levels of reinsurance documentation set out in GPS 112 or the governing law requirements set out in Prudential Standard GPS 230 Reinsurance Management (GPS 230).

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 amount of deficit (if any) in a defined benefit superannuation fund where the reporting insurer is an employer-sponsor.

Dividends declared or paid                      Report dividends which are declared or paid by the reporting insurer. A dividend is the amount paid out of a company's profits to its shareholders (interim and final dividend). The annual dividend equals the final dividend plus the interim dividend if declared.

E

Eligible Tier 2 Capital instruments                          This is the value of capital instruments issued by the reporting insurer that meet the eligibility criteria for Tier 2 Capital in GPS 112.

Excess mutual equity interests                               This is the value of any mutual equity interests that are above the limit specified in GPS 112 (that is, the value of any mutual equity interests on issue that are not