Document ID: chunk:federal_register_of_legislation:F2023L00624:front:0:p9
Version: federal_register_of_legislation:F2023L00624
Segment Type: other
Provision Reference: 
Character Range: 25724–29632

a group, it is the counterparty name.

Counterparty name                              This is the registered business name of the counterparty entity to which the life company has exposure.

Current counterparty grade                     This is the counterparty grade of the asset or counterparty to which the life company has exposure. The counterparty grade must be determined in accordance with LPS 001 as at the reporting date.

E

Exposure amount assessed against individual ACRC limit  This is the amount of on-balance sheet or off-balance sheet exposure which is assessed against ACRC limit for individual asset exposure after cumulative exposure.

                                                        For exposures to reinsurance assets it is the stressed value of the reinsurance asset, net of any regulatory adjustments to capital base related to the exposure, less the sum of:

                                                            * adjustment for exposure to eligible collateral items;
                                                            * adjustment for exposure to guarantor; and
                                                            * adjustment for other arrangement.

                                                        For non-reinsurance assets it is the fair value of the non-reinsurance asset, net of any regulatory adjustments to capital base related to the exposure, less the sum of:

                                                            * adjustment for exposure to eligible collateral items;
                                                            * adjustment for exposure to guarantor; and
                                                            * adjustment for other arrangement.

                                                        For eligible collateral, exposures to a guarantor or other types of risk mitigant that APRA recognises in place of an underlying asset, it is the amount recognised by APRA.

Exposure amount assessed against aggregate ACRC limit   This is the amount of exposure which is assessed against ACRC aggregate limit for offshore reinsurance asset exposure.

                                                        For reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire, it is the exposure amount assessed against individual ACRC limit subject to a maximum of ACRC limit for individual asset exposure after cumulative exposure adjustment.

Exposure category                                       This is the category of exposure. Possible exposure categories are:

                                                            * underlying asset;
                                                            * eligible collateral item (this would apply if the asset is an eligible collateral item that is being recognised in place of the underlying non-reinsurance or reinsurance asset);
                                                            * exposure to guarantor (this would apply if the item is an exposure to a guarantor or issuer of a letter of credit that is being recognised in place of the underlying non-reinsurance or reinsurance asset); and
                                                            * other (this would apply for another type of risk mitigant asset or exposure that APRA recognises in place of the underlying non-reinsurance or reinsurance asset).

Exposure description                                    This is brief description of the exposure in question which provides additional information to help APRA to better understand the exposure. For example, this would allow APRA to understand multiple exposures which may be classified under the same exposure type with the same counterparty.

Exposure type                                           This is the type of exposure. Possible exposure types are outlined