Document ID: chunk:federal_register_of_legislation:F2023L00615:body:0:p9
Version: federal_register_of_legislation:F2023L00615
Segment Type: other
Provision Reference: 
Character Range: 22017–24889

with AASB 17.66B for reinsurance contracts held.

        Report this item in accordance with AASB 17.86.

        The amount reported at this item should reconcile to item 8. 'Amounts recoverable from reinsurers' reported in Part B: Reinsurance contracts held (outwards reinsurance by cedant/retrocedent) Liability Roll Forward 1 – Reconciliation of the remaining coverage and incurred claims of Reporting Standard GRS 320.0.G Liability Roll Forwards (GRS 320.0.G Part B RF1).

6.                  Net expense from reinsurance contracts held

Item 6  Item 6 is a derived item and is calculated as the sum of item 4 and item 5. This item can be a net income or net expense.

        Report this item in accordance with AASB 17 Appendix A, AASB 101.82 (ac), AASB 17.82 and AASB 17.86.

7.                  Insurance service result

Item 7  Item 7 insurance service result is a derived item and is calculated as the sum of item 3 and item 6.

        Report this item in accordance with AASB 17.80 (a).

8.                  Balance sheet memo items

APRA intends to collect General Measurement Model (GMM) and Premium Allocation Approach (PAA) liability for remaining coverage and liability for incurred claims, GMM contractual service margin and risk adjustment component by APRA product groups. APRA will use these items and the data items collected:

    * to form a view on profitability by APRA product groups,
    * to compare the accounting risk adjustment to the GPS 340 risk margin by APRA product groups, and
    * to understand drivers behind accounting liability movements by APRA product groups.

APRA appreciates this information required by APRA product groups may require allocation of the AASB 17 balance sheet items which may not be perfect. APRA requests that insurers to use the allocation principles to allocate the AASB 17 items into APRA product groups. The intent is that simple "allocation drivers" (deemed appropriate by the insurer) are used to allocate the AASB 17 items into product groups.

For clarity, the following items are defined based on AASB 17:

            AASB 17 liability for remaining coverage as defined in AASB 17 Appendix A
            AASB 17 liability for incurred claims as defined in AASB 17 Appendix A
            AASB 17 contractual service margin as defined in AASB 17 Appendix A
            AASB 17 risk adjustment for non-financial risk as defined in AASB 17 Appendix A

Note, GMM items in the table below can be zero.

Columns for Level 2 insurance group

Columns 1 to 25             Report the amount for Australian business by APRA product group.
Columns 26 - 33             These columns are not applicable to item 8.
Column 34 (Total business)  Report the total amount of columns 1-25.

Item 8.1   Insurance contract - AASB 17 GMM liabilities / assets for remaining coverage

           Report the