Document ID: chunk:federal_register_of_legislation:F2023L00624:front:0:p10
Version: federal_register_of_legislation:F2023L00624
Segment Type: other
Provision Reference: 
Character Range: 29328–32690

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 in Appendix A.

F

Fair value of non-reinsurance asset  For non-reinsurance assets, this is fair value of the asset, before offsets for deferred tax provisions or other liabilities related to the asset that would be realised if the asset was sold. It is the value before being reduced by any amounts that have been treated as deductions from the capital base, as determined under LPS 112.

L

Life company fund  This means the type of life company fund. Possible types are:

                       * statutory fund;
                       * benefit fund;
                       * shareholder fund; and
                       * management fund.

N

Notional offshore reinsurance premium for group risk business       This is notional reinsurance premium expense over the reporting period in respect of group risk business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.

                                                                    Notional reinsurance premiums are measured on the premium basis of the underlying group risk policies that have been reinsured offshore. This is the reinsurance premium that would be paid if the reinsurer charges the cedant on the same basis as the premium basis that the cedant applied to charge to its policyholders.

                                                                    Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item.

Notional offshore reinsurance premium for individual risk business  This is notional reinsurance premium expense over the reporting period in respect of individual risk business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.

                                                                    Notional reinsurance premiums are measured on the premium basis of the underlying individual risk policies that have been reinsured offshore. This is the reinsurance premium that would be paid if the reinsurer charges the cedant on the same basis as the premium basis that the cedant applied to charge to its policyholders.

                                                                    Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item.

O

Offshore reinsurance premium ratio for group risk business       This is the ratio of notional offshore reinsurance premium for group risk business relating to a particular reinsurance arrangement to total gross premium expense for group risk business for the statutory fund. This reflects the proportion of group risk business risks that is being ceded offshore.

Offshore reinsurance premium ratio for individual risk business  This is the ratio of notional offshore reinsurance premium for