Document ID: chunk:federal_register_of_legislation:F2023L00584:front:0:p4
Version: federal_register_of_legislation:F2023L00584
Segment Type: other
Provision Reference: 
Character Range: 8438–12233

Risk Charge limit amount                   For reinsurance exposures this means the appropriate asset concentration limit as specified in HPS 117 for reinsurance exposures to Grade 5, 6 and 7 counterparties or Grade 4 counterparties belonging to the same group.

                                                               For non-reinsurance exposures this means the appropriate Asset Concentration Risk Charge limit as specified in HPS 117.

Asset Concentration Risk Charge long term limit amount         This means the appropriate Asset Concentration Risk Charge limit amount for long-term exposures to unrelated parties that are part of an APRA-regulated group as per HPS 117.

                                                               For exposures categorised as 'unrelated party (APRA-regulated group)', this is the fair value of the exposure to long-term assets, net of provision for doubtful debts and after amounts that are deducted from the capital base. Long term exposures are those assets with a residual maturity of greater than one year.

Asset Concentration Risk Charge long term net exposure amount  This means the fair value of the exposure to long-term assets, net of provision for doubtful debts and after amounts that are deducted from the capital base. Long term exposures are those assets with a residual maturity of greater than one year.

Asset Concentration Risk Charge net exposure amount            This means the fair value of the exposure, net of provision for doubtful debts and any regulatory adjustments to capital base related to this exposure, that is subject to an Asset Concentration Risk Charge. Reinsurance exposures regulatory adjustments would consist of reinsurance assets not subjected to an executed and legally binding contract.

Asset exposure category after eligible credit support          For reinsurance exposures that are covered by eligible credit support, report the counterparty grade grouping as:

                                                                    * Grade 4; or
                                                                    * Grade 5, 6 or 7.

                                                               For non-reinsurance exposures, categorise the exposure into one of the following in accordance with HPS 117:

                                                                    * related party (APRA-regulated group);
                                                                    * unrelated party (APRA-regulated group); or
                                                                    * other.

C

Counterparty grade type                           This means the classification applied to the exposure as per Prudential Standard HPS 001 Definitions (HPS 001).

Counterparty group name                           This is the name of the group to which the counterparty to the exposure belongs.

Counterparty name                                 This is the name of the counterparty to the exposure.

Counterparty grade after eligible credit support  This means the counterparty grade type related to exposures that are covered by collateral or guarantee.

E

Eligible credit support applied                      The means whether the reinsurance or non-reinsurance exposure is covered by an eligible collateral, guarantee, or letter of credit, indicate whether the insurer has applied the eligible credit support to calculate the asset concentration risk charge.

                                                     Possible values are:

                                                          * yes; and
                                                          * no.
Exposure subject to Asset Concentration Risk Charge  For reinsurance exposures only: This is the total exposure