Document ID: chunk:federal_register_of_legislation:F2023L00692:body:0:p3
Version: federal_register_of_legislation:F2023L00692
Segment Type: other
Provision Reference: 
Character Range: 5529–8248

duty, policy fees, loadings and discounts; and
(d)          for the calculation of ORCI and ORCO, 'accrued premium' must also include deposits received.
11.         The ORCR is calculated as follows:
where:
(a)           is 2 per cent for a statutory fund that is a specialist reinsurer and 3 per cent for other funds;
(b)          GP1 is accrued premiums (gross of reinsurance) for the 12 months ending on the reporting date;
(c)          NL1 is the adjusted policy liabilities (net of reinsurance) at the reporting date;
(d)          GP0 is accrued premiums (gross of reinsurance) for the 12 months ending on the date 12 months prior to the reporting date; and
(e)          |GP1 – GP0| is the absolute value of the difference between GP1 and GP0.
12.         For the management fund of a friendly society, GP1, NL1 and GP0 must be summed across all of the risk business in the friendly society's benefit funds.
13.         For a statutory fund of a life company that is not a friendly society, GP1, NL1 and GP0 must be summed across all of the risk business in the statutory fund.
14.         The ORCI and the ORCO are calculated as follows:
where:
(a)           is .15 per cent for a statutory fund that is a specialist reinsurer and .25 per cent for other funds;
(b)          L1 is the adjusted policy liabilities (net of reinsurance) at the reporting date;
(c)          GP1 is accrued premiums (gross of reinsurance) for the 12 months ending on the reporting date;
(d)          GL0 is the adjusted policy liabilities (gross of reinsurance) at the date 12 months prior to the reporting date; and
(e)          C1 is all payments to meet liabilities to policy owners (gross of reinsurance) for the 12 months ending on the reporting date. This excludes payments that are used as premiums for another life policy issued by the life company.
15.         For the management fund of a friendly society, NL1, GP1, GL0 and C1 in paragraph 14 must be summed across all of the investment-linked business of the society (for ORCI) and all the other business of the friendly society that is neither risk business nor investment-linked business (for ORCO).
16.         For a statutory fund of a life company that is not a friendly society, NL1, GP1, GL0 and C1 in paragraph 14 must be summed across all of the investment-linked business in the statutory fund (for ORCI) and all of the other business in the statutory fund that is neither risk business nor investment-linked business (for ORCO).

Adjustments and exclusions
17.         APRA may, by notice in writing to a life company, adjust or exclude a specific requirement in this Prudential Standard in relation to that life company.

Previous exercise of discretion
18.