Document ID: chunk:federal_register_of_legislation:F2023L00570:front:0:p11
Version: federal_register_of_legislation:F2023L00570
Segment Type: other
Provision Reference: 
Character Range: 28253–33762

the sum of the risk charge components used in calculating the aggregated risk charge component, less the aggregated risk charge component as set out in GPS 114.
Impact on capital base                                                      This shows the impact on the capital base of each asset risk stress scenario as set out in GPS 114.

                                                                            This item is calculated for each stress scenario type as the sum of:
                                                                                * cash and cash equivalents
                                                                                * current tax assets
                                                                                * interest rate investments (direct)
                                                                                * equities (direct)
                                                                                * property (direct)
                                                                                * loans (direct)
                                                                                * indirect investments
                                                                                * deferred tax assets
                                                                                * derivatives (assets)
                                                                                * investments in related entities (associates, joint ventures, subsidiaries)
                                                                                * other assets subject to Asset Risk Charge
                                                                                * deferred tax liabilities
                                                                                * derivatives (liabilities)
                                                                                * other liabilities subject to Asset Risk Charge
                                                                                * reinsurance recoverables on outstanding claims
                                                                                * amounts receivable on reinsurance contracts held
                                                                                * expected reinsurance recoveries
                                                                                * other reinsurance assets
                                                                                * GPS 340 net outstanding claims liabilities
                                                                                * GPS 340 net premium liabilities
                                                                                * premiums receivable
                                                                                * non-reinsurance recoveries receivable
                                                                                * other accounts receivable on insurance contracts issued
                                                                                * claims payable
                                                                                * amounts payable on reinsurance contracts held
                                                                                * other accounts payable on insurance contracts issued
                                                                                * off-balance sheet exposures
Indirect investments                                                        This is the value of the net assets of unit trusts or managed investment schemes invested in by the reporting Level 2 insurance group, or mandates individually managed on behalf of the reporting Level 2 insurance group.

(Items subject to Asset Risk Charge type)
Interest rate investments (direct)                                          This is the value of debt securities held by the reporting Level 2 insurance group as at the relevant date, plus the value of deposits and placements that have been classified by the reporting Level 2 insurance group as assets backing insurance liabilities for statutory reporting purposes. A debt security is a transferable instrument evidencing a relationship of indebtedness. It is characterised by having a definable return that is not based on the economic performance of the issuing entity.

(Items subject to Asset Risk Charge type)
Investments in related entities (associates, joint ventures, subsidiaries)  This is the value of strategic investments or acquisitions of the reporting Level 2 insurance group.

(Items subject to Asset Risk Charge type)                                   This includes investments in associates, joint ventures and subsidiaries from the AASB 17 balance sheet.

                                                                            This does not include investments that constitute assets backing general insurance liabilities.

L
Loans (direct)                             This is the value of loans. Loans include financial leases and mortgages, and are typically non-negotiable on the secondary market.

(Items subject to Asset Risk Charge type)

N
Non-reinsurance recoveries receivable      This is the value of non-reinsurance recoveries on paid claims.

(Items subject to Asset Risk Charge type)  Non-reinsurance recoveries receivable is netted