Document ID: chunk:federal_register_of_legislation:F2023L00578:front:0:p7
Version: federal_register_of_legislation:F2023L00578
Segment Type: other
Provision Reference: 
Character Range: 17660–21185

exposures and is the sum of the Asset Concentration Risk Charges for each non-reinsurance exposure category.

                                                 This is the excess (if any) of the net exposure amount over and above the respective Asset Concentration Risk Charge limit and is calculated as the greater of:

                                                      * Asset Concentration Risk Charge net exposure amount less Asset Concentration Risk Charge limit amount; and
                                                      * Asset Concentration Risk Charge long term net exposure amount less Asset Concentration Risk Charge long term limit amount,
                                                 subject to a floor of zero.

O

Off-Balance Sheet Large Exposure Amount  This represents the fair value of the exposure, net of provision for doubtful debts, recognised off-balance sheet.

On-Balance Sheet Large Exposure Amount   This represents the fair value of the exposure, net of provision for doubtful debts, recognised on-balance sheet.

R

Reinsurance Asset Concentration Risk Charge  This represents the Asset Concentration Risk Charge for reinsurance exposures and is the sum of the Asset Concentration Risk Charges for reinsurance exposures across all counterparty grades.

                                             This is the excess (if any) of the net exposure amount over and above the respective Asset Concentration Risk Charge limit and is calculated as exposure subject to Asset Concentration Risk Charge less Asset Concentration Risk Charge limit amount, subject to a floor of zero.

Related party                                This means the type of relationship of the counterparty to the reporting insurer. This can take the values of:

                                                  * parent;
                                                  * controlled entity;
                                                  * associate / joint venture; or
                                                  * other related party.
                                             Definitions of the related party types listed above can be found in GPS 001.

T

Total large exposure amount  This represents the fair value of the exposure, net of provision for doubtful debts, and includes both on-balance sheet and off-balance sheet amounts.

                             This is calculated as the sum of:

                                  * on-balance sheet large exposure amount; and
                                  * off-balance sheet large exposure amount.

Specific instructions

Table 1: Large Exposures

Reporting threshold

Complete this section for each exposure to an asset, a counterparty or a group of counterparties that is greater than 10 per cent of the capital base (or adjusted net assets in Australia for a Category C insurer) of the reporting insurer. Where the aggregate exposure to a group of related counterparties is over the 10 per cent threshold, report the exposure to each individual counterparty separately, even if the individual exposure is less than the threshold.

Collateral and guarantees

For exposures that are supported by collateral, guarantees or letters of credit (eligible credit support):

    * If the exposure is covered by more than one collateral / guarantee / letter of credit, split the original exposure into multiple rows for each eligible credit support applicable.
    * If the eligible credit support provided doesn't cover the full