Document ID: chunk:federal_register_of_legislation:F2024L01523:body:0:p11
Version: federal_register_of_legislation:F2024L01523
Segment Type: other
Provision Reference: 
Character Range: 28833–31265

approval, waiver or direction) under a previous version of this Prudential Standard continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard.

Attachment A – Transitional Arrangements
 1.              The transitional arrangements provide an adjustment to reduce the prescribed capital amount that is phased out over a two-year period.
 1.              For the transitional requirements to be effective a private health insurer must notify APRA by 30 June 2023 and provide the data described in paragraphs 3(a) and 3(b) by 30 September 2023 using a template that will be provided by APRA.
 2.              The Transitional Adjustment is:
Where:
 1.           A is the capital adequacy requirement calculated under paragraph 9 of the version of Prudential Standard HPS 110 as determined on 26 June 2015  less balance sheet liabilities, as at 30 June 2023
 2.           B is the prescribed capital amount calculated under this standard as at 30 June 2023
 3.           C is the prescribed capital amount calculated at the most recent reporting date under this standard (prior to the transitional adjustment being applied)
 4.           X is a percentage which reduces over time, as set out in Table 1
 1.              The Transitional Adjustment only applies where it reduces the prescribed capital amount calculated in accordance with this Prudential Standard.

Table 1: Schedule for X in the Transitional Adjustment
Quarter commencing  X
1 July 2023         100.0%
1 October 2023      87.5%
1 January 2024      75.0%
1 April 2024        62.5%
1 July 2024         50.0%
1 October 2024      37.5%
1 January 2025      25.0%
1 April 2025        12.5%

[1]          For the purposes of this Prudential Standard, 'transferor insurer' has the meaning given in section 33 of the Act.
[2]          The net asset position of the transferor insurer's health benefits fund immediately after the arrangement takes effect must not be greater than zero as required under paragraph 33(3)(c) of the Act.
[3]  This item must separately identify any transition amount approved by APRA under the capital standards.
[4]  'Financial year' means the last four quarters for which the private health insurer was required to submit quarterly returns in accordance with reporting standards made under FSCODA to APRA preceding the date of the proposed dividend.