Document ID: chunk:federal_register_of_legislation:F2023L00624:front:0:p5
Version: federal_register_of_legislation:F2023L00624
Segment Type: other
Provision Reference: 
Character Range: 11162–14761

of values in the table must not appear on more than one row in that table when reported.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

A

Asset Concentration Risk Charge (ACRC)                                                                    The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the fund's capital base.

                                                                                                          This must be determined in accordance with LPS 117.

ACRC for aggregate offshore reinsurance asset exposure                                                    This is the excess (if any) of the net exposure amount for offshore reinsurance asset exposures over and above the aggregate limit specified in paragraph 3 of Attachment A to LPS 117.

ACRC for individual asset exposure                                                                        This is the excess (if any) of the net exposure amount for an individual asset or credit exposure over and above the respective asset concentration limit specified in paragraph 1 of Attachment A of LPS 117.

ACRC aggregate limit for offshore reinsurance asset exposure                                              This is the aggregate limit for offshore reinsurance asset exposures specified in paragraph 3 of Attachment A to LPS 117.

                                                                                                          The aggregate limit applies across all reinsurance arrangements which are not with a registered life company or appropriate retrocessionaire. Life companies must apportion the aggregate limit across all such arrangements in proportion to the exposure amounts being assessed against the aggregate limit.

ACRC limit for individual asset exposure after cumulative exposure adjustment                             This is the individual asset or credit exposure asset concentration limit specified in paragraph 1 of Attachment A to LPS 117, reduced for cumulative exposures to the same counterparty or related counterparties in respect of all asset classes with lower limits.

ACRC limit for individual asset exposure before cumulative exposure adjustment                            This is the individual asset or credit exposure asset concentration limit specified in paragraph 1 of Attachment A to LPS 117, before adjusting for cumulative exposures to the same counterparty or related counterparties in respect of all asset classes with lower limits.

Actual offshore reinsurance premium for group risk business                                               This is reinsurance premium expense accrued over the reporting period in respect of group risk business / individual risk business / other business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.

Actual offshore reinsurance premium for individual risk business                                          For actual offshore reinsurance premium for group risk business, where an offshore reinsurance arrangement relates to group risk business and another type of business, it is the proportion of the accrued reinsurance premium expense that relates to group risk business.

Actual