Document ID: chunk:federal_register_of_legislation:F2023L00569:body:0:p7
Version: federal_register_of_legislation:F2023L00569
Segment Type: other
Provision Reference: 
Character Range: 16793–19837

groups are to be completed by the parent entity of a Level 2 insurance group as defined under Prudential Standard GPS 001 Definitions (GPS 001). Consolidation at Level 2 must cover the Level 2 insurance group as defined under GPS 001.

    6.2.           Definition of 'Australian Business' and 'International Business'

Level 2 groups are required to report financial data on both Australian and international exposures. 'Australian Business' is defined in GPS 001 and means insurance business carried on by any Level 1 insurer within a Level 2 group.

'International Business' is also defined in GPS 001 and means insurance business carried on by an entity within the group that is not authorised under the Act. Therefore, for the purposes of prudential reporting, all insurance business written by Level 1 insurers (as defined in GPS 001) is deemed to be Australian business. This treatment is different to the requirements of AASB 17 Insurance Contracts and other Australian Accounting Standards.

For entities which are not insurers within the Level 2 group, items must be reported as:

     * 'Australian Business' when they relate to an entity incorporated in Australia; and

     * The international region that most appropriately reflects the business and / or operational segments of the group, when they relate to an entity incorporated outside of Australia.

Level 2 groups may apply to APRA to be exempt from having to report international business according to the format specified in some reporting tables. This exemption, however, will be subject to the group providing information to APRA in another suitable and agreed upon format.

     6.2.1.         Australian business

Australian business of a Level 2 group is as per the definition in GPS 001.

     6.2.2.         International business

For the international operations of a Level 2 group, only report insurance business deemed to be general insurance business[1].

International business is to be reported according to the following geographical regions and these regions must be defined consistently across all the Level 2 reporting tables that require data to be split by international region:

     * New Zealand;

     * South East Asia;

     * Asia Pacific;

     * USA;

     * Americas;

     * UK/Europe; and

     * Other.

Amounts reported for Australia and other regions must be reported on the basis that these entities (or regions) are separate from the group before consolidation.

Once regions are defined, they must generally be maintained thereafter for consistency. However, this does not prevent the Level 2 group from altering its reporting regions where necessary, provided APRA is notified of any change.

     6.2.3.         Inter-region eliminations

The value of inter-region transactions, which are eliminated on consolidation, need to be reported under 'Inter-region elimination'. These transactions must be removed to eliminate double counting.

    6.3.           Measurement of assets

The measurement of assets