Document ID: chunk:federal_register_of_legislation:F2024L01525:body:0:p37
Version: federal_register_of_legislation:F2024L01525
Segment Type: other
Provision Reference: 
Character Range: 99300–102402

write-off (refer to Attachment E to this Prudential Standard) must be subject to the laws of an Australian jurisdiction.
 3.          Where the instrument is subject to the laws of a foreign country, the private health insurer must also ensure all relevant eligibility criteria applicable to the instrument under this Attachment is enforceable under the laws of that jurisdiction.
 4.          APRA may require the private health insurer to provide an independent expert opinion, addressed to APRA by a firm or practitioner of APRA's choice and at the private health insurer's expense, confirming that the instrument meets the requirements of this Prudential Standard.

Attachment E - Loss absorption at the point of non-viability: Additional Tier 1 and Tier 2 Capital instruments
 1.              An Additional Tier 1 Capital or Tier 2 Capital instrument must include a provision whereby upon the earliest occurrence of a non-viability trigger event, it will be immediately and irrevocably:
         1.           converted into the ordinary shares of the private health insurer or its ultimate parent entity, which must be listed at the time the instrument is issued.[44] For an unlisted private health insurer with no listed upstream entity at the time the instrument is issued, the instrument is to be converted into unlisted ordinary shares of the private health insurer. Where an unlisted private health insurer issues the instrument to its listed parent entity, conversion may be into the unlisted shares of the private health insurer;
         2.           converted into mutual equity interests; or
         3.           written off.
 1.              A non-viability event is:
         1.           in relation to a private health insurer when APRA notifies the private health insurer that APRA considers;
                 1.             conversion or write-off of a capital instrument is necessary because, without it, a particular fund or the private health insurer would become non-viable; or
                 2.          without a public sector injection of capital or equivalent support, a particular fund or the private health insurer would become non-viable;
         2.           subject to paragraphs 6 and 7 of this Attachment, where a private health insurer is a locally incorporated subsidiary private health insurer of a foreign entity, notification by the home regulator of the foreign entity to the foreign entity or the private health insurer that the home regulator considers that:
                 1.             conversion or write-off of capital instruments is necessary because without it, the foreign entity or the private health insurer would become non-viable; or
                 2.          without a public sector injection of capital, or equivalent support, the foreign entity or the private health insurer would become non-viable.
 2.              Conversion or write-off of an Additional Tier 1 or Tier 2 Capital instrument must generate an unequivocal addition to the private health insurer's Common Equity Tier 1 Capital (for Additional Tier 1 and Tier 2 Capital