Document ID: chunk:federal_register_of_legislation:F2023L00627:body:0:p7
Version: federal_register_of_legislation:F2023L00627
Segment Type: other
Provision Reference: 
Character Range: 17687–20843

and
                                * adjustments to prescribed capital amount as approved by APRA

                           less:

                                * aggregation benefit.

                           The prescribed capital amount for a life company is subject to a minimum of $10 million, and will be automatically applied where the calculated sum of risk charge components is less than this amount.

R
Risk charge components  The risk charge components, as set out in LPS 114, are calculated by determining the fall in the capital base of the regulated institution in seven stress tests.

Specific Instructions

Table 1: Prescribed Capital Amount (Individual Funds)

Reporting basis

This table applies to life companies including friendly societies. This table applies to statutory, shareholder, benefit and management funds.

Report all information as at the reporting date.

Units of measurement

Values in this table must be completed in whole Australian dollars.

 Column 1  Report the value for each of the items listed below.

1. Asset Risk Charge
 Item 1    Report Asset Risk Charge.

 Item 1.1  Report Asset Risk Charge - impact of diversification.
           Report this item as a positive number.
 Item 1.2  Report Asset Risk Charge - aggregated risk charge component.

2. Insurance Risk Charge
 Item 2  Report Insurance Risk Charge.

3. Aggregate risk charge for variable annuities
 Item 3  Report aggregate risk charge for variable annuities.

4. Asset Concentration Risk Charge
 Item 4  Report Asset Concentration Risk Charge.

5. Operational Risk Charge
 Item 5    Report Operational Risk Charge.

 Item 5.1  Report Operational Risk Charge for risk business (ORCR).

 Item 5.2  Report Operational Risk Charge for investment-linked business (ORCI).

 Item 5.3  Report Operational Risk Charge for other business (ORCO).

6. Aggregation benefit
 Item 6  Report aggregation benefit.
         An aggregation benefit which would result in a decrease to prescribed capital amount should be reported as a positive value.

7. Combined Stress Scenario Adjustment
 Item 7  Report Combined Stress Scenario Adjustment.

8. Adjustments to prescribed capital amount as approved by APRA
 Item 8  Report the value of any adjustments to the prescribed capital amount as approved by APRA.
         Report adjustments that would result in an increase to prescribed capital amount as a positive value.

9. Prescribed capital amount
 Item 9  Prescribed capital amount is a derived item and is calculated as the sum of:

              * item 1;
              * item 2;
              * item 3;
              * item 4;
              * item 5;
              * item 7; and
              * item 8

         less:
            * item 6.

Table 2: Prescribed Capital Amount (Life Company)

Reporting basis

This table applies to life companies including friendly societies. Data must be submitted at the level of the life company.

Report all information as at the reporting date.

Units of measurement

Values in this table must be completed in whole Australian dollars.

 Column 1  Report the value for each of the