Document ID: chunk:federal_register_of_legislation:F2023L00725:front:0:p5
Version: federal_register_of_legislation:F2023L00725
Segment Type: other
Provision Reference: 
Character Range: 11047–14003

relating to the impact on the capital base and each component of the prescribed capital amount of a Level 2 insurance group due to a reinsurance counterparty failure.

These instructions must be read in conjunction with the general instruction guide.

Reporting tables

Tables described in this reporting standard list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.

Any specific combination of values in a table must not appear on more than one row in that table when reported.

Audit matters

As a result of Insurance (exemption) determination No. 1 of 2023, the Appointed Auditor of a general insurer is not required to audit, or provide a certificate in relation to, information provided by a general insurer under Reporting Standard GRS 460.1 Exposure Analysis by Reinsurance Counterparty (GRS 460.1). Under Prudential Standard GPS 310 Audit and Related Matters (GPS 310) the Group Auditor of a Level 2 insurance group is not required to provide a limited assurance review in relation to information provided by the parent entity of a Level 2 insurance group under GRS 460.1.G. APRA, however, may exercise its power under GPS 310 to require the Appointed Auditor or Group Auditor to undertake a special purpose review of the systems, processes and controls surrounding the completion of GRS 460.1 and GRS 460.1.G, or the data contained within GRS 460.1 and GRS 460.1.G.

Supplementary information

The Level 2 insurance group must ensure that any underlying calculations and assumptions used to complete GRS 460.1.G are made available to APRA upon request from the Level 2 insurance group's APRA responsible supervisor.

Definitions

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

A
APRA counterparty grade                 The counterparty grade of 1 to 7 in accordance with Prudential Standard GPS 001 Definitions (GPS 001).

Asset Concentration Risk Charge (ACRC)  This is the risk charge determined under Prudential Standard GPS 117 Capital Adequacy: Asset Concentration Risk Charge.

Asset Risk Charge                       This is the risk charge determined under Prudential Standard GPS 114 Capital Adequacy: Asset Risk Charge.

C
Capital coverage         This is the Level 2 insurance group's capital base, determined under Prudential Standard GPS 112 Capital Adequacy: Measurement of Capital, divided by its prescribed capital amount, determined under Prudential Standard GPS 110 Capital Adequacy.

Counterparty domicile    For a subsidiary, the domicile is where the counterparty is legally incorporated. For a branch, the domicile is where the counterparty (branch) is located. Where relevant, the counterparty domicile must be reported as stated on the country code list.

Counterparty