Document ID: chunk:federal_register_of_legislation:F2023L00624:front:0:p6
Version: federal_register_of_legislation:F2023L00624
Segment Type: other
Provision Reference: 
Character Range: 14488–18596

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

                                                                                                          For actual offshore reinsurance premium for other business, where an offshore reinsurance arrangement relates to individual or group risk business and another type of business, it is the proportion of the accrued reinsurance premium expense that does not relate to individual or group risk business.

                                                                                                          Outwards reinsurance premium expense of a registered life company represents inwards reinsurance premium income for the offshore reinsurer.

                                                                                                          The definition for the offshore reinsurer's accrued inwards reinsurance premium income should be consistent with the definition of premium in Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0). Premium is defined as gross of commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts.

                                                                                                          Accrued reinsurance premium expense is defined as:

                                                                                                          , where:

                                                                                                          and

                                                                                                          Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.

Adjusted reinsurance asset                                                                                This is the amount by which the adjusted policy liabilities of the fund (as determined under Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112)) would increase, if the adjusted policy liabilities were determined gross of that particular reinsurance exposure.

Adjustment for exposure to eligible collateral items                                                      This is the amount of eligible collateral held against the underlying asset such that the underlying asset is subject to the limits in Attachment A with respect to the collateral, rather than the underlying counterparty. This applies where a fund possesses eligible collateral against an asset and is treating the underlying asset as an exposure to the eligible collateral items.

                                                                                                          Where the eligible collateral items are held in respect of a reinsurance arrangement that is not with a registered life company, the adjustment amount is subject to the LPS 117 paragraph 43 and 44 limitation on recognition of risk mitigants.

Adjustment for exposure to guarantor                                                                      This is the amount subject to a guarantee or letter of credit in respect of the underlying asset such that the underlying asset is subject to the limits in Attachment A as an exposure to the guarantor, rather than an exposure