Document ID: chunk:federal_register_of_legislation:F2023L00644:body:0:p6
Version: federal_register_of_legislation:F2023L00644
Segment Type: other
Provision Reference: 
Character Range: 15694–20968

reinsurance contract assets under AASB 17.
                                                                                           This must exclude any amount already allowed insurance liabilities determined under Prudential Standard HPS 340 Insurance Liability Valuation (HPS 340) to avoid double counting.
Assets under a fixed or floating charge                                                    This is the value of assets of the private health insurer that are under a fixed or floating charge, mortgage or other security to the extent of the indebtedness secured on those assets. This deduction may be reduced by the value of any liability for the charge that is recognised on the private health insurer's balance sheet.
                                                                                           Where the security exclusively supports a private health insurer's insurance liabilities (valued in accordance with HPS 340), the deduction only applies to the amount by which the fair value of the charged assets exceeds the private health insurer's supported insurance liabilities.

C
Capital base                                                                                                The capital base represents the value of capital eligible for the purpose of meeting the Prudential Capital Requirement at the health benefits fund or general fund level or for the private health insurer as set out in Prudential Standard HPS 110 Capital Adequacy.
                                                                                                            For each health benefits fund or general fund, capital base is calculated as the sum of:
                                                                                                                   * net assets of the fund;
                                                                                                                   * net surplus / (deficit) relating to insurance liabilities;
                                                                                                                   * regulatory adjustments to net assets for accounts receivables;
                                                                                                                   * other adjustments to net assets as approved by APRA;
                                                                                                                   * Tier 2 Capital; and
                                                                                                                   * transitional adjustments to net assets of the fund.
                                                                                                            Less:
                                                                                                                   * regulatory adjustments to net assets for accounts payables; and
                                                                                                                   * regulatory adjustments to net assets.
                                                                                                            For the private health insurer, capital base is calculated as the sum of:
                                                                                                                   * Tier 1 Capital; and
                                                                                                                   * Tier 2 Capital.
Capital base (net of Tier 2 Capital) ratio                                                                  Capital base (net of Tier 2 Capital) ratio for the health benefits fund or general fund is calculated as:
                                                                                                                   * capital base less Tier 2 Capital;
                                                                                                            divided by:
                                                                                                                   * prescribed capital amount.
Cash flow hedge reserves relating to hedging of items not recorded at fair value                            This is the value of cash flow hedge reserves that relate to the hedging items that are not recorded at fair value on the balance sheet (including projected cash flows).
Claims payable                                                                                              This is the value of claims payable, which reflects claims due but not paid.
                                                                                                            For inwards reinsurance business, where there is a legal right of set-off within the underlying reinsurance contract, report under this item if the amount after set-off results in a net payable position to the cedant. If there is not a legal right of set-off, report the amount payable without set-off. Also refer to the definition of premiums receivable.
                                                                                                            Claims payable is netted against insurance contract assets