Document ID: chunk:federal_register_of_legislation:F2023L00622:body:0:p9
Version: federal_register_of_legislation:F2023L00622
Segment Type: other
Provision Reference: 
Character Range: 27470–31234

the life company could be contractually obliged to purchase; and
                                                              * unused portion of the limits agreed with APRA as per the requirements of LPS 112.
Holdings of own Tier 1 Capital instruments                This is the total effective holdings of own Tier 1 Capital instruments that were issued by the life company. This includes Common Equity Tier 1 Capital and Additional Tier 1 Capital instruments held by the life company unless exempted by APRA or eliminated under Australian Accounting Standards.

Holdings of own Tier 2 Capital instruments                This is the total effective holdings of own Tier 2 Capital instruments issued by the fund or life company unless exempted by APRA or eliminated under Australian Accounting Standards.

L

Liability adjustments  For a fund, this is calculated as the sum of:

                           * adjusted policy liabilities deficit / (surplus);
                           * claims payable;
                           * reinsurance premiums payable; and
                           * other accounts payable

                       less:

                           * premiums receivable;
                           * reinsurance recoveries receivable;
                           * other accounts receivable; and
                           * additional tax benefits / (liabilities) from adjustments.

                       For a life company, this item represents the aggregate liability adjustments made across all statutory / benefit funds.

M

Mutual equity interests  This is the value of all mutual equity interests on issue up to a maximum limit of 25 percent of the life company's total Common Equity Tier 1 Capital before applying regulatory adjustments.

                         For the purposes of this item, only include proceeds of issues that have been received by the issuer. Any partly paid issue is reported only to the extent that it has been paid-up.

N

Net assets (less equity components classified as Additional Tier 1 Capital)  For a life company, this is net assets of the life company as reported in the balance sheet after deducting for any equity components classified as Additional Tier 1 Capital.

Net assets of the fund                                                       This is net assets of the fund as reported in the balance sheet.

Net assets of the fund (after seed capital adjustments)                      For a fund, this is net assets of the fund as reported in the balance sheet after making the following adjustments.

                                                                                 * For a friendly society benefit fund, this item includes seed capital transferred to the benefit fund from the management fund.

                                                                                 * For the friendly society management fund, this item excludes seed capital that is a receivable from a benefit fund.

Net assets plus Additional Tier 1 Capital ratio                              For a life company, net assets plus Additional Tier 1 Capital ratio is calculated as the sum of:

                                                                                 * Additional Tier 1 Capital; and
                                                                                 * net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2

                                                                             divided by:

                                                                                 * prescribed capital amount.
Net assets ratio                                                             For a fund, net assets ratio