{"id":"F2023L00624","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 118 of 2023","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-118-of-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104321,"registerId":"commonwealth-F2023L00624-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard LRS 117.0","sectionType":"part","heading":"Reporting Standard LRS 117.0","content":"![Commonwealth Coat of Arms of Australia](image.002.png) \n\n# Reporting Standard LRS 117.0\n\n## Asset Concentration Risk Charge\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA in relation to calculating a life insurance company’s Asset Concentration Risk Charge.\n\nIt includes associated specific instructions and must be read in conjunction with Reporting Standard LRS 001 Reporting Requirements (LRS 001), including the general instruction guide, and Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117).\n\n### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\n### Purpose\n\n2. The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital adequacy standards.\n\n### Application and commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.\n\n### Information required\n\n4. A life company must provide APRA with the information required by this Reporting Standard for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Act. It does not constitute a reporting document for the purposes of section 124.\n\n### Method of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n (a) in electronic format using an electronic method available on APRA’s website; or\n (b) by a method notified by APRA prior to submission.\n\n### Reporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that information provided under this Reporting Standard will be submitted five times for a full financial year.\n\nNote 2: The annual audited information provided under this Reporting Standard must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters.\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) in the case of quarterly information, within 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of annual information, within three months after the end of the reporting period to which the information relates; or\n\n(c) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\n10. APRA may, in writing, grant a life company an extension of a due date, in which case the new due date will be the date on the notice of extension.\n\nNote: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, a life company is nonetheless required to submit the information required no later than the due date.\n\n### Quality control\n\n11. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard LPS 310 Audit and Related Matters.\n\n12. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n13. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).\n\n### Authorisation\n\n14. When an officer or agent of a life company provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n 15. An officer or agent of a life company who submits information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.\n\n### Variations\n\n16. APRA may, by written notice to the life company, vary the reporting requirements of this Reporting Standard in relation to that life company.\n\n### Transition\n\n17. A life company must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this Reporting Standard; and\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n (a) which ended before 1 July 2023; and\n (b) in relation to which the life company was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: For the avoidance of doubt, if a life company was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the life company is still required to provide any overdue reporting documents in accordance with the old reporting standard.\n\n### Interpretation\n\n18. In this Reporting Standard:\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) the following definitions are applicable:\n\nAuditor means an auditor appointed under paragraph 83 of the Life Act.\n\ncapital adequacy standards means the prudential standards which relate to capital adequacy as defined in LPS 001.\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called.\n\nfinancial year has the meaning in the Corporations Act 2001.\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001.\n\nLife Act means the Life Insurance Act 1995.\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity.\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.\n\n19. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.","sortOrder":0},{"sectionNumber":"Asset Concentration Risk Charge","sectionType":"part","heading":"Asset Concentration Risk Charge","content":"![Commonwealth Coat of Arms of Australia](image.002.png) \n\n# Reporting Standard LRS 117.0\n\n## Asset Concentration Risk Charge\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA in relation to calculating a life insurance company’s Asset Concentration Risk Charge.\n\nIt includes associated specific instructions and must be read in conjunction with Reporting Standard LRS 001 Reporting Requirements (LRS 001), including the general instruction guide, and Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117).\n\n### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\n### Purpose\n\n2. The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital adequacy standards.\n\n### Application and commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.\n\n### Information required\n\n4. A life company must provide APRA with the information required by this Reporting Standard for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Act. It does not constitute a reporting document for the purposes of section 124.\n\n### Method of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n (a) in electronic format using an electronic method available on APRA’s website; or\n (b) by a method notified by APRA prior to submission.\n\n### Reporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that information provided under this Reporting Standard will be submitted five times for a full financial year.\n\nNote 2: The annual audited information provided under this Reporting Standard must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters.\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) in the case of quarterly information, within 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of annual information, within three months after the end of the reporting period to which the information relates; or\n\n(c) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\n10. APRA may, in writing, grant a life company an extension of a due date, in which case the new due date will be the date on the notice of extension.\n\nNote: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, a life company is nonetheless required to submit the information required no later than the due date.\n\n### Quality control\n\n11. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard LPS 310 Audit and Related Matters.\n\n12. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n13. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).\n\n### Authorisation\n\n14. When an officer or agent of a life company provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n 15. An officer or agent of a life company who submits information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.\n\n### Variations\n\n16. APRA may, by written notice to the life company, vary the reporting requirements of this Reporting Standard in relation to that life company.\n\n### Transition\n\n17. A life company must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this Reporting Standard; and\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n (a) which ended before 1 July 2023; and\n (b) in relation to which the life company was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: For the avoidance of doubt, if a life company was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the life company is still required to provide any overdue reporting documents in accordance with the old reporting standard.\n\n### Interpretation\n\n18. In this Reporting Standard:\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) the following definitions are applicable:\n\nAuditor means an auditor appointed under paragraph 83 of the Life Act.\n\ncapital adequacy standards means the prudential standards which relate to capital adequacy as defined in LPS 001.\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called.\n\nfinancial year has the meaning in the Corporations Act 2001.\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001.\n\nLife Act means the Life Insurance Act 1995.\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity.\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.\n\n19. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.","sortOrder":1},{"sectionNumber":"Objective of this Reporting Standard","sectionType":"division","heading":"Objective of this Reporting Standard","content":"### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA in relation to calculating a life insurance company’s Asset Concentration Risk Charge.\n\nIt includes associated specific instructions and must be read in conjunction with Reporting Standard LRS 001 Reporting Requirements (LRS 001), including the general instruction guide, and Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117).","sortOrder":2},{"sectionNumber":"Authority","sectionType":"division","heading":"Authority","content":"### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.","sortOrder":3},{"sectionNumber":"Purpose","sectionType":"division","heading":"Purpose","content":"### Purpose\n\n2. The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital adequacy standards.","sortOrder":4},{"sectionNumber":"Application and commencement","sectionType":"division","heading":"Application and commencement","content":"### Application and commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.","sortOrder":5},{"sectionNumber":"Information required","sectionType":"division","heading":"Information required","content":"### Information required\n\n4. A life company must provide APRA with the information required by this Reporting Standard for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Act. It does not constitute a reporting document for the purposes of section 124.","sortOrder":6},{"sectionNumber":"Method of submission","sectionType":"division","heading":"Method of submission","content":"### Method of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n (a) in electronic format using an electronic method available on APRA’s website; or\n (b) by a method notified by APRA prior to submission.","sortOrder":7},{"sectionNumber":"Reporting periods and due dates","sectionType":"division","heading":"Reporting periods and due dates","content":"### Reporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that information provided under this Reporting Standard will be submitted five times for a full financial year.\n\nNote 2: The annual audited information provided under this Reporting Standard must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters.\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) in the case of quarterly information, within 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of annual information, within three months after the end of the reporting period to which the information relates; or\n\n(c) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\n10. APRA may, in writing, grant a life company an extension of a due date, in which case the new due date will be the date on the notice of extension.\n\nNote: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, a life company is nonetheless required to submit the information required no later than the due date.","sortOrder":8},{"sectionNumber":"Quality control","sectionType":"division","heading":"Quality control","content":"### Quality control\n\n11. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard LPS 310 Audit and Related Matters.\n\n12. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n13. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).","sortOrder":9},{"sectionNumber":"Authorisation","sectionType":"division","heading":"Authorisation","content":"### Authorisation\n\n14. When an officer or agent of a life company provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n 15. An officer or agent of a life company who submits information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.","sortOrder":10},{"sectionNumber":"Variations","sectionType":"division","heading":"Variations","content":"### Variations\n\n16. APRA may, by written notice to the life company, vary the reporting requirements of this Reporting Standard in relation to that life company.","sortOrder":11},{"sectionNumber":"Transition","sectionType":"division","heading":"Transition","content":"### Transition\n\n17. A life company must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this Reporting Standard; and\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n (a) which ended before 1 July 2023; and\n (b) in relation to which the life company was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: For the avoidance of doubt, if a life company was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the life company is still required to provide any overdue reporting documents in accordance with the old reporting standard.","sortOrder":12},{"sectionNumber":"Interpretation","sectionType":"division","heading":"Interpretation","content":"### Interpretation\n\n18. In this Reporting Standard:\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) the following definitions are applicable:\n\nAuditor means an auditor appointed under paragraph 83 of the Life Act.\n\ncapital adequacy standards means the prudential standards which relate to capital adequacy as defined in LPS 001.\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called.\n\nfinancial year has the meaning in the Corporations Act 2001.\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001.\n\nLife Act means the Life Insurance Act 1995.\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity.\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.\n\n19. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.","sortOrder":13},{"sectionNumber":"General instructions","sectionType":"part","heading":"General instructions","content":"# Reporting Standard LRS 117.0\n\n# Asset Concentration Risk Charge\n\n## General instructions\n\n### Reporting tables\n\nTables in these instructions 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.\n\nAny specific combination of values in the table must not appear on more than one row in that table when reported.\n\n### Definitions\n\nTerms highlighted in bold italics indicate that the definition is provided in these instructions.\n\nA\n\n| Asset Concentration Risk Charge (ACRC) | The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the fund’s capital base.This must be determined in accordance with LPS 117. |\n| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| ACRC for aggregate offshore reinsurance asset exposure | This is the excess (if any) of the net exposure amount for offshore reinsurance asset exposures over and above the aggregate limit specified in paragraph 3 of Attachment A to LPS 117. |\n| ACRC for individual asset exposure | This is the excess (if any) of the net exposure amount for an individual asset or credit exposure over and above the respective asset concentration limit specified in paragraph 1 of Attachment A of LPS 117. |\n| ACRC aggregate limit for offshore reinsurance asset exposure | This is the aggregate limit for offshore reinsurance asset exposures specified in paragraph 3 of Attachment A to LPS 117.The aggregate limit applies across all reinsurance arrangements which are not with a registered life company or appropriate retrocessionaire. Life companies must apportion the aggregate limit across all such arrangements in proportion to the exposure amounts being assessed against the aggregate limit. |\n| ACRC limit for individual asset exposure after cumulative exposure adjustment | This is the individual asset or credit exposure asset concentration limit specified in paragraph 1 of Attachment A to LPS 117, reduced for cumulative exposures to the same counterparty or related counterparties in respect of all asset classes with lower limits. |\n| ACRC limit for individual asset exposure before cumulative exposure adjustment | This is the individual asset or credit exposure asset concentration limit specified in paragraph 1 of Attachment A to LPS 117, before adjusting for cumulative exposures to the same counterparty or related counterparties in respect of all asset classes with lower limits. |\n| Actual offshore reinsurance premium for group risk businessActual offshore reinsurance premium for individual risk businessActual offshore reinsurance premium for other business | This is reinsurance premium expense accrued over the reporting period in respect of group risk business / individual risk business / other business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.For 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.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:andLife 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. |\n| 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. |\n| 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. |\n| 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 to the underlying counterparty. This applies where a fund possesses a guarantee or letter of credit and is treating the underlying asset as an exposure to the guarantor or the issuer of the letter of credit.Where the guarantee or letter of credit is 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. |\n| Adjustment for other arrangement | This is the amount of any other arrangement (i.e. other than eligible collateral items, guarantees or letter of credit) which is held against the underlying asset that substitutes for the underlying asset when applying the limits in Attachment A. This item is intended to capture any other types of risk mitigant that APRA may recognise in place of an asset. |\n| Amount by which reinsurance counterparty exposure has been reduced through explicit netting arrangements | LPS 117 specifies that assets and liabilities arising from arrangements with a reinsurer may be netted to the extent they are subject to a legally enforceable right of offset in circumstances including the default, liquidation, bankruptcy or winding-up of the life company, the reinsurer or both.Contractual terms in a reinsurance treaty that alter the underlying reinsurance premium and claim recovery cash flows or involve other payments may reduce an insurer’s exposure to a reinsurance counterparty.Examples include:premium deferral: where the insurer is allowed to defer reinsurance premiums, either in the normal course of business or as a means of avoiding an ACRC;funds withheld: where a portion of reinsurance premiums is withheld, typically equal to the reinsurer’s expected share of expected incurred claims.deposit back: where the reinsurer invests the assets backing the reinsured policy liabilities with the cedant.modified coinsurance: where reinsurance recoveries are based on changes to policy liabilities or incurred claims reserves instead of paid claims.Where an insurer uses these types of netting arrangements to reduce its exposure to a reinsurance counterparty, it must report the amount by which the exposure has been reduced as a result of netting. |\n| Asset identifier | This is an individual whole number assigned to each line item such that each line item has a unique identifier.Asset identifiers must be assigned to both underlying assets and individual eligible collateral items, guarantee and letter of credit exposures that are recognised in place of the underlying assets. |\n| Asset identifier to which risk mitigant asset relates | This is a cross-reference identifier which links an individual risk mitigant asset to the underlying asset against which it is held. For example, if an eligible collateral item is held in place of an underlying asset with the asset identifier of 3, the life company must put 3 as a value under this data item in respect of the eligible collateral item. If a fund is treating a reinsurance asset (with asset identifier 5) that has been guaranteed by a bank as an exposure to the guarantor (reported with asset identifier 6) the life company must report 5 for this data item in the exposure to guarantor asset line item. |\n| Assets backing non-participating benefits with entitlement to discretionary additions | This is the amount of assets allocated to support non-participating benefits with entitlement to discretionary additions (gross policy liabilities only).These assets are excluded for the calculation of VAF for reinsurance assets together with assets backing participating traditional business and participating unbundled investment business. |\n| Assets backing participating traditional business and participating unbundled investment business | This is the amount of assets allocated to support:participating traditional business; andparticipating unbundled investment business.It represents the amount of gross policy liabilities, policy owners’ retained profits and shareholders’ retained profits in respect of these types of business.These assets are excluded for the calculation of VAF for reinsurance assets together with assets backing non-participating benefits with entitlement to discretionary additions. |\n\nC\n\n| Counterparty grade 1, 2 or 3 before downgrade | This is an indicator that identifies whether the reinsurance counterparty had a counterparty grade 1, 2 or 3 at the time that the reinsurance arrangement was entered into. This relates to reinsurance arrangements with a registered life company, an APRA approved affiliated entity or an appropriate retrocessionaire where LPS 117 specifies a phased reduction in the asset concentration limit in the event of the reinsurance counterparty being downgraded below grade 3.Possible values are:yes;no; andnot applicable. |\n| --------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Counterparty group name | For each counterparty entity to which the life company has exposure, this is the registered business name of the corporate group to which the counterparty entity belongs.Where the counterparty entity does not belong to a group, it is the counterparty name. |\n| Counterparty name | This is the registered business name of the counterparty entity to which the life company has exposure. |\n| Current counterparty grade | This is the counterparty grade of the asset or counterparty to which the life company has exposure. The counterparty grade must be determined in accordance with LPS 001 as at the reporting date. |\n\nE\n\n| Exposure amount assessed against individual ACRC limit | This is the amount of on-balance sheet or off-balance sheet exposure which is assessed against ACRC limit for individual asset exposure after cumulative exposure.For exposures to reinsurance assets it is the stressed value of the reinsurance asset, net of any regulatory adjustments to capital base related to the exposure, less the sum of:adjustment for exposure to eligible collateral items;adjustment for exposure to guarantor; andadjustment for other arrangement.For non-reinsurance assets it is the fair value of the non-reinsurance asset, net of any regulatory adjustments to capital base related to the exposure, less the sum of:adjustment for exposure to eligible collateral items;adjustment for exposure to guarantor; andadjustment for other arrangement.For eligible collateral, exposures to a guarantor or other types of risk mitigant that APRA recognises in place of an underlying asset, it is the amount recognised by APRA. |\n| ------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Exposure amount assessed against aggregate ACRC limit | This is the amount of exposure which is assessed against ACRC aggregate limit for offshore reinsurance asset exposure.For reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire, it is the exposure amount assessed against individual ACRC limit subject to a maximum of ACRC limit for individual asset exposure after cumulative exposure adjustment. |\n| Exposure category | This is the category of exposure. Possible exposure categories are:underlying asset;eligible collateral item (this would apply if the asset is an eligible collateral item that is being recognised in place of the underlying non-reinsurance or reinsurance asset);exposure to guarantor (this would apply if the item is an exposure to a guarantor or issuer of a letter of credit that is being recognised in place of the underlying non-reinsurance or reinsurance asset); andother (this would apply for another type of risk mitigant asset or exposure that APRA recognises in place of the underlying non-reinsurance or reinsurance asset). |\n| Exposure description | This is brief description of the exposure in question which provides additional information to help APRA to better understand the exposure. For example, this would allow APRA to understand multiple exposures which may be classified under the same exposure type with the same counterparty. |\n| Exposure type | This is the type of exposure. Possible exposure types are outlined in Appendix A. |\n\nF\n\n| Fair value of non-reinsurance asset | For non-reinsurance assets, this is fair value of the asset, before offsets for deferred tax provisions or other liabilities related to the asset that would be realised if the asset was sold. It is the value before being reduced by any amounts that have been treated as deductions from the capital base, as determined under LPS 112. |\n| ----------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nL\n\n| Life company fund | This means the type of life company fund. Possible types are:statutory fund;benefit fund;shareholder fund; andmanagement fund. |\n| ----------------- | ------------------------------------------------------------------------------------------------------------------------------ |\n\nN\n\n| Notional offshore reinsurance premium for group risk business | This is notional reinsurance premium expense over the reporting period in respect of group risk business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.Notional reinsurance premiums are measured on the premium basis of the underlying group risk policies that have been reinsured offshore. This is the reinsurance premium that would be paid if the reinsurer charges the cedant on the same basis as the premium basis that the cedant applied to charge to its policyholders.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. |\n| ------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| Notional offshore reinsurance premium for individual risk business | This is notional reinsurance premium expense over the reporting period in respect of individual risk business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.Notional reinsurance premiums are measured on the premium basis of the underlying individual risk policies that have been reinsured offshore. This is the reinsurance premium that would be paid if the reinsurer charges the cedant on the same basis as the premium basis that the cedant applied to charge to its policyholders.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. |\n\nO\n\n| Offshore reinsurance premium ratio for group risk business | This is the ratio of notional offshore reinsurance premium for group risk business relating to a particular reinsurance arrangement to total gross premium expense for group risk business for the statutory fund. This reflects the proportion of group risk business risks that is being ceded offshore. |\n| --------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Offshore reinsurance premium ratio for individual risk business | This is the ratio of notional offshore reinsurance premium for individual risk business relating to a particular reinsurance arrangement to total gross premium expense for individual risk business for the total statutory fund. This reflects the proportion of individual risk business risks that is being ceded offshore. |\n| On-balance sheet / off-balance sheet | This is to identify whether an exposure is on balance sheet or off balance sheet. Possible values are:on-balance sheet; andoff-balance sheet. |\n\nP\n\n| Period after downgrade below grade 3 | Where the reinsurer had a counterparty grade of 1, 2 or 3 at the time the the reinsurance arrangement was entered into but a current counterparty grade below grade 3, this is the length of period post downgrade below grade 3. This relates to reinsurance arrangements with a registered life company, an APRA approved affiliated entity or an appropriate retrocessionaire where LPS 117 specifies a phased reduction in the asset concentration limit in the event of the reinsurance counterparty being downgraded below grade 3.The categories of period can be:0 to 3 months;more than 3 months to 12 months;more than 12 months to 24 months; andmore than 24 months. |\n| ------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nR\n\n| Reinsurance arrangement description | This is brief description of the reinsurance arrangement which provides additional information to help APRA to better understand the risks covered under the offshore reinsurance arrangement. |\n| ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nS\n\n| Stressed value of reinsurance asset under combination-stress method | LPS 117 specifies that if a reinsurance asset would increase in value when one or more of the equity, property, credit spreads, currency or default stresses specified in Prudential Standard LPS 114 Capital Adequacy Asset Risk Charge (LPS 114) are applied to the fund’s other assets, the stressed value of the reinsurance asset must be determined as the greater of an amount determined in accordance with the insurance-stress method and an amount determined in accordance with the combination-stress method.The stressed value of a reinsurance asset under the combination-stress method is calculated in accordance with paragraph 19 of LPS 117.This value should be reported at this item for any reinsurance assets that increase in value when the equity, property, credit spreads, currency or default stresses are applied. |\n| ------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Stressed value of reinsurance asset under insurance-stress method | For reinsurance exposures, this is the amount by which the stressed policy liabilities of the fund (as determined under Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge) would increase, if the stressed policy liabilities were determined gross of that particular reinsurance exposure. |\n\nV\n\n| Value of assets of the fund (VAF) for non-reinsurance assets | This is the value of the assets of the fund determined for the purpose of calculating asset concentration limits for non-reinsurance asset exposures in the fund. |\n| ------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| VAF for reinsurance assets | This is the value of the assets of the fund determined for the purpose of calculating asset concentration limits for reinsurance asset exposures in the fund. |","sortOrder":16},{"sectionNumber":"Reporting tables","sectionType":"division","heading":"Reporting tables","content":"### Reporting tables\n\nTables in these instructions 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.\n\nAny specific combination of values in the table must not appear on more than one row in that table when reported.","sortOrder":17},{"sectionNumber":"Definitions","sectionType":"division","heading":"Definitions","content":"### Definitions\n\nTerms highlighted in bold italics indicate that the definition is provided in these instructions.\n\nA\n\n| Asset Concentration Risk Charge (ACRC) | The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the fund’s capital base.This must be determined in accordance with LPS 117. |\n| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| ACRC for aggregate offshore reinsurance asset exposure | This is the excess (if any) of the net exposure amount for offshore reinsurance asset exposures over and above the aggregate limit specified in paragraph 3 of Attachment A to LPS 117. |\n| ACRC for individual asset exposure | This is the excess (if any) of the net exposure amount for an individual asset or credit exposure over and above the respective asset concentration limit specified in paragraph 1 of Attachment A of LPS 117. |\n| ACRC aggregate limit for offshore reinsurance asset exposure | This is the aggregate limit for offshore reinsurance asset exposures specified in paragraph 3 of Attachment A to LPS 117.The aggregate limit applies across all reinsurance arrangements which are not with a registered life company or appropriate retrocessionaire. Life companies must apportion the aggregate limit across all such arrangements in proportion to the exposure amounts being assessed against the aggregate limit. |\n| ACRC limit for individual asset exposure after cumulative exposure adjustment | This is the individual asset or credit exposure asset concentration limit specified in paragraph 1 of Attachment A to LPS 117, reduced for cumulative exposures to the same counterparty or related counterparties in respect of all asset classes with lower limits. |\n| ACRC limit for individual asset exposure before cumulative exposure adjustment | This is the individual asset or credit exposure asset concentration limit specified in paragraph 1 of Attachment A to LPS 117, before adjusting for cumulative exposures to the same counterparty or related counterparties in respect of all asset classes with lower limits. |\n| Actual offshore reinsurance premium for group risk businessActual offshore reinsurance premium for individual risk businessActual offshore reinsurance premium for other business | This is reinsurance premium expense accrued over the reporting period in respect of group risk business / individual risk business / other business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.For 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.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:andLife 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. |\n| 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. |\n| 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. |\n| 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 to the underlying counterparty. This applies where a fund possesses a guarantee or letter of credit and is treating the underlying asset as an exposure to the guarantor or the issuer of the letter of credit.Where the guarantee or letter of credit is 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. |\n| Adjustment for other arrangement | This is the amount of any other arrangement (i.e. other than eligible collateral items, guarantees or letter of credit) which is held against the underlying asset that substitutes for the underlying asset when applying the limits in Attachment A. This item is intended to capture any other types of risk mitigant that APRA may recognise in place of an asset. |\n| Amount by which reinsurance counterparty exposure has been reduced through explicit netting arrangements | LPS 117 specifies that assets and liabilities arising from arrangements with a reinsurer may be netted to the extent they are subject to a legally enforceable right of offset in circumstances including the default, liquidation, bankruptcy or winding-up of the life company, the reinsurer or both.Contractual terms in a reinsurance treaty that alter the underlying reinsurance premium and claim recovery cash flows or involve other payments may reduce an insurer’s exposure to a reinsurance counterparty.Examples include:premium deferral: where the insurer is allowed to defer reinsurance premiums, either in the normal course of business or as a means of avoiding an ACRC;funds withheld: where a portion of reinsurance premiums is withheld, typically equal to the reinsurer’s expected share of expected incurred claims.deposit back: where the reinsurer invests the assets backing the reinsured policy liabilities with the cedant.modified coinsurance: where reinsurance recoveries are based on changes to policy liabilities or incurred claims reserves instead of paid claims.Where an insurer uses these types of netting arrangements to reduce its exposure to a reinsurance counterparty, it must report the amount by which the exposure has been reduced as a result of netting. |\n| Asset identifier | This is an individual whole number assigned to each line item such that each line item has a unique identifier.Asset identifiers must be assigned to both underlying assets and individual eligible collateral items, guarantee and letter of credit exposures that are recognised in place of the underlying assets. |\n| Asset identifier to which risk mitigant asset relates | This is a cross-reference identifier which links an individual risk mitigant asset to the underlying asset against which it is held. For example, if an eligible collateral item is held in place of an underlying asset with the asset identifier of 3, the life company must put 3 as a value under this data item in respect of the eligible collateral item. If a fund is treating a reinsurance asset (with asset identifier 5) that has been guaranteed by a bank as an exposure to the guarantor (reported with asset identifier 6) the life company must report 5 for this data item in the exposure to guarantor asset line item. |\n| Assets backing non-participating benefits with entitlement to discretionary additions | This is the amount of assets allocated to support non-participating benefits with entitlement to discretionary additions (gross policy liabilities only).These assets are excluded for the calculation of VAF for reinsurance assets together with assets backing participating traditional business and participating unbundled investment business. |\n| Assets backing participating traditional business and participating unbundled investment business | This is the amount of assets allocated to support:participating traditional business; andparticipating unbundled investment business.It represents the amount of gross policy liabilities, policy owners’ retained profits and shareholders’ retained profits in respect of these types of business.These assets are excluded for the calculation of VAF for reinsurance assets together with assets backing non-participating benefits with entitlement to discretionary additions. |\n\nC\n\n| Counterparty grade 1, 2 or 3 before downgrade | This is an indicator that identifies whether the reinsurance counterparty had a counterparty grade 1, 2 or 3 at the time that the reinsurance arrangement was entered into. This relates to reinsurance arrangements with a registered life company, an APRA approved affiliated entity or an appropriate retrocessionaire where LPS 117 specifies a phased reduction in the asset concentration limit in the event of the reinsurance counterparty being downgraded below grade 3.Possible values are:yes;no; andnot applicable. |\n| --------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Counterparty group name | For each counterparty entity to which the life company has exposure, this is the registered business name of the corporate group to which the counterparty entity belongs.Where the counterparty entity does not belong to a group, it is the counterparty name. |\n| Counterparty name | This is the registered business name of the counterparty entity to which the life company has exposure. |\n| Current counterparty grade | This is the counterparty grade of the asset or counterparty to which the life company has exposure. The counterparty grade must be determined in accordance with LPS 001 as at the reporting date. |\n\nE\n\n| Exposure amount assessed against individual ACRC limit | This is the amount of on-balance sheet or off-balance sheet exposure which is assessed against ACRC limit for individual asset exposure after cumulative exposure.For exposures to reinsurance assets it is the stressed value of the reinsurance asset, net of any regulatory adjustments to capital base related to the exposure, less the sum of:adjustment for exposure to eligible collateral items;adjustment for exposure to guarantor; andadjustment for other arrangement.For non-reinsurance assets it is the fair value of the non-reinsurance asset, net of any regulatory adjustments to capital base related to the exposure, less the sum of:adjustment for exposure to eligible collateral items;adjustment for exposure to guarantor; andadjustment for other arrangement.For eligible collateral, exposures to a guarantor or other types of risk mitigant that APRA recognises in place of an underlying asset, it is the amount recognised by APRA. |\n| ------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Exposure amount assessed against aggregate ACRC limit | This is the amount of exposure which is assessed against ACRC aggregate limit for offshore reinsurance asset exposure.For reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire, it is the exposure amount assessed against individual ACRC limit subject to a maximum of ACRC limit for individual asset exposure after cumulative exposure adjustment. |\n| Exposure category | This is the category of exposure. Possible exposure categories are:underlying asset;eligible collateral item (this would apply if the asset is an eligible collateral item that is being recognised in place of the underlying non-reinsurance or reinsurance asset);exposure to guarantor (this would apply if the item is an exposure to a guarantor or issuer of a letter of credit that is being recognised in place of the underlying non-reinsurance or reinsurance asset); andother (this would apply for another type of risk mitigant asset or exposure that APRA recognises in place of the underlying non-reinsurance or reinsurance asset). |\n| Exposure description | This is brief description of the exposure in question which provides additional information to help APRA to better understand the exposure. For example, this would allow APRA to understand multiple exposures which may be classified under the same exposure type with the same counterparty. |\n| Exposure type | This is the type of exposure. Possible exposure types are outlined in Appendix A. |\n\nF\n\n| Fair value of non-reinsurance asset | For non-reinsurance assets, this is fair value of the asset, before offsets for deferred tax provisions or other liabilities related to the asset that would be realised if the asset was sold. It is the value before being reduced by any amounts that have been treated as deductions from the capital base, as determined under LPS 112. |\n| ----------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nL\n\n| Life company fund | This means the type of life company fund. Possible types are:statutory fund;benefit fund;shareholder fund; andmanagement fund. |\n| ----------------- | ------------------------------------------------------------------------------------------------------------------------------ |\n\nN\n\n| Notional offshore reinsurance premium for group risk business | This is notional reinsurance premium expense over the reporting period in respect of group risk business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.Notional reinsurance premiums are measured on the premium basis of the underlying group risk policies that have been reinsured offshore. This is the reinsurance premium that would be paid if the reinsurer charges the cedant on the same basis as the premium basis that the cedant applied to charge to its policyholders.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. |\n| ------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| Notional offshore reinsurance premium for individual risk business | This is notional reinsurance premium expense over the reporting period in respect of individual risk business under reinsurance arrangements that are not with a registered life company or appropriate retrocessionaire.Notional reinsurance premiums are measured on the premium basis of the underlying individual risk policies that have been reinsured offshore. This is the reinsurance premium that would be paid if the reinsurer charges the cedant on the same basis as the premium basis that the cedant applied to charge to its policyholders.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. |\n\nO\n\n| Offshore reinsurance premium ratio for group risk business | This is the ratio of notional offshore reinsurance premium for group risk business relating to a particular reinsurance arrangement to total gross premium expense for group risk business for the statutory fund. This reflects the proportion of group risk business risks that is being ceded offshore. |\n| --------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Offshore reinsurance premium ratio for individual risk business | This is the ratio of notional offshore reinsurance premium for individual risk business relating to a particular reinsurance arrangement to total gross premium expense for individual risk business for the total statutory fund. This reflects the proportion of individual risk business risks that is being ceded offshore. |\n| On-balance sheet / off-balance sheet | This is to identify whether an exposure is on balance sheet or off balance sheet. Possible values are:on-balance sheet; andoff-balance sheet. |\n\nP\n\n| Period after downgrade below grade 3 | Where the reinsurer had a counterparty grade of 1, 2 or 3 at the time the the reinsurance arrangement was entered into but a current counterparty grade below grade 3, this is the length of period post downgrade below grade 3. This relates to reinsurance arrangements with a registered life company, an APRA approved affiliated entity or an appropriate retrocessionaire where LPS 117 specifies a phased reduction in the asset concentration limit in the event of the reinsurance counterparty being downgraded below grade 3.The categories of period can be:0 to 3 months;more than 3 months to 12 months;more than 12 months to 24 months; andmore than 24 months. |\n| ------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nR\n\n| Reinsurance arrangement description | This is brief description of the reinsurance arrangement which provides additional information to help APRA to better understand the risks covered under the offshore reinsurance arrangement. |\n| ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nS\n\n| Stressed value of reinsurance asset under combination-stress method | LPS 117 specifies that if a reinsurance asset would increase in value when one or more of the equity, property, credit spreads, currency or default stresses specified in Prudential Standard LPS 114 Capital Adequacy Asset Risk Charge (LPS 114) are applied to the fund’s other assets, the stressed value of the reinsurance asset must be determined as the greater of an amount determined in accordance with the insurance-stress method and an amount determined in accordance with the combination-stress method.The stressed value of a reinsurance asset under the combination-stress method is calculated in accordance with paragraph 19 of LPS 117.This value should be reported at this item for any reinsurance assets that increase in value when the equity, property, credit spreads, currency or default stresses are applied. |\n| ------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Stressed value of reinsurance asset under insurance-stress method | For reinsurance exposures, this is the amount by which the stressed policy liabilities of the fund (as determined under Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge) would increase, if the stressed policy liabilities were determined gross of that particular reinsurance exposure. |\n\nV\n\n| Value of assets of the fund (VAF) for non-reinsurance assets | This is the value of the assets of the fund determined for the purpose of calculating asset concentration limits for non-reinsurance asset exposures in the fund. |\n| ------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| VAF for reinsurance assets | This is the value of the assets of the fund determined for the purpose of calculating asset concentration limits for reinsurance asset exposures in the fund. |","sortOrder":18}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"The instrument applies to all life insurance companies registered under the Life Insurance Act and governs reporting from periods ending on or after 1 July 2023. It does not expressly expand or narrow the class of entities required to report; transitional provisions keep prior reporting rules for earlier periods required after revocation. APRA retains administrative discretion to vary periods or requirements for particular companies, but no explicit change to the overall scope of who must report is stated."},"complexity_factors":["Extensive cross‑references to multiple prudential standards (LPS 117, LPS 112, LPS 115, LPS 114, LPS 001, LPS 310) meaning computations depend on external rules and versions in force.","Technical capital calculations (asset concentration risk charge, stressed reinsurance valuations using insurance‑stress and combination‑stress methods).","Granular reporting dataset with many specific fields (asset identifiers, counterparty grades, fund types, on/off‑balance classifications) and prohibition on duplicate rows for value combinations.","Treatment of reinsurance exposures with special rules (aggregate offshore limits, apportionment, notional premiums, offshore premium ratios).","Recognition and adjustment rules for eligible collateral, guarantors, other arrangements, and explicit netting, including mapping mitigants to underlying assets.","Auditor assurance requirement (minimum limited assurance, consistency with LPS 310) plus internal review, board/senior management authorisation, and digital signing/authorisation controls.","APRA discretion to vary reporting periods and to issue company‑specific variations or extensions, adding administrative uncertainty.","Transitional rules requiring reporting under the previous standard for certain past periods, creating dual compliance windows during transition.","Allowances for approximate methods and materiality judgments where data are not readily available, which require judgement and documentation.","Phased limit adjustments on counterparty downgrades and time‑banded reporting of downgrade periods, increasing temporal complexity."],"plain_english_summary":"APRA requires every life insurance company (including friendly societies) to submit detailed quarterly (unaudited) and annual (audited) data from reporting periods ending on or after 1 July 2023 so APRA can supervise prudential compliance and assess capital adequacy. Reports follow precise tables and calculations (stressed values, asset‑concentration limits, netting, collateral, fund‑level VAF), must be produced under audited controls, digitally signed and authorised by senior officers, and APRA may vary periods or requirements in writing."},"kimi_summary":{"_metrics":{"completionTokens":664},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"This is a technical reporting standard that remains tightly focused on its original purpose: prescribing data collection requirements for APRA's prudential supervision of life insurers' asset concentration risk. The scope has not expanded beyond this core function, though the detailed definitions reflect the complexity of modern insurance risk management."},"complexity_factors":["Extensive cross-referencing to multiple prudential standards (LPS 001, LPS 112, LPS 114, LPS 115, LPS 117, LPS 310, LRS 001, LRS 750.0)","Approximately 40+ defined terms with intricate calculation methodologies","Nested conditional logic for determining stressed values under multiple methods (insurance-stress vs combination-stress)","Detailed requirements for risk mitigant recognition with limitations and hierarchical adjustments","Phased reduction rules for counterparty downgrades with time-based categories","Complex apportionment rules for aggregate limits across multiple reinsurance arrangements","Specific data field constraints and relational requirements between tables","Transition provisions creating parallel reporting obligations under old and new standards"],"plain_english_summary":"This reporting standard requires Australian life insurers (including friendly societies) to regularly report to APRA on their Asset Concentration Risk Charge — i.e., how much extra capital is needed when investments or counterparties are overly concentrated. \n\nFirms must submit detailed electronic data (individual exposures, offshore reinsurance, mitigants, stressed values), provide auditor assurance of reporting systems, and have a senior officer digitally sign submissions; quarterly unaudited and annual audited timetables apply."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-118-of-2023","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-118-of-2023/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-118-of-2023/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-118-of-2023/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-118-of-2023/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-118-of-2023/documents"}}