{"id":"F2009L02960","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 12 of 2009 - LRS 400.0 - Statement of Policy Liabilities","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-12-of-2009-lrs-400-0-stateme","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":80442,"registerId":"commonwealth-F2009L02960-current","compilationNumber":null,"startDate":"2026-04-02","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard LRS 400.0","sectionType":"part","heading":"Reporting Standard LRS 400.0","content":"![](image.001.png)\n\n# Reporting Standard LRS 400.0\n\n## Statement of Policy Liabilities\n\n### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires all registered life insurance companies to report to APRA, in general, on an annual basis in relation to a statement of policy liabilities.\n\nThis reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form LRF 400.0 Statement of Policy Liabilities, and the associated instructions (both of which are attached and form part of this reporting standard).\n\nPurpose\n\n1. Information collected in Form LRF 400.0 Statement of Policy Liabilities (LRF 400.0) is used by APRA for the purpose of prudential supervision, including assessing compliance with prudential standards where appropriate. It may also be used by the Reserve Bank of Australia, the Australian Bureau of Statistics and the Australian Securities and Investments Commission.\n\nApplication and commencement\n\n2. 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 Insurance Act) for reporting periods commencing on or after 1 October 2009.\n\nInformation required\n\n3. A life company must provide APRA with the information required by Form LRF 400.0 for each reporting period.\n\nNote: The instructions for Form LRF 400.0 explain in more detail the information that is required.\n\n4. Only Item 2 of the information required to be provided to APRA under this reporting standard is intended to form part of the annual returns, within the meaning of section 124 of the Life Insurance Act, given by the life company to APRA.\n\nMethod of submission\n\n5. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by completing Form LRF 400.0 on paper and mailing the completed form to APRA\n\nNote: The ‘Direct to APRA’ application software and paper forms may be obtained from APRA.\n\nReporting periods and due dates\n\n6. Subject to paragraph 7, a life company must provide the information required by this reporting standard in audited form in respect of the financial year of the life company.\n\nNote: The annual audited form must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Actuarial Requirements.\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular life company, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the life company;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the life company; and\n\n(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics or the Australian Securities and Investments Commission.\n\n8. The information required by this reporting standard must be provided to APRA within four months after the end of the reporting period to which the information relates.\n\n9. APRA may grant a life company an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.\n\nQuality control\n\n10. The information provided by a life company under this reporting standard must be the product of processes and controls that have been reviewed and tested by the auditor of the life company.\n\n11. All information provided by a life company under this reporting standard must be subject to 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\n12. 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.\n\nAuthorisation\n\n13. If the officer of a life company provides the information required by this reporting standard:\n\n(a) using Direct to APRA (D2A), the officer must digitally authorise, submit the data to APRA and receive a D2A receipt number for the information to be considered given to APRA. APRA will issue ‘digital certificates’ to officers of the life company who have authority to transmit the data to APRA; or\n\n(b) on paper, the relevant completed form must be signed on the front page by the principal executive officer or chief financial officer of the life company.\n\nNote: Information in draft returns saved at APRA using D2A will not be considered to be provided to APRA for the purposes of the life company's obligations under this reporting standard.\n\nTransitional\n\n14. A life company must report in relation to a reporting period ending prior to 1 October 2009 in accordance with the reporting standard that this reporting standard replaces rather than under this reporting standard.\n\nInterpretation\n\n15. In this reporting standard:\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays or public holidays;\n\nprincipal executive officer means the principal executive officer of the life company for the time being, 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 paragraph 6 or, if applicable, paragraph 7.\n\n16. A reference to a prudential standard means the prudential standard made under section 230A of the Life Insurance Act mentioned in the reference, as amended from time to time. If the prudential standard has been revoked and replaced, the reference shall be taken to be to the prudential standard that has replaced it.","sortOrder":0},{"sectionNumber":"Statement of Policy Liabilities","sectionType":"part","heading":"Statement of Policy Liabilities","content":"## Statement of Policy Liabilities\n\n### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires all registered life insurance companies to report to APRA, in general, on an annual basis in relation to a statement of policy liabilities.\n\nThis reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form LRF 400.0 Statement of Policy Liabilities, and the associated instructions (both of which are attached and form part of this reporting standard).\n\nPurpose\n\n1. Information collected in Form LRF 400.0 Statement of Policy Liabilities (LRF 400.0) is used by APRA for the purpose of prudential supervision, including assessing compliance with prudential standards where appropriate. It may also be used by the Reserve Bank of Australia, the Australian Bureau of Statistics and the Australian Securities and Investments Commission.\n\nApplication and commencement\n\n2. 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 Insurance Act) for reporting periods commencing on or after 1 October 2009.\n\nInformation required\n\n3. A life company must provide APRA with the information required by Form LRF 400.0 for each reporting period.\n\nNote: The instructions for Form LRF 400.0 explain in more detail the information that is required.\n\n4. Only Item 2 of the information required to be provided to APRA under this reporting standard is intended to form part of the annual returns, within the meaning of section 124 of the Life Insurance Act, given by the life company to APRA.\n\nMethod of submission\n\n5. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by completing Form LRF 400.0 on paper and mailing the completed form to APRA\n\nNote: The ‘Direct to APRA’ application software and paper forms may be obtained from APRA.\n\nReporting periods and due dates\n\n6. Subject to paragraph 7, a life company must provide the information required by this reporting standard in audited form in respect of the financial year of the life company.\n\nNote: The annual audited form must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Actuarial Requirements.\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular life company, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the life company;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the life company; and\n\n(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics or the Australian Securities and Investments Commission.\n\n8. The information required by this reporting standard must be provided to APRA within four months after the end of the reporting period to which the information relates.\n\n9. APRA may grant a life company an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.\n\nQuality control\n\n10. The information provided by a life company under this reporting standard must be the product of processes and controls that have been reviewed and tested by the auditor of the life company.\n\n11. All information provided by a life company under this reporting standard must be subject to 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\n12. 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.\n\nAuthorisation\n\n13. If the officer of a life company provides the information required by this reporting standard:\n\n(a) using Direct to APRA (D2A), the officer must digitally authorise, submit the data to APRA and receive a D2A receipt number for the information to be considered given to APRA. APRA will issue ‘digital certificates’ to officers of the life company who have authority to transmit the data to APRA; or\n\n(b) on paper, the relevant completed form must be signed on the front page by the principal executive officer or chief financial officer of the life company.\n\nNote: Information in draft returns saved at APRA using D2A will not be considered to be provided to APRA for the purposes of the life company's obligations under this reporting standard.\n\nTransitional\n\n14. A life company must report in relation to a reporting period ending prior to 1 October 2009 in accordance with the reporting standard that this reporting standard replaces rather than under this reporting standard.\n\nInterpretation\n\n15. In this reporting standard:\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays or public holidays;\n\nprincipal executive officer means the principal executive officer of the life company for the time being, 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 paragraph 6 or, if applicable, paragraph 7.\n\n16. A reference to a prudential standard means the prudential standard made under section 230A of the Life Insurance Act mentioned in the reference, as amended from time to time. If the prudential standard has been revoked and replaced, the reference shall be taken to be to the prudential standard that has replaced it.","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 is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires all registered life insurance companies to report to APRA, in general, on an annual basis in relation to a statement of policy liabilities.\n\nThis reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form LRF 400.0 Statement of Policy Liabilities, and the associated instructions (both of which are attached and form part of this reporting standard).","sortOrder":2},{"sectionNumber":"Reporting levels","sectionType":"division","heading":"Reporting levels","content":"### Reporting levels\n\nLRF 400.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed for each statutory fund (approved benefit fund).\n\nLRF 400.0 contains two sections:\n\n1. All Statutory Fund Products; and\n2. Totals by Class of Business and Basis.\n\nWithin section 1, reporting items are to be completed for each APRA Product Group (as defined below).\n\nWithin each APRA Product Group, some data will be collected on up to three bases, indicated as follows:\n\n- ‘This Year’ – current position, based on current year’s valuation basis;\n- ‘Last Year’ – current position, based on previous year’s valuation basis; and\n- ‘LY/TY’ – current position, based on previous year’s valuation basis, except substituting current year’s investment and economic assumptions.","sortOrder":3},{"sectionNumber":"Unit of measurement","sectionType":"division","heading":"Unit of measurement","content":"### Unit of measurement\n\nLRF 400.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.","sortOrder":4},{"sectionNumber":"Definitions","sectionType":"division","heading":"Definitions","content":"### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’ below.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.","sortOrder":5},{"sectionNumber":"Reporting period","sectionType":"division","heading":"Reporting period","content":"### Reporting period\n\nAll life insurance companies, including friendly societies, are required to report the information in the reporting form on an annual basis only.\n\nThe annual information is to be completed in respect of the financial year of the life insurance company, not the calendar year.\n\nThe financial information requested in this form is to be reported as at the close of business for the last day of the reporting period.","sortOrder":6},{"sectionNumber":"Basis of preparation","sectionType":"division","heading":"Basis of preparation","content":"### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with APRA and other prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’ below, which is provided as a guide.\n\nFor the purposes of reporting under this form, contracts are to be classified in accordance with Prudential Standard LPS 350 Contract Classification for the Purpose of Regulatory Reporting to APRA.","sortOrder":7},{"sectionNumber":"APRA Product Groups","sectionType":"division","heading":"APRA Product Groups","content":"### APRA Product Groups\n\nFor consistency of reporting across the range of forms applicable to life insurers, APRA adopts a single set of product groupings for life insurers. The following tables list the APRA Product Groups applicable to (1) life companies other than friendly societies, and (2) friendly societies.\n\n```html\n

Ref.

Product Group

Notes

Category

Life companies other than friendly societies

L1

Conventional Participating (Par)

Includes Whole of Life policies and Endowment policies.

Par

L2

Participating Investment Account

As defined in Section 14 of the Life Insurance Act 1995. Exclude non-participating investment account policies (refer L8, below).

Par

L3

Annuity with Longevity Risk

Annuities providing periodic payments that are dependent on the continuance of human life.

Non-par

L4

Individual Lump Sum Risk

Lump sum risk policies issued on an individual (retail) basis. Includes non-participating conventional policies.

Non-par

L5

Individual Disability Income Insurance

Disability Income Insurance policies issued to individuals.

Non-par

L6

Group Lump Sum Risk

Lump sum risk policies issued on a group (wholesale) basis.

Non-par

L7

Group Disability Income Insurance

Disability Income Insurance policies issued on a group basis.

Non-par

L8

Non-par Investment Policy

Include non-participating investment account and investment linked policies.

Non-par

L9

Annuity without Longevity Risk

Annuities providing periodic payments that are NOT dependent on the continuance of human life.

Non-par

L10

Other

Include all other products not specifically categorised above – obtain APRA’s agreement to use.

(Either can be reported)

L11

Policy Owners’ Retained Profits

Retained profits allocated to participating policy owners generally, but not yet vested as specific amounts to particular policies.

Par

L12

Shareholders’ Capital & Retained Profits

Shareholders’ capital plus retained profits allocated to shareholders.

Capital

\n```\n\nNote that Product Groups L11 and L12 are not applicable to this form.\n\nRather than requiring a Related Product Group (as defined in APRA and other prudential standards) of a Life Insurer’s business to be allocated across APRA Product Groups, APRA will permit it to be contained wholly within one APRA Product Group.\n\nA separate set of product groupings is adopted for Friendly Societies, as follows:\n\n```html\n

Ref.

Product Group

Notes

Friendly societies

F1

Education

F2

Investment Account

As defined in Section 14 of the Life Insurance Act 1995.

F3

Annuity & Superannuation

F4

Risk

All products classified as Defined Benefit.

F5

Prepaid Funeral

Funeral products that are classified as Defined Contribution.

F6

Investment Linked

As defined in section 14 of the Life Insurance Act 1995.

F7

Unallocated Benefit Fund Reserve

Value of benefit funds which has not been allocated to either the benefit fund members or to the management fund.

F8

Members’ Capital and Retained Profits

Members’ capital plus retained profits allocated to members.

\n```\n\nThe classification of participating and non-participating business does not apply to friendly societies. Note that Product Groups F7 and F8 are not applicable to this form.\n\nInstructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.","sortOrder":8},{"sectionNumber":"1","sectionType":"division","heading":"All Statutory Fund Products","content":"### Section 1 All Statutory Fund Products\n\nThis section is to be completed for each class of business, as specified in the drop-down box list:\n\n- Australia – Superannuation\n- Australia – Ordinary\n- Overseas – All business\n\nThe expressions ‘ordinary business’ and ‘superannuation business’ are defined in the dictionary of the Life Insurance Act 1995.","sortOrder":9},{"sectionNumber":"1.1. In Force Business and movements in ","sectionType":"division","heading":"1.1. In Force Business and movements in Gross Contractual Regular Contributions over the year","content":"Reporting Form LRF 400.0\n\nStatement of Policy Liabilities\n\nInstruction Guide\n\nIntroduction\n\nForm LRF 400.0 Statement of Policy Liabilities (LRF 400.0) provides APRA with the necessary information on policy liabilities by APRA Product Group to gain a better, more complete understanding of the development, disposition and quality of the profit results for a life insurance company across different product lines.\n\nThis Instruction Guide is designed to assist reporting entities in the completion of LRF 400.0. The Instruction Guide provides:\n\n- general directions and notes regarding preparation and lodgement; and\n- instructions relating to specific items.\n\nGeneral directions and notes\n\n### Reporting levels\n\nLRF 400.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed for each statutory fund (approved benefit fund).\n\nLRF 400.0 contains two sections:\n\n1. All Statutory Fund Products; and\n2. Totals by Class of Business and Basis.\n\nWithin section 1, reporting items are to be completed for each APRA Product Group (as defined below).\n\nWithin each APRA Product Group, some data will be collected on up to three bases, indicated as follows:\n\n- ‘This Year’ – current position, based on current year’s valuation basis;\n- ‘Last Year’ – current position, based on previous year’s valuation basis; and\n- ‘LY/TY’ – current position, based on previous year’s valuation basis, except substituting current year’s investment and economic assumptions.\n\n### Unit of measurement\n\nLRF 400.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’ below.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.\n\n### Reporting period\n\nAll life insurance companies, including friendly societies, are required to report the information in the reporting form on an annual basis only.\n\nThe annual information is to be completed in respect of the financial year of the life insurance company, not the calendar year.\n\nThe financial information requested in this form is to be reported as at the close of business for the last day of the reporting period.\n\n### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with APRA and other prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’ below, which is provided as a guide.\n\nFor the purposes of reporting under this form, contracts are to be classified in accordance with Prudential Standard LPS 350 Contract Classification for the Purpose of Regulatory Reporting to APRA.\n\n### APRA Product Groups\n\nFor consistency of reporting across the range of forms applicable to life insurers, APRA adopts a single set of product groupings for life insurers. The following tables list the APRA Product Groups applicable to (1) life companies other than friendly societies, and (2) friendly societies.\n\n```html\n

Ref.

Product Group

Notes

Category

Life companies other than friendly societies

L1

Conventional Participating (Par)

Includes Whole of Life policies and Endowment policies.

Par

L2

Participating Investment Account

As defined in Section 14 of the Life Insurance Act 1995. Exclude non-participating investment account policies (refer L8, below).

Par

L3

Annuity with Longevity Risk

Annuities providing periodic payments that are dependent on the continuance of human life.

Non-par

L4

Individual Lump Sum Risk

Lump sum risk policies issued on an individual (retail) basis. Includes non-participating conventional policies.

Non-par

L5

Individual Disability Income Insurance

Disability Income Insurance policies issued to individuals.

Non-par

L6

Group Lump Sum Risk

Lump sum risk policies issued on a group (wholesale) basis.

Non-par

L7

Group Disability Income Insurance

Disability Income Insurance policies issued on a group basis.

Non-par

L8

Non-par Investment Policy

Include non-participating investment account and investment linked policies.

Non-par

L9

Annuity without Longevity Risk

Annuities providing periodic payments that are NOT dependent on the continuance of human life.

Non-par

L10

Other

Include all other products not specifically categorised above – obtain APRA’s agreement to use.

(Either can be reported)

L11

Policy Owners’ Retained Profits

Retained profits allocated to participating policy owners generally, but not yet vested as specific amounts to particular policies.

Par

L12

Shareholders’ Capital & Retained Profits

Shareholders’ capital plus retained profits allocated to shareholders.

Capital

\n```\n\nNote that Product Groups L11 and L12 are not applicable to this form.\n\nRather than requiring a Related Product Group (as defined in APRA and other prudential standards) of a Life Insurer’s business to be allocated across APRA Product Groups, APRA will permit it to be contained wholly within one APRA Product Group.\n\nA separate set of product groupings is adopted for Friendly Societies, as follows:\n\n```html\n

Ref.

Product Group

Notes

Friendly societies

F1

Education

F2

Investment Account

As defined in Section 14 of the Life Insurance Act 1995.

F3

Annuity & Superannuation

F4

Risk

All products classified as Defined Benefit.

F5

Prepaid Funeral

Funeral products that are classified as Defined Contribution.

F6

Investment Linked

As defined in section 14 of the Life Insurance Act 1995.

F7

Unallocated Benefit Fund Reserve

Value of benefit funds which has not been allocated to either the benefit fund members or to the management fund.

F8

Members’ Capital and Retained Profits

Members’ capital plus retained profits allocated to members.

\n```\n\nThe classification of participating and non-participating business does not apply to friendly societies. Note that Product Groups F7 and F8 are not applicable to this form.\n\nInstructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.\n\n### Section 1 All Statutory Fund Products\n\nThis section is to be completed for each class of business, as specified in the drop-down box list:\n\n- Australia – Superannuation\n- Australia – Ordinary\n- Overseas – All business\n\nThe expressions ‘ordinary business’ and ‘superannuation business’ are defined in the dictionary of the Life Insurance Act 1995.\n\n### 1.1. In Force Business and movements in Gross Contractual Regular Contributions over the year\n\n### Columns 1 to 10 are required to report on ‘This Year’ basis only.\n\nColumn 1 Policy Count (actual number, not scaled)\n\nThis is the number of policies in the statutory fund at the end of the period.\n\nColumn 2 Member Count (actual number, not scaled)\n\nThis is the number of members in the statutory fund at the end of the period. A member with more than one policy is considered as one member.\n\nThis would be based on the number of lives insured for group policies, joint-life individual policies, or policies that allow the insurance of auxiliary lives.\n\nColumn 5 Gross Contractual Regular Contributions\n\nInclude any business that is accepted through direct debit, has a specific contractual requirement for future on-going premiums, has an expectation of renewal each year (e.g. Yearly Renewable term products) or generally causes a policy to discontinue on cessation of future payment. It should be gross of all reinsurance.\n\nColumn 7 Gross Contractual Regular Contribution increases over the year\n\nRefer to all increases to contractual regular premiums due to new policies sold during the period, including CPI increases.\n\nColumn 8 Gross Contractual Regular Contribution decreases due to claims and/or maturities\n\nDecreases due to claims refer to the reduction in contractual regular contributions following a claim arising from the occurrence of an insured event. Note that it is only included when an insurance claim causes alteration or cessation of the premium, e.g. premiums paid on disability income policies will sometimes remain unaffected following a claim, depending on the policy terms and conditions.\n\nDecreases due to maturities refer to the cessation of contractual regular contributions due to the maturity of a policy, i.e. following the completion of a policy’s term. This would occur when a member retires and is paid his/her superannuation benefit, a policy owner reaches a defined age on an Endowment policy or the termination of a savings plan on or after the contractual period.\n\nColumn 9 Gross Contractual Regular Contribution decreases due to voluntary discontinuance\n\nInclude any decrease in contractual regular contributions due to lapses or surrenders of policies, i.e. the cessation of regular premiums prior to the completion of the policy’s term.\n\nColumn 10 Other movements in Gross Contractual Regular Contributions over the year\n\nInclude the increase/decrease in contractual contributions following transfers of business from one statutory fund to another or any other movements not recorded in previous columns.\n\n### 1.2. Components of Gross Policy Liability\n\n### Columns 1 to 10 are required to be reported separately on the three bases defined above (‘This Year’, ‘Last Year’ & ‘LY / TY’).\n\nIn accordance with the prudential standards and the financial statements, Gross Policy Liability should be gross of all reinsurance and, for participating benefits, should exclude Bonuses in respect of the current year.\n\nAs required by the prudential standards, the gross policy liability and the reinsurance policy liability are to be separately quantified, with the net policy liability then derived as the difference.\n\nPolicy Liabilities are to be valued in accordance with Prudential Standard LPS 1.04 Valuation of Policy Liabilities (LPS 1.04).\n\n### Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.\n\nColumns 1 to 5 Gross Best Estimate Liability –\n\nColumn 1 Gross Value of Future Policy Benefits\n\nWhere business is valued using techniques other than projection techniques, Gross Value of Future policy Benefits includes the total liability, before deducting the value of unrecouped acquisition expenses.\n\nFor participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded (see LPS 1.04, section 5, Overview).\n\nFor non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.\n\nColumn 2 Gross Value of Future Expenses\n\nColumn 3 Gross Value of (Balance of) Future Premiums\n\nColumn 4 Gross Reduction in Respect of Unrecouped Acquisition Expenses\n\nOnly for business valued using techniques other than a projection technique.\n\nColumn 5 Total Gross Best Estimate Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the sum of columns 1 to 4.\n\nColumn 6 Gross Value of Future Profits: Policy Owner Bonuses\n\nFor participating benefits, the value of future profits includes future bonuses only. Current year bonuses are excluded.\n\nColumn 7 Gross Value of Future Profits: Shareholder Profit Margins\n\nRefer to section 6 of LPS 1.04 for definition and calculation of profit margins.\n\nColumn 8 Gross Investment Contract Liability\n\nThe net contractual obligation under a life investment contract which arises under the financial instrument element is referred to as the Life Investment Contract liability, this is consistent with the terminology adopted under AASB 1038.\n\nThe Investment Contract Liability is a component of the policy liability under the financial instrument element. It is to be determined according to the fair value through profit and loss provisions of the relevant accounting standards. (Refer to LPS 1.04, sections 2.1 and 2.2).\n\nColumn 9 Gross Management Services Asset or Liability\n\nThis is the liability in respect of the Management Services Element, determined as the difference between the Policy Liability and the Life Investment Contract liability (Column 8).\n\nInclude liabilities for deferred acquisition cost and deferred fee revenues.\n\nColumn 10 Gross Policy Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the total amount of gross policy liability.\n\n### 1.3. Components of Reinsured Policy Liability and Net Policy Liability\n\nParagraph 12.1 of LPS 1.04 states that the reinsured policy liability consists of a reinsured best estimate liability and the value of the reinsured profit margins. Reinsurance must meet the definition of an insurance contract and involve the transfer of insurance risk.\n\n### Columns 1 to 11 are required to report on the three bases defined above.\n\n### Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.\n\nColumns 1 to 5 Reinsured Best Estimate Liability –\n\nFor participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded.\n\nFor non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.\n\nColumn 10 Reinsured Policy Liability \\[derived item\\]\n\nThis column is derived by the form as the sum of columns 5 to 9, and represents total amount of reinsurance policy liability.\n\nColumn 11 Net Policy Liability\n\nThis column represents the net amount of policy liability and the number entered should equal gross policy liability minus reinsured policy liability.\n\n### 1.4. Sundry Items\n\nThis section is to be completed for all products, i.e. including non-participating products.\n\nAll figures in this section are to be reported on the ‘This Year’ basis.\n\nWhere applicable, figures in this section are to be reported on a net of reinsurance basis.\n\nColumns 1 and 2 capture the cost of previous year and current period best estimate bonus. Refer to Prudential Standard LPS 7.02 General Standard for definition of best estimate bonus.\n\nColumn 10 Profit Carrier or Acquisition Expense Recovery Carrier\n\nAs defined in section 6 of LPS 1.04.\n\nColumn 11 Percentage of Profit Carrier or Acquisition Expense Recovery Carrier \\[derived item\\]\n\nThis column will be calculated automatically by the form and equals ‘Shareholder profit margins on cost of current period best estimate bonus’ (Column 3) divided by ‘Profit Carrier or Acquisition Expense Recovery Carrier’ (Column 10).\n\n### Section 2 Totals by Class of Business and Basis\n\nNo value is required to be entered in this section. Items in this section are derived fields that sum up policy liabilities by class of business and basis.","sortOrder":10},{"sectionNumber":"Columns 1 to 10 are required to report o","sectionType":"division","heading":"Columns 1 to 10 are required to report on ‘This Year’ basis only.","content":"### Columns 1 to 10 are required to report on ‘This Year’ basis only.\n\nColumn 1 Policy Count (actual number, not scaled)\n\nThis is the number of policies in the statutory fund at the end of the period.\n\nColumn 2 Member Count (actual number, not scaled)\n\nThis is the number of members in the statutory fund at the end of the period. A member with more than one policy is considered as one member.\n\nThis would be based on the number of lives insured for group policies, joint-life individual policies, or policies that allow the insurance of auxiliary lives.\n\nColumn 5 Gross Contractual Regular Contributions\n\nInclude any business that is accepted through direct debit, has a specific contractual requirement for future on-going premiums, has an expectation of renewal each year (e.g. Yearly Renewable term products) or generally causes a policy to discontinue on cessation of future payment. It should be gross of all reinsurance.\n\nColumn 7 Gross Contractual Regular Contribution increases over the year\n\nRefer to all increases to contractual regular premiums due to new policies sold during the period, including CPI increases.\n\nColumn 8 Gross Contractual Regular Contribution decreases due to claims and/or maturities\n\nDecreases due to claims refer to the reduction in contractual regular contributions following a claim arising from the occurrence of an insured event. Note that it is only included when an insurance claim causes alteration or cessation of the premium, e.g. premiums paid on disability income policies will sometimes remain unaffected following a claim, depending on the policy terms and conditions.\n\nDecreases due to maturities refer to the cessation of contractual regular contributions due to the maturity of a policy, i.e. following the completion of a policy’s term. This would occur when a member retires and is paid his/her superannuation benefit, a policy owner reaches a defined age on an Endowment policy or the termination of a savings plan on or after the contractual period.\n\nColumn 9 Gross Contractual Regular Contribution decreases due to voluntary discontinuance\n\nInclude any decrease in contractual regular contributions due to lapses or surrenders of policies, i.e. the cessation of regular premiums prior to the completion of the policy’s term.\n\nColumn 10 Other movements in Gross Contractual Regular Contributions over the year\n\nInclude the increase/decrease in contractual contributions following transfers of business from one statutory fund to another or any other movements not recorded in previous columns.","sortOrder":11},{"sectionNumber":"1.2. Components of Gross Policy Liabilit","sectionType":"division","heading":"1.2. Components of Gross Policy Liability","content":"Reporting Form LRF 400.0\n\nStatement of Policy Liabilities\n\nInstruction Guide\n\nIntroduction\n\nForm LRF 400.0 Statement of Policy Liabilities (LRF 400.0) provides APRA with the necessary information on policy liabilities by APRA Product Group to gain a better, more complete understanding of the development, disposition and quality of the profit results for a life insurance company across different product lines.\n\nThis Instruction Guide is designed to assist reporting entities in the completion of LRF 400.0. The Instruction Guide provides:\n\n- general directions and notes regarding preparation and lodgement; and\n- instructions relating to specific items.\n\nGeneral directions and notes\n\n### Reporting levels\n\nLRF 400.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed for each statutory fund (approved benefit fund).\n\nLRF 400.0 contains two sections:\n\n1. All Statutory Fund Products; and\n2. Totals by Class of Business and Basis.\n\nWithin section 1, reporting items are to be completed for each APRA Product Group (as defined below).\n\nWithin each APRA Product Group, some data will be collected on up to three bases, indicated as follows:\n\n- ‘This Year’ – current position, based on current year’s valuation basis;\n- ‘Last Year’ – current position, based on previous year’s valuation basis; and\n- ‘LY/TY’ – current position, based on previous year’s valuation basis, except substituting current year’s investment and economic assumptions.\n\n### Unit of measurement\n\nLRF 400.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’ below.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.\n\n### Reporting period\n\nAll life insurance companies, including friendly societies, are required to report the information in the reporting form on an annual basis only.\n\nThe annual information is to be completed in respect of the financial year of the life insurance company, not the calendar year.\n\nThe financial information requested in this form is to be reported as at the close of business for the last day of the reporting period.\n\n### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with APRA and other prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’ below, which is provided as a guide.\n\nFor the purposes of reporting under this form, contracts are to be classified in accordance with Prudential Standard LPS 350 Contract Classification for the Purpose of Regulatory Reporting to APRA.\n\n### APRA Product Groups\n\nFor consistency of reporting across the range of forms applicable to life insurers, APRA adopts a single set of product groupings for life insurers. The following tables list the APRA Product Groups applicable to (1) life companies other than friendly societies, and (2) friendly societies.\n\n```html\n

Ref.

Product Group

Notes

Category

Life companies other than friendly societies

L1

Conventional Participating (Par)

Includes Whole of Life policies and Endowment policies.

Par

L2

Participating Investment Account

As defined in Section 14 of the Life Insurance Act 1995. Exclude non-participating investment account policies (refer L8, below).

Par

L3

Annuity with Longevity Risk

Annuities providing periodic payments that are dependent on the continuance of human life.

Non-par

L4

Individual Lump Sum Risk

Lump sum risk policies issued on an individual (retail) basis. Includes non-participating conventional policies.

Non-par

L5

Individual Disability Income Insurance

Disability Income Insurance policies issued to individuals.

Non-par

L6

Group Lump Sum Risk

Lump sum risk policies issued on a group (wholesale) basis.

Non-par

L7

Group Disability Income Insurance

Disability Income Insurance policies issued on a group basis.

Non-par

L8

Non-par Investment Policy

Include non-participating investment account and investment linked policies.

Non-par

L9

Annuity without Longevity Risk

Annuities providing periodic payments that are NOT dependent on the continuance of human life.

Non-par

L10

Other

Include all other products not specifically categorised above – obtain APRA’s agreement to use.

(Either can be reported)

L11

Policy Owners’ Retained Profits

Retained profits allocated to participating policy owners generally, but not yet vested as specific amounts to particular policies.

Par

L12

Shareholders’ Capital & Retained Profits

Shareholders’ capital plus retained profits allocated to shareholders.

Capital

\n```\n\nNote that Product Groups L11 and L12 are not applicable to this form.\n\nRather than requiring a Related Product Group (as defined in APRA and other prudential standards) of a Life Insurer’s business to be allocated across APRA Product Groups, APRA will permit it to be contained wholly within one APRA Product Group.\n\nA separate set of product groupings is adopted for Friendly Societies, as follows:\n\n```html\n

Ref.

Product Group

Notes

Friendly societies

F1

Education

F2

Investment Account

As defined in Section 14 of the Life Insurance Act 1995.

F3

Annuity & Superannuation

F4

Risk

All products classified as Defined Benefit.

F5

Prepaid Funeral

Funeral products that are classified as Defined Contribution.

F6

Investment Linked

As defined in section 14 of the Life Insurance Act 1995.

F7

Unallocated Benefit Fund Reserve

Value of benefit funds which has not been allocated to either the benefit fund members or to the management fund.

F8

Members’ Capital and Retained Profits

Members’ capital plus retained profits allocated to members.

\n```\n\nThe classification of participating and non-participating business does not apply to friendly societies. Note that Product Groups F7 and F8 are not applicable to this form.\n\nInstructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.\n\n### Section 1 All Statutory Fund Products\n\nThis section is to be completed for each class of business, as specified in the drop-down box list:\n\n- Australia – Superannuation\n- Australia – Ordinary\n- Overseas – All business\n\nThe expressions ‘ordinary business’ and ‘superannuation business’ are defined in the dictionary of the Life Insurance Act 1995.\n\n### 1.1. In Force Business and movements in Gross Contractual Regular Contributions over the year\n\n### Columns 1 to 10 are required to report on ‘This Year’ basis only.\n\nColumn 1 Policy Count (actual number, not scaled)\n\nThis is the number of policies in the statutory fund at the end of the period.\n\nColumn 2 Member Count (actual number, not scaled)\n\nThis is the number of members in the statutory fund at the end of the period. A member with more than one policy is considered as one member.\n\nThis would be based on the number of lives insured for group policies, joint-life individual policies, or policies that allow the insurance of auxiliary lives.\n\nColumn 5 Gross Contractual Regular Contributions\n\nInclude any business that is accepted through direct debit, has a specific contractual requirement for future on-going premiums, has an expectation of renewal each year (e.g. Yearly Renewable term products) or generally causes a policy to discontinue on cessation of future payment. It should be gross of all reinsurance.\n\nColumn 7 Gross Contractual Regular Contribution increases over the year\n\nRefer to all increases to contractual regular premiums due to new policies sold during the period, including CPI increases.\n\nColumn 8 Gross Contractual Regular Contribution decreases due to claims and/or maturities\n\nDecreases due to claims refer to the reduction in contractual regular contributions following a claim arising from the occurrence of an insured event. Note that it is only included when an insurance claim causes alteration or cessation of the premium, e.g. premiums paid on disability income policies will sometimes remain unaffected following a claim, depending on the policy terms and conditions.\n\nDecreases due to maturities refer to the cessation of contractual regular contributions due to the maturity of a policy, i.e. following the completion of a policy’s term. This would occur when a member retires and is paid his/her superannuation benefit, a policy owner reaches a defined age on an Endowment policy or the termination of a savings plan on or after the contractual period.\n\nColumn 9 Gross Contractual Regular Contribution decreases due to voluntary discontinuance\n\nInclude any decrease in contractual regular contributions due to lapses or surrenders of policies, i.e. the cessation of regular premiums prior to the completion of the policy’s term.\n\nColumn 10 Other movements in Gross Contractual Regular Contributions over the year\n\nInclude the increase/decrease in contractual contributions following transfers of business from one statutory fund to another or any other movements not recorded in previous columns.\n\n### 1.2. Components of Gross Policy Liability\n\n### Columns 1 to 10 are required to be reported separately on the three bases defined above (‘This Year’, ‘Last Year’ & ‘LY / TY’).\n\nIn accordance with the prudential standards and the financial statements, Gross Policy Liability should be gross of all reinsurance and, for participating benefits, should exclude Bonuses in respect of the current year.\n\nAs required by the prudential standards, the gross policy liability and the reinsurance policy liability are to be separately quantified, with the net policy liability then derived as the difference.\n\nPolicy Liabilities are to be valued in accordance with Prudential Standard LPS 1.04 Valuation of Policy Liabilities (LPS 1.04).\n\n### Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.\n\nColumns 1 to 5 Gross Best Estimate Liability –\n\nColumn 1 Gross Value of Future Policy Benefits\n\nWhere business is valued using techniques other than projection techniques, Gross Value of Future policy Benefits includes the total liability, before deducting the value of unrecouped acquisition expenses.\n\nFor participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded (see LPS 1.04, section 5, Overview).\n\nFor non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.\n\nColumn 2 Gross Value of Future Expenses\n\nColumn 3 Gross Value of (Balance of) Future Premiums\n\nColumn 4 Gross Reduction in Respect of Unrecouped Acquisition Expenses\n\nOnly for business valued using techniques other than a projection technique.\n\nColumn 5 Total Gross Best Estimate Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the sum of columns 1 to 4.\n\nColumn 6 Gross Value of Future Profits: Policy Owner Bonuses\n\nFor participating benefits, the value of future profits includes future bonuses only. Current year bonuses are excluded.\n\nColumn 7 Gross Value of Future Profits: Shareholder Profit Margins\n\nRefer to section 6 of LPS 1.04 for definition and calculation of profit margins.\n\nColumn 8 Gross Investment Contract Liability\n\nThe net contractual obligation under a life investment contract which arises under the financial instrument element is referred to as the Life Investment Contract liability, this is consistent with the terminology adopted under AASB 1038.\n\nThe Investment Contract Liability is a component of the policy liability under the financial instrument element. It is to be determined according to the fair value through profit and loss provisions of the relevant accounting standards. (Refer to LPS 1.04, sections 2.1 and 2.2).\n\nColumn 9 Gross Management Services Asset or Liability\n\nThis is the liability in respect of the Management Services Element, determined as the difference between the Policy Liability and the Life Investment Contract liability (Column 8).\n\nInclude liabilities for deferred acquisition cost and deferred fee revenues.\n\nColumn 10 Gross Policy Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the total amount of gross policy liability.\n\n### 1.3. Components of Reinsured Policy Liability and Net Policy Liability\n\nParagraph 12.1 of LPS 1.04 states that the reinsured policy liability consists of a reinsured best estimate liability and the value of the reinsured profit margins. Reinsurance must meet the definition of an insurance contract and involve the transfer of insurance risk.\n\n### Columns 1 to 11 are required to report on the three bases defined above.\n\n### Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.\n\nColumns 1 to 5 Reinsured Best Estimate Liability –\n\nFor participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded.\n\nFor non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.\n\nColumn 10 Reinsured Policy Liability \\[derived item\\]\n\nThis column is derived by the form as the sum of columns 5 to 9, and represents total amount of reinsurance policy liability.\n\nColumn 11 Net Policy Liability\n\nThis column represents the net amount of policy liability and the number entered should equal gross policy liability minus reinsured policy liability.\n\n### 1.4. Sundry Items\n\nThis section is to be completed for all products, i.e. including non-participating products.\n\nAll figures in this section are to be reported on the ‘This Year’ basis.\n\nWhere applicable, figures in this section are to be reported on a net of reinsurance basis.\n\nColumns 1 and 2 capture the cost of previous year and current period best estimate bonus. Refer to Prudential Standard LPS 7.02 General Standard for definition of best estimate bonus.\n\nColumn 10 Profit Carrier or Acquisition Expense Recovery Carrier\n\nAs defined in section 6 of LPS 1.04.\n\nColumn 11 Percentage of Profit Carrier or Acquisition Expense Recovery Carrier \\[derived item\\]\n\nThis column will be calculated automatically by the form and equals ‘Shareholder profit margins on cost of current period best estimate bonus’ (Column 3) divided by ‘Profit Carrier or Acquisition Expense Recovery Carrier’ (Column 10).\n\n### Section 2 Totals by Class of Business and Basis\n\nNo value is required to be entered in this section. Items in this section are derived fields that sum up policy liabilities by class of business and basis.","sortOrder":12},{"sectionNumber":"Columns 1 to 10 are required to be repor","sectionType":"division","heading":"Columns 1 to 10 are required to be reported separately on the three bases defined above (‘This Year’, ‘Last Year’ & ‘LY / TY’).","content":"### Columns 1 to 10 are required to be reported separately on the three bases defined above (‘This Year’, ‘Last Year’ & ‘LY / TY’).\n\nIn accordance with the prudential standards and the financial statements, Gross Policy Liability should be gross of all reinsurance and, for participating benefits, should exclude Bonuses in respect of the current year.\n\nAs required by the prudential standards, the gross policy liability and the reinsurance policy liability are to be separately quantified, with the net policy liability then derived as the difference.\n\nPolicy Liabilities are to be valued in accordance with Prudential Standard LPS 1.04 Valuation of Policy Liabilities (LPS 1.04).","sortOrder":13},{"sectionNumber":"Columns 1 to 7 are for life insurance co","sectionType":"division","heading":"Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.","content":"### Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.\n\nColumns 1 to 5 Gross Best Estimate Liability –\n\nColumn 1 Gross Value of Future Policy Benefits\n\nWhere business is valued using techniques other than projection techniques, Gross Value of Future policy Benefits includes the total liability, before deducting the value of unrecouped acquisition expenses.\n\nFor participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded (see LPS 1.04, section 5, Overview).\n\nFor non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.\n\nColumn 2 Gross Value of Future Expenses\n\nColumn 3 Gross Value of (Balance of) Future Premiums\n\nColumn 4 Gross Reduction in Respect of Unrecouped Acquisition Expenses\n\nOnly for business valued using techniques other than a projection technique.\n\nColumn 5 Total Gross Best Estimate Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the sum of columns 1 to 4.\n\nColumn 6 Gross Value of Future Profits: Policy Owner Bonuses\n\nFor participating benefits, the value of future profits includes future bonuses only. Current year bonuses are excluded.\n\nColumn 7 Gross Value of Future Profits: Shareholder Profit Margins\n\nRefer to section 6 of LPS 1.04 for definition and calculation of profit margins.\n\nColumn 8 Gross Investment Contract Liability\n\nThe net contractual obligation under a life investment contract which arises under the financial instrument element is referred to as the Life Investment Contract liability, this is consistent with the terminology adopted under AASB 1038.\n\nThe Investment Contract Liability is a component of the policy liability under the financial instrument element. It is to be determined according to the fair value through profit and loss provisions of the relevant accounting standards. (Refer to LPS 1.04, sections 2.1 and 2.2).\n\nColumn 9 Gross Management Services Asset or Liability\n\nThis is the liability in respect of the Management Services Element, determined as the difference between the Policy Liability and the Life Investment Contract liability (Column 8).\n\nInclude liabilities for deferred acquisition cost and deferred fee revenues.\n\nColumn 10 Gross Policy Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the total amount of gross policy liability.","sortOrder":14},{"sectionNumber":"1.3. Components of Reinsured Policy Liab","sectionType":"division","heading":"1.3. Components of Reinsured Policy Liability and Net Policy Liability","content":"### 1.3. Components of Reinsured Policy Liability and Net Policy Liability\n\nParagraph 12.1 of LPS 1.04 states that the reinsured policy liability consists of a reinsured best estimate liability and the value of the reinsured profit margins. Reinsurance must meet the definition of an insurance contract and involve the transfer of insurance risk.","sortOrder":15},{"sectionNumber":"Columns 1 to 11 are required to report o","sectionType":"division","heading":"Columns 1 to 11 are required to report on the three bases defined above.","content":"Reporting Form LRF 400.0\n\nStatement of Policy Liabilities\n\nInstruction Guide\n\nIntroduction\n\nForm LRF 400.0 Statement of Policy Liabilities (LRF 400.0) provides APRA with the necessary information on policy liabilities by APRA Product Group to gain a better, more complete understanding of the development, disposition and quality of the profit results for a life insurance company across different product lines.\n\nThis Instruction Guide is designed to assist reporting entities in the completion of LRF 400.0. The Instruction Guide provides:\n\n- general directions and notes regarding preparation and lodgement; and\n- instructions relating to specific items.\n\nGeneral directions and notes\n\n### Reporting levels\n\nLRF 400.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed for each statutory fund (approved benefit fund).\n\nLRF 400.0 contains two sections:\n\n1. All Statutory Fund Products; and\n2. Totals by Class of Business and Basis.\n\nWithin section 1, reporting items are to be completed for each APRA Product Group (as defined below).\n\nWithin each APRA Product Group, some data will be collected on up to three bases, indicated as follows:\n\n- ‘This Year’ – current position, based on current year’s valuation basis;\n- ‘Last Year’ – current position, based on previous year’s valuation basis; and\n- ‘LY/TY’ – current position, based on previous year’s valuation basis, except substituting current year’s investment and economic assumptions.\n\n### Unit of measurement\n\nLRF 400.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’ below.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.\n\n### Reporting period\n\nAll life insurance companies, including friendly societies, are required to report the information in the reporting form on an annual basis only.\n\nThe annual information is to be completed in respect of the financial year of the life insurance company, not the calendar year.\n\nThe financial information requested in this form is to be reported as at the close of business for the last day of the reporting period.\n\n### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with APRA and other prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’ below, which is provided as a guide.\n\nFor the purposes of reporting under this form, contracts are to be classified in accordance with Prudential Standard LPS 350 Contract Classification for the Purpose of Regulatory Reporting to APRA.\n\n### APRA Product Groups\n\nFor consistency of reporting across the range of forms applicable to life insurers, APRA adopts a single set of product groupings for life insurers. The following tables list the APRA Product Groups applicable to (1) life companies other than friendly societies, and (2) friendly societies.\n\n```html\n

Ref.

Product Group

Notes

Category

Life companies other than friendly societies

L1

Conventional Participating (Par)

Includes Whole of Life policies and Endowment policies.

Par

L2

Participating Investment Account

As defined in Section 14 of the Life Insurance Act 1995. Exclude non-participating investment account policies (refer L8, below).

Par

L3

Annuity with Longevity Risk

Annuities providing periodic payments that are dependent on the continuance of human life.

Non-par

L4

Individual Lump Sum Risk

Lump sum risk policies issued on an individual (retail) basis. Includes non-participating conventional policies.

Non-par

L5

Individual Disability Income Insurance

Disability Income Insurance policies issued to individuals.

Non-par

L6

Group Lump Sum Risk

Lump sum risk policies issued on a group (wholesale) basis.

Non-par

L7

Group Disability Income Insurance

Disability Income Insurance policies issued on a group basis.

Non-par

L8

Non-par Investment Policy

Include non-participating investment account and investment linked policies.

Non-par

L9

Annuity without Longevity Risk

Annuities providing periodic payments that are NOT dependent on the continuance of human life.

Non-par

L10

Other

Include all other products not specifically categorised above – obtain APRA’s agreement to use.

(Either can be reported)

L11

Policy Owners’ Retained Profits

Retained profits allocated to participating policy owners generally, but not yet vested as specific amounts to particular policies.

Par

L12

Shareholders’ Capital & Retained Profits

Shareholders’ capital plus retained profits allocated to shareholders.

Capital

\n```\n\nNote that Product Groups L11 and L12 are not applicable to this form.\n\nRather than requiring a Related Product Group (as defined in APRA and other prudential standards) of a Life Insurer’s business to be allocated across APRA Product Groups, APRA will permit it to be contained wholly within one APRA Product Group.\n\nA separate set of product groupings is adopted for Friendly Societies, as follows:\n\n```html\n

Ref.

Product Group

Notes

Friendly societies

F1

Education

F2

Investment Account

As defined in Section 14 of the Life Insurance Act 1995.

F3

Annuity & Superannuation

F4

Risk

All products classified as Defined Benefit.

F5

Prepaid Funeral

Funeral products that are classified as Defined Contribution.

F6

Investment Linked

As defined in section 14 of the Life Insurance Act 1995.

F7

Unallocated Benefit Fund Reserve

Value of benefit funds which has not been allocated to either the benefit fund members or to the management fund.

F8

Members’ Capital and Retained Profits

Members’ capital plus retained profits allocated to members.

\n```\n\nThe classification of participating and non-participating business does not apply to friendly societies. Note that Product Groups F7 and F8 are not applicable to this form.\n\nInstructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.\n\n### Section 1 All Statutory Fund Products\n\nThis section is to be completed for each class of business, as specified in the drop-down box list:\n\n- Australia – Superannuation\n- Australia – Ordinary\n- Overseas – All business\n\nThe expressions ‘ordinary business’ and ‘superannuation business’ are defined in the dictionary of the Life Insurance Act 1995.\n\n### 1.1. In Force Business and movements in Gross Contractual Regular Contributions over the year\n\n### Columns 1 to 10 are required to report on ‘This Year’ basis only.\n\nColumn 1 Policy Count (actual number, not scaled)\n\nThis is the number of policies in the statutory fund at the end of the period.\n\nColumn 2 Member Count (actual number, not scaled)\n\nThis is the number of members in the statutory fund at the end of the period. A member with more than one policy is considered as one member.\n\nThis would be based on the number of lives insured for group policies, joint-life individual policies, or policies that allow the insurance of auxiliary lives.\n\nColumn 5 Gross Contractual Regular Contributions\n\nInclude any business that is accepted through direct debit, has a specific contractual requirement for future on-going premiums, has an expectation of renewal each year (e.g. Yearly Renewable term products) or generally causes a policy to discontinue on cessation of future payment. It should be gross of all reinsurance.\n\nColumn 7 Gross Contractual Regular Contribution increases over the year\n\nRefer to all increases to contractual regular premiums due to new policies sold during the period, including CPI increases.\n\nColumn 8 Gross Contractual Regular Contribution decreases due to claims and/or maturities\n\nDecreases due to claims refer to the reduction in contractual regular contributions following a claim arising from the occurrence of an insured event. Note that it is only included when an insurance claim causes alteration or cessation of the premium, e.g. premiums paid on disability income policies will sometimes remain unaffected following a claim, depending on the policy terms and conditions.\n\nDecreases due to maturities refer to the cessation of contractual regular contributions due to the maturity of a policy, i.e. following the completion of a policy’s term. This would occur when a member retires and is paid his/her superannuation benefit, a policy owner reaches a defined age on an Endowment policy or the termination of a savings plan on or after the contractual period.\n\nColumn 9 Gross Contractual Regular Contribution decreases due to voluntary discontinuance\n\nInclude any decrease in contractual regular contributions due to lapses or surrenders of policies, i.e. the cessation of regular premiums prior to the completion of the policy’s term.\n\nColumn 10 Other movements in Gross Contractual Regular Contributions over the year\n\nInclude the increase/decrease in contractual contributions following transfers of business from one statutory fund to another or any other movements not recorded in previous columns.\n\n### 1.2. Components of Gross Policy Liability\n\n### Columns 1 to 10 are required to be reported separately on the three bases defined above (‘This Year’, ‘Last Year’ & ‘LY / TY’).\n\nIn accordance with the prudential standards and the financial statements, Gross Policy Liability should be gross of all reinsurance and, for participating benefits, should exclude Bonuses in respect of the current year.\n\nAs required by the prudential standards, the gross policy liability and the reinsurance policy liability are to be separately quantified, with the net policy liability then derived as the difference.\n\nPolicy Liabilities are to be valued in accordance with Prudential Standard LPS 1.04 Valuation of Policy Liabilities (LPS 1.04).\n\n### Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.\n\nColumns 1 to 5 Gross Best Estimate Liability –\n\nColumn 1 Gross Value of Future Policy Benefits\n\nWhere business is valued using techniques other than projection techniques, Gross Value of Future policy Benefits includes the total liability, before deducting the value of unrecouped acquisition expenses.\n\nFor participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded (see LPS 1.04, section 5, Overview).\n\nFor non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.\n\nColumn 2 Gross Value of Future Expenses\n\nColumn 3 Gross Value of (Balance of) Future Premiums\n\nColumn 4 Gross Reduction in Respect of Unrecouped Acquisition Expenses\n\nOnly for business valued using techniques other than a projection technique.\n\nColumn 5 Total Gross Best Estimate Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the sum of columns 1 to 4.\n\nColumn 6 Gross Value of Future Profits: Policy Owner Bonuses\n\nFor participating benefits, the value of future profits includes future bonuses only. Current year bonuses are excluded.\n\nColumn 7 Gross Value of Future Profits: Shareholder Profit Margins\n\nRefer to section 6 of LPS 1.04 for definition and calculation of profit margins.\n\nColumn 8 Gross Investment Contract Liability\n\nThe net contractual obligation under a life investment contract which arises under the financial instrument element is referred to as the Life Investment Contract liability, this is consistent with the terminology adopted under AASB 1038.\n\nThe Investment Contract Liability is a component of the policy liability under the financial instrument element. It is to be determined according to the fair value through profit and loss provisions of the relevant accounting standards. (Refer to LPS 1.04, sections 2.1 and 2.2).\n\nColumn 9 Gross Management Services Asset or Liability\n\nThis is the liability in respect of the Management Services Element, determined as the difference between the Policy Liability and the Life Investment Contract liability (Column 8).\n\nInclude liabilities for deferred acquisition cost and deferred fee revenues.\n\nColumn 10 Gross Policy Liability \\[derived item\\]\n\nThis column will be calculated automatically by derivations contained within the form and represents the total amount of gross policy liability.\n\n### 1.3. Components of Reinsured Policy Liability and Net Policy Liability\n\nParagraph 12.1 of LPS 1.04 states that the reinsured policy liability consists of a reinsured best estimate liability and the value of the reinsured profit margins. Reinsurance must meet the definition of an insurance contract and involve the transfer of insurance risk.\n\n### Columns 1 to 11 are required to report on the three bases defined above.\n\n### Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.\n\nColumns 1 to 5 Reinsured Best Estimate Liability –\n\nFor participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded.\n\nFor non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.\n\nColumn 10 Reinsured Policy Liability \\[derived item\\]\n\nThis column is derived by the form as the sum of columns 5 to 9, and represents total amount of reinsurance policy liability.\n\nColumn 11 Net Policy Liability\n\nThis column represents the net amount of policy liability and the number entered should equal gross policy liability minus reinsured policy liability.\n\n### 1.4. Sundry Items\n\nThis section is to be completed for all products, i.e. including non-participating products.\n\nAll figures in this section are to be reported on the ‘This Year’ basis.\n\nWhere applicable, figures in this section are to be reported on a net of reinsurance basis.\n\nColumns 1 and 2 capture the cost of previous year and current period best estimate bonus. Refer to Prudential Standard LPS 7.02 General Standard for definition of best estimate bonus.\n\nColumn 10 Profit Carrier or Acquisition Expense Recovery Carrier\n\nAs defined in section 6 of LPS 1.04.\n\nColumn 11 Percentage of Profit Carrier or Acquisition Expense Recovery Carrier \\[derived item\\]\n\nThis column will be calculated automatically by the form and equals ‘Shareholder profit margins on cost of current period best estimate bonus’ (Column 3) divided by ‘Profit Carrier or Acquisition Expense Recovery Carrier’ (Column 10).\n\n### Section 2 Totals by Class of Business and Basis\n\nNo value is required to be entered in this section. Items in this section are derived fields that sum up policy liabilities by class of business and basis.","sortOrder":16},{"sectionNumber":"1.4. Sundry Items","sectionType":"division","heading":"1.4. Sundry Items","content":"### 1.4. Sundry Items\n\nThis section is to be completed for all products, i.e. including non-participating products.\n\nAll figures in this section are to be reported on the ‘This Year’ basis.\n\nWhere applicable, figures in this section are to be reported on a net of reinsurance basis.\n\nColumns 1 and 2 capture the cost of previous year and current period best estimate bonus. Refer to Prudential Standard LPS 7.02 General Standard for definition of best estimate bonus.\n\nColumn 10 Profit Carrier or Acquisition Expense Recovery Carrier\n\nAs defined in section 6 of LPS 1.04.\n\nColumn 11 Percentage of Profit Carrier or Acquisition Expense Recovery Carrier \\[derived item\\]\n\nThis column will be calculated automatically by the form and equals ‘Shareholder profit margins on cost of current period best estimate bonus’ (Column 3) divided by ‘Profit Carrier or Acquisition Expense Recovery Carrier’ (Column 10).","sortOrder":18},{"sectionNumber":"2","sectionType":"division","heading":"Totals by Class of Business and Basis","content":"### Section 2 Totals by Class of Business and Basis\n\nNo value is required to be entered in this section. Items in this section are derived fields that sum up policy liabilities by class of business and basis.","sortOrder":19}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":1541},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This is the original 2009 determination made under section 13 of the Financial Sector (Collection of Data) Act 2001. It replaced an earlier standard (as noted in the transitional provision) but remains focused on its core purpose: collecting policy liability data from life insurers for prudential supervision. The scope has not expanded beyond this original intent."},"complexity_factors":["Multiple cross-references to external prudential standards (LPS 1.04, LPS 310, LPS 350, LPS 7.02)","Dual reporting frameworks for life companies (12 product groups L1-L12) versus friendly societies (8 product groups F1-F8)","Requirement to report on three separate valuation bases simultaneously (This Year, Last Year, and LY/TY hybrid)","Technical actuarial terminology including 'best estimate liability', 'profit carriers', 'discretionary additions', and 'unrecouped acquisition expenses'","Complex conditional logic distinguishing between insurance contracts and investment contracts, and between participating vs non-participating benefits","Nested requirements for gross vs net of reinsurance calculations","Specific unit measurements (thousands of AUD) and foreign currency conversion requirements under AASB 121"],"plain_english_summary":"This is an APRA reporting standard requiring all life insurers (including friendly societies) to calculate and report their policy liabilities to the regulator so APRA can assess whether sufficient reserves exist to meet future claims. \n\nInsurers must file Form LRF 400.0 annually (within four months of year‑end), using prescribed valuation bases and product groupings, separate insurance/investment contracts, follow Prudential Standard LPS 1.04, and ensure board review and audit of the figures — protecting policyholders and informing regulators."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The determination replaces an earlier reporting standard for periods ending before 1 October 2009 (para 14) but continues to apply to the same population—registered life insurance companies including friendly societies (para 2). It keeps annual audited reporting as the default, while formally giving APRA discretion to change frequency or grant extensions (paras 6–9). In short, it consolidates and specifies reporting mechanics and controls without expanding the stated class of entities required to report."},"complexity_factors":["Multiple reporting dimensions: by statutory/approved fund, APRA Product Group, class of business and three valuation bases (This Year, Last Year, LY/TY) (Reporting levels, Sections 1 & APRA Product Groups).","Detailed line items and derived fields (gross/reinsured/net liabilities, investment contract liability, management services asset/liability, profit carriers) with automatic form derivations (Sections 1.2–1.4).","Technical cross-references to prudential standards and accounting standards (LPS 1.04, LPS 310, LPS 350, AASB 121, etc.) that determine valuation and disclosure methods (Quality control, Basis of preparation).","Audit and internal control requirements: auditor review of processes/controls and linkage to annual auditor’s report (paras 10–11; Reporting periods and due dates note).","Authorisation and submission mechanics: electronic D2A digital certificates and receipts or signed paper forms (para 13), and rejection of drafts saved in D2A (note under para 13).","Regulatory discretion: APRA may change reporting periods/frequency for specific companies and may grant extensions (paras 7, 9), increasing compliance uncertainty.","Separate treatment for friendly societies with alternate product groupings and exceptions (APRA Product Groups tables and Notes).","Unit/measurement rules and foreign-currency conversion requirements (Unit of measurement).","Transitional rule requiring older periods to be reported under the replaced standard (para 14), adding a temporal compliance wrinkle.","Granularity of policy-level counts and contribution movement tracking (Section 1.1 and Columns 1–10) increases data collection and operational burden."],"plain_english_summary":"Requires every registered life insurer (including friendly societies) to submit an audited Statement of Policy Liabilities (Form LRF 400.0) to APRA, normally once per financial year, using APRA’s electronic system or paper. Reports must follow Australian accounting and APRA prudential standards, be subject to auditor review and internal authorisation, and are used by APRA (and specified agencies) for prudential supervision. APRA can change frequency or grant extensions."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-12-of-2009-lrs-400-0-stateme","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-12-of-2009-lrs-400-0-stateme/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-12-of-2009-lrs-400-0-stateme/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-12-of-2009-lrs-400-0-stateme/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-12-of-2009-lrs-400-0-stateme/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-12-of-2009-lrs-400-0-stateme/documents"}}