Level 2 insurance groups for general insLevel 2 insurance groups for general insurers

Level 2 insurance groups for general insurers

1. A Level 2 insurance group is:
   1. where there is no authorised NOHC and an insurer has controlled entities, the consolidation of the insurer and its controlled entities, subject to paragraphs 7 to 9 (inclusive) of this Attachment; or
   2. where there is an authorised NOHC, the consolidation of the authorised NOHC and its controlled entities, subject to paragraphs 7 to 9 (inclusive) of this Attachment; or
   3. where there is no authorised NOHC and an insurer does not have controlled entities, the consolidation of the insurer and any entity that meets the following criteria:
      1. the entity is subject to control by an entity or group of related entities that are the same or very similar to the entity or group of related entities that control the insurer;
      2. the entity conducts insurance business or business related to insurance business0F[1]; and
      3. APRA determines, in writing, that the entity is to be consolidated.

However, APRA may, in writing, determine that a group that meets subparagraph (a) or (b) is not to be treated as a Level 2 insurance group.

1. For the purposes of the prudential supervision of insurance groups at Level 2, all entities conducting insurance business (subject to paragraphs 8 and 9 of this Attachment), both regulated and unregulated, within the insurance group must be consolidated. Consolidation at Level 2 must be in accordance with the requirements of the Australian Accounting Standards for the production of consolidated financial statements except where APRA determines under paragraph 8 that an additional entity is to be consolidated or where an entity is to be treated as a non-consolidated subsidiary under paragraph 9.
2. APRA may, in writing, determine that an entity is to be consolidated, despite that entity not being a controlled entity of the insurer or authorised NOHC, if:
   1. the entity is subject to control by an entity or group of related entities that are the same or very similar to the entity or group of related entities that control other members of the Level 2 insurance group; and
   2. it conducts insurance business or business related to insurance business.1F[2]
3. The following types of controlled entities are to be treated as ‘non-consolidated subsidiaries’2F[3] (unless APRA, in writing, determines otherwise):
   1. prudentially regulated entities that are neither insurers nor entities carrying on international business;
   2. entities acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management (including superannuation or pension fund business);