Reporting entityReporting entity

Reporting entity

This form is to be completed by:

1. Branch insurers of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations). For Branch insurer ‘Net Assets’ has been used in the calculation of the exposure threshold ;
2. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity). For licensed entities, ‘Capital Base’ has been used in the calculation of the exposure threshold;
3. Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity). For licensed entities, ‘Capital Base’ has been used in the calculation of the exposure threshold; and
4. Consolidated insurance groups. ‘Capital Base’ has been used in the calculation of the exposure threshold.

For the purposes of APRA prudential reporting, the consolidated insurance group is interpreted as the accounts incorporating the highest parent entity in a group structure, that is an Australian authorised general insurance entity (for the purposes of the Insurance Act 1973), and includes all subsidiaries, associates and joint ventures (registered both in Australia and overseas) of that parent entity.

For the purposes of this form, the highest parent entity in the corporate group does not include a company (e.g. non-operating holding company) that is not an authorised general insurance entity.

Definition of subsidiaries should be consistent with the requirements of Australian accounting standards AASB 1024 ‘Consolidated Accounts’ and definition of associates should be consistent with AASB 1016 ‘Accounting for Investments in Associates’.

Exemptions from the Consolidated Insurance Group requirements

• Australian authorised insurers, which do not have any subsidiaries, are not required to complete the forms for this reporting unit.

• Australian authorised insurers, which have subsidiaries but the financial position of the consolidated insurance group is not materially different from that of the licensed insurance entity, are not required to complete the forms for this reporting unit (i.e. the subsidiaries do not have any material dealings/balances).

Unit of measurement

This form is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.

The general requirements of AASB 1012 for translation are:

1. Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date; and