Reporting entityReporting entity

Reporting entity

This form is not applicable to licensed branch insurers.

Forms are to be completed for the following reporting entities where appropriate:

1. Authorised insurance entities including a mutual (refer to form ‘Licensed Insurer’);
2. Authorised reinsurance entities (refer to form ‘Licensed Insurer’); and
3. Consolidated insurance groups (refer to form ‘Consolidated Insurance Group’).

Note: the consolidated insurance group is only required to complete the information requirements on the form. No risk charge is applied to the consolidated insurance group at this stage.

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 that 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).

Definitions

Definitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’. In addition, the ‘Glossary of Terms’ also contains a list of definitions of common data reporting items.

Unit of measurement

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