Specific instructionsSpecific instructions

Specific instructions

To calculate the eligible capital base, enter a value in column 1 headed “Value” (Item 1) for each line item applicable to the insurer and the spreadsheet will calculate the amount eligible for inclusion in the capital base (Item 3). Total Tier 1, Tier 2 and Total capital is also calculated.

Refer to GGN 110.1 Measurement of Capital Base for further information on the method of calculation and definitions.

Tier 1 capital

Tier 1 capital comprises the highest quality capital instruments that are both permanent and non-cumulative in nature. Eligible Tier 1 capital net of required deductions must constitute at least 50% of an insurer’s capital base.

Items 4 - 8

These items on the form may be included as part of the insurer’s capital base without the need for APRA’s prior approval.

Items 10. and 11.

Prior approval from APRA is required before an insurer is able to include instruments covered by these items in this form in its Tier 1 capital.

Items 4. and 5. (and 8.B. for Consolidate Insurance Group)

These items must correspond to the amounts disclosed in GRF 300.0 Statement of Financial Position. Do not use the figures that are disclosed in the reporting insurers annual financial accounts prepared in accordance with Australian accounting standards.

Item 6. Retained profits or accumulated losses at end of Reporting Period

This item must equal Retained profits or accumulated losses at end of Reporting Period as disclosed in GRF 310.0 Statement of Financial Performance.

Item 7. Technical provisions in excess of liability valuation

Include in this item the value of technical insurance provisions (Premium Liabilities and Outstanding Claims Liabilities) that are recognised in GRF 300.0 Statement of Financial Position – Licensed Insurer, that are in excess of the technical provisions required by GPS 210 Liability Valuation for General Insurers. This is calculated on a net basis as per the following:

The following calculates the total OCP and Premium Liabilities net of Reinsurance and Non Reinsurance Recoveries as reported in GRF 300.0 Statement of Financial Position – Licensed Insurer:

• Sum of the insurance liabilities:

• Item “18. OCP – Current Liabilities”; plus

• Item “27. OCP – Non-current Liabilities”; plus

• Item “19. Premium Liabilities – Current Liabilities”; plus

• Item “28. Premium Liabilities – Non-current Liabilities”;

• Less sum of reinsurance and non reinsurance recoveries: