This form enables a reconciliation of the information disclosed by the reporting insurer to APRA in the form of the audited ‘yearly statutory accounts’, to the information disclosed by the insurer in its audited general purpose financial reports prepared in accordance with the Australian Accounting pronouncements (primarily AASB 1023 ‘Financial Reporting of General Insurance Activities’) and published to members under section 314 of the Corporations Act 2001.
This form will not be applicable where the insurer does not prepare and publish general purpose financial statements in accordance with AASB 1023.
Yearly statutory accounts
The forms that comprise the yearly statutory accounts are highlighted in the Reporting Requirements table. The yearly statutory accounts are to be prepared in accordance with the reporting/accounting requirements contained in the suite of prudential forms.
The reference to yearly statutory accounts does not refer to general purpose financial statements that the insurer may be required to prepare in accordance with the Australian accounting pronouncements.
It is a requirement of GGN 220.1 Governance and of section 49J of the Insurance Act 1973 that the Approved Auditor of the insurer must audit the yearly statutory accounts of the insurer.
Audit requirements
This form is required to be subject to review by the Approved Auditor of the insurer.
The scope and nature of audit testing required is outlined in the applicable Audit Guidance Statement issued by the Auditing and Assurance Board of the Australian Accounting Research Foundation.
Information provided in the form in respect of a financial year of an insurer forms part of the insurer’s ‘yearly statutory accounts’ within the meaning of section 3 of the Insurance Act 1973. This means that:
the completed form for the financial year must be audited by the approved auditor of the insurer (see paragraph 49J(1)(a) of the Act);
the insurer must make such arrangements as to enable the auditor to do this (subsection 49J(2));
the auditor must give the insurer a certificate relating to the completed form (and other completed forms that are part of the insurer’s yearly statutory accounts), which must contain statements of the auditor’s opinion on the matters required by the prudential standards to be dealt with in the certificate (subsection 49J(3));
the certificate must be lodged with APRA as provided for in the prudential standards (paragraph 49L(1)(a)), namely by the due date for lodging the form in respect of the financial year for the insurer.
Reporting entity
Forms are to be completed for the following:
Branch insurers of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);
Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and
Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity)
Unit of measurement
The form is to be completed in Australian currency, rounded in thousands of dollars with no decimal place.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
The annual information is to be completed in respect of the financial year of the insurer.
The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer. See the Reporting Requirements table for details.
Reporting lag
This form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in the Reporting Requirements table.
Specific instructions
Audited financial statements
This refers to the audited financial statements of the reporting insurer, for the applicable financial year, that have been prepared in accordance with Australian accounting pronouncements.
APRA forms
For the purposes of this form, this refers to GRF 300.0 Statement of Financial Position and GRF 310.0 Statement of Financial Performance. These forms comprise part of the audited yearly statutory accounts that are to be prepared in accordance with the prudential reporting requirements.
Statement of Financial Position
Net Assets (per AASB 1023 Audited Financial Statements)
Report the net asset value as disclosed in the financial statements prepared in accordance with AASB 1023 ‘Financial Reporting of General Insurance Activities’.
Add back the following items (disclosed in AASB 1023 based Statement of Financial Position):
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023. Disclose values in this section as positives.
Outstanding Claims Provision (OCP)
Current liabilities
Report in this field the value of the OCP that is reported in the financial statements of the insurer as a current liability.
Non current liabilities
Report in this field the value of the OCP that is reported in the financial statements of the insurer as a non-current liability.
Unearned premiums Provision
Current liabilities
Report in this field the value of the Unearned premiums Provision that is reported as a Current Liability in the financial statements of the insurer.
Non current liabilities
Report in this field the value of the Unearned premiums Provision that is reported as a Non-Current Liability in the financial statements of the insurer.
Deferred Income Tax Expense (or Deferred Tax Liabilities)
Report in this field the value of the Deferred Income Tax Expense (or Deferred Tax Liabilities) recognised in the financial statements of the insurer.
Subtract the following items (disclosed in AASB 1023 based Statement of Financial Position):
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023. Disclose values in this section as positives.
Deferred Acquisition costs
Current assets
Report in this field the value of the Deferred Acquisition Costs reported as a current in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the Deferred Acquisition Costs reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Deferred Reinsurance Expense
Current assets
Report in this field the value of the Deferred Reinsurance Expenses reported as a current asset in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the Deferred Reinsurance Expenses reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Reinsurance recoveries associated with the Outstanding Claims Provision:
This item relates only to reinsurance recoveries associated with the outstanding claims provision. Do not include other reinsurance recoveries.
Current assets
Report in this field the value of the reinsurance recoveries associated with the outstanding claims provision reported as a current asset in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the reinsurance recoveries associated with the outstanding claims provision reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Future Income tax Benefits (Deferred Taxation Assets)
Report in this field the value of the Future Income tax Benefits (Deferred Taxation Assets) recognised in the financial statements of the insurer.
Net adjustments
Represents the aggregate value of items in the section “Add back the following items disclosed in AASB 1023 based Statement of Financial Position” (i.e. items 2 – 4), less the aggregate value of the items in the section “Subtract the following items disclosed in AASB 1023 based Statement of Financial Position” (i.e. items 5 – 8).
Add back the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 300.0 Statement of Financial Position on an annual basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Expected Reinsurance Recoveries associated with Premium Liabilities
Current assets
Report the value of Expected Reinsurance Recoveries reported as a current asset in accordance with GRF 300.0 Statement of Financial Position.
Non current assets
Report the value of Expected Reinsurance Recoveries reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position.
Reinsurance recoveries associated with Outstanding Claims Provision:
Current assets
Report the value of Reinsurance recoveries associated with Outstanding Claims Provision reported as a current asset in accordance with GRF 300.0 Statement of Financial Position.
Non current assets
Report the value of Reinsurance recoveries associated with Outstanding Claims Provision, reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position.
Future Income tax Benefits (Deferred Taxation Assets)
Report in this field the value of the Future Income tax Benefits (Deferred Taxation Assets) recognised in GRF 300.0 Statement of Financial Position.
Current assets
Report the value of Future Income tax Benefits (Deferred Taxation Assets) reported as a current asset in accordance with GRF 300.0 Statement of Financial Position.
Non current assets
Report the value of Future Income tax Benefits (Deferred Taxation Assets), reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position.
Subtract the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 300.0 Statement of Financial Position on an annual basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Premium Liabilities
Current liabilities
Report in this field the value of Premium Liabilities disclosed in the APRA forms as a current liability and measured in Accordance with GPS 210 Liability Valuation for General Insurers.
Non current liabilities
Report in this field the value of Premium Liabilities disclosed in the APRA forms as a non-current liability and measured in Accordance with GPS 210 Liability Valuation for General Insurers.
Outstanding Claims Provision (OCP)
Current liabilities
Report in this field the value of OCP disclosed in the APRA forms as a current liability and measured in accordance with GPS 210 Liability Valuation for General Insurers.
Non current liabilities
Report in this field the value of OCP disclosed in the APRA forms as a non-current liability and measured in accordance with GPS 210 Liability Valuation for General Insurers.
Deferred Income Tax Expense (or Deferred Tax Liabilities)
Report in this field the value of the Deferred Income Tax Expense (or Deferred Tax Liabilities) recognised in GRF 300.0 Statement of Financial Position.
Net adjustment for APRA Items
This represents the aggregate value of the items in the “Add back the following items as disclosed in the APRA forms” section (i.e. items 10 – 12), less the aggregate value of the items in the “Subtract the following items as disclosed in the APRA forms” (i.e. items 13 – 15).
Other reconciling differences.
Asset valuation differences (market value in APRA forms compared to net market value in AASB 1023).
The APRA forms are to be prepared using market value, however net market value can be used. This differs from AASB 1023 ‘Financial Reporting of General Insurance Activities’ which requires net market value to be used. The difference in valuation is generally attributable to transaction costs.
If this is material report the differences in valuation.
Detail other items not specifically listed above that is required to be taken into account to reconcile the Net Assets per the Statement of Financial Position prepared in accordance with AASB 1023 to the Net Assets per the Statement of Financial Position prepared in accordance with APRA regulatory forms. Disclose subtractions as negative values and additions as positive values.
Adjusted Net Assets
This represents the Net Asset value reported in item number 1, adjusted for item 9. “Net Adjustment” and item 16 “Net adjustment for APRA forms” and any items disclosed in 17. “Other reconciling differences”.
Net Assets (per APRA Forms)
Report the Net Assets as disclosed in GRF 300.0 Statement of Financial Position prepared in accordance with APRA regulatory forms. The value disclosed in this field must agree to the “Adjusted Net Assets” figure calculated in item number 18 “Adjusted Net Assets”.
Statement of Financial Performance
Net profit/loss after income tax attributable to members of the company (as disclosed in AASB 1023 Audited Financial Statements)
Report the net profit/loss after income tax attributable to members of the company as disclosed in the financial statements prepared in accordance with AASB 1023 “Financial Reporting of General Insurance Activities”.
Add back the following items as disclosed in the AASB 1023 based Statement of Financial Performance:
This section refers to values disclosed in the annual financial statements (i.e. GRF 310.0 Statement of Financial Performance) prepared in accordance with Australian accounting standards notably AASB 1023 “Financial Reporting of General Insurance Activities”. Disclose values in this section as positives.
Tax Expense
Report in this field the value of taxation expense that is reported in the financial statements (GRF 310.0 Statement of Financial Performance) for the financial year ended of the insurer.
Claims Expense
Report in this field the value of the claims expense that is reported in the financial statements (GRF 310.0 Statement of Financial Performance) for the financial year ended of the insurer as a current liability.
Report in this field the value of the underwriting costs, that is reported in the financial statements (GRF 310.0 Statement of Financial Performance).
Reinsurance expense
Report in this field the value of the amortised reinsurance expense underwriting costs, that is reported in the financial statements (GRF 310.0 Statement of Financial Performance).
Subtract the following items as disclosed in the AASB 1023 based Statement of Financial Performance
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023 “Financial Reporting of General Insurance Activities”. Disclose values in this section as positives.
Earned Premium Revenue
Report in this field the value of the earned premium revenue that is reported in the GRF 310.0 Statement of Financial Performance for the financial year of the insurer prepared in accordance with AASB 1023.
Reinsurance recoveries revenue
Report in this field the value of the reinsurance recoveries revenue that is reported in the GRF 310.0 Statement of Financial Performance for the financial year of the insurer prepared in accordance with AASB 1023.
Net adjustments
This represents the aggregate value of the items disclosed in the “Add back the following items as disclosed in the AASB 1023 based Statement of Financial Performance” section (i.e. items 21 – 24), less the aggregate value of the items disclosed in the “Subtract the following items as disclosed in the AASB 1023 based Statement of Financial Performance” (i.e. items 25 and 26).
Add back the following items as disclosed in the APRA forms:
This section refers to values disclosed in the GRF 310.0 Statement of Financial Performance on a financial year basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Premium Revenue
Report in this field the value of the premium revenue that is reported in accordance with GRF 310.0 Statement of Financial Performance for the financial year of the insurer.
Report in this field the value of the Reinsurance recoveries revenue that is reported in accordance with GRF 310.0 Statement of Financial Performance for the financial year of the insurer. Reinsurance recoveries revenue is to be reported for the following:
Relating to future years (i.e. expected reinsurance recoveries); and
Relating to current and prior years.
Subtract the following items as disclosed in the APRA forms:
This section refers to values disclosed in the APRA forms (GRF 310.0 Statement of Financial Performance”) on a financial year basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Tax Expense
Report in this field the value of the taxation expense disclosed in GRF 310.0 Statement of Financial Performance for the financial year ended of the insurer.
Claims Expense
Relating to Premium liabilities
Report in this field that component of the value of claims expense relating to Premium Liabilities as disclosed in GRF 310.0 Statement of Financial Performance.
Relating to Outstanding Claims Provision
Report in this field that component of the value of claims expense relating to the outstanding claims provision as disclosed in GRF 310.0 Statement of Financial Performance.
Acquisition costs
Report in this field the value of acquisition costs (which will include fully expense value of acquisition costs) that is disclosed in GRF 310.0 Statement of Financial Performance.
Reinsurance expense
Report in this field the value of reinsurance expense (which will constitute the fully expense value the cost of reinsurance cover) that is disclosed in GRF 310.0 Statement of Financial Performance.
Net adjustment for APRA Items
This represents the aggregate value of the items in the “Add back the following items as disclosed in the APRA forms” section (i.e. items 28 and 29), less the aggregate value of the items in the “Subtract the following items as disclosed in the APRA forms” (i.e. items 30 – 33).
Other reconciling differences
The APRA forms are to be prepared using market value, however net market value can be used. This differs from AASB 1023 ‘Financial Reporting of General Insurance Activities’ which requires net market value to be used. The difference in valuation is generally attributable to transaction costs.
If this is material report the differences in valuation.
Detail other items not specifically listed above that is required to reconcile the “Net profit/loss after income tax attributable to members of the company” prepared in accordance with AASB 1023 to the “Net profit/loss after income tax attributable to members of the company” prepared in accordance with APRA regulatory forms. Disclose subtractions as negative values and additions as positive values.
Adjusted Net profit/loss after income tax attributable to members of the company
This represents the Net profit/loss after income tax attributable to members of the company reported in item number 20, adjusted for item 27 “Net Adjustment” and item 34. “Net adjustment for APRA Items” and the aggregate value of any items disclosed in item number 35.
Net profit/loss after income tax attributable to members of the company (per APRA Forms)
Report the Net profit/loss after income tax attributable to members of the company as disclosed in GRF 310.0 Statement of Financial Performance Statement prepared in accordance with APRA regulatory forms. The value disclosed in this field must agree to the “Adjusted Net profit/loss after income tax attributable to members of the company” figure calculated in item number 36.