Property ExposureProperty Exposure

Property Exposure

For prudential reporting purposes, a property exposure/investment exists where the investment (earnings and capital value) are dependent on the cash flows generated by the property through sale or rental income. Investments in property located in Australia and overseas must be reported on this form.

Property exposure that is to be reported on this form, only relates to exposure to direct holdings of property (direct investment/ownership in freehold or leasehold real estate).

Property exposure that is gained through the following mediums is not to be to be reported on this form, but in GRF 140.4 Investments – Assets Indirectly Held by the Insurer and Risk Charge:

• Holding in listed property trusts

Indirect ownership of physical real estate. Units are listed and traded on the primary board of a recognised stock exchange.

• Holding in unlisted property trusts

Indirect ownership of physical real estate. Units are not listed and traded on the primary board of a recognised stock exchange.

Property Classifications

For this return the insurer’s and the consolidated insurance group’s exposure/investment in direct property, is to be classified according to the following type of property market/categories:

1. Office;
2. Retail – e.g. includes retail shops, restaurants, shopping centres;
3. Tourism and leisure – e.g. includes hotels, motels and lodgings, recreational and sporting facilities, hotel developments, time-share developments and other hospitality industries;
4. Infrastructure; and
5. Other

Licensed Insurer – Investment Capital Factor %

This column discloses the appropriate investment capital charge for the asset type in accordance with GGN 110.4 Investment Risk Capital Charge Attachment 1.

Licensed Insurer – Investment risk charge %

This column will calculate the appropriate investment risk charge in accordance with GGN 110.4 Investment Risk capital Charge Attachment 1.

1. Total direct property investments, which represent the following:

1.1 Current Assets

Disclose that component of the total direct property investments of the insurer that are classified as current assets for Australian financial reporting purposes. Disclosure of investments in the Statement of Financial Position into current assets is to be disclosed/reported in accordance with AASB 1023.

1.2 Non-Current Assets

Disclose that component of the total direct property investments of the insurer that are classified as non-current assets for Australian financial reporting purposes. Disclosure of investments in the Statement of Financial Position into non-current assets is to be reported in accordance with AASB 1023.