Premiums Received on a cashflow basis (iPremiums Received on a cashflow basis (in Part 3: Total)

Premiums Received on a cashflow basis (in Part 3: Total)

This is the amount of premiums actually received over the reporting period (on a year to date basis). It is to be reported in aggregate for direct written business and reinsurance business.

This relates to all premiums received on a cashflow basis in the current financial year, regardless of the financial year in which the premiums may have been recognised as revenue (i.e. a prior financial year).

(2) Gross written premium revenue relating to unclosed business

This column requires separate identification of gross premium revenue relating to unclosed business. This includes the business which has been accepted by the insurer/reinsurer prior to the balance date but there is insufficient information to fully identify the business.

(3) and (4) AASB 1023 Gross unearned premium liability (UPL)

Gross UPL is to be reported in this form at both the start of the financial year and the end of the reporting period. The UPL is to be reported in this form in accordance with AASB 1023.

(5) AASB 1023 Gross earned premium (excluding FSL)

This column is calculated automatically by the form and represents the sum of column (1) and column (3), less column (4).

(6) Fire service levy and other levies imposed by state and territory governments

Report separately FSL and any other levies imposed by state and territory governments.

(7) AASB 1023 Gross earned premium (including FSL)

This column is calculated automatically by the form and represents the sum of column (5) and column (6).

(8) Reinsurance expense

Reinsurance expense is to be recognised in accordance with the pattern of reinsurance service received as required by AASB 1023.

Reinsurance expense will be recognised from the attachment date over the period of indemnity of the reinsurance contract in accordance with the expected pattern of the incidence of risk. This may vary according to the type of reinsurance contract as outlined below.

For reinsurance written on a risks attaching or, equivalently, an underwriting period basis, current reinsurance contracts are fully matched to the underlying insurance portfolios. Reinsurance coverage for the underlying portfolio is recognised as the underlying policies are written.

For reinsurance written on a losses occurring basis, current reinsurance contracts provide coverage for any risks exposed during the reinsurance period irrespective of when the underlying business was written. Such reinsurance covers both the unexpired portion of policies in force at the contract commencement date and that portion of new business and renewals written during the year that is earned up to the contract expiry date. This latter portion relates to business which has not yet been written at the contract commencement date.

APRA would expect that initially the full minimum and deposit premium would be recognised as an expense, with any necessary adjustments due to experience at subsequent reporting dates.

Where payments under a reinsurance contract extend beyond the current year of cover, reinsurance expense is to be discounted using similar discount rates as required in measuring insurance liabilities in accordance with AASB 1023.

(9) and (10) GRF 300.0 Deferred Reinsurance Expense (DRE)

Deferred Reinsurance Expense is to be reported in this form at both the start of the financial year and the end of the reporting period. Deferred Reinsurance Expense is to be reported in this form as per GRF 300.0 Statement of Financial Position.

(11) Total Reinsurance expense

This column is calculated automatically by the form and represents The sum of column (8) and column (9), less column (10).

For some insurers the reinsurance expense reported in this column may be different from the reinsurance expense reported at column 13.

(12) Net premium revenue

This is automatically calculated by the form and represents the AASB 1023 Gross earned premium (including FSL) less total reinsurance expense.

(13) Total reinsurance expense per AASB 1023

Report the total reinsurance expense that would be reported under AASB 1023. Where there is no difference from column 11 ‘Total Reinsurance expense’ input the same number as in column 11. Where the insurer does not ordinarily calculate reinsurance expense under AASB 1023, input zero.. This item is a memo item for reconciliation purposes only.

Business with related entities:

Report premium revenue/reinsurance expense items which are from/in connection with the following related entities. Related parties have been defined earlier in this instruction guide:

1. Parent entity
2. Controlled entities / Controlled entities of the parent entity

For branches, the line item ’Controlled entities / Controlled entities of the parent’ is to be interpreted as amounts in relation to ‘Controlled entities of the parent’, and for licensed insurance entities amounts are in relation to ‘Controlled entities’ of the reporting insurer.

3. Associates / Joint Ventures

4. Other related parties