1All Statutory Fund Products

Section 1 All Statutory Fund Products

This section is to be completed for each class of business, as specified in the drop-down box list:

• Australia – Superannuation Business
• Australia – Ordinary Business
• Overseas – All business

The expressions ‘ordinary business’ and ‘superannuation business’ are defined in the dictionary of the Life Insurance Act 1995.

1.1. Greater of Capital Adequacy Liability and Current Termination Value (CTV)

Each component is determined at Related Product Group (RPG) level and then aggregated across the APRA Product Group.

Columns 1 to 3 are to be reported gross of outwards reinsurance.

Columns 5 to 7 are to be reported as the amounts ceded under outwards reinsurance.

Where paragraphs 7.2 and 7.3 of LPS 3.04 apply, the methodology to be followed in completing columns 1 to 3 and columns 5 to 7 is outlined in the Instruction Guide for LRF 110.0 Capital Adequacy.

Note that amounts under columns 5 to 7 are expected to be entered with the opposite arithmetical sign to amounts under columns 1 to 3 consistent with the methodology outlined in the Instruction Guide for LRF 110.0 Capital Adequacy.

Paragraph 7.4 of LPS 3.04 allows an item of difference to be included as an offset or addition to Capital Adequacy Liability, Current Termination Value and ‘Greater of” amount. The effective amount(s) of such difference will be reported in Column 4.

1.2. Greater of Solvency Liability and Minimum Termination Value (MTV), and Solvency Current Termination Value (SCTV)

Each component is determined at RPG level and then aggregated across the APRA Product Group.

Columns 1 to 3 are to be reported gross of outwards reinsurance.

Columns 7 to 9 are to be reported as the amounts ceded under outwards reinsurance.

Where paragraphs 6.2 and 6.3 of LPS 2.04 apply the methodology to be followed in completing columns 1 to 3 and columns 7 to 9 is outlined in the Instruction Guide for LRF 100.0 Solvency.

Note that amounts under columns 7 to 9 are expected to be entered with the opposite arithmetical sign to amounts under columns 1 to 3 consistent with the methodology outlined in the Instruction Guide for LRF 100.0 Solvency.

Paragraph 6.4 of LPS 2.04 allows an item of difference to be included as an offset or addition to Solvency Liability, Minimum Termination Value and ‘Greater of” amount. The effective amount(s) of such difference will be reported in Column 4.

Column 6 reports the Solvency Current Termination Value. This amount is to be reported gross of outwards reinsurance but inclusive of any amount of reinsurance/risk mitigation difference applicable to the Solvency Current Termination Value.

1.3. Related Product Group Capital Adequacy Margins

The following provides information where there are multiple RPGs within the APRA Product Group, each with its specific valuation assumptions.

Column 1 Number of RPGs in this APRA Product Group

Enter the number of Related Product Groups in this APRA Product Group.

Column 2 Name of Main RPG in this APRA Product Group

Enter the name of main Related Product Group in this APRA Product Group.

Columns 3 to 16 Capital Adequacy Margin

Report this information for the main RPG named in Column 2.

The Capital Adequacy Margins are those applied to the Best Estimate assumptions in order to produce the Capital Adequacy assumptions. In completing this part of the form, life companies should refer to LPS 3.04 Section 4 for guidance.