Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2007 - LRS 110.0 - Capital Adequacy
Form to be on a gross of reinsurance basForm to be on a gross of reinsurance basis
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Form to be on a gross of reinsurance basis
APRA would like to remind reporting entities that LPS 3.04 applies on a gross of reinsurance basis. This includes MTV, CTV and Capital Adequacy Liability. In effect, the reinsurance asset is no longer to be set off against the liabilities side (i.e. netting), but is to be added to the assets side.
For further background, refer to subsection 3.5 (‘Reinsurance’) in LPS 3.04; and in particular, paragraph 7.4 of LPS 3.04 (under Part B – Methodologies).