International businessInternational business

International business

Level 2 insurance groups are required to report financial data on both Australian and international exposures as defined in this form. For the purposes of segment reporting, Level 2 insurance groups are not to follow the requirements under the Australian accounting standards when completing this form where they conflict with the specific instructions in this form.

For prudential reporting purposes ‘Australian Business’ is as defined in GPS 001 and means insurance business carried on by any Level 1 insurer within a Level 2 insurance group. Therefore, all insurance business written by Level 1 insurers is deemed to be Australian business. ‘International Business’[6] is insurance business carried on by an entity within the group that is not authorised under the Insurance Act 1973. This treatment is different to the requirements of AASB 1023 ‘General Insurance Contracts’ and other Australian accounting standards.

Capturing information that distinguishes between Australian business and international business by region will ensure APRA receives enough data to enable it to effectively assess the financial performance of the entire group. This form captures information on international exposures across the Level 2 insurance group by region. This includes premiums written by the international business as well as claims arising from the international business.

International business is to be reported according to the following geographical regions:

• New Zealand;
• South East Asia;
• Asia Pacific;
• USA;
• Americas;
• UK/Europe; and
• Other.

Amounts reported for Australia and other regions should be reported on the basis that these entities (or regions) are separate from the group before consolidation.

The value of inter-region transactions, which are eliminated on consolidation, need to be reported under ‘Inter-region elimination’.

For entities which are not insurers within the Level 2 insurance group, items should be reported as:

• ‘Australian Business’ when they relate to an entity incorporated in Australia; and
• The international region that most appropriately reflects the business and / or operational segments of the group, when they relate to an entity incorporated outside of Australia.

The regions should be defined consistently with the other Level 2 reporting forms that require data to be split by international region, for example GRF 210.0 G Outstanding Claims Liabilities – Insurance Risk Charge (Level 2 Insurance Group), GRF 210.1_G Premium Liabilities – Insurance Risk Charge (Level 2 Insurance Group) and GRF 302.0_G Statement of Financial Position by Region (Level 2 Insurance Group).