Financial Sector (Collection of Data) (reporting standard) determination No. 28 of 2007 - LRS 410.0 - Capital Measurement Statistics
1All Statutory Fund Products
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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
The three components below (columns 1 to 3) are determined at Related Product Group (RPG) level and then aggregated across the APRA Product Group.
Where paragraphs 7.2 and 7.3 of LPS 3.04 apply, the methodology to be followed in completing Columns 1 – 3 is outlined in the Instruction Guide for LRF 110.0 Capital Adequacy.
Column 1 Capital Adequacy Liability (where determined)
Column 2 Capital Adequacy Current Termination Value (where determined)
Column 3 Greater of Capital Adequacy Liability and Current Termination Value
Column 4 Amount of reinsurance/risk mitigation difference included in each column to the left
1.2. Greater of Solvency Liability and Minimum Termination Value and Solvency Current Termination Value
The following three columns are determined at RPG level and then aggregated across the APRA Product Group.
Where paragraphs 6.2 and 6.3 of LPS 2.04 apply the methodology to be followed in completing Columns 1 – 3 is outlined in the Instruction Guide for LRF 100.0 Solvency.
Column 1 Solvency Liability (where determined)
Column 2 Minimum Termination Value (where determined)
Column 3 Greater of Solvency Liability and Minimum 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 Related Product Groups (RPG) 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.
Column 3 – 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.