General directions and notesGeneral directions and notes

General directions and notes

Reporting levels

LRF 100.0 must be completed by all life insurance companies, including friendly societies.

The form is to be completed separately for each statutory fund (approved benefit fund).

LRF 100.0 contains four sections:

1. Solvency Requirement;
2. Solvency Assessment (Solvency Position/Reserve/Ratio/Coverage);
3. Solvency Inadmissible Assets; and
4. Solvency Resilience Requirements.

Within each section, reporting items are to be completed at total fund level.

For the purposes of reporting under this form, contracts are to be classified in accordance with Prudential Standard LPS 350 Contract Classification for the Purpose of Regulatory Reporting to APRA (LPS 350).

Unit of measurement

LRF 100.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.

Definitions

Definitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’.

Definitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.

Reporting period

Life companies are required to report the information in the reporting form on a quarterly and annual basis.

• The quarterly information is to be completed as at the end of each quarter based on the financial year of the life company, not the calendar year.
• The annual information is to be completed as at the end of the financial year of the life company.
• The financial information requested in this form is to be reported as at the close of business for the last day of the reporting period.

Basis of preparation

In completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.

Asset values are to include interest or dividend income accrued but not received. All assets of a statutory fund are to be reported in this form at Fair Value, with movements in Fair Values recognised in Profit or Loss. NB this treatment differs from Australian accounting standards, which do not allow assets to be valued at Fair Value in all circumstances eg owner occupied property.