Total exchange traded derivative financiTotal exchange traded derivative financial instruments: Derivatives traded on futures and options exchanges subject to daily mark-to-market & margin payments.

Total exchange traded derivative financial instruments: Derivatives traded on futures and options exchanges subject to daily mark-to-market & margin payments.

These refer to derivative contracts that are transacted on a recognised futures or options exchange (e.g. in Australia the Sydney Futures Exchange) and are subject to daily mark-to-market and margin payment. These contracts are transacted in standardised parcels. The clearing house effectively becomes the counterparty to all derivative positions.

Record the aggregate principal and mark to market value for each contract type (i.e. Interest Rate Contracts, Equity Contracts).

Total derivative financial instrument exposure, which is in relation to the following:

3.1 Investment portfolio

Record the aggregate principal and mark to market value of derivative exposures that relate to the investment portfolio, either as hedging a component of the underlying investment portfolio (i.e. fixed interest or equities) or as an outright investment.

3.2 Other assets

Record the aggregate principal and mark to market value of derivative exposures that are in relation to assets other than those included in the investment portfolio of the insurer (see point above), i.e. used for the purpose of hedging asset returns/values.

3.3 Claims Liabilities

Record the aggregate principal and mark to market value of derivative exposures that relate to the insurer’s claims liabilities (e.g. hedging the currency movement on a claim liability denominated in a currency other than Australian currency).

3.4 Debt Funding/Borrowings

Record the aggregate principal and mark to market value of derivatives that relate to specific debt/borrowings of the insurer (e.g. hedging the interest rate risk or currency risk associated with the borrowings).

3.5 Other

Record the aggregate principal and mark to market value of derivatives that relate to other items not specifically listed above (i.e. hedging the currency risk associated with an anticipated purchase).

Total Derivative financial instruments which are with the following related parties:

4.1 Parent entity

Disclose holdings of derivatives that are purchased from or sold to the parent entity of the licensed insurer.

4.1.1 Controlled entities / Other branches of the parent entity

For Branches, this line item is to be interpreted as amounts in relation to ‘Other branches of the parent entity’, and for licensed insurance entities as amounts in relation to ‘Controlled entities’.

Disclose holdings of derivatives that are purchased from or sold to controlled entities of the licensed insurer.