Expected reinsurance recoveries (5)Expected reinsurance recoveries (5)

Expected reinsurance recoveries (5)

Expected reinsurance recoveries means any amounts due to an insurer from a reinsurer that arise from the recognition of Premiums Liabilities referred to in the capital standards[10] and GPS 310. This is distinguished from reinsurance recoverables and forms part of reinsurance assets.

Non-reinsurance recoveries (6)

Non-reinsurance recoveries are amounts that may be recovered under arrangements other than reinsurance arrangements, such as salvage, subrogation and sharing agreements.

For each line of business report the non-reinsurance recoveries associated with the premiums liabilities, estimated in a manner consistent with the methodology used in the most recent Insurance Liability Valuation Report prepared by the Group Actuary as defined in GPS 310.

The estimates of non-reinsurance recoveries expected to be received must be based on the nature of the expected claims and the history of non-reinsurance recoveries compared to claims.

Net PL - Central estimate (7)

For each line of business, report the central estimate, net of expected reinsurance and non-reinsurance recoveries, associated with premiums liabilities that are calculated in accordance with GPS 311.

Net PL - Risk margin (8)

For each line of business report the risk margin, net of expected reinsurance and non-reinsurance recoveries, associated with premiums liabilities that are calculated in accordance with GPS 311.

Total PL net of expected reinsurance and non-reinsurance recoveries (9)

Premiums Liabilities net of expected Reinsurance Recoveries and Non-reinsurance Recoveries are calculated as:

• Net PL - Central Estimate; plus
• Net PL – Risk Margin.

Do not enter a value as this is automatically calculated by the form.

PL Capital factor % (10)

This column states the insurance risk capital factor applicable to each line of Australian business. The capital factors are specified in Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115).

A different treatment applies to international business in this column. As part of the supplementary information provided to APRA, Level 2 insurance groups are required to have mapped their international business to the Australian classes of business as defined in GPS 001 in order to assign an insurance risk capital charge. For international business, this column requires Level 2 insurance groups to report a weighted average capital factor which applies to the total of all the classes for each region.

PL Insurance risk charge (11)

This column represents the insurance risk capital charge applicable to premiums liabilities. For Australian business, the capital charge is calculated on the basis of risk capital factors specified in GPS 115. For international business the insurance risk capital charge is calculated based on the weighted average capital factor reported for each region under 'Premiums Liability Capital Factor %' in this form. The premiums liability insurance risk capital charge is automatically calculated by the form.