International businessInternational business

International business

A Level 2 insurance group may use a best endeavours basis to determine the identification of asset or counterparty exposures for international business. The best endeavours basis must use information held by entities within the Level 2 insurance group, or otherwise publicly available information, in a manner consistent with the group’s documented credit risk management policies.

A Level 2 insurance group may use accounting records to derive values for the following data items for international business (subject to meeting Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340) requirements):

• Reinsurance recoverables on outstanding claims;
• Expected reinsurance recoveries;
• Other reinsurance assets;
• GPS 340 net outstanding claims liabilities; and
• GPS 340 net premium liabilities.

The Level 2 insurance group must remove regulatory receivables and payables from the accounting records and separately report these data items. The Level 2 insurance group may use a best endeavours basis for the removal.