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 reinsurance recoverables, expected reinsurance recoveries and other reinsurance asset related data items for international business (subject to meeting Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340) requirements and after removing regulatory receivables and payables).

For clarity, in this Reporting Standard, reinsurance recoverables on paid claims and reinsurance recoverables on outstanding claims are not reported separately. As such, there is no need to make the adjustment for reinsurance recoverables on paid claims.