Part 3C: Total Premium liabilities Surplus / Deficit

Total Direct Business - Premiums liabilities Surplus / Deficit and Total Reinsurance Business - Premiums liabilities Surplus / Deficit are calculated automatically. Both items represent the difference between AASB1023 net premium liabilities (Parts 1B and 2B) and GPS 310 net premiums liabilities (Parts 1A and 2A).

Total deferred reinsurance expense for future business not yet written represents the component of reinsurance paid or payable which is available for future business written up to the end of the reinsurance contract. Amounts cannot be included in this item where the underlying reinsurance arrangements do not comply with the threshold levels of the reinsurance documentation test set out in GPS 112 or the governing law requirements set out in GPS 230. This amount must not be negative.

Total Premiums liabilities Surplus / Deficit is calculated by adding the three components mentioned above.

For branch insurers this surplus or deficit, that represents amounts inside Australia, will be added back to or deducted from adjusted net assets in Australia in GRF 110.0_B Minimum capital requirement. This calculation is derived in GRF 300.0_B Statement of Financial Position. For all other insurers it will be added back to or deducted from the capital base in GRF 120.0 Determination of Capital Base.