Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2011 - GRS 300.0_G (2011) - Statement of Financial Position (Level 2 Insurance Group)
Total investment income receivable from Total investment income receivable from counterparties/assets with rating of:
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Total investment income receivable from counterparties/assets with rating of:
Total investment income receivable reported above is to be allocated according to the counterparty/asset rating grades set out below and on the form. The investment risk charge will be calculated according to GPS 111 and the applicable rating grades listed in GPS 114.
Total investment income receivable is automatically calculated by the form and represents the sum of items 3.1.1 to 3.1.7.
3.1.1 Commonwealth, state and territory governments
3.1.2 Grade 1 or 2
3.1.3 Grade 3
3.1.4 Grade 4
3.1.5 Grade 5
3.1.6 Listed equities
3.1.7 Other
3.2 Total net recoveries other than reinsurance receivable
These figures represent the value of ‘Recoveries other than reinsurance’ receivable, net of any associated provision for doubtful debts. Claims recoveries may also consist of subrogation, salvage or other recoveries.
Total net recoveries other than reinsurance receivable is automatically calculated by the form and represents the sum of items 3.2.1 and 3.2.2.
Total net amounts recoverable (other than reinsurance recoveries[7] receivable) on:
3.2.1 Outstanding claims
Of the total value calculated in item 3.2 for total net recoveries other than reinsurance, report the value that relates to outstanding .
3.2.2 Paid claims
Of the total value calculated in item 3.2 for total net recoveries other than reinsurance, report the value that relates to paid claims.
Net recoveries receivable, as reported in item 3.2 that are from counterparties with rating of:
The net value of recoveries receivable is to be allocated according to the counterparty/asset rating grades of the counterparty from which the recoveries are receivable. The grades are set out below and on the form, which are detailed in GPS 114. The investment risk charge will be calculated according to the applicable rating grade.
3.2.3 Commonwealth, state and territory governments
3.2.4 Grade 1 or 2
3.2.5 Grade 3
3.2.6 Grade 4
3.2.7 Grade 5
3.2.8 Other
3.3 Premium receivables
Include all premiums that are due to be received. Include unpaid premiums available for collection and premiums not yet available for collection. Unpaid reinsurance premiums are also disclosed here.
If the unpaid premium is from a reinsurance contract where a legal right of set-off exists, the amount may be included as an amount recoverable under a reinsurance contract, but only if the amount is the balance after set-off against other amounts owing under that contract. Where no legal right of set-off exists, the unpaid premium from the reinsurance contract is to be shown as an unpaid premium.
Part Total investment income receivable from - Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2011 - GRS 300.0_G (2011) - Statement of Financial Position (Level 2 Insurance Group) - Total investment income receivable from counterparties/assets with rating of: | Zoe
All unpaid premiums on such policies are to be disclosed here according to the length of time the premium has been due to be received. The due date is the date of inception or, for instalment premiums the date from when the instalment is owed.
Unpaid instalment premiums are to be reported as unpaid premiums and are to include all unpaid instalments. If any instalment is due for more than 6 months all the unpaid instalments are to be regarded as over 6 months.
For premium aging purposes, inward reinsurance premiums may be aged from the statement (bordereaux) date.
Disclosure of unpaid premiums due is as follows:
3.3.1 Net premium receivables due in 6 months or less:
Report the premiums which are receivable (e.g. from insurance brokers or other intermediaries) as at the reporting date in less than 6 months. Deduct any associated provision for doubtful debts. The net balance is used in the calculation of the applicable investment risk charge.
3.3.2 Net premium receivables due in more than 6 months:
Report the premiums which are receivable (e.g. from insurance brokers or other intermediaries) as at the reporting date in more than 6 months. Deduct any associated provision for doubtful debts. The net balance is used in the calculation of the applicable investment risk charge.
Where a Level 2 insurance group does not have this data available, an approach needs to be agreed with APRA on how net premium receivables are to be apportioned between item 3.3.1 and item 3.3.2.
3.3.3 Net premium receivables on unclosed business
Include business written close to reporting date where acceptance of risk is prior to reporting date but there is insufficient information to accurately identify the business. Deduct any associated provision for doubtful debts. The net balance is used in the calculation of the applicable investment risk charge.
3.3.4 Total net premium receivables
This is automatically calculated by the form and is the sum of net premium receivables reported in items 3.3.1 to 3.3.4.
3.3.5 Total net premiums that are receivable from related parties
Disclose the aggregate value of ‘Total net premiums receivable’ that is due from related parties.
3.4 Net amount recoverable from reinsurance contracts on outstanding claims and paid claims
Report the total net reinsurance recoverable from reinsurance contracts on outstanding claims.
3.5 Deferred reinsurance expense
Report the value, as at the reporting date, of deferred reinsurance expense (DRE), determined in accordance with prudential standards.
Reinsurance expense is to be recognised in accordance with the pattern of reinsurance service received as required by relevant Accounting Standards. Reinsurance expense will be recognised from the attachment date over the period of indemnity of the reinsurance contract in accordance with the expected pattern of the incident of risk. This may vary according to the type of reinsurance contract as outlined below.
For reinsurance written on risks attaching or, equivalently, an underwriting period basis, current reinsurance contracts are fully matched to the underlying insurance portfolios. Reinsurance coverage for the underlying portfolio is recognised as the underlying policies are written.
For reinsurance written on a losses occurring basis, current reinsurance contracts provide coverage for any risks exposed during the reinsurance period irrespective of when the underlying business was written. Such reinsurance covers both the unexpired portion of policies in force at the contract commencement date and that portion of new business and renewals written during the year that is earned up to the contract expiry date. This latter portion relates to business which has not yet been written at the contract commencement date.
It is expected that initially the full minimum and deposit premium would be recognised as an expense, with any necessary adjustments due to experience at subsequent reporting dates.
Where payments under a reinsurance contract extend beyond the current year of cover, reinsurance expense is to be discounted using similar discount rates as required in measuring insurance liabilities in accordance with prudential standards.
3.5.1 Deferred reinsurance expense as reported under AASB 1023
Report the value, as at the reporting date, of deferred reinsurance expense, as determined in accordance with the Australian accounting standards.
This item is a memo item for reconciliation purposes only.
3.6 Other reinsurance assets receivable from reinsurers
Report the net amount of other reinsurance assets.
3.7 Deferred acquisition costs
Report the carrying value of deferred acquisition costs at the end of the reporting period recognised and measured in accordance with Australian accounting standards. This includes the results of the application of a liability adequacy test. This test may differ from the liability adequacy test required by GPS 311.
3.8 Deferred levies and charges
Report the value, as at the reporting date, of deferred levies and charges recognised in accordance with accounting standards.
Levies and charges are expenses incurred by the reporting party in relation to obligations to government authorities that are recouped by way of income from customers. Deferred levies and charges is the portion of levies and charges that relates to unearned premium and is treated as a prepayment asset.
3.9 GST receivable
Report the amount of GST that is receivable by the Level 2 insurance group.
3.10 Other receivables
Report the aggregate value of ‘Other receivables’ other than those specifically disclosed above.
Total ‘Other receivables’ is automatically calculated by the form and represents the sum of items 3.10.1 to 3.10.4.
Total other receivables with a counterparty/asset rating of:
Allocate the value of ‘Other receivables’ of the Level 2 insurance group, other than those specifically detailed in the form, against the appropriate rating grade associated with the counterparty/asset.
3.10.1 Grade 1 or 2
3.10.2 Grade 3
3.10.3 Grade 4
3.10.4 Grade 5
The investment risk charge will be calculated based on the capital factor applicable to the rating grades. Refer to GPS 114 for further information on classification of rating grades.
3.11 Total receivables
This is automatically calculated by the form and represents the total of all receivables.