Specific instructions A – by Class of Business

Reporting by class of business

If the Level 2 insurance group does not have a reporting adjustment to report on an ‘Australia by region’ rather than an ‘Australia by class of business’ basis, it must complete Tables 1, 2, 3, 4, 5 and 6 below (and not Tables 7, 8, 9 and 10). Tables 2, 3, 4 and 5 require the GPS 340 OCL of the Australian business to be reported by class of business and the international business to be reported by region.

The Level 2 insurance group must complete Tables 4 and 5 if it adopts derived valuations for the GPS 340 OCL based on accounting records of the group for Australian and international business respectively (subject to meeting the GPS 340 requirements).

For international regions, class of business data is not reported in these tables. Level 2 insurance groups, however, will be required to map their international business to the Australian classes of business as defined in GPS 001 in order to assign an insurance risk capital charge and provide a reporting supplement to APRA. Diversification adjustments on international business should be recognised in the risk margin for each geographical region.

Where there is reinsurance between regions, regions are to be reported on a separate basis. That is, the region directly assuming the risks must report as direct business. The region receiving reinsurance must treat this as direct business as well. Where reinsurance occurs between entities in one region, the reinsurance transaction is to be eliminated on consolidation within the reported region. Consolidation adjustments for intra group reinsurance transactions between entities in different regions should be reported in Table 6.