Specific instructions B - by region

Reporting by region

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

The Level 2 insurance group must complete Table 9 if it adopts derived valuations for the GPS 340 PL based on accounting records of the group for Australian and international business (subject to meeting the GPS 340 requirements).

For both Australian and international business, while class of business is not required to be reported on these tables, Level 2 insurance groups are expected to map their business to the classes of business as defined in GPS 001 in order to assign an insurance risk capital charge. The details of the mapping and the calculation of the Insurance Risk Charge for businesses are to be provided as a reporting supplement to APRA.

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 10.

Table 7: Premiums Liabilities - Insurance Risk Charge - Australian Business by region – data preparation