Reporting Standard GRS 311.0.G

Statement of Profit or Loss and Other Comprehensive Income by Product Group and by Region

General instructions

These instructions assist completion of Reporting Standard GRS 311.0.G Statement of Profit or Loss and Other Comprehensive Income by Product Group and by Region. This Reporting Standard collects income statement data by APRA product groups (classes of business) and regions.

Reporting tables

Tables described in this reporting standard list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.

General accounting basis

Unless otherwise specifically stated, reporting insurers are to report in accordance with the relevant Australian Accounting Standards.

References to Australian Accounting Standards

Each item reported under this Reporting Standard aligns with the Accounting Standards made by the Australian Accounting Standards Board (AASB). The applicable AASB references are specified with each item. AASB reference provides a written description of the accounting meaning of an International Financial Reporting Standards (IFRS) Taxonomy element.

IFRS taxonomy element reference

Each IFRS taxonomy element contains at least one cross-reference to an AASB Standard (that incorporates IFRS 17 Standards as issued and amended by the International Accounting Standards Board (IASB)) and has a reference type that can be used to identify the source of that element. The IFRS Taxonomy uses the following element reference types:

(a) disclosure—an element of this type depicts a presentation or disclosure requirement of an IFRS/AASB Standard;
(b) example—an element of this type represents an example provided in an IFRS/AASB Standard or its accompanying materials; and
(c) common practice—an element of this type reflects common reporting practice within IFRS/AASB financial statements they not specifically mentioned in IFRS/AASB Standards or their accompanying materials, but are consistent with IFRS/AASB Standards. They have been found to be frequently disclosed across a range of companies and accounting jurisdictions.

Definitions

Terms that are highlighted in bold italics are defined in these instructions.

Specific instructions

Reporting basis

Information in this form is to be completed by general insurers for each reporting period on a Level 2 insurance group basis.

APRA product groups

The APRA product groups (classes of business) that apply for the reporting purpose are defined in GPS 001:

Insurance business

• C1: Householders
• C2: Commercial Motor
• C3: Domestic Motor
• C4: Travel
• C5: Fire and ISR
• C6: Marine
• C7: Aviation
• C8: Consumer Credit
• C9: Other Accident
• C10: Mortgage
• C11: CTP
• C12: Public and Product Liability
• C13: Professional Indemnity
• C14: Employers Liability
• C15: Cyber
• C16: Directors and Officers
• C17: Other Direct – Category A
• C18: Other Direct – Category B
• C19: Other Direct – Category C

Reinsurance business

• RB1: Proportional – Category A
• RB2: Proportional – Category B
• RB3: Proportional – Category C
• RB4: Non-proportional – Category A
• RB5: Non-proportional – Category B
• RB6: Non-proportional – Category C

Direct business is any insurance business written / insurance contracts issued by the reporting insurer.

Inwards reinsurance is any reinsurance business written / reinsurance contracts issued by the reporting insurer.

Category A consists of householders, commercial motor, and domestic motor. Category B consists of travel, fire and ISR, marine and aviation, consumer credit, and other accident. Category C consists of mortgage, CTP, public and product liability, professional indemnity, employers liability, cyber, and directors & officers liability.

Allocation principles

General insurers are to apply the allocation principles defined in GRS 001 to allocate AASB 17 numbers to APRA classes of business where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA classes of business.

Units of measurement

Report values in this form in whole Australian dollars (AUD) with no decimal place.

Convert amounts denominated in foreign currency to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.

Report losses and expenses as negative values.

Region reporting

Inter-region elimination is the value of inter-region transactions, which are eliminated on consolidation, and need to be reported as negative values under Inter-region elimination.

Australian and international business

Australian business is as defined in Prudential Standard GPS 001 Definitions (GPS 001).

International business is as defined in GPS 001.

For entities that are not insurers within the Level 2 insurance group, items should be reported as:

Australian business where they relate to an entity incorporated in Australia; and
International business where they relate to an entity incorporated outside of Australia. The entity should be included in the international region that most appropriately reflects the incorporation of the entity. The region can be selected to align to the region(s) chosen by the Level 2 insurance group for reporting insurance business carried on by an entity within the group that is not authorised under the Insurance Act 1973.

Columns for Level 2 insurance group

1. Insurance revenue

2. Insurance service expense

3. Insurance service result before reinsurance contracts held

4. Allocation of reinsurance premiums

5. Amounts recoverable from reinsurers

6. Net expense from reinsurance contracts held

7. Insurance service result

8. Balance sheet memo items

APRA intends to collect General Measurement Model (GMM) and Premium Allocation Approach (PAA) liability for remaining coverage and liability for incurred claims, GMM contractual service margin and risk adjustment component by APRA product groups. APRA will use these items and the data items collected:

• to form a view on profitability by APRA product groups,
• to compare the accounting risk adjustment to the GPS 340 risk margin by APRA product groups, and
• to understand drivers behind accounting liability movements by APRA product groups.

APRA appreciates this information required by APRA product groups may require allocation of the AASB 17 balance sheet items which may not be perfect. APRA requests that insurers to use the allocation principles to allocate the AASB 17 items into APRA product groups. The intent is that simple “allocation drivers” (deemed appropriate by the insurer) are used to allocate the AASB 17 items into product groups.

For clarity, the following items are defined based on AASB 17:

 AASB 17 liability for remaining coverage as defined in AASB 17 Appendix A

 AASB 17 liability for incurred claims as defined in AASB 17 Appendix A

 AASB 17 contractual service margin as defined in AASB 17 Appendix A

 AASB 17 risk adjustment for non-financial risk as defined in AASB 17 Appendix A

Note, GMM items in the table below can be zero.

Columns for Level 2 insurance group