Part General instructions - Financial Sector (Collection of Data) (reporting standard) determination No. 93 of 2023 - General instructions

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Reporting Standard GRS 460.0.G

Reinsurance Assets by Counterparty (Level 2 Insurance Group)

General instructions

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.

Any specific combination of values in a table must not appear on more than one row in that table when reported.

These instructions must be read in conjunction with the general instruction guide.

Audit matters

As a result of Insurance (exemption) determination No. 1 of 2023, the Appointed Auditor of a general insurer is not required to audit, or provide a certificate in relation to, information provided by a general insurer under Reporting Standard GRS 460.0 Reinsurance Assets by Counterparty (GRS 460.0). Under Prudential Standard GPS 310 Audit and Related Matters (GPS 310), the Group Auditor of a Level 2 insurance group is not required to provide a limited assurance review in relation to information provided by the parent entity of a Level 2 insurance group under Reporting Standard GRS 460.0.G Reinsurance Assets by Counterparty (Level 2 Insurance Group) (GRS 460.0.G). APRA, however, may exercise its power under GPS 310 to require the Appointed Auditor or Group Auditor to undertake a special purpose review of the systems, processes and controls surrounding the completion of GRS 460.0 and GRS 460.0.G, or the data contained within GRS 460.0 and GRS 460.0.G.

International business

A Level 2 insurance group may use a best endeavours basis to determine the identification of asset or counterparty exposures for international business. The best endeavours basis must use information held by entities within the Level 2 insurance group, or otherwise publicly available information, in a manner consistent with the group’s documented credit risk management policies.

A Level 2 insurance group may use accounting records to derive values for reinsurance recoverables and expected reinsurance recoveries related data items for international business (subject to meeting Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340) requirements and after removing regulatory receivables and payables).

Definitions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

A

Amount of collateral / guarantee	The monetary amount of the collateral / guarantee, if applicable, that is support for reinsurance recoverables.

APRA counterparty grade	The counterparty grade of 1 to 7 in accordance with Prudential Standard GPS 001 Definitions (GPS 001).
APRA counterparty grade after collateral / guarantee	The counterparty grade of the collateral / guarantee reported of grade 1 to 7 in accordance with GPS 001. If there is more than one type of collateral or guarantee, report the grade for the type that has the greatest monetary exposure.

Central estimate of reinsurance recoverables	The reinsurance recoverables associated with the counterparty reported in name of counterparty (reinsurer). This amount will include the recoverables on incurred but not reported (IBNR) claims that are allocated to the counterparty. This amount must exclude the amounts reported in net reinsurance recoverable on paid claims overdue for more than 6 months - central estimate and reinsurance recoverable outstanding from second annual balance date after the event - central estimate for that counterparty. It is measured at central estimate level, in accordance with GPS 340.
Counterparty domicile	For a subsidiary, the domicile is where the counterparty is legally incorporated. For a branch, the domicile is where the counterparty (branch) is located. Where relevant, the counterparty domicile must be reported as stated on the country code list.
Counterparty group name	The name of the group to which the counterparty to the reinsurance exposure belongs. Where relevant, the counterparty group name must be reported as stated on the reinsurer identifier list.
Country code	This means the two-letter country code as assigned by the ISO 3166 Maintenance Agency to a country defined under the International Organization for Standardization’s International Standard ISO 3166. The ISO 3166 Maintenance agency maintains a free online database of country codes, available at https://www.iso.org/iso-3166-country-codes.html.