Table 2: Exposure analysis by ReinsurancTable 2: Exposure analysis by Reinsurance Counterparty (Level 2 Insurance Group) — Unassigned

Specific instructions

Exposure analysis by reinsurance counterparty (Level 2 insurance group)

GRS 460.1.G must be completed by all Level 2 insurance groups.

Level 2 insurance groups must complete Table 1 if name of counterparty (reinsurer) is on the reinsurer identifier list on APRA’s website.

Level 2 insurance groups must complete Table 2 if name of counterparty (reinsurer) is:

not on the reinsurer identifier list; or
a Lloyd’s of London syndicate.

For Table 1 and Table 2, report individual counterparties where the failure of that counterparty results in a five per cent change in capital coverage of the Level 2 insurance group when compared to the capital coverage at the end of the financial year.

For the purposes of GRS 460.1.G, failure means that the counterparty will no longer meet their obligation to the Level 2 insurance group. This means that the Level 2 insurance group makes no recovery from on-balance sheet reinsurance assets and the reinsurer is not replaced on any of its previous or current reinsurance programs.

Reporting Practice Guide GRPG 460 Reinsurance Counterparty Data Collection provides guidance to assist Level 2 insurance groups in completing GRS 460.1.G. Level 2 insurance groups are permitted to use simplifying assumptions where those assumptions do not have a material impact on the resulting capital coverage of the Level 2 insurance group.

Table 1: Exposure analysis by Reinsurance Counterparty (Level 2 Insurance Group) – Reinsurer identifier list

Reporting basis

Report balances for column 7 total impact on capital base to column 13 total impact on prescribed capital amount as at the end of the financial year.

Report information for each reporting period on a Level 2 insurance group basis.

Units of measurement

Report in whole Australian dollars (AUD).

Convert amounts denominated in foreign currency to AUD in accordance with the relevant accounting standard.