Investments in subsidiaries, joint ventuInvestments in subsidiaries, joint ventures and associates

Investments in subsidiaries, joint ventures and associates

1. A private health insurer must make a deduction for investments in subsidiaries, joint ventures and associates that are subject to regulatory capital requirements. The amount of the deduction is the lesser of the private health insurer’s share of the regulatory capital requirements[18] and the value of the investment that is recorded on the private health insurer’s balance sheet after adjustment for any intangible component in accordance with paragraphs 16 and 18 of this Attachment. This deduction must be applied after any deduction for intangibles in the investment in accordance with paragraphs 16 and 18 of this Attachment.
2. For the purposes of the deduction in paragraph 22 of this Attachment, the regulatory capital requirement of the investment is:
   1. the prescribed capital amount if the investment is in a private health insurer as defined under the Act; or
   2. the equivalent amount to the prescribed capital amount if the investment is an entity carrying on private health insurance business in a foreign jurisdiction; or
   3. a comparable regulatory capital requirement as agreed with APRA.[19]
3. If the investment subject to the deduction in paragraph 22 of this Attachment is a non-operating holding company (NOHC), the private health insurer must ‘look-through’ the investment to the value and regulatory capital requirements of the entity/entities owned by the NOHC.