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Health Insurance (prudential standard) determination No. 3 of 2024
Regulatory adjustments to Common Equity Regulatory adjustments to Common Equity Tier 1 Capital
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Regulatory adjustments to Common Equity Tier 1 Capital
- A private health insurer must adjust their Common Equity Tier 1 Capital to allow for the effects of ‘accounts receivables’ and ‘accounts payables’ on the AASB 17 insurance and reinsurance contract liability (net of insurance and reinsurance contract assets and net of tax effects). ‘Accounts receivables’ are added to CET1 capital and ‘accounts payables’ are deducted from CET1 capital.
- Additionally, a private health insurer must make the following deductions to determine Common Equity Tier 1 Capital.