Insurance (prudential standard) determination No. 15 of 2008 - Prudential Standard GPS 111 - Capital Adequacy: Level 2 Insurance Groups
General rules for deductionsGeneral rules for deductions
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General rules for deductions
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All amounts of assets corresponding to deductions from capital of the Level 2 insurance group attract a zero investment risk charge applied to them when determining the total investment risk capital charge for the Level 2 insurance group.
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A Level 2 insurance group that does not hold sufficient capital to absorb required deductions from Tier 2 capital must deduct an amount equivalent to the shortfall in its Tier 2 capital from its Tier 1 capital.