Insurance (prudential standard) determination No. 2 of 2008 - Prudential Standard GPS 110 - Capital Adequacy
Reductions in capital for run-off insureReductions in capital for run-off insurers
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Reductions in capital for run-off insurers
- This paragraph applies to a run-off insurer. The insurer must submit to APRA:
(a) documents clearly setting out and evidencing its current financial position; and
(b) a forecast required under paragraph 38 with insurance liabilities valued in accordance with the methodology set out in GPS 310, except that the valuation must demonstrate that the tangible assets of the insurer, after the proposed capital reduction, are sufficient to cover its insurance liabilities to a 99.5 per cent level of sufficiency, plus any other liabilities, as calculated by its Appointed Actuary.[18]