Insurance (prudential standard) determination No. 4 of 2008 - Prudential Standard GPS 114 Capital Adequacy: Investment Risk Capital Charge
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Guarantees
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Assets (other than reinsurance recoverables due from non-APRA-authorised reinsurers) that have been explicitly, unconditionally and irrevocably guaranteed for their remaining term to maturity by a guarantor with a counterparty rating (or for governments, the long-term foreign currency credit rating) in Grades 1, 2 or 3 may be assigned the Investment Capital Factor that would be applicable to the guarantor.
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Guarantees provided to an insurer by its own parent or a related entity are not eligible for this treatment.