Insurance (prudential standard) determination No. 8 of 2006 - Prudential Standard GPS 120 - Assets in Australia
Minimum Capital Requirement for foreign Minimum Capital Requirement for foreign insurers
Start here
Get a plain-English read of Minimum Capital Requirement for foreign
Turn the raw legal text into a practical explanation grounded in Insurance (prudential standard) determination No. 8 of 2006 - Prudential Standard GPS 120 - Assets in Australia.
Minimum Capital Requirement for foreign insurers
-
As noted in GPS 110, foreign insurers do not typically have capital instruments of the type specified in Attachment A to GPS 110. Foreign insurers are nevertheless required to meet a variant of the Minimum Capital Requirement (MCR). Specifically, foreign insurers are required to maintain assets in Australia, which exceed their liabilities in Australia[12] by an amount that is greater than their MCR.
-
For the purposes of meeting this requirement, APRA will use the same criteria for assessing what is an asset in Australia as is used for complying with section 28 of the Act (including the criteria in paragraphs 20 to 22 above and section 116A of the Act).