Insurance (prudential standard) determination No. 9 of 2012 - Prudential Standard GPS 120 - Assets in Australia
Prudential Capital Requirement for CategPrudential Capital Requirement for Category C insurers
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Prudential Capital Requirement for Category C insurers
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As noted in Prudential Standard GPS 110 Capital Adequacy, Category C insurers do not typically have capital instruments of the type specified in GPS 112. Category C insurers are nevertheless required to meet a variant of the Prudential Capital Requirement (PCR). Specifically, Category C insurers are required to maintain assets in Australia, which exceed their liabilities in Australia (adjusted for any surplus or deficit of technical provisions relative to those required by Prudential Standard GPS 320 Actuarial and Related Matters) by an amount that is greater than their PCR.
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An asset will not be counted as an asset in Australia for the purposes of paragraph 35 if this Prudential Standard excludes it from being an asset in Australia for the purposes of paragraph 28(a) of the Act, or it is not otherwise an asset in Australia within the meaning of paragraph 28(a) of the Act.
Provisions applying to all insurers