Life Insurance (prudential standard) determination No. 1 of 2011 - Prudential Standard LPS 600 - Statutory Funds
Meaning of “net assets” in paragraph 34Meaning of “net assets” in paragraph 34
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Meaning of “net assets” in paragraph 34
- For the purposes of paragraph 34, the “net assets” of a category of business of a statutory fund is:
(a) if the life company’s audited financial statements specify the assets and liabilities of the category as at the end of the preceding financial year - an amount worked out in accordance with the following formula:
assets of category liabilities of category shareholders’ capital of category
where:
“assets of category” means the value of the assets of the category as at the end of the preceding financial year;
“liabilities of category” means the liabilities of the category, other than the policy liabilities of the category determined in accordance with the transitional actuarial standard, as at the end of the preceding financial year;
“shareholders’ capital of category” means the shareholders’ capital of the category determined in accordance with paragraph 37;
(b) in every other case - an amount worked out in accordance with the following formula:
(assets of fund liabilities of fund aggregate shareholders’ capital of fund)
(transitional actuarial standard policy liabilities of category transitional actuarial standard policy liabilities of fund)
where:
“assets of fund” means the value of the assets of the statutory fund as at the end of the preceding financial year;
“liabilities of fund” means the liabilities of the statutory fund, other than the policy liabilities of the statutory fund determined in accordance with the transitional actuarial standard, as at the end of the preceding financial year;
“aggregate shareholders’ capital of fund” means the aggregate shareholders’ capital of the statutory fund as at the end of the preceding financial year determined in accordance with paragraph 36;
“transitional actuarial standard policy liabilities of category” means the policy liabilities of the category as at the end of the preceding financial year determined in accordance with the transitional actuarial standard;
“transitional actuarial standard policy liabilities of fund” means the policy liabilities of the statutory fund as at the end of the preceding financial year determined in accordance with the transitional actuarial standard.