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Financial Sector (Collection of Data) (reporting standard) determination No. 103 of 2013 - GRS 460.0_G - Reinsurance Assets by Counterparty (Level 2 Insurance Group)

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Financial Sector (Collection of Data) (reporting standard) determination No. 103 of 2013
Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group)
Financial Sector (Collection of Data) Act 2001
 
I, Charles Littrell, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) DETERMINE Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group), in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.
 
Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities on 31 December 2013.
 
This instrument commences on 31 December 2013.
 
Dated: 13 December 2013
 
[Signed]
 
 
Charles Littrell
Executive General Manager
Policy, Statistics and International
 
Interpretation
In this Determination:
APRA means the Australian Prudential Regulation Authority.
financial sector entity has the meaning given in section 5 of the Act.
Schedule
 
Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group) comprises the 11 pages commencing on the following page.

 
Reporting Standard GRS 460.0_G
Reinsurance Assets by Counterparty (Level 2 Insurance Group)
Objective of this Reporting Standard
This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s exposures to reinsurance counterparties.
It includes Form GRF 460.0_G Reinsurance Assets by Counterparty (G) and associated specific instructions and must be read in conjunction with the general instruction guide.
 
Authority
1.             This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
2.             Information collected in Form GRF 460.0_G Reinsurance Assets by Counterparty (G) (GRF 460.0_G) is used by APRA for the purposes of prudential supervision.
Application and commencement
3.             This Reporting Standard applies to the parent entity of a Level 2 insurance group as defined in Prudential Standard GPS 001 Definitions (GPS 001).
4.             This Reporting Standard applies for reporting periods ending on or after 31 December 2013.
5.             The parent entity of a Level 2 insurance group is required to ensure that each requirement in this Reporting Standard is complied with.
Information required
6.             The parent entity of a Level 2 insurance group must provide APRA with the information required by GRF 460.0_G in respect of the Level 2 insurance group for each reporting period.
Forms and method of submission
7.             The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application or, where ‘Direct to APRA’ is not available, by a method notified by APRA prior to submission.
Note: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.
Reporting periods and due dates
8.             Subject to paragraph 9, the parent entity of a Level 2 insurance group must provide the information required by this Reporting Standard in respect of each financial year of the Level 2 insurance group.
9.             If, having regard to the particular circumstances of a Level 2 insurance group, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by paragraph 8, APRA may change the reporting periods, or specify reporting periods, for the particular Level 2 insurance group.
10.         The information required by this Reporting Standard must be provided to APRA:
(a)           within the time stated in Reporting Standard GRS 001 Reporting Requirements (GRS 001); or
(b)          in the case of information provided in accordance with paragraph 9, within the time specified by APRA.
11.         APRA may grant the parent entity of a Level 2 insurance group an extension of a due date, in which case the new due date for the provision of the information will be the date on the notice of extension.
Quality control
12.         All information provided by the parent entity of a Level 2 insurance group under this Reporting Standard must be subject to systems, processes and controls developed by the Level 2 insurance group for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the parent entity of the Level 2 insurance group to ensure that an appropriate set of policies and procedures for the authorisation of information submitted to APRA is in place.
13.         Under Prudential Standard GPS 310 Audit and Related Matters (GPS 310), the Group Auditor of a Level 2 insurance group is not ordinarily required to provide a limited assurance review in relation to information provided by the parent entity of the Level 2 insurance group under this Reporting Standard.
Authorisation
14.         When an officer or agent of the parent entity of a Level 2 insurance group provides the information required by this Reporting Standard using the ‘Direct to APRA’ software, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate acceptable to APRA.
15.         If the information required by this Reporting Standard is provided by an agent who submits using the ‘Direct to APRA’ software on the parent entity’s behalf, the parent entity of the Level 2 insurance group must:
(a)           obtain from the agent a copy of the completed form with the information provided to APRA; and
(b)          retain the completed copy.
16.         An officer or agent of the parent entity of a Level 2 insurance group who submits the information under this Reporting Standard for, or on behalf of, the parent entity of the Level 2 insurance group must be authorised by either:
(a)           the Principal Executive Officer of the parent entity of the Level 2 insurance group; or
(b)          the Chief Financial Officer of the parent entity of the Level 2 insurance group.
Variations
17.         APRA may vary the reporting requirements of GRF 460.0_G in relation to a Level 2 insurance group.
Interpretation
18.         In this Reporting Standard:
(a)           unless the contrary intention appears, words and expressions have the meanings given to them in GPS 001; and
(b)          APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;
Chief Financial Officer means the chief financial officer of the parent entity of the Level 2 insurance group, by whatever name called;
financial year means the financial year (within the meaning in the Corporations Act 2001) of the parent entity of the Level 2 insurance group;
general instruction guide refers to the general instruction guide set out in Attachment A of GRS 001;
Group Auditor has the meaning given in GPS 310;
Principal Executive Officer means the principal executive officer of the parent entity of the Level 2 insurance group, by whatever name called, and whether or not he or she is a member of the governing board of the parent entity of the Level 2 insurance group; and
reporting period means a period mentioned in paragraph 8 or, if applicable, paragraph 9.
19.         Where this Reporting Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

GRF_460_0_G: Reinsurance Assets by Counterparty (G)
 
Australian Business Number
Institution Name

 

Reporting Period
Scale Factor
Reporting Consolidation

Annual
Thousands of dollars no decimal place
Level 1 / Level 2

 
 
Name of counterparty (reinsurer)
Reinsurer identifier
Counterparty group name
APRA counterparty grade
Major form of collateral / guarantee
Amount of collateral / guarantee
APRA counterparty grade after collateral / guarantee
Counterparty domicile
Group domicile
Central estimate of reinsurance recoverables 
Net reinsurance recoverable on paid claims overdue for more than 6 months - central estimate
Reinsurance recoverable outstanding from second annual balance date after the event - central estimate
Deferred reinsurance expense

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)

 
 
 
 
 
 
 
 
 
 
 
 
 

 
Other
 
 
 
 
 
 
 
 
 
 
 
 

Total
 
 
 
 
 
 
 
 
 
 
 
 

 
Reporting Form GRF 460.0_G
Reinsurance Assets by Counterparty (G)
Instructions
These instructions assist completion of Reporting Form GRF 460.0_G Reinsurance Assets by Counterparty (GRF 460.0_G). GRF 460.0_G collects information relating to a regulated institution’s exposure to individual reinsurance counterparties. Information reported in GRF 460.0_G is primarily required for prudential purposes.
These instructions must be read in conjunction with the general instruction guide.
Audit matters
As a result of Insurance (exemption) determination No. 2 of 2013, the Appointed Auditor of a general insurer is not required to audit, or provide a certificate in relation to, information provided by the general insurer under Reporting Standard GRS 460.0 Reinsurance Assets by Counterparty. Under Prudential Standard GPS 310 Audit and Related Matters (GPS 310), the Group Auditor of a Level 2 insurance group is not required to provide a limited assurance review in relation to information provided by the parent entity of the Level 2 insurance group under Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group). APRA, however, may exercise its power under GPS 310 to require the Appointed Auditor or Group Auditor to undertake a special purpose review of the systems, processes and controls surrounding the completion of Reporting Form GRF 460.0 Reinsurance Assets by Counterparty (GRF 460.0) and GRF 460.0_G, or the data contained within GRF 460.0 and GRF 460.0_G.
Reporting Level
GRF 460.0_G must be completed by all Level 2 insurance groups.
Specific instructions
Terms highlighted in bold italics indicate that the definition is provided in these instructions. Additional definitions are provided at the end of these instructions.
Reporting Practice Guide GRPG 460 Reinsurance Counterparty Data Collection provides guidance to assist regulated institutions in completing GRF 460.0_G.  
Reinsurance assets by counterparty
For the purposes of GRF 460.0_G, it is acceptable for a regulated institution to report less than 100 per cent of the regulated institution’s total exposure to individual reinsurance counterparties. However, at a minimum, the regulated institution must report exposures to individual reinsurance counterparties such that the aggregate of the amount reported on the reporting form represents at least 95 per cent of the sum of the regulated institution’s total central estimate of reinsurance recoverables (including recoverables on paid claims overdue for more than six months and recoverables outstanding from the second annual balance date after the event) and deferred reinsurance expense.
Regulated institutions are only to include reinsurance recoverables on GRF 460.0_G that are classed as reinsurance on Reporting Form GRF 300.0 Statement of Financial Position or Reporting Form GRF 300.0_G Statement of Financial Position (G).
 
Reporting basis: report balances for Column 6 and Columns 10 to 13 as at the end of the financial year.
Unit of measurement: report amounts in Column 6 and Columns 10 to 13 as thousands of dollars.
 
Report each reinsurance counterparty as a separate line item.
For each reinsurance counterparty report the Name of counterparty (reinsurer) in column 1, the Reinsurer identifier in column 2, the Counterparty group name in column 3, the APRA counterparty grade in column 4, the Major form of collateral / guarantee in column 5, the Amount of collateral / guarantee in column 6, the APRA counterparty grade after collateral / guarantee in column 7, the Counterparty domicile in column 8, the Group domicile in column 9, the Central estimate of reinsurance recoverables in column 10, the Net reinsurance recoverable on paid claims overdue for more than 6 months – central estimate in column 11, the Reinsurance recoverable outstanding from second annual balance date after the event – central estimate in column 12 and the Deferred reinsurance expense in column 13. 

Name of counterparty (reinsurer)
The legal name of the counterparty to the reinsurance exposure. Where relevant, use the name of counterparty as stated on the reinsurer identifier list.

Reinsurer identifier
The unique identifier for the counterparty reported in column 1. Where relevant, the reinsurer identifier must be reported as stated on the reinsurer identifier list. If the reinsurer is not on the reinsurer identifier list, report the reinsurer identifier as ‘unassigned’. 

Counterparty group name
The name of the group to which the counterparty to the reinsurance exposure belongs. If the counterparty to the reinsurance exposure does not belong to a group, leave this column blank. Where relevant, the counterparty group name must be reported as stated on the reinsurer identifier list. If the counterparty group name is not on the reinsurer identifier list, report the counterparty group name as per these instructions.

APRA counterparty grade
The counterparty grade of 1 to 7 in accordance with Prudential Standard GPS 001 Definitions (GPS 001).

Major form of collateral / guarantee
The type of collateral / guarantee, if applicable, that is support for the reinsurance recoverables in accordance with Prudential Standard GPS 114 Capital Adequacy: Asset Risk Charge (GPS 114). Where there is more than one type of collateral or guarantee provided as support, report the type that has the greatest monetary exposure. Collateral / guarantee types can include (but are not limited to) trusts, letters of credit and financial guarantees. 

Amount of collateral / guarantee
The monetary amount of the collateral / guarantee, if applicable, that is support for reinsurance recoverables.
 

APRA counterparty grade after collateral / guarantee
The counterparty grade of the collateral / guarantee reported of grade 1 to 7 in accordance with GPS 001. If there is more than one type of collateral or guarantee, report the grade for the type that has the greatest monetary exposure.
 

Counterparty domicile
For a subsidiary, the domicile is where the counterparty is legally incorporated. For a branch, the domicile is where the counterparty (branch) is located. Where relevant, the counterparty domicile must be reported as stated on the reinsurer identifier list. If the counterparty is not on the reinsurer identifier list, report the domicile using the domiciles listed in Appendix 1.

Group domicile
The domicile where the group owning the counterparty is legally incorporated. If the counterparty does not belong to a group, leave this column blank. Where relevant, the group domicile must be reported as stated on the reinsurer identifier list. If the group is not on the reinsurer identifier list, report the group domicile using the domiciles listed in Appendix 1

Central estimate of reinsurance recoverables
The reinsurance recoverables associated with the counterparty reported in column 1. This amount will include the recoverables on incurred but not reported (IBNR) claims that are allocated to the counterparty. This amount must exclude the amounts reported in columns 11 and 12 for that counterparty. It is measured at central estimate level, in accordance with Prudential Standard GPS 320 Actuarial and Related Matters (GPS 320).

Net reinsurance recoverable on paid claims overdue for more than 6 months – central estimate
The reinsurance recoverables on paid claims where:
·           the recoverable has become a receivable (i.e. it is due and payable);
·           the receivable is overdue for more than six months since a request for payment has been made to the reinsurer; and
·           there is no formal dispute between the insurer and the reinsurer in relation to that receivable.
The categorisation is in accordance with GPS 114 and the central estimate level is in accordance with GPS 320.

Reinsurance recoverable outstanding from second annual balance date after the event – central estimate
The reinsurance recoverables that are outstanding on and from the second balance date after the end of the financial year in which the event giving rise to the recoverables occurred regardless of whether the reinsurance recoverables are supported by collateral, guarantee or letter of credit. The amount reported should include IBNR. The categorisation is in accordance with GPS 114 and the central estimate level is in accordance with GPS 320.
 

Deferred reinsurance expense
The value of premiums ceded to reinsurers which are determined in accordance with GPS 320 and deferred in accordance with the pattern of reinsurance service received as per GPS 320.

Other
This is a derived item for column 6 and columns 10 to 13. Other is equal to the difference between the ‘Total’ reported for each of column 6 and columns 10 to 13 and the reported amounts for each counterparty in aggregate. 

Total
This is the total of the relevant amounts for column 6 and columns 10 to 13 and may include amounts that have not been reported in a row within the form. 

 
 
Glossary of additional terms
 
Incurred but not reported (IBNR)
Represents the claims arising from incidents occurring prior to the close of the reporting period which are expected to be reported in subsequent reporting periods.

Reinsurer identifier list
This is a list of reinsurers which includes the name of the counterparty, counterparty domicile, counterparty group name and group domicile that must be used for reporting on GRF 460.0 and GRF 460.0_G. The list is located on APRA’s website.

Interpretation
For the purposes of these instructions:
·                Appointed Auditor is defined in GPS 001;
·                general insurer means a general insurer authorised under the Insurance Act 1973;
·                Group Auditor is defined in GPS 001;
·                regulated institution is defined in GPS 001 as a collective term for general insurers and Level 2 insurance groups; and
·                Level 2 insurance group is defined in Attachment D of GPS 001.
Appendix 1: Country list
The following country list must be used when reporting any values for columns 8 and 9.
If the country cannot be identified, report the relevant ‘residual’ region listed in the table (for example, US Pacific Islands). If the residual region cannot be identified, report ‘unallocated’.

Country/Grouping
Code

Afghanistan
AF

Albania
AL

Algeria
DZ

Andorra
AD

Angola
AO

Argentina
AR

Armenia
AM

Aruba
AW

Australia
AU includes Christmas Islands, Cocos Islands, Norfolk Islands, Heard and McDonald Islands, Territory of Ashmore and Cartier Islands and Territory of Coral Sea Islands

Austria
AT

Azerbaijan
AZ

Bahamas
BS

Bahrain
BH

Bangladesh
BD

Barbados
BB

Belarus
BY

Belgium
BE

Belize
BZ

Benin
BJ

Bermuda
BM

Bhutan
BT

Bolivia
BO

Bosnia and Herzegovina
BA

Botswana
BW

Brazil
BR

British Overseas Territories
1W includes British Antarctic Territory, British Indian Ocean Territory, Chagos, Pitcairn Islands, South Georgia and South Sandwich Islands

Brunei
BN

Bulgaria
BG

Burkina Faso
BF

Burundi
BI

Cambodia
KH

Cameroon
CM

Canada
CA

Cape Verde
CV

Cayman Islands
KY

Central African Republic
CF

Chad
TD

Chile
CL

China
CN

Colombia
CO

Comoros Islands
KM

Congo
CG

Congo Democratic Republic
CD

Consortium Banks
1G

Costa Rica
CR

Cote d'Ivoire
CI

Croatia
HR

Cuba
CU

Cyprus
CY

Czech Republic
CZ

Denmark
DK excludes Faeroe Islands and Greenland

Djibouti
DJ

Dominica
DM

Dominican Republic
DO

Ecuador
EC

Egypt
EG

El Salvador
SV

Equatorial Guinea
GQ

Eritrea
ER

Estonia
EE

Ethiopia
ET

Faeroe Islands
FO

Falkland Islands
FK

Fiji
FJ

Finland
FI  includes Aland Islands

France
FR includes French Guiana, French Southern Territories, Guadeloupe, Martinique, Mayotte, Monaco, Reunion and St. Pierre and Miquelon

French Polynesia
PF includes Society Archipelago, Tuamotu-Gambier Islands, Marquesas, Australes Archipelago

Gabon
GA

Gambia
GM

Georgia
GE

Germany
DE
includes the European Central Bank

Ghana
GH

Gibraltar
GI

Greece
GR

Greenland
GL

Grenada
GD

Guatemala
GT

Guernsey
GG

Guinea
GN

Guinea-Bissau
GW

Guyana
GY

Haiti
HT

Honduras
HN

Hong Kong SAR
HK

Hungary
HU

Iceland
IS

India
IN

Indonesia
ID

International organisations
1C except the BIS which is included under Switzerland, and the ECB which is included under Germany

Iran
IR

Iraq
IQ

Ireland
IE

Isle of Man
IM

Israel
IL

Italy
IT

Jamaica
JM

Japan
JP

Jersey
JE

Jordan
JO

Kazakhstan
KZ

Kenya
KE

Kiribati
KIR

Kuwait
KWT

Kyrgyz Republic
KGZ

Laos
LAO

Latvia
LV

Lebanon
LB

Lesotho
LS

Liberia
LR

Libya
LY

Liechtenstein
LI

Lithuania
LT

Luxembourg
LU

Macau SAR
MO

Macedonia
MK

Madagascar
MG

Malawi
MW

Malaysia
MY includes Labuan International Offshore Financial Centre

Maldives
MV

Mali
ML

Malta
MT

Marshall Islands
MH

Mauritania
MR

Mauritius
MU

Mexico
MX

Micronesia
FM

Moldova
MD

Mongolia
MN

Montenegro
ME

Morocco
MA

Mozambique
MZ

Myanmar
MM

Namibia
NA

Nauru
NR

Nepal
NP

Netherlands
NL

Netherlands Antilles
AN  includes Bonaire, Curacao, Saba, St. Eustatius and St. Maarten

New Caledonia
NC

New Zealand
NZ includes Cook Islands, Minor Islands, Niue, Ross Dependency and Tokelau

Nicaragua
NI

Niger
NE

Nigeria
NG

North Korea
KP

Norway
NO includes Bouvet Islands, Svalbard and Jan Mayen Islands

Official Monetary Authorities
1D

Oman
OM

Pakistan
PK

Palau
PW

Palestinian Territory
PS

Panama
PA  includes Panama Canal Zone

Papua New Guinea
PG

Paraguay
PY

Peru
PE

Philippines
PH

Poland
PL

Portugal
PT includes the Azores and Madeira

Qatar
QA

Residual Africa and Middle East
2W includes Western Sahara

Residual Asia and Pacific
2O

Residual developed countries
2R

Residual Europe
2B

Residual Latin America and Caribbean
2H

Residual offshore centres
2N

Romania
RO

Russia
RU

Rwanda
RW

Samoa
WS

San Marino
SM

Sao Tome and Principe
ST

Saudi Arabia
SA

Senegal
SN

Serbia
RS

Seychelles
SC

Sierra Leone
SL

Singapore
SG

Slovakia
SK

Slovenia
SI

Solomon Islands
SB

Somalia
SO

South Africa
ZA

South Korea
KR

Spain
ES includes Balearic Islands, Canary Islands and Ceuta and Melilla

Sri Lanka
LK

St. Helena
SH includes Ascension, Gough and Tristan Da Cunha

St. Lucia
LC

St. Vincent
VC includes the Grenadines

Sudan
SD

Suriname
SR

Swaziland
SZ

Sweden
SE

Switzerland
CH includes Bank for International Settlements

Syria
SY

Taiwan, China
TW

Tajikistan
TJ

Tanzania
TZ

Thailand
TH

Timor Leste
TL

Togo
TG

Tonga
TO

Trinidad and Tobago
TT

Tunisia
TN

Turkey
TR

Turkmenistan
TM

Turks and Caicos
TC

Tuvalu
TV

Uganda
UG

Ukraine
UA

Unallocated
5M

United Arab Emirates
AE

United Kingdom
GB excludes Guernsey, Isle of Man and Jersey

United States
US includes American Samoa, Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, US Virgin Islands and Wake Islands

Uruguay
UY

US Pacific Islands
PU includes Carolines, Howland and Baker, Kingman Reef, Palmyra and Jarvis and Johnston

Uzbekistan
UZ

Vanuatu
VU

Vatican
VA

Venezuela
VE

Vietnam
VN

Wallis and Futuna
WF

West Indies UK
1Z includes Anguilla, Antigua and Barbuda, British Virgin Islands, Montserrat and St. Christopher/St. Kitts - Nevis

Yemen
YE

Zambia
ZM

Zimbabwe
ZW