Insurance - PricewaterhouseCoopers

Asset Investment Capital
Factor
10 Reinsurance assets due from non-APRA-authorised reinsurers
with a counterparty rating of Grade 5 except for reinsurance
recoverables specified under paragraph 5 of Attachment A of
GPS 114
11 Listed equity instruments
Listed trusts except where otherwise provided for in
Attachment A of GPS 114
12%
16%
12 Direct holdings of real estate
Unlisted equity instruments
Unlisted trusts except where otherwise provided for in
Attachment A of GPS 114
Other assets not assigned an Investment Capital Factor
elsewhere in this Table (other than hybrid instruments with both
equity and debt features (see paragraph 3 of Attachment A of
GPS 114)
20%
13 Loans to directors of the insurer or directors of related bodies
corporate (or a director’s spouse)
Unsecured loans to employees exceeding $1,000
Assets under a fixed or floating charge (refer to paragraphs
27 to 28 of GPS 114)
14 Amounts required to be deducted from an insurer’s capital
base under Prudential Standard GPS 112 Capital Adequacy:
Measurement of Capital
Amounts recorded on the balance sheet in relation to
instruments subject to paragraphs 39 to 54 of GPS 114
Source: APRA, Attachment A of GPS 114
Table 1.5 – Investment capital factors for reinsurance recoverables due from
non-APRA authorised reinsurers
Counterparty Grade Investment Capital Factor
1 20%
2 40%
3 60%
4 100%
5 100%
Source: APRA, Attachment A of GPS 114
100%
0%
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