Accumulated other comprehensive income and other disclosed reserves

This is the sum of all other comprehensive income and disclosed reserves and is calculated as the sum of:

• unrealised gains or losses recognised on balance sheet;
• reserves from equity-settled share-based payments;
• foreign currency translation reserve;
• general reserve;
• cumulative unrealised gains or losses on hedges offsetting gains or losses in Common Equity Tier 1 Capital; and
• other gains and losses in accumulated comprehensive income and other disclosed reserves.

Additional Tier 1 Capital

This is the value of instruments issued by the private health insurer that meet the criteria for inclusion in Additional Tier 1 Capital in accordance with Prudential Standard HPS 112 Capital Adequacy: Measurement of Capital (HPS 112), and which are not included in Common Equity Tier 1 Capital. This is net of regulatory adjustments specified in HPS 112.

This is calculated as the sum of:

• Additional Tier 1 Capital instruments;
• adjustments and exclusions to Additional Tier 1 Capital;
• transitional Additional Tier 1 Capital; and
• excess mutual equity interests.

less:

• holdings of own Additional Tier 1 Capital instruments; and
• adjustments to Additional Tier 1 Capital due to shortfall in Tier 2 capital.

Additional Tier 1 Capital instruments

This is the value of capital instruments issued by the private health insurer that meet the eligibility criteria for Additional Tier 1 Capital but not the criteria for the higher quality capital, i.e. Common Equity Tier 1 Capital.

Adjustments and exclusions to Additional Tier 1 Capital

This is the value of adjustments applied to Additional Tier 1 Capital that is specific to the application of the requirements in HPS 112.

Adjustments and exclusions to Common Equity Tier 1 Capital

This is the value of adjustments applied to the Common Equity Tier 1 Capital that are specific to the application of the requirements in HPS 112.

Adjustments and exclusions to Tier 2 Capital

This is the value of adjustments applied to the Tier 2 Capital that are specific to the application of the requirements in HPS 112. 

Adjustments to Additional Tier 1 Capital due to shortfall in Tier 2 Capital

This is the value of any deductions (refer to HPS 112) from Additional Tier 1 Capital due to a shortfall in Tier 2 Capital to absorb required deductions from this category of capital.

Adjustments to Common Equity Tier 1 Capital due to shortfall in Additional Tier 1 Capital

This is the value, as at the relevant date, of any deductions (refer to HPS 112) from Common Equity Tier 1 Capital due to a shortfall in Additional Tier 1 Capital to absorb required deductions from this category of capital.

Where the value of Tier 2 Capital as defined in HPS 112 is insufficient to cover the value of deductions required to be made from this category of capital, the shortfall must first be deducted from Additional Tier 1 Capital and, if Additional Tier 1 Capital is insufficient to cover the value of deductions required, the remaining value must be deducted from Common Equity Tier 1 Capital.

Adjustments to net assets of the fund due to shortfall in Tier 2 Capital

This is the value, as at the relevant date, of any deductions (refer to HPS 112) from the net assets of the fund due to a shortfall in Tier 2 Capital to absorb the required deductions from this category of capital.

Amounts payable on reinsurance contracts held

This is the value of amounts payable on reinsurance contracts held. This includes reinsurance premiums that are due to be paid, all unpaid instalment reinsurance premiums, reinsurer’s portion of recoveries, and commissions due to reinsurers. This also includes deposits withheld from reinsurers.

For reinsurance contracts held, if there is a legal right of set-off within the underlying reinsurance contracts, report the amount after set-off against other amounts receivable from the reinsurer under that reinsurance contract. If the amount is a net receivable position from the reinsurer, report the amount under amounts receivable on reinsurance contracts held. If there is not a legal right of set-off, report the amount payable without set-off. Also refer to the definition of amounts receivable on reinsurance contracts held.

Amounts payable on reinsurance contracts held is netted against reinsurance contract assets or added to reinsurance contract liabilities under AASB 17.

This must exclude any amount already allowed in insurance liabilities determined under HPS 340 to avoid double counting.

Amounts receivable on reinsurance contracts held

This is the value of amounts receivable on reinsurance contracts held. This includes reinsurance recoverables on paid claims.

For reinsurance contracts held, if there is a legal right of set-off within the underlying reinsurance contracts, report the amount after set-off against other amounts payable to the reinsurer under that reinsurance contract. If the amount is a net payable position to the reinsurer, report the amount under amounts payable on reinsurance contracts held. If there is not a legal right of set-off, report the receivable amount without set-off. Also refer to the definition of amounts payable on reinsurance contracts held.

Amounts receivable on reinsurance contracts held is netted against reinsurance contract liabilities or added to reinsurance contract assets under AASB 17.

This must exclude any amount already allowed insurance liabilities determined under Prudential Standard HPS 340 Insurance Liability Valuation (HPS 340) to avoid double counting.

Assets under a fixed or floating charge

This is the value of assets of the private health insurer that are under a fixed or floating charge, mortgage or other security to the extent of the indebtedness secured on those assets. This deduction may be reduced by the value of any liability for the charge that is recognised on the private health insurer’s balance sheet.

Where the security exclusively supports a private health insurer’s insurance liabilities (valued in accordance with HPS 340), the deduction only applies to the amount by which the fair value of the charged assets exceeds the private health insurer’s supported insurance liabilities.

Capital base

The capital base represents the value of capital eligible for the purpose of meeting the Prudential Capital Requirement at the health benefits fund or general fund level or for the private health insurer as set out in Prudential Standard HPS 110 Capital Adequacy.

For each health benefits fund or general fund, capital base is calculated as the sum of:

• net assets of the fund;
• net surplus / (deficit) relating to insurance liabilities;
• regulatory adjustments to net assets for accounts receivables;
• other adjustments to net assets as approved by APRA;
• Tier 2 Capital; and
• transitional adjustments to net assets of the fund.

Less:

• regulatory adjustments to net assets for accounts payables; and
• regulatory adjustments to net assets.

For the private health insurer, capital base is calculated as the sum of:

• Tier 1 Capital; and
• Tier 2 Capital.

Capital base (net of Tier 2 Capital) ratio

Capital base (net of Tier 2 Capital) ratio for the health benefits fund or general fund is calculated as:

• capital base less Tier 2 Capital;

divided by:

• prescribed capital amount.

Cash flow hedge reserves relating to hedging of items not recorded at fair value

This is the value of cash flow hedge reserves that relate to the hedging items that are not recorded at fair value on the balance sheet (including projected cash flows).

Claims payable

This is the value of claims payable, which reflects claims due but not paid.

For inwards reinsurance business, where there is a legal right of set-off within the underlying reinsurance contract, report under this item if the amount after set-off results in a net payable position to the cedant. If there is not a legal right of set-off, report the amount payable without set-off. Also refer to the definition of premiums receivable.

Claims payable is netted against insurance contract assets or added to insurance contract liabilities under AASB 17.

This must exclude any amount already allowed in insurance liabilities determined under HPS 340 to avoid double counting.

Common Equity Tier 1 Capital

This is the highest quality component of capital held by the private health insurer as determined under the eligibility characteristics set out in HPS 112, net of all regulatory adjustments.

Common Equity Tier 1 Capital is calculated as the sum of:

• paid-up ordinary shares;
• mutual equity interests;
• retained earnings;
• undistributed current year earnings;
• accumulated other comprehensive income and other disclosed reserves;
• net surplus / (deficit) relating to insurance liabilities;
• regulatory adjustments to Common Equity Tier 1 Capital for accounts receivables; and
• adjustments and exclusions to Common Equity Tier 1 Capital

less:

• regulatory adjustments to Common Equity Tier 1 Capital for accounts payables; and
• regulatory adjustments to Common Equity Tier 1 Capital.

Common Equity Tier 1 Capital ratio

Common Equity Tier 1 Capital ratio is calculated as:

• Common Equity Tier 1 Capital;

divided by:

• prescribed capital amount.

Cost of reinsurance for future business not yet written

This is the amount of the total cost of reinsurance that relates to business that has not yet been written. This amount represents the cover that an insurer has under a particular reinsurance contract, which is available for future business, written up to the end of the reinsurance contract. This amount can be used to increase the surplus (or decrease the deficit) in the PL surplus / (deficit). Amounts must not be included in this item where the underlying reinsurance arrangement is not an executed and legally binding contract.

Cumulative unrealised gains or losses on hedges offsetting gains or losses in Common Equity Tier 1 Capital

This is the cumulative unrealised gains or losses on hedges offsetting the gains or losses of components of Common Equity Tier 1 Capital.

This includes cumulative unrealised gains or losses on effective cash flow hedges as defined in the Australian Accounting Standards and any fair value gains or losses on derivatives representing effective economic hedges of assets.

Deficit in defined benefit superannuation fund

This is the value of deficit (if any) in a defined benefit superannuation fund where the private health insurer is an employer-sponsor.

Eligible Tier 2 Capital instruments

This is the value of capital instruments issued by the private health insurer that meet the eligibility criteria for Tier 2 Capital in HPS 112.

Eligible Tier 2 Capital instruments issued by the fund

This is the value of capital instruments issued by the health benefits fund or general fund that meet the eligibility criteria for Tier 2 Capital in HPS 112.

Excess mutual equity interests

This is the value of any mutual equity interests that are above the limit specified in HPS 112 (that is, the value of any mutual equity interests on issue that are not eligible for inclusion in Common Equity Tier 1 Capital).

For the purposes of this item, only include proceeds of issues that have been received by the issuer. Any partly paid issue is reported only to the extent that it has been paid-up.

Excess of deferred tax assets over deferred tax liabilities

This is the value of deferred tax assets in excess of deferred tax liabilities within the health benefits fund or general fund or private health insurer as per the requirements of HPS 112.

The netting of deferred tax assets and deferred tax liabilities must include any tax effects that would result from the accounts receivables and accounts payables adjustments and the technical provisions in surplus / (deficit) of HPS 340 liabilities.

Fair value adjustments

A private health insurer must deduct the difference between fair value and the reported value of each asset as per the requirements of HPS 112.

Fair value gains and losses from changes in own creditworthiness

This is the net unrealised gains (or losses) from changes in the fair values of the liabilities of the health benefits fund or general fund or private health insurer that arise due to changes in creditworthiness of the private health insurer.

Foreign currency translation reserve

This is the value of the reserve relating to exchange rate differences arising on translation of assets and liabilities to the presentation currency in accordance with Australian Accounting Standards.

General fund

General fund has the same meaning as in HPS 001.

General reserve

General reserves are created from the appropriation of profits by the private health insurer after the payment of all dividends and tax.

Goodwill

This is the value of goodwill, as per HPS 112, net of adjustments to profit or loss reflecting changes arising from any impairment. This item also includes the goodwill attributable to certain categories of subsidiaries, associates and joint ventures of the private health insurer as per HPS 112.

Health benefits fund

Health benefits fund has the same meaning as in the Act.

Holdings of own Additional Tier 1 Capital instruments

This is the total effective own holdings of Additional Tier 1 Capital instruments issued by the private health insurer unless exempted by APRA or eliminated under Australian Accounting Standards.

Holdings of own Common Equity Tier 1 Capital instruments

This is the total effective holdings of own Tier 1 Capital instruments issued by the private health insurer, unless exempted by APRA or eliminated under Australian Accounting Standards. This item must also include:

• capital instruments the private health insurer could be contractually obliged to purchase; and
• unused portion of the limits agreed with APRA as per HPS 112.

Holdings of own Tier 1 capital instruments

This is the total effective holdings of own Tier 1 Capital instruments that were issued by the private health insurer. This includes Common Equity Tier 1 capital and Additional Tier 1 capital instruments held by the health benefits fund or general fund unless exempted by APRA or eliminated under Australian Accounting Standards.

Holdings of own Tier 2 Capital instruments

For each health benefits fund or general fund, this is the effective holdings of own eligible Tier 2 Capital instruments issued by the fund unless exempted by APRA of eliminated under Australian Accounting Standards.

For the private health insurer, this is the total effective holdings of own eligible Tier 2 Capital instruments that were issued by the private health insurer unless exempted by APRA or eliminated under Australian Accounting Standards.

Insurance liabilities surplus / (deficit)

This is the total technical provisions in surplus (positive value) or deficit (negative value) to the outstanding claims liabilities, premiums liabilities, risk equalisation liability,  other insurance liabilities and deferred claims liabilities determined under HPS 340. Technical provisions refer to the insurance and reinsurance contract liabilities under Australian Accounting Standards.

Mutual equity interests

This is the value of all mutual equity interests on issue up to a maximum limit of 25 percent of the private health insurer’s total Common Equity Tier 1 Capital before applying regulatory adjustments.

For the purposes of this item, only include proceeds of issues that have been received by the issuer. Any partly paid issue is reported only to the extent that it has been paid-up.

Net assets (less equity components classified as Additional Tier 1 Capital)

This is net assets of the private health insurer as reported in the balance sheet after deducting for any equity components classified as Additional Tier 1 Capital.

Net assets of the fund

This is the net assets of the fund as reported in the balance sheet.

Net assets plus Additional Tier 1 Capital ratio

For the private health insurer, net assets plus Additional Tier 1 Capital ratio is calculated as the sum of:

• Additional Tier 1 Capital; and
• net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2

divided by:

• prescribed capital amount.

Net assets ratio

For each health benefits fund or general fund, net assets ratio is calculated as:

• net assets of the fund multiplied by 1.2

divided by:

• prescribed capital amount.

For the private health insurer, net assets ratio is calculated as:

• net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2

divided by:

• prescribed capital amount.

Net surplus / (deficit) relating to insurance liabilities

This is the total technical provisions in surplus or deficit of those required by HPS 340. Technical provisions refer to the accounting insurance and reinsurance liabilities and assets.

For each health benefits fund or general fund, it is a derived item, calculated as the sum of:

• insurance liabilities surplus / (deficit); and
• cost of reinsurance for future business not yet written;

less:

• tax effect of insurance liabilities surplus / (deficit).

For the private health insurer, it is to be reported as the net surplus / (deficit) relating to insurance liabilities across all health benefits funds and general funds of the private health insurer.

Non-reinsurance recoveries receivable

This is the value of non-reinsurance recoveries on paid claims.

Non-reinsurance recoveries receivable is netted against insurance contract liabilities or added to insurance contract assets under AASB 17.

This must exclude any amount already allowed in insurance liabilities determined under HPS 340 to avoid double counting

Other accounts payable on insurance contracts issued

Other accounts payable on insurance contracts issued amount reflects other accounts due but not paid, which is netted against insurance and reinsurance contract assets or added to insurance and reinsurance contract liabilities under AASB 17. This may include (but is not limited to) levies, taxes, rebates, fees and commissions.

Other accounts receivable on insurance contracts issued

Other accounts receivable on insurance contracts issued reflects any other amounts due but not received relating to insurance contracts. This may include (but is not limited to) levies, taxes, rebates, fees and commissions.

Other accounts receivable on insurance contracts issued is netted against insurance contract liabilities or added to insurance contract assets under AASB 17.

This must exclude any amount already allowed in insurance liabilities determined under HPS 340 to avoid double counting.

Other adjustments to net assets as approved by APRA

This is the value of adjustments applied to the net assets of the fund that are specific to the application of the requirements in HPS 112. 

Other Common Equity Tier 1 Capital adjustments

This is the value of deductions from Common Equity Tier 1 Capital that the private health insurer must make as required under any prudential standards other than HPS 112.

Other gains and losses in accumulated comprehensive income and other disclosed reserves

This is the value of any other gains and losses in accumulated comprehensive income and other disclosed reserves that may be specified in writing by APRA as per HPS 112.

Other intangible assets

This is the value of intangible assets, other than goodwill, as per HPS 112, net of adjustments to profit or loss reflecting changes arising from any impairment and amortisation. The values reported must be net of any associated deferred tax liability that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards.

This item also includes the intangible assets attributable to certain categories of subsidiaries, associates and joint ventures of the private health insurer as per HPS 112.

Other net asset adjustments

This is the value of deductions from the net assets that the health benefits fund or general fund must make as required under any prudential standards other than HPS 112.

Paid-up ordinary shares

This represents paid-up ordinary shares issued by the private health insurer that meet the criteria for classification as ordinary shares for regulatory purposes in accordance with HPS 112.

Premiums receivable

Premiums receivable amount reflects premiums due to be received, unpaid premiums available for collection, and premiums not yet available for collection.

Premiums should be gross of reinsurance and commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts.

Premiums receivable is netted against insurance contract liabilities or added to insurance contact assets under AASB 17.

Premiums receivable must be reduced by the amount that is likely to become uncollectable in the future.

Prescribed capital amount

Prescribed capital amount is defined in HPS 110.

Prescribed capital amount coverage

Prescribed capital amount coverage is calculated as:

• capital base;

divided by:

• prescribed capital amount.

Prescribed capital amount coverage (net assets)

For each health benefits fund or general fund, prescribed capital amount coverage (net assets) is calculated as the sum of:

• net assets of the fund multiplied by 1.2; and
• Tier 2 Capital

divided by:

• prescribed capital amount.

For the private health insurer, prescribed capital amount coverage (net assets) is calculated as the sum of:

• Additional Tier 1 Capital;
• Tier 2 Capital; and
• net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2

divided by:

• prescribed capital amount.

Regulatory adjustments to Common Equity Tier 1 Capital

This is the total of all regulatory adjustments applied to Common Equity Tier 1 Capital specified in HPS 112.

Regulatory adjustments to Common Equity Tier 1 Capital is calculated as the sum of:

• holdings of own Common Equity Tier 1 Capital instruments;
• cash flow hedge reserves relating to hedging of items not recorded at fair value;
• excess of deferred tax assets over deferred tax liabilities;
• fair value gains and losses from changes in own creditworthiness;
• goodwill;
• other intangible assets;
• surplus in defined benefit superannuation fund;
• deficit in defined benefit superannuation fund;
• reinsurance assets not subjected to an executed and legally binding contract;
• regulatory capital requirement of investments in subsidiaries, JVs and associates;
• assets under a fixed or floating charge;
• regulatory adjustments to Common Equity Tier 1 Capital for receivables/payables;
• fair value adjustments;
• adjustments to Common Equity Tier 1 Capital due to shortfall in Additional Tier 1 Capital; and
• other Common Equity Tier 1 Capital adjustments.

Regulatory adjustments to Common Equity Tier 1 Capital for accounts payables

This item represents the aggregate regulatory adjustments for accounts payables made across all health benefits or general funds.

Regulatory adjustments to Common Equity Tier 1 Capital for accounts receivables

This item represents the aggregate regulatory adjustments for accounts receivables made across all health benefits or general funds.

Regulatory adjustments to net assets

This is the total of all regulatory adjustments applied to net assets specified in HPS 112.

It is calculated as the sum of:

• holdings of own Common Equity Tier 1 Capital instruments;
• cash flow hedge reserves relating to hedging of items not recorded at fair value;
• excess of deferred tax assets over deferred tax liabilities;
• fair value gains and losses from changes in own creditworthiness;
• goodwill;
• other intangible assets;
• surplus in defined benefit superannuation fund;
• deficit in defined benefit superannuation fund;
• reinsurance assets not subjected to an executed and legally binding contract;
• regulatory capital requirement of investments in subsidiaries, JVs and associates;
• assets under a fixed or floating charge;
• fair value adjustments;
• adjustments to net assets of the fund due to shortfall in Tier 2 Capital; and
• other net asset adjustments.

Regulatory adjustments to net assets for accounts payables

This is the value of any adjustments to be deducted from net assets relating to accounts payables, net of tax effects. It is calculated as the sum of:

• claims payable;
• amounts payable on reinsurance contracts held; and
• other accounts payable on insurance contracts issued

less:

• reversal of tax impact of payables.

Regulatory adjustments to net assets for accounts receivables

This is the value of any adjustments to be added to net assets relating to accounts receivables, net of tax effects. It is calculated as the sum of:

• premiums receivable;
• amounts receivable on reinsurance contracts held;
• non-reinsurance recoveries receivable; and
• other accounts receivable on insurance contracts issued

less:

• reversal of tax impact of receivables.

Regulatory capital requirement of investments in subsidiaries, JVs and associates

This is the deduction for investments in subsidiaries, joint ventures and associates that are subject to regulatory capital requirements as detailed in HPS 112.

Reinsurance assets not subjected to an executed and legally binding contract

This is the value of reinsurance assets (if positive) reported in relation to each reinsurance arrangement that, subject to a six-month grace period from risk inception, does not comprise an executed and legally binding contract.

Reserves from equity-settled share-based payments

This is the value of reserves from equity-settled share-based payments granted to employees as part of their remuneration package that meets the requirements of HPS 112. Only the reserves relating to the issue of new shares should be reported.

Retained earnings

This is the value, as at the end of the reporting period, of retained earnings.  This should not include the value of undistributed current year earnings.

Reversal of tax impact of payables

This is the value related to the reversal of tax effect of the payables items:

• claims payable;
• amounts payable on reinsurance contracts held; and
• other accounts payable on insurance contracts issued.

Reversal of tax impact of receivables

This is the value related to the reversal of tax effect of the receivable items:

• premiums receivable;
• amounts receivable on reinsurance contracts held;
• non-reinsurance recoveries receivable; and
• other accounts receivable on insurance contracts issued.

Surplus in defined benefit superannuation fund

This is the value of surplus (if any) in defined benefit superannuation funds where the private health insurer is an employer-sponsor, net of any associated deferred tax liabilities that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards.

Representations may be made to APRA to include the surplus in the capital base provided the criteria are met as per HPS 112.

Tax effect of insurance liabilities surplus / (deficit)

This is the tax effect of the technical provisions in surplus (positive value) or deficit (negative value) of those required under HPS 340.

Full tax benefits and liabilities must be assumed for the purposes of reporting this item but they must be included when assessing the adjustment for excess of deferred tax assets over deferred tax liabilities. 

Tier 1 Capital

Tier 1 Capital is calculated as the sum of:

• Common Equity Tier 1 Capital; and
• Additional Tier 1 Capital.

Tier 1 Capital ratio

Tier 1 Capital ratio is calculated as:

• Tier 1 Capital;

divided by:

• prescribed capital amount.

Tier 2 Capital

This is the total value of capital instruments that meet the eligibility criteria for Tier 2 Capital but not the criteria for the higher quality capital, net of all regulatory adjustments.

It is calculated as the sum of:

• eligible Tier 2 Capital instruments issued by the fund;
• adjustments and exclusions to Tier 2 Capital; and
• transitional Tier 2 Capital

less:

• holdings of own Tier 2 Capital instruments.

Transitional Additional Tier 1 Capital

This is the value of capital instruments that have been temporarily recognised and approved as Additional Tier 1 Capital for transition purposes.

Transitional adjustments to net assets of the fund

This is the value of the transitional adjustment to net assets of the fund applicable to insurers electing to participate in the transitional arrangements referenced in HPS 112.

This adjustment is distinct from transitional Common Equity Tier 1 Capital as it applies to individual health benefits or general funds of the private health insurer only.

Transitional Common Equity Tier 1 Capital

This is the value of capital instruments that have been temporarily recognised and approved as Common Equity Tier 1 Capital for transition purposes.

This includes the transitional adjustment to Common Equity Tier 1 Capital for the private health insurer applicable to insurers electing to participate in the transitional arrangements referenced in HPS 112.

Transitional Tier 2 Capital

This is the value of capital instruments that have been temporarily recognised and approved as Tier 2 Capital for transition purposes.

Undistributed current year earnings

The undistributed current year earnings reported should account for (where applicable) negative goodwill, expected tax expenses, and dividends when declared.   The declared dividends reported may be reduced by the expected proceeds, as agreed in writing by APRA, of a Dividend Reinvestment Plan to the extent that dividends are used to purchase new ordinary shares issued by the private health insurer.

Unrealised gains or losses recognised on balance sheet

This is the total value of unrealised gains or losses that have been recognised on the balance sheet.

Column 1

Report the value for each of the items listed below.

Item 1.1

Report net assets of the fund.

Item 1.2

Net surplus / (deficit) relating to insurance liabilities is a derived item and is calculated as the sum of:

• item 1.2.1; and
• item 1.2.2

less:

• item 1.2.3.

Item 1.2.1

Report insurance liabilities surplus / (deficit).

Report any surpluses as a positive value and any deficits as a negative value.

Item 1.2.2

Report the cost of reinsurance for future business not yet written amount.

Item 1.2.3

Report tax effect of insurance liabilities surplus / (deficit).

Report any surpluses as a positive value and any deficits as a negative value. Do not deduct the tax effect if a deferred tax asset has been recognised in relation to the net surplus / (deficit).

Item 1.3

Regulatory adjustments to net assets for accounts receivables is a derived item and is calculated as the sum of:

• item 1.3.1;
• item 1.3.2;
• item 1.3.3; and
• item 1.3.4

less:

• item 1.3.5.

Item 1.3.1

Report premiums receivable.

This item is to be reported as a positive value and is an addition to net assets.

Item 1.3.2

Report amounts receivable on reinsurance contracts held amount.

This item is to be reported as a positive value and is an addition to net assets.

Item 1.3.3

Report non-reinsurance recoveries receivable.

This item is to be reported as a positive value and is an addition to net assets.

Item 1.3.4

Report other accounts receivable on insurance contracts issued.

This item is to be reported as a positive value and is an addition to net assets.

Item 1.3.5

Report reversal of tax impact of receivables.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.4

Regulatory adjustments to net assets for accounts payables is a derived item and is calculated as the sum of:

• item 1.4.1;
• item 1.4.2; and
• item 1.4.3

less:

• item 1.4.4.

Item 1.4.1

Report claims payable.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.4.2

Report amounts payable on reinsurance contracts held.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.4.3

Report other accounts payable on insurance contracts issued.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.4.4

Report reversal of tax impact of payables.

This item is to be reported as a positive value and is an addition to net assets.

Item 1.5

Regulatory adjustments to net assets is a derived item and is calculated as the sum of items 1.5.1 to 1.5.14 inclusive.

Item 1.5.1

Report holdings of own Tier 1 Capital instruments.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.5.2

Report cash flow hedge reserves relating to hedging of items not recorded at fair value.

Item 1.5.3

Report excess of deferred tax assets over deferred tax liabilities.

This item is to be reported as a positive value and is a deduction to net assets. Where the deferred tax liabilities exceed the deferred tax assets, report this value as zero.

Item 1.5.4

Report fair value gains and losses from changes in own creditworthiness.

Report this as a positive value where there are unrealised gains or a negative value for unrealised losses. This item is a deduction to net assets.

Item 1.5.5

Report goodwill.

Values reported in this item must be net of any associated deferred tax liability that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards. This item is a deduction to net assets.

Item 1.5.6

Report other intangible assets.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.5.7

Report surplus in defined benefit superannuation fund.

Report the surplus (if any) as a positive value. This item is a deduction to net assets.

Where the extinguished deferred tax liability of the defined benefit superannuation fund exceeds the reported surplus, report this as zero.

Item 1.5.8

Report deficit in defined benefit superannuation fund.

This item only needs to be reported where the deficit is not already reflected in the net assets of the fund or Common Equity Tier 1 Capital.

Report the deficit (if any) as a positive value. This item is a deduction to net assets.

Item 1.5.9

Report reinsurance assets not subjected to an executed and legally binding contract.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.5.10

Report regulatory capital requirement of investments in subsidiaries, JVs and associates.

The value of the deduction is the lesser of the private health insurer's share of the regulatory capital requirements and the value of the investment that is recorded on the private health insurer's balance sheet after adjustment for any intangibles reported in:

• goodwill; and
• other intangible assets.

If the investment subject to this deduction is a non-operating holding company, a look-through approach must be applied.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.5.11

Report assets under a fixed or floating charge.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.5.12

Report fair value adjustments.

Where the asset fair value is less than the reported value in the balance sheet, report a positive value. Otherwise, report this as a negative value. This item is a deduction to net assets.

Item 1.5.13

Report adjustments to net assets of the fund due to shortfall in Tier 2 Capital.

Report any shortfall in Tier 2 Capital as a positive value. This item is a deduction to net assets.

Item 1.5.14

Report other net asset adjustments.

This item is to be reported as a positive value and is a deduction to net assets.

Item 1.6

Report other adjustments to net assets as approved by APRA.

Report adjustments that would result in an increase to the net assets of the fund as a positive value.

Item 1.7

Report transitional adjustments to net assets of the fund.

Report the increase to net assets of the fund if electing to participate in the transitional arrangements described in HPS 112.

Report adjustments that would result in an increase to net assets of the fund as a positive value.

Item 2

Tier 2 Capital is a derived item and is calculated as the sum of:

• item 2.1;
• item 2.3; and
• item 2.4

less:

• item 2.2.

Item 2.1

Report eligible Tier 2 Capital instruments issued by the fund.

Report this net of any amortisation required under HPS 112.

Item 2.2

Report holdings of own Tier 2 Capital instruments.

This item is to be reported as a positive value where the health benefits fund or general fund has holdings of the private health insurer’s own issued Tier 2 instruments and is a deduction to Tier 2 Capital.

Item 2.3

Report adjustments and exclusions to Tier 2 Capital.

Report adjustments that would increase the amount of Tier 2 Capital recognised as a positive value.

Item 2.4

Report transitional Tier 2 Capital.

Item 3

Capital base is a derived item and is calculated as the sum of:

• item 1.1;
• item 1.2;
• item 1.3;
• item 1.6;
• item 1.7; and
• item 2

less the sum of:

• item 1.4; and
• item 1.5.

Item 4.1

Report the prescribed capital amount.

Item 4.2

Capital base (net of Tier 2 Capital) ratio is a derived item and is calculated as:

• item 3 less item 2

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.3

Prescribed capital amount coverage is a derived item and is calculated as:

• item 3

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.4

Net assets ratio is a derived item and is calculated as:

• item 1.1 multiplied by 1.2

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.5

Prescribed capital amount coverage (net assets) is a derived item and is calculated as the sum of:

• item 1.1 multiplied by 1.2; and
• item 2

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Column 1

Report the value for each of the items listed below.

Item 1

Tier 1 Capital is a derived item and is calculated as the sum of:

• item 1.1; and
• item 1.2.

Item 1.1

Common Equity Tier 1 Capital is a derived item and is calculated as the sum of:

• item 1.1.1;
• item 1.1.2;
• item 1.1.3;
• item 1.1.4;
• item 1.1.5;
• item 1.1.6;
• item 1.1.7;
• item 1.1.10; and
• item 1.1.11;

less:

• item 1.1.8; and
• item 1.1.9.

Item 1.1.1

Report paid-up ordinary shares.

Item 1.1.2

Report mutual equity interests.

Item 1.1.3

Report retained earnings.

Item 1.1.4

Report undistributed current year earnings.

Item 1.1.5

Accumulated other comprehensive income and other disclosed reserves is a derived item and is calculated as the sum of items 1.1.5.1 to 1.1.5.6 inclusive.

Item 1.1.5.1

Report unrealised gains or losses recognised on balance sheet.

Item 1.1.5.2

Report reserves from equity-settled share-based payments.

Item 1.1.5.3

Report the foreign currency translation reserve.

Item 1.1.5.4

Report the general reserve.

Item 1.1.5.5

Report cumulative unrealised gains or losses on hedges offsetting gains or losses in Common Equity Tier 1 Capital.

Item 1.1.5.6

Report other gains and losses in accumulated comprehensive income and other disclosed reserves.

Item 1.1.6

Report net surplus / (deficit) relating to insurance liabilities.

Item 1.1.7

Report regulatory adjustments to Common Equity Tier 1 Capital for accounts receivables.

Item 1.1.8

Report regulatory adjustments to Common Equity Tier 1 Capital for accounts payables.

Item 1.1.9

Regulatory adjustments to Common Equity Tier 1 Capital is a derived item and is calculated as the sum of items 1.1.9.1 to 1.1.9.14 inclusive.

Item 1.1.9.1

Report holdings of own Common Equity Tier 1 Capital instruments.

Item 1.1.9.2

Report cash flow hedge reserves relating to hedging of items not recorded at fair value.

Item 1.1.9.3

Report excess of deferred tax assets over deferred tax liabilities.

Where the deferred tax liabilities exceed the deferred tax assets, report this value as zero. 

Item 1.1.9.4

Report fair value gains and losses from changes in own creditworthiness.

Report this value as a positive value where there are unrealised gains or a negative value for unrealised losses.

Item 1.1.9.5

Report goodwill.

Values reported in this item must be net of any associated deferred tax liability that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards.

Item 1.1.9.6

Report other intangible assets.

Item 1.1.9.7

Report surplus in defined benefit superannuation fund.

Report the surplus (if any) as a positive value.

Where the extinguished deferred tax liability of the defined benefit superannuation fund exceeds the reported surplus, report this as zero.

Item 1.1.9.8

Report deficit in defined benefit superannuation fund.

This item only needs to be reported where the deficit is not already reflected in the net assets of the fund or Common Equity Tier 1 Capital.

Report the deficit (if any) as a positive value.

Item 1.1.9.9

Report reinsurance assets not subjected to an executed and legally binding contract.

Item 1.1.9.10

Report regulatory capital requirement of investments in subsidiaries, JVs and associates.

The value of the deduction is the lesser of the private health insurer's share of the regulatory capital requirements and the value of the investment that is recorded on the private health insurer's balance sheet after adjustment for any intangibles reported in:

• Goodwill; and
• Other intangible assets.

If the investment subject to this deduction is a non-operating holding company, a look-through approach must be applied.

Item 1.1.9.11

Report assets under a fixed or floating charge.

Item 1.1.9.12

Report fair value adjustments.

Where the asset fair value is less than the reported value in the balance sheet, report a positive value. Otherwise, report this as a negative value.

Item 1.1.9.13

Report adjustments to Common Equity Tier 1 Capital due to shortfall in Additional Tier 1 Capital.

Report any shortfall in Additional Tier 1 Capital and Tier 2 Capital as a positive value.

Item 1.1.9.14

Report other Common Equity Tier 1 Capital adjustments.

Item 1.1.10

Report adjustments and exclusions to Common Equity Tier 1 Capital.

Report adjustments that would result in an increase to Common Equity Tier 1 Capital as a positive value.

Item 1.1.11

Report transitional Common Equity Tier 1 Capital

Report the increase to Common Equity Tier 1 Capital if electing to participate in the transitional arrangements described in HPS 112.

Report adjustments that would result in an increase to Common Equity Tier 1 Capital as a positive value.

Item 1.2

Additional Tier 1 Capital is a derived item and is calculated as the sum of:

• Item 1.2.1;
• Item 1.2.4;
• Item 1.2.5; and
• Item 1.2.6

less the sum of:

• Item 1.2.2; and
• Item 1.2.3.

Item 1.2.1

Report Additional Tier 1 Capital instruments.

Item 1.2.2

Report holdings of own Additional Tier 1 Capital instruments.

This is to be reported as a positive value where it would result in a reduction to Additional Tier 1 Capital.

Item 1.2.3

Report adjustments to Additional Tier 1 Capital due to shortfall in Tier 2 Capital.

This is to be reported as a positive value where it would result in a reduction to Additional Tier 1 Capital.

Item 1.2.4

Report adjustments and exclusions to Additional Tier 1 Capital.

Report adjustments that would increase the amount of Additional Tier 1 Capital as a positive value.

Item 1.2.5

Report transitional Additional Tier 1 Capital.

Item 1.2.6

Report excess mutual equity interests.

Item 2

Tier 2 Capital is a derived item and is calculated as the sum of:

• Item 2.1;
• Item 2.3; and
• Item 2.4

less:

• Item 2.2.

Item 2.1

Report eligible Tier 2 Capital instruments.

Report this net of any amortisation required under HPS 112.

Item 2.2

Report holdings of own Tier 2 Capital instruments.

This item is to be reported as a positive value where the private health insurer has holdings of its own issued Tier 2 instruments.

Item 2.3

Report adjustments and exclusions to Tier 2 Capital.

Report adjustments that would increase the amount of Tier 2 Capital recognised as a positive value.

Item 2.4

Report transitional Tier 2 Capital.

Item 3

Capital base is a derived item and is calculated as the sum of:

• Item 1; and
• Item 2.

Item 4.1

Report prescribed capital amount.

Item 4.2

Report the net assets (less equity components classified as Additional Tier 1 Capital) amount.

Item 4.3

Common Equity Tier 1 Capital ratio is a derived item and is calculated as:

• item 1.1

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.4

Tier 1 Capital ratio is a derived item and is calculated as:

• item 1

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.5

Prescribed capital amount coverage is a derived item and is calculated as:

• item 3

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.6

Net assets ratio is a derived item and is calculated as:

• item 4.2 multiplied by 1.2

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.7

Net assets plus Additional Tier 1 Capital ratio is a derived item and is calculated as the sum of:

• item 1.2; and
• item 4.2 multiplied by 1.2

divided by:

• item 4.1.

This ratio is expressed as a percentage.

Item 4.8

Prescribed capital amount coverage (net assets) is a derived item and is calculated as the sum of:

• item 1.2;
• item 2; and
• item 4.2 multiplied by 1.2

divided by:

• item 4.1.

This ratio is expressed as a percentage.