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Reporting Form LRF 400

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					Financial Sector (Collection of Data)
(reporting standard) determination No.27 of
2007
Reporting standard LRS 400.0 Statement of Policy
Liabilities

Financial Sector (Collection of Data) Act 2001

I, John Roy Trowbridge, Member of APRA, delegate of APRA, under
paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act)
DETERMINE Reporting Standard LRS 400.0 Statement of Policy Liabilities in the
form set out in the Schedule, which applies to the financial sector entities referred to
in paragraph 2 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 1 January 2008.


Dated 6 December 2007

[Signed]


John Trowbridge
Member


Interpretation

In this determination:

APRA means the Australian Prudential Regulation Authority.
Schedule

Reporting Standard LRS 400.0 Statement of Policy Liabilities comprises the 17 pages
commencing on the following page.
                                                                              January 2008




Reporting Standard LRS 400.0

Statement of Policy Liabilities
Objective of this reporting standard

This reporting standard is made under section 13 of the Financial Sector (Collection
of Data) Act 2001. It requires all registered life insurance companies to report to
APRA, in general, on an annual basis in relation to a statement of policy liabilities.

This reporting standard outlines the overall requirements for the provision of relevant
information to APRA. It should be read in conjunction with Form LRF 400.0
Statement of Policy Liabilities, and the associated instructions (both of which are
attached and form part of this reporting standard).


Purpose

1.   Information collected in Form LRF 400.0 Statement of Policy Liabilities (LRF
     400.0) is used by APRA for the purpose of prudential supervision, including
     assessing compliance with prudential standards and actuarial standards where
     appropriate. It may also be used by the Reserve Bank of Australia, the
     Australian Bureau of Statistics and the Australian Securities and Investments
     Commission.

Application

2.   This reporting standard applies to all life insurance companies including
     friendly societies (together referred to as life companies) registered under the
     Life Insurance Act 1995 (Life Insurance Act).

Information required

3.   A life company must provide APRA with the information required by Form
     LRF 400.0 for each reporting period.

     Note: the instructions for Form LRF 400.0 explain in more detail the information that is
     required.

4.   Only Item 2 of the information required to be provided to APRA under this
     reporting standard is intended to form part of the annual returns, within the


                                                                             LRS 400.0 - 1
                                                                                     January 2008


     meaning of section 124 of the Life Insurance Act, given by the life company to
     APRA.

Method of submission

5.   The information required by this reporting standard must be given to APRA
     either:

     (a)    in electronic form using the ‘Direct to APRA’ application, applying one of
            the electronic submission mechanisms under that application; or

     (b)    by completing Form LRF 400.0 on paper and mailing the completed form
            to APRA

     Note: the ‘Direct to APRA’ application software and paper forms may be obtained from APRA.


Reporting periods and due dates

6.   Subject to paragraph 7, a life company must provide the information required by
     this reporting standard in audited form in respect of the financial year of the life
     company.

     Note: the annual audited form must be submitted in conjunction with the annual auditor’s report,
     as required under Prudential Standard LPS 310 Audit and Actuarial Requirements Paragraph 8.

7.   APRA may, by notice in writing, change the reporting periods, or specified
     reporting periods, for a particular life company, to require it to provide the
     information required by this reporting standard more frequently, or less
     frequently, having regard to:

     (a)    the particular circumstances of the life company;

     (b)    the extent to which the information is required for the purposes of the
            prudential supervision of the life company; and

     (c)    the requirements of the Reserve Bank of Australia or the Australian
            Bureau of Statistics or the Australian Securities and Investments
            Commission.

8.   The information required by this reporting standard must be provided to APRA
     within four months after the end of the reporting period to which the
     information relates.

9.   APRA may grant a life company an extension of a due date in writing, in which
     case the new due date for the provision of the information will be the date on the
     notice of extension.




                                                                                   LRS 400.0 - 2
                                                                                 January 2008


Quality control

10.   The information provided by a life company under this reporting standard must
      be the product of processes and controls that have been reviewed and tested by
      the auditor of the life company.

11.   All information provided by a life company under this reporting standard must
      be subject to processes and controls developed by the life company for the
      internal review and authorisation of that information. It is the responsibility of
      the board and senior management of the life company to ensure that an
      appropriate set of policies and procedures for the authorisation of data submitted
      to APRA is in place.

12.   Information provided to APRA in audited form must be audited by the auditor
      of the life company.

13.   Actuarial valuations and calculations included in, or used in the preparation of,
      the information provided to APRA must be in accordance with the actuarial
      standards and prudential standards in force for the reporting period.

Authorisation

14.   If the officer of a life company provides the information required by this
      reporting standard:

      (a)   using Direct to APRA (D2A), the officer must digitally authorise, submit
            the data to APRA and receive a D2A receipt number for the information
            to be considered given to APRA. APRA will issue ‘digital certificates’ to
            officers of the life company who have authority to transmit the data to
            APRA; or

      (b)   on paper, the relevant completed form must be signed on the front page by
            the principal executive officer or chief financial officer of the life
            company.

      Note: information in draft returns saved at APRA using D2A will not be considered to
      be provided to APRA for the purposes of the life company's obligations under this reporting
      standard.


Minor alterations to forms and instructions

15.   APRA may make minor variations to:

      (a)   a form that is part of this reporting standard, and the instructions to such a
            form, to correct technical, programming or logical errors, inconsistencies
            or anomalies; or

      (b)   the instructions to a form, to clarify their application to the form

      without changing any substantive requirement in the form or instructions.




                                                                                LRS 400.0 - 3
                                                                              January 2008


16.   If APRA makes such a variation it must notify in writing each life company that
      is required to report under this reporting standard.

Transitional

17.   A life company must report in accordance with this reporting standard for any
      reporting period ending on or after 1 January 2008. However, a life company
      must also report to APRA in accordance with the Prudential Rules which
      applied before the commencement of this reporting standard in respect of any
      reporting period ending before 1 January 2008.

      Note: as an additional transitional measure, a life company must also report to APRA in
      accordance with Reporting Standard LRS 901 Transitional Arrangements 2008.

Interpretation

18.   In this reporting standard:

      business days means ordinary business days, exclusive of Saturdays, Sundays or public
      holidays;

      principal executive officer means the principal executive officer of the life company
      for the time being, by whatever name called, and whether or not he or she is a member
      of the governing board of the entity;

      reporting period means a reporting period under paragraph 6 or, if applicable,
      paragraph 7.




                                                                             LRS 400.0 - 4
                                                                                                                                                                                                                                                                            January 2008

                                                                                                          LRF 400.0 Statement of Policy Liabilities

   Australian Business Number                                                                                                                                   Entity identifier, to be provided




   Institution Name                                                                                                                                           Life Insurers and Friendly Societies




   Reporting Period                                                                                                                                                   As at end of year only




   Scale Factor                                                                                                                                             Thousands of dollars, no decimal places




   Reporting Consolidation                                                                                                                                         One form per Statutory Fund




1. All Statutory Fund Products


   1.1. In Force Business and movements in Gross Contractual Regular Contributions over the year



                                                                                                                                                                                                                                  Gross
                                                                                                                                                                                                                               Contractual       Gross        Other
                                                                                                                                           Gross      Reinsured                                                     Gross        Regular      Contractual  movements in
                                                                                                                                         Insurance    Insurance                                                  Contractual   Contribution     Regular       Gross
                                                                                                                                          Amount,      Amount,             Gross                Reinsured          Regular    decreases due Contribution    Contractual
                                                                                                         Policy Count Member Count        Account      Account           Contractual            Contractual     Contribution    to claims   decreases due    Regular
                                                                                                       (actual number, (actual number,   Balance or   Balance or          Regular                Regular       increases over     and/or      to voluntary Contributions
                                                                                                          not scaled)    not scaled)     equivalent   equivalent        Contributions          Contributions      the year      maturities  discontinuance over the year
                     Class of Business                                    Product Group                       (1)             (2)            (3)          (4)                (5)                    (6)              (7)            (8)            (9)         (10)

- Australia - Ordinary Business                         - F1. Education
- Australia - Superannuation Business                   - F2. Investment Account
- Overseas - All Business                               - F3. Annuity & Superannuation
                                                        - F4. Risk
                                                        - F5. Prepaid Funeral
                                                        - F6. Investment Linked
                                                        - L1. Conventional Participating
                                                        - L2. Participating Investment Account
                                                        - L3. Annuity with Longevity Risk
                                                        - L4. Individual Lump Sum Risk
                                                        - L5. Individual Disability Income Insurance
                                                        - L6. Group Lump Sum Risk
                                                        - L7. Group Disability Income Insurance
                                                        - L8. Non-par Investment Policy
                                                        - L9. Annuity without Longevity Risk
                                                        - L10. Other




                                                                                                                                                                                                                                                                           LRF 400.0 - 1
                                                                                                                                                                                                                                                                                          January 2008

   1.2. Components of Gross Policy Liability


                                                                                                                                                 Gross Best Estimate Liability

                                                                                                                                                                            Gross
                                                                                                                                                                         Reduction in
                                                                                                                                                      Gross Value of      Respect of                    Gross Value of Gross Value of        Gross          Gross
                                                                                                                        Gross Value of Gross Value of (Balance of)       Unrecouped      Total Gross    Future Profits: Future Profits:   Investment     Management
                                                                                                                        Future Policy     Future          Future         Acquisition    Best Estimate   Policy Owner     Shareholder       Contract     Services Asset   Gross Policy
                                                                                                                           Benefits      Expenses       Premiums          Expenses        Liability       Bonuses       Profit Margins      Liability     or Liability     Liability
                     Class of Business                                       Product Group                   Basis           (1)            (2)             (3)              (4)             (5)              (6)              (7)             (8)            (9)            (10)
- Australia - Ordinary Business                            - F1. Education                                - Last Year
- Australia - Superannuation Business                      - F2. Investment Account                       - LY / TY
- Overseas - All Business                                  - F3. Annuity & Superannuation                 - This Year
                                                           - F4. Risk
                                                           - F5. Prepaid Funeral
                                                           - F6. Investment Linked
                                                           - L1. Conventional Participating
                                                           - L2. Participating Investment Account
                                                           - L3. Annuity with Longevity Risk
                                                           - L4. Individual Lump Sum Risk
                                                           - L5. Individual Disability Income Insurance
                                                           - L6. Group Lump Sum Risk
                                                           - L7. Group Disability Income Insurance
                                                           - L8. Non-par Investment Policy
                                                           - L9. Annuity without Longevity Risk
                                                           - L10. Other



   1.3. Components of Reinsured Policy Liability and Net Policy Liability


                                                                                                                                               Reinsured Best Estimate Liability

                                                                                                                                                                          Reinsured
                                                                                                                                                           Reinsured     Reduction in                     Reinsured       Reinsured
                                                                                                                                                            Value of      Respect of                    Value of Future Value of Future    Reinsured      Reinsured
                                                                                                                          Reinsured       Reinsured       (Balance of)   Unrecouped     Total Reinsured Profits: Policy     Profits:      Investment     Management
                                                                                                                        Value of Future Value of Future      Future      Acquisition     Best Estimate      Owner        Shareholder        Contract    Services Asset   Reinsured        Net Policy
                                                                                                                        Policy Benefits   Expenses         Premiums       Expenses          Liability      Bonuses      Profit Margins      Liability     or Liability Policy Liability    Liability
                     Class of Business                                       Product Group                   Basis            (1)             (2)              (3)           (4)               (5)            (6)              (7)             (8)            (9)           (10)             (11)
- Australia - Ordinary Business                            - F1. Education                                - Last Year
- Australia - Superannuation Business                      - F2. Investment Account                       - LY / TY
- Overseas - All Business                                  - F3. Annuity & Superannuation                 - This Year
                                                           - F4. Risk
                                                           - F5. Prepaid Funeral
                                                           - F6. Investment Linked
                                                           - L1. Conventional Participating
                                                           - L2. Participating Investment Account
                                                           - L3. Annuity with Longevity Risk
                                                           - L4. Individual Lump Sum Risk
                                                           - L5. Individual Disability Income Insurance
                                                           - L6. Group Lump Sum Risk
                                                           - L7. Group Disability Income Insurance
                                                           - L8. Non-par Investment Policy
                                                           - L9. Annuity without Longevity Risk
                                                           - L10. Other




                                                                                                                                                                                                                                                                                        LRF 400.0 - 2
                                                                                                                                                                                                                                                                January 2008

   1.4. Sundry Items




                                                                                                                       Shareholder                                                                                                                       Percentage of
                                                                                                                      profit margins   Gross policy                                                    Accumulated                    Profit Carrier or profit carrier or
                                                                                           Cost of                      on cost of      liability in       Cost of                                         loss         Accumulated     Acquisition       Acquisition
                                                                                        previous year Cost of current current period    respect of     declared bonus     Amount of     Amount of     recognition at        loss         Expense           Expense
                                                                                        best estimate   period best   best estimate      inwards        excl terminal, terminal bonus interim bonus    beginning of    recognition at    Recovery          Recovery
                                                                                           bonus      estimate bonus      bonus        reinsurance         interim          paid           paid           period       end of period      Carrier           Carrier
                     Class of Business                     Product Group                     (1)            (2)              (3)            (4)               (5)            (6)            (7)             (8)              (9)             (10)              (11)
- Australia - Ordinary Business          - F1. Education
- Australia - Superannuation Business    - F2. Investment Account
- Overseas - All Business                - F3. Annuity & Superannuation
                                         - F4. Risk
                                         - F5. Prepaid Funeral
                                         - F6. Investment Linked
                                         - L1. Conventional Participating
                                         - L2. Participating Investment Account
                                         - L3. Annuity with Longevity Risk
                                         - L4. Individual Lump Sum Risk
                                         - L5. Individual Disability Income Insurance
                                         - L6. Group Lump Sum Risk
                                         - L7. Group Disability Income Insurance
                                         - L8. Non-par Investment Policy
                                         - L9. Annuity without Longevity Risk
                                         - L10. Other




                                                                                                                                                                                                                                                             LRF 400.0 - 3
                                                                                                                                                                                                                                                                                                                                                                 January 2008

2. Totals by Class of Business and Basis


  2.1. In Force Business and movements in Gross Contractual Regular Contributions over the year



                                                                                                                                                                                                                                                                                                                   Gross
                                                                                                                                                                                                                                                                                                                Contractual       Gross        Other
                                                                                                                                                                                                                                    Gross         Reinsured                                          Gross        Regular      Contractual  movements in
                                                                                                                                                                                                                                  Insurance       Insurance                                       Contractual   Contribution     Regular       Gross
                                                                                                                                                                                                                                   Amount,         Amount,         Gross         Reinsured          Regular    decreases due Contribution    Contractual
                                                                                                                                                                                                  Policy Count Member Count        Account         Account       Contractual     Contractual     Contribution    to claims   decreases due    Regular
                                                                                                                                                                                                (actual number, (actual number,   Balance or      Balance or      Regular         Regular       increases over     and/or      to voluntary Contributions
                                                                                                                                                                                                   not scaled)    not scaled)     equivalent      equivalent    Contributions   Contributions      the year      maturities  discontinuance over the year
                                                                                                                                                                                                       (1)             (2)            (3)             (4)            (5)             (6)              (7)            (8)            (9)         (10)
    2.1.1. Australian Business
        2.1.1.1. Ordinary Business....................................................................................................................................................
        2.1.1.2. Superannuation Business........................................................................................................................................
        2.1.1.3. Total Australian Business.....................................................................................................................................


    2.2.2. Overseas - All Business................................................................................................................................................


    2.2.3. Total Statutory Fund Business.....................................................................................................................................


  2.2. Components of Gross Policy Liability


                                                                                                                                                                                                                         Gross Best Estimate Liability

                                                                                                                                                                                                                                                    Gross
                                                                                                                                                                                                                                                 Reduction in
                                                                                                                                                                                                                              Gross Value of      Respect of                    Gross Value of Gross Value of        Gross          Gross
                                                                                                                                                                                                Gross Value of Gross Value of (Balance of)       Unrecouped      Total Gross    Future Profits: Future Profits:   Investment     Management
                                                                                                                                                                                                Future Policy     Future          Future         Acquisition    Best Estimate   Policy Owner     Shareholder       Contract     Services Asset   Gross Policy
                                                                                                                                                                                                   Benefits      Expenses       Premiums          Expenses        Liability       Bonuses       Profit Margins      Liability     or Liability     Liability
                                                                                                                                                                                                     (1)            (2)             (3)              (4)             (5)              (6)              (7)             (8)            (9)            (10)
    2.2.1. Australian Business
        2.2.1.1. Ordinary Business
            2.2.1.1.1. This Year..........................................................................................................................................................
            2.2.1.1.2. LY / TY.............................................................................................................................................................
            2.2.1.1.3. Last Year..........................................................................................................................................................
        2.2.1.2. Superannuation Business
            2.2.1.2.1. This Year..........................................................................................................................................................
            2.2.1.2.2. LY / TY.............................................................................................................................................................
            2.2.1.2.3. Last Year..........................................................................................................................................................
        2.2.1.3. Total Australian Business
            2.2.1.3.1. This Year.........................................................................................................................................................
            2.2.1.3.2. LY / TY.............................................................................................................................................................
            2.2.1.3.3. Last Year.........................................................................................................................................................


    2.2.2. Overseas - All Business
        2.2.2.1. This Year..................................................................................................................................................................
        2.2.2.2. LY / TY.....................................................................................................................................................................
        2.2.2.3. Last Year..................................................................................................................................................................


    2.2.3. Total Statutory Fund Business
        2.2.3.1. This Year.................................................................................................................................................................
        2.2.3.2. LY / TY.....................................................................................................................................................................
        2.2.3.3. Last Year.................................................................................................................................................................



                                                                                                                                                                                                                                                                                                                                                                LRF 400.0 - 4
                                                                                                                                                                                                                                                                                                                                                            January 2008

2.3. Components of Reinsured Policy Liability and Net Policy Liability


                                                                                                                                                                                                                       Reinsured Best Estimate Liability

                                                                                                                                                                                                                                                  Reinsured
                                                                                                                                                                                                                                   Reinsured     Reduction in                      Reinsured       Reinsured
                                                                                                                                                                                                                                    Value of      Respect of                     Value of Future Value of Future     Reinsured        Reinsured
                                                                                                                                                                                                  Reinsured       Reinsured       (Balance of)   Unrecouped      Total Reinsured Profits: Policy     Profits:       Investment       Management
                                                                                                                                                                                                Value of Future Value of Future      Future      Acquisition      Best Estimate      Owner        Shareholder         Contract      Services Asset   Reinsured            Net Policy
                                                                                                                                                                                                Policy Benefits   Expenses         Premiums       Expenses           Liability      Bonuses      Profit Margins       Liability       or Liability Policy Liability        Liability
                                                                                                                                                                                                      (1)             (2)              (3)           (4)                (5)            (6)              (7)              (8)              (9)           (10)                 (11)
    2.3.1. Australian Business
        2.3.1.1. Ordinary Business
            2.3.1.1.1. This Year..........................................................................................................................................................
            2.3.1.1.2. LY / TY.............................................................................................................................................................
            2.3.1.1.3. Last Year..........................................................................................................................................................
        2.3.1.2. Superannuation Business
            2.3.1.2.1. This Year..........................................................................................................................................................
            2.3.1.2.2. LY / TY.............................................................................................................................................................
            2.3.1.2.3. Last Year..........................................................................................................................................................
        2.3.1.3. Total Australian Business
            2.3.1.3.1. This Year.........................................................................................................................................................
            2.3.1.3.2. LY / TY.............................................................................................................................................................
            2.3.1.3.3. Last Year.........................................................................................................................................................


    2.3.2. Overseas - All Business
        2.3.2.1. This Year..................................................................................................................................................................
        2.3.2.2. LY / TY.....................................................................................................................................................................
        2.3.2.3. Last Year..................................................................................................................................................................


    2.3.3. Total Statutory Fund Business
        2.3.3.1. This Year.................................................................................................................................................................
        2.3.3.2. LY / TY.....................................................................................................................................................................
        2.3.3.3. Last Year.................................................................................................................................................................


2.4. Sundry Items




                                                                                                                                                                                                                               Shareholder                                                                                                                              Percentage of
                                                                                                                                                                                                                              profit margins     Gross policy                                                       Accumulated                      Profit Carrier or profit carrier or
                                                                                                                                                                                                   Cost of                      on cost of        liability in       Cost of                                            loss         Accumulated       Acquisition       Acquisition
                                                                                                                                                                                                previous year Cost of current current period      respect of     declared bonus     Amount of     Amount of        recognition at        loss           Expense           Expense
                                                                                                                                                                                                best estimate   period best   best estimate        inwards        excl terminal, terminal bonus interim bonus       beginning of    recognition at      Recovery          Recovery
                                                                                                                                                                                                   bonus      estimate bonus      bonus          reinsurance         interim          paid           paid              period       end of period        Carrier           Carrier
                                                                                                                                                                                                     (1)            (2)              (3)              (4)               (5)            (6)            (7)                (8)              (9)               (10)              (11)
    2.4.1. Australian Business
        2.4.1.1. Ordinary Business....................................................................................................................................................
        2.4.1.2. Superannuation Business........................................................................................................................................
        2.4.1.3. Total Australian Business.....................................................................................................................................


    2.4.2. Overseas - All Business................................................................................................................................................


    2.4.3. Total Statutory Fund Business.....................................................................................................................................




                                                                                                                                                                                                                                                                                                                                                          LRF 400.0 - 5
                                                                         January 2008



Reporting Form LRF 400.0

Statement of Policy Liabilities

Instruction Guide
Introduction

Form LRF 400.0 Statement of Policy Liabilities (LRF 400.0) provides APRA with the
necessary information on policy liabilities by APRA Product Group to gain a better,
more complete understanding of the development, disposition and quality of the profit
results for a life insurance company across different product lines.

This Instruction Guide is designed to assist reporting entities in the completion of
LRF 400.0. The Instruction Guide provides:

          general directions and notes regarding preparation and lodgement; and

          instructions relating to specific items.

General directions and notes

Reporting levels

LRF 400.0 must be completed by all life insurance companies, including friendly
societies.

The form is to be completed for each statutory fund (approved benefit fund).

LRF 400.0 contains two sections:

     1.    All Statutory Fund Products; and

     2.    Totals by Class of Business and Basis.

Within section 1, reporting items are to be completed for each APRA Product Group
(as defined below).

Within each APRA Product Group, some data will be collected on up to three bases,
indicated as follows:

          ‘This Year’ – current position, based on current year’s valuation basis;

          ‘Last Year’ – current position, based on previous year’s valuation basis;
           and



                                                          LRF 400.0 Instructions - 1
                                                                           January 2008


           ‘LY/TY’ – current position, based on previous year’s valuation basis,
            except substituting current year’s investment and economic assumptions.

Unit of measurement

LRF 400.0 is to be prepared in thousands of Australian dollars (AUD). Amounts
denominated in foreign currency are to be converted to AUD in accordance with
AASB 121 The Effects of Changes in Foreign Exchange Rates.

Definitions

Definitions for data reporting items required by this form have been provided where
appropriate in the instructions under the section headed ‘Instructions for specific
items’ below.

Definitions, unless specified, apply to all life insurance companies, including friendly
societies as if each reference to a statutory fund, or shareholders’ fund, were a
reference to an approved benefit fund, or management fund, respectively. Likewise,
reference to shareholders should be taken to embrace ‘members’ of a mutual
association and/or a society. The term ‘life companies’ or ‘life insurance companies’
includes friendly societies unless stated otherwise. This is in line with the usage of
terms in the Life Insurance Act 1995.

Reporting period

All life insurance companies, including friendly societies, are required to report the
information in the reporting form on an annual basis only.

The annual information is to be completed in respect of the financial year of the life
insurance company, not the calendar year.

The financial information requested in this form is to be reported as at the close of
business for the last day of the reporting period.

Basis of preparation

In completing this form, unless specifically stated otherwise, institutions are to follow
the basis that is used for the preparation of the annual financial statements in
accordance with the Australian accounting standards.

Actuarial valuations and calculations included in, or used in the preparation of, the
form must be in accordance with APRA and other prudential standards.

If additional clarification is required for specific items in this form, reference should
be made to the section ‘Instructions for specific items’ below, which is provided as a
guide.

For the purposes of reporting under this form, contracts are to be classified in
accordance with Prudential Standard LPS 350 Contract Classification for the
Purpose of Regulatory Reporting to APRA.



                                                            LRF 400.0 Instructions - 2
                                                                         January 2008


APRA Product Groups

For consistency of reporting across the range of forms applicable to life insurers,
APRA adopts a single set of product groupings for life insurers. The following tables
list the APRA Product Groups applicable to (1) life companies other than friendly
societies, and (2) friendly societies.

Ref.      Product Group                      Notes                  Category
                  Life companies other than friendly societies
L1     Conventional          Includes Whole of Life policies       Par
       Participating (Par)   and Endowment policies.
L2     Participating         As defined in Section 14 of the       Par
       Investment Account    Life Insurance Act 1995. Exclude
                             non-participating investment
                             account policies (refer L8, below).
L3     Annuity with          Annuities providing periodic          Non-par
       Longevity Risk        payments that are dependent on
                             the continuance of human life.
L4     Individual Lump       Lump sum risk policies issued on      Non-par
       Sum Risk              an individual (retail) basis.
                             Includes non-participating
                             conventional policies.
L5     Individual Disability Disability Income Insurance           Non-par
       Income Insurance      policies issued to individuals.
L6     Group Lump Sum        Lump sum risk policies issued on      Non-par
       Risk                  a group (wholesale) basis.
L7     Group Disability      Disability Income Insurance           Non-par
       Income Insurance      policies issued on a group basis.
L8     Non-par Investment    Include non-participating             Non-par
       Policy                investment account and
                             investment linked policies.
L9     Annuity without       Annuities providing periodic          Non-par
       Longevity Risk        payments that are NOT dependent
                             on the continuance of human life.
L10    Other                 Include all other products not        (Either can
                             specifically categorised above –      be reported)
                             obtain APRA’s agreement to use.
L11    Policy Owners’        Retained profits allocated to         Par
       Retained Profits      participating policy owners
                             generally, but not yet vested as
                             specific amounts to particular
                             policies.
L12    Shareholders’         Shareholders’ capital plus retained   Capital
       Capital & Retained    profits allocated to shareholders.
       Profits

Note that Product Groups L11 and L12 are not applicable to this form.




                                                         LRF 400.0 Instructions - 3
                                                                             January 2008


Rather than requiring a Related Product Group (as defined in APRA and other
prudential standards) of a Life Insurer’s business to be allocated across APRA
Product Groups, APRA will permit it to be contained wholly within one APRA
Product Group.

A separate set of product groupings is adopted for Friendly Societies, as follows:

 Ref.          Product Group                                Notes
                                       Friendly societies
 F1         Education
 F2         Investment Account     As defined in Section 14 of the Life Insurance Act
                                   1995.
 F3         Annuity &
            Superannuation
 F4         Risk                   All products classified as Defined Benefit.


 F5         Prepaid Funeral        Funeral products that are classified as Defined
                                   Contribution.

 F6         Investment Linked      As defined in section 14 of the Life Insurance Act
                                   1995.

 F7         Unallocated Benefit    Value of benefit funds which has not been allocated to
            Fund Reserve           either the benefit fund members or to the management
                                   fund.

 F8         Members’ Capital       Members’ capital plus retained profits allocated to
            and Retained Profits   members.

The classification of participating and non-participating business does not apply to
friendly societies. Note that Product Groups F7 and F8 are not applicable to this form.

Instructions for specific items

While these instructions apply to all life insurance companies, including friendly
societies, not all items may be applicable to both: some items may not be applicable to
friendly societies while others may not be applicable to life insurers.

Section 1 All Statutory Fund Products

This section is to be completed for each class of business, as specified in the drop-
down box list:

               Australia – Superannuation

               Australia – Ordinary

               Overseas – All business


                                                              LRF 400.0 Instructions - 4
                                                                            January 2008


The expressions ‘ordinary business’ and ‘superannuation business’ are defined in the
dictionary of the Life Insurance Act 1995.

1.1. In Force Business and movements in Gross Contractual Regular
     Contributions over the year

Columns 1 to 10 are required to report on ‘This Year’ basis only.

Column 1 Policy Count (actual number, not scaled)

This is the number of policies in the statutory fund at the end of the period.

Column 2 Member Count (actual number, not scaled)

This is the number of members in the statutory fund at the end of the period. A
member with more than one policy is considered as one member.

Column 5 Gross Contractual Regular Contributions

Include any business that is accepted through direct debit, has a specific contractual
requirement for future on-going premiums, has an expectation of renewal each year
(e.g. Yearly Renewable term products) or generally causes a policy to discontinue on
cessation of future payment. It should be gross of all reinsurance.

Column 7 Gross Contractual Regular Contribution increases over the year

Refer to all increases to contractual regular premiums due to new policies sold during
the period, including CPI increases.

Column 8 Gross Contractual Regular Contribution decreases due to claims
and/or maturities

Decreases due to claims refer to the reduction in contractual regular contributions
following a claim arising from the occurrence of an insured event. Note that it is only
included when an insurance claim causes alteration or cessation of the premium, e.g.
premiums paid on disability income policies will sometimes remain unaffected
following a claim, depending on the policy terms and conditions.

Decreases due to maturities refer to the cessation of contractual regular contributions
due to the maturity of a policy, i.e. following the completion of a policy’s term. This
would occur when a member retires and is paid his/her superannuation benefit, a
policy owner reaches a defined age on an Endowment policy or the termination of a
savings plan on or after the contractual period.

Column 9 Gross Contractual Regular Contribution decreases due to voluntary
discontinuance

Include any decrease in contractual regular contributions due to lapses or surrenders
of policies, i.e. the cessation of regular premiums prior to the completion of the
policy’s term.



                                                            LRF 400.0 Instructions - 5
                                                                          January 2008


Column 10 Other movements in Gross Contractual Regular Contributions
over the year

Include the increase/decrease in contractual contributions following transfers of
business from one statutory fund to another or any other movements not recorded in
previous columns.

1.2. Components of Gross Policy Liability

Columns 1 to 10 are required to be reported separately on the three
bases defined above (‘This Year’, ‘Last Year’ & ‘LY / TY’).

In accordance with the prudential standards and the financial statements, Gross Policy
Liability should be gross of all reinsurance and, for participating benefits, should
exclude Bonuses in respect of the current year.

As required by the prudential standards, the gross policy liability and the reinsurance
policy liability are to be separately quantified, with the net policy liability then
derived as the difference.

Policy Liabilities are to be valued in accordance with Prudential Standard LPS 1.04
Valuation of Policy Liabilities (LPS 1.04).

Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for
life investment contracts.

Columns 1 to 5 Gross Best Estimate Liability –

Column 1 Gross Value of Future Policy Benefits

Where business is valued using techniques other than projection techniques, Gross
Value of Future policy Benefits includes the total liability, before deducting the value
of unrecouped acquisition expenses.

For participating benefits, the best estimate liability includes past declared bonuses
only. Current year bonuses are excluded (see LPS 1.04, section 5, Overview).

For non-participating benefits with an entitlement to Discretionary additions, the cost
of the current year Discretionary Additions should be included as part of the best
estimate liability.

Column 2 Gross Value of Future Expenses

Column 3 Gross Value of (Balance of) Future Premiums

Column 4 Gross Reduction in Respect of Unrecouped Acquisition Expenses

Only for business valued using techniques other than a projection technique.




                                                           LRF 400.0 Instructions - 6
                                                                           January 2008


Column 5 Total Gross Best Estimate Liability [derived item]

This column will be calculated automatically by derivations contained within the form
and represents the sum of columns 1 to 4.

Column 6 Gross Value of Future Profits: Policy Owner Bonuses

For participating benefits, the value of future profits includes future bonuses only.
Current year bonuses are excluded.

Column 7 Gross Value of Future Profits: Shareholder Profit Margins

Refer to section 6 of LPS 1.04 for definition and calculation of profit margins.

Column 8 Gross Investment Contract Liability

The net contractual obligation under a life investment contract which arises under the
financial instrument element is referred to as the Life Investment Contract liability,
this is consistent with the terminology adopted under AASB 1038.

The Investment Contract Liability is a component of the policy liability under the
financial instrument element. It is to be determined according to the fair value through
profit and loss provisions of the relevant accounting standards. (Refer to LPS 1.04,
sections 2.1 and 2.2).

Column 9 Gross Management Services Asset or Liability

This is the liability in respect of the Management Services Element, determined as the
difference between the Policy Liability and the Life Investment Contract liability
(Column 8).

Include liabilities for deferred acquisition cost and deferred fee revenues.

Column 10 Gross Policy Liability [derived item]

This column will be calculated automatically by derivations contained within the form
and represents the total amount of gross policy liability.

1.3. Components of Reinsured Policy Liability and Net Policy Liability

Paragraph 12.1 of LPS 1.04 states that the reinsured policy liability consists of a
reinsured best estimate liability and the value of the reinsured profit margins.
Reinsurance must meet the definition of an insurance contract and involve the transfer
of insurance risk.

Columns 1 to 11 are required to report on the three bases defined above.

Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for
life investment contracts.




                                                            LRF 400.0 Instructions - 7
                                                                           January 2008


Columns 1 to 5 Reinsured Best Estimate Liability –

For participating benefits, the best estimate liability includes past declared bonuses
only. Current year bonuses are excluded.

For non-participating benefits with an entitlement to Discretionary additions, the cost
of the current year Discretionary Additions should be included as part of the best
estimate liability.

Column 10 Reinsured Policy Liability [derived item]

This column is derived by the form as the sum of columns 5 to 9, and represents total
amount of reinsurance policy liability.

Column 11 Net Policy Liability

This column represents the net amount of policy liability and the number entered
should equal gross policy liability minus reinsured policy liability.

1.4. Sundry Items

All figures in this section are to be reported on the ‘This Year’ basis.

Columns 1 and 2 capture the cost of previous year and current period best estimate
bonus. Refer to Prudential Standard LPS 7.02 General Standard for definition of best
estimate bonus.

Column 10 Profit Carrier or Acquisition Expense Recovery Carrier

As defined in section 6 of LPS 1.04.

Column 11 Percentage of Profit Carrier or Acquisition Expense Recovery
           Carrier [derived item]

This column will be calculated automatically by the form and equals ‘Shareholder
profit margins on cost of current period best estimate bonus’ (Column 3) divided by
‘Profit Carrier or Acquisition Expense Recovery Carrier’ (Column 10).

Section 2 Totals by Class of Business and Basis

No value is required to be entered in this section. Items in this section are derived
fields that sum up policy liabilities by class of business and basis.




                                                             LRF 400.0 Instructions - 8

				
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