PET - Plain English Taxonomy

Name: InvestmentRiskCapitalFactorUnderlyingAssetsDimension
Label: Investment Risk Capital Factor Underlying Assets
TREF ID: DM417
Type: Predefined
Description:
This dimension is used to categorise the reported information based on investment risk capital factors applicable to the underlying assets, as determined in accordance with prudential standards.
Usage:

Dimension Members
Name Label TREF ID Description
EightPct Items with Investment Capital Factor of 8% DV5384
The reported information relates to assets underlying the reported information that have an investment capital factor of 8% as determined in accordance relevant prudential standards.These items are any other debt obligation with a counterparty rating of Grade 5 (excluding unlisted subordinated debt); Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 5; Unpaid premiums due more than 6 months previously; or Cash management trusts with a counterparty rating of Grade 5 Listed subordinated debt.
FortyPct Items with Investment Capital Factor of 40% DV5374
The reported information relates to assets underlying the reported information that have an investment capital factor of 40% as determined in accordance relevant prudential standards.These items are reinsurance recoverables arising from contracts incepting on or after 31 December 2008 with non-APRA-authorised reinsurers that have an APRA counterparty rating grade of 2, which remain recoverable on and from the second annual balance date after the event giving rise to the recoverable. For a claims made policy this refers to reinsurance recoverables on and from the second annual balance date after a claim notification was made. This excludes those where the recoverable has become due and payable; and is overdue for more than six months since a request for payment has been made; and there is no formal dispute between the reporting party and the insurer in relation to that receivable.APRA counterparty rating grade of 2 is as defined in the relevant prudential standard.
FourPct Items with Investment Capital Factor of 4% DV5382
The reported information relates to assets underlying the reported information that have an investment capital factor of 4% as determined in accordance relevant prudential standards.These items are any other debt obligation with a counterparty rating of Grade 3 (excluding subordinated debt); Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 3; or Cash management trusts with a counterparty rating of Grade 3.
HalfPct Items with Investment Capital Factor of 0.5% DV5378
The reported information relates to assets underlying the reported information  that have an investment capital factor of 0.5% as determined in accordance relevant prudential standards.These items are:    - debt obligations of the Commonwealth Government, an Australian State or Territory government, or the national government of a foreign country where the security has a Grade 1 counterparty rating or, if not rated, the long-term, foreign currency counterparty rating of that country is Grade 1;     - Assets in respect of anticipated recoveries from the Commonwealth Government or from an Australian State or Territory government.
NinePct Items with Investment Capital Factor of 9% DV5385
The reported information relates to assets underlying the reported information that have an investment capital factor of 9% as determined in accordance relevant prudential standards.These items are reinsurance assets due from non-APRA-authorised reinsurers with a counterparty rating of Grade 4 except for reinsurance recoverables as specified in relevant prudential standard.
NotZero100 Not 0% or 100% DV5181
The reported information relates to assets underlying the reported information that do not have investment capital factors of 0% or 100% as determined in accordance relevant prudential standards.Items with a capital factor of 0% are amounts required to be deducted from the reporting party's capital base under the relevant Prudential Standards and amounts recorded on the balance sheet in relation to derivatives and direct credit substitutes.A derivative is a financial instrument that is derived from some other asset, index, value or other variable (known as the underlying). Derivatives allow risk about the price of the underlying asset to be transferred from one party to another.Derivative contracts involve:- Future delivery, receipt or exchange of financial items such as cash or another derivative instrument; or- Future exchange of real assets for financial items where the contract may be tradeable and has a market value.The contracts can either be binding on both parties (e.g. as with a currency swap) or subject to the exercise by one party of a right contained within the contract (as with options).A direct credit substitute is any irrevocable off-balance sheet obligation that carries the same credit risk as a direct extension of credit, such as an undertaking to make a payment to a third party in the event that a counterparty fails to meet a financial obligation, or an undertaking to a counterparty to acquire a potential claim on another party in the event of default by that party, constitutes a direct credit substitute (i.e. the risk of loss depends on the creditworthiness of the counterparty or the party on that a potential claim is acquired).Items with a capital factor of 100% are reinsurance recoverables from non-APRA-authorised reinsurers with an APRA counterparty rating grade of 4, 5 or unrated, which remain recoverable on and from the second annual balance date after the event giving rise to the recoverable.APRA counterparty rating grades of 4 and  5 is as defined in the relevant prudential standard.These items are reinsurance recoverables arising from contracts incepting on or after 31 December 2008 with non-APRA-authorised reinsurers that have an APRA counterparty rating grade of 4, 5 or unrated, which remain recoverable on and from the second annual balance date after the event giving rise to the recoverable. For a claims made policy this refers to reinsurance recoverables on and from the second annual balance date after a claim notification was made. This includes those where the counterparty rating grade is 1, 2 or 3; and the recoverable has become due and payable; and is overdue for more than six months since a request for payment has been made; and there is no formal dispute between the reporting party and the insurer in relation to that receivable.
OneHundredPct One Hundred Pct DV5376
The reported information relates to assets underlying the reported information that have an investment capital factor of 100% as determined in accordance relevant prudential standards.These items are reinsurance recoverables from non-APRA-authorised reinsurers with an APRA counterparty rating grade of 4, 5 or unrated, which remain recoverable on and from the second annual balance date after the event giving rise to the recoverable.APRA counterparty rating grades of 4 and  5 is as defined in the relevant prudential standard.These items are reinsurance recoverables arising from contracts incepting on or after 31 December 2008 with non-APRA-authorised reinsurers that have an APRA counterparty rating grade of 4, 5 or unrated, which remain recoverable on and from the second annual balance date after the event giving rise to the recoverable. For a claims made policy this refers to reinsurance recoverables on and from the second annual balance date after a claim notification was made. This includes those where the counterparty rating grade is 1, 2 or 3; and the recoverable has become due and payable; and is overdue for more than six months since a request for payment has been made; and there is no formal dispute between the reporting party and the insurer in relation to that receivable.
OnePct Items with Investment Capital Factor of 1% DV5379
The reported information relates to assets underlying the reported information that have an investment capital factor of 1% as determined in accordance relevant prudential standards.These items are any debt obligation that matures or is redeemable in less than one year with a counterparty rating of Grade 1 or 2 (excluding subordinated debt4 and debt obligations of government dealt with specifically in this Table); or Cash management trusts with a counterparty rating of Grade 1 or 2.
SixPct Items with Investment Capital Factor of 6% DV5383
The reported information relates to assets underlying the reported information that have an investment capital factor of 6% as determined in accordance relevant prudential standards.These items are any other debt obligation with a counterparty rating of Grade 4 (excluding subordinated debt); Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 4; Reinsurance assets due from non-APRA-authorised reinsurers with a counterparty rating of Grade 3 except for reinsurance recoverables as specified in relevant prudential standard; or Cash management trusts with a counterparty rating of Grade 4.
SixteenPct Items with Investment Capital Factor of 16% DV5388
The reported information relates to assets underlying the reported information that have an investment capital factor of 16% as determined in accordance relevant prudential standards.These items are listed equity instruments; or listed trusts except where otherwise provided for with a specific investment capital factor in the relevant prudential standard.
SixtyPct Sixty Pct DV5375
The reported information relates to assets underlying the reported information that have an investment capital factor of 60% as determined in accordance relevant prudential standards.These items are reinsurance recoverables arising from contracts incepting on or after 31 December 2008 with non-APRA-authorised reinsurers that have an APRA counterparty rating grade of 3, which remain recoverable on and from the second annual balance date after the event giving rise to the recoverable. For a claims made policy this refers to reinsurance recoverables on and from the second annual balance date after a claim notification was made. This excludes those where the recoverable has become due and payable; and is overdue for more than six months since a request for payment has been made; and there is no formal dispute between the reporting party and the insurer in relation to that receivable.APRA counterparty rating grade of 3 is as defined in the relevant prudential standard.
TenPct Items with Investment Capital Factor of 10% DV5386
The reported information relates to assets underlying the reported information that have an investment capital factor of 10% as determined in accordance relevant prudential standards.These items are unlisted subordinated debt.
ThreePct Items with Investment Capital Factor of 3% DV5381
The reported information relates to assets underlying the reported information that have an investment capital factor of 3% as determined in accordance relevant prudential standards.These items are Reinsurance assets due from non-APRA-authorised reinsurers with a counterparty rating of Grade 1 or 2 except for reinsurance recoverables as specified in relevant prudential standard.
TwelvePct Items with Investment Capital Factor of 12% DV5387
The reported information relates to assets underlying the reported information that have an investment capital factor of 12% as determined in accordance relevant prudential standards.These items are reinsurance assets due from non-APRA-authorised reinsurers with a counterparty rating of Grade 5 except for reinsurance recoverables as specified in relevant prudential standard.
TwentyPct Items with Investment Capital Factor of 20% DV5373
The reported information relates to assets underlying the reported information that have an investment capital factor of 20% as determined in accordance relevant prudential standards.These items are direct holdings of real estate; unlisted equity instruments; unlisted trusts except where otherwise provided for in this table; or other assets not assigned an Investment Capital Factor in the relevant prudential standard (other than hybrid instruments with both equity and debt features). Also includes reinsurance recoverables arising from contracts incepting on or after 31 December 2008 with non-APRA-authorised reinsurers that have an APRA counterparty rating grade of 1, which remain recoverable on and from the second annual balance date after the event giving rise to the recoverable. For a claims made policy this refers to reinsurance recoverables on and from the second annual balance date after a claim notification was made. This excludes those where the recoverable has become due and payable; and is overdue for more than six months since a request for payment has been made; and there is no formal dispute between the reporting party and the insurer in relation to that receivable.APRA counterparty rating grade of 1 is as defined in the relevant prudential standard.
TwoPct Items with Investment Capital Factor of 2% DV5380
The reported information relates to assets underlying the reported information that have an investment capital factor of 2% as determined in accordance relevant prudential standards.These items are any other debt obligation (that matures or is redeemable in one year or more) with a counterparty rating of Grade 1 or 2 (excluding subordinated debt and debt obligations of government dealt with specifically in this Table); or Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 1 or 2.
ZeroPct Items with Investment Capital Factor of 0% DV5377
The reported information relates to assets underlying the reported information that have an investment capital factor of 0% as determined in accordance relevant prudential standards.These items are amounts required to be deducted from the reporting party's capital base under the relevant Prudential Standards and amounts recorded on the balance sheet in relation to derivatives and direct credit substitutes.A derivative is a financial instrument that is derived from some other asset, index, value or other variable (known as the underlying). Derivatives allow risk about the price of the underlying asset to be transferred from one party to another.Derivative contracts involve:- Future delivery, receipt or exchange of financial items such as cash or another derivative instrument; or- Future exchange of real assets for financial items where the contract may be tradeable and has a market value.The contracts can either be binding on both parties (e.g. as with a currency swap) or subject to the exercise by one party of a right contained within the contract (as with options).A direct credit substitute is any irrevocable off-balance sheet obligation that carries the same credit risk as a direct extension of credit, such as an undertaking to make a payment to a third party in the event that a counterparty fails to meet a financial obligation, or an undertaking to a counterparty to acquire a potential claim on another party in the event of default by that party, constitutes a direct credit substitute (i.e. the risk of loss depends on the creditworthiness of the counterparty or the party on that a potential claim is acquired).