For the purposes of this Guidance Statement, the following items have the meanings attributed below:

Annual Accounts of an insurance group, refers to accounts constituting reporting documents required to be prepared by the parent entity of the group in compliance with reporting standards made under the Financial Sector (Collection of data) Act 2001.

Appointed Auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act 1973 (the Act).

General insurer means, under section 11 of the Insurance Act 1973 (the Act) as amended, a body corporate that is authorised in writing by APRA, under section 12 of the Act, to carry on general insurance business in Australia. The term ‘general insurer (insurer) includes a foreign general insurer (foreign insurer) as defined in subsection 3(1) of the Act^[2].

Group Auditor of a Level 2 insurance group, under GPS 310 must be one of the following persons:

1. the Appointed Auditor of the parent entity where the parent entity is an insurer;
2. the Appointed Auditor of an APRA authorised insurer within the group; or
3. a responsible auditor of the parent entity where the parent entity is an authorised Non-Operating Holding Company (NOHC)

Level 2 insurance group (insurance group), under Prudential Standard GPS 001 Definitions^[3] is:

1. where there is no authorised NOHC and an insurer has controlled entities, the consolidation of the insurer and its controlled entities; or
2. where there is an authorised NOHC, the consolidation of the authorised NOHC and its controlled entities; or
3. where there is no authorised NOHC and an insurer does not have controlled entities, the consolidation of the insurer and any entity that meets the following criteria:
   • the entity is subject to control by an entity or group of related entities that are the same or very similar to the entity or group of related entities that control the insurer; and
   • the entity conducts insurance business or business related to insurance business; and
   • APRA determines, in writing, that the entity is to be consolidated.

However, APRA may, in writing, determine that a group that meets subparagraph (i) or (ii) is not to be treated as a Level 2 insurance group.

Parent Entity of a Level 2 insurance group, under GPS 310 is:

1. where the Level 2 insurance group is headed by an authorised NOHC, the authorised NOHC; and
2. where the Level 2 insurance group is headed by an insurer, the insurer.

APRA may, in writing, determine that a different entity within a Level 2 insurance group (which must be an insurer, authorised NOHC or a subsidiary of an insurer or authorised NOHC) is the parent entity of that group.

Yearly Statutory Accounts, in relation to a body corporate, means the reporting documents^[4] that the body corporate is required to lodge with APRA in respect of a financial year, under section 13 of the Financial Sector (Collection of Data) Act 2001(FSCODA Act 2001).