This Prudential Standard requires a life company to maintain adequate capital against the risks associated with its activities. The ultimate responsibility for the prudent management of capital of a life company rests with its Board of directors. The Board must ensure that the life company maintains an adequate level and quality of capital commensurate with the scale, nature and complexity of its business and risk profile, such that it is able to meet its obligations under a wide range of circumstances.

This Reporting Standard sets out the requirements for the provision of information to APRA relating to a life insurance company’s prescribed capital amount. It includes associated specific instructions and must be read in conjunction with Reporting Standard LRS 001 Reporting Requirements (LRS 001), including the general instruction guide and Prudential Standard LPS 110 Capital Adequacy (LPS 110).