Liability for incurred claims (LIC)

An obligation to investigate and pay valid claims for insured events that have already occurred. This replaces the outstanding claims liability under AASB 1023

Life planned profit margin release

Includes the unwind of policy liabilities which refers to the profit impact of changes in the value of policy liabilities due to the passing of time

Life risk in-force annual premiums

Total annualised statistical premium for all business in-force at the date (including new business written during the reporting period)

Life risk new business annual premiums

Total annualised statistical premium for policies issued during the reporting period

Life underlying profit after tax

Net profit after tax less market adjustments. Market adjustments represents the impact of movements in discount rates on the value of policy liabilities, investment income experience on invested shareholder assets and annuities mismatches

Liquidity Coverage Ratio (LCR)

An APRA requirement to maintain a sufficient level of qualifying high-quality liquid assets to meet liquidity needs under an APRA-defined significant stress event lasting for 30 calendar days. Absent a situation of financial stress, the LCR must not be less than 100%. The LCR is calculated as the ratio of qualifying high-quality liquid assets relative to net cash outflows in a modelled APRA-defined 30-day stress scenario

Loan-to-value ratio (LVR)

Ratio of a loan to the value of the asset purchased


Classes of insurance business involving coverage for risks where notice of a claim may not be received for many years and claims may be outstanding for more than one year before they are finally quantifiable and settled by the insurer

Loss component

An amount added to the Liability for Remaining Coverage and expensed to profit or loss where a contract or group of contracts is assessed as onerous at initial recognition

Loss ratio

Net claims incurred expressed as a percentage of net earned premium. Net claims incurred consists of claims paid during the period increased (or decreased) by the increase (decrease) in outstanding claims liabilities