Life insurance businesses

Life insurance businesses include Insurance (Australia)'s life insurance business, the wealth business within Banking & Wealth and New Zealand's life insurance business. This term is used when describing Suncorp's capital position, statement of financial position and embedded value which are structured around the Group's legal entity structure rather than business functions structure

Life insurance policyholders' interests

Amounts due to an entity or person who owns a life insurance policy. This need not be the insured. This is distinct from shareholders’ interests

Life planned profit margin release

It 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

Long-tail

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 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