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For the year ended 30 June 2012 

## (h) Solvency requirements 

Solvency reserves are required to meet the prudential standards determined in accordance with Prudential Standard LPS 2.04 “Solvency Standard” issued by the Australian Prudential Regulatory Authority under Section 65 of the Life Insurance Act 1995. Solvency reserves provide additional protection to policy holders against the impact of fluctuations and unexpected adverse circumstances on the Company. 

The figures in the table below represent the number of times coverage of the aggregate of all benefit funds and statutory funds in the Life Group over the solvency reserve. 

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For detailed solvency information on a statutory fund basis, users of this annual report should refer to the financial statements prepared by the life insurer. 

(1) The Minimum Termination Value is determined in accordance with the Solvency Standard and is the base figure upon which reserves against liability and asset risks are layered in determining the Solvency Requirement. The Minimum Termination Value represents the minimum obligation of the company to policy owners at the reporting date. 

