Notes to the financial statements (cont’d) For the year ended 30 June 2012 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. (h) Solvency requirements 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. page 120 2012 2011 $’000 $’000 Solvency requirement A 792,037  851,622  Represented by: Minimum Termination Value  (1) 783,096  837,19 4  Other Liabilities 6,754  12,338  Solvency Reserve  B 2,187  2,090  792,037  851,622  Assets Available for Solvency C 9,272  9,023  Comprised of: Excess of Net Policy Liability over Minimum Termination Value 2,118  1,870  Net Assets 7,153  7,153  9,272  9,023  Solvency Reserve % ( B / ( A - B )) x 100 0.28% 0.25% Coverage of Solvency Reserve C/ B 4.24  4.32 