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- Financial notes
- 39. Accounting policies
- 39.5. Change in assets and liabilities in respect of insurance activities, with a breakdown of the components: estimates of cash flows, estimates of present value of future cash flows, risk adjustment for non-financial risk and contractual service margin
39.5. Change in assets and liabilities in respect of insurance activities, with a breakdown of the components: estimates of cash flows, estimates of present value of future cash flows, risk adjustment for non-financial risk and contractual service margin
| CHANGE IN LIABILITIES IN RESPECT OF INSURANCE ACTIVITIES (NET OF REINSURANCE) DURING THE 12 MONTHS ENDED 31 DECEMBER 2023 | Estimates of present value of future cash flows | Non-financial risk adjustment | Contract margin | Total |
|---|---|---|---|---|
| Opening balance, net – 1 January 2023 | 1,468 | 73 | 1,337 | 2,878 |
| Changes that relate to current service | 64 | (36) | (875) | (847) |
| change in contractual service margin | – | – | (762) | (762) |
| change in risk adjustment for non-financial risk | – | (42) | – | (42) |
| experience adjustments1 | 64 | 6 | (113) | (43) |
| Changes that relate to future service | (657) | 49 | 625 | 17 |
| changes in estimates that adjust the contractual service margin | 36 | (3) | (32) | 1 |
| losses on onerous groups of contracts and reversals of such losses | 3 | – | – | 3 |
| the effects of contracts initially recognised in the period | (696) | 52 | 657 | 13 |
| Changes that relate to past service, i.e. changes in fulfilment cash flows relating to incurred claims | (17) | (5) | – | (22) |
| Investment components excluded from insurance revenue and insurance service expenses | 120 | – | 67 | 187 |
| Net income from insurance business (Income statement) | (490) | 8 | (183) | (665) |
| Insurance finance income or expenses recognised in other comprehensive income (gross) | 33 | – | – | 33 |
| Changes in the period recognised in the income statement and in other comprehensive income | (457) | 8 | (183) | (632) |
| Cash flows | 669 | – | – | 669 |
| Closing balance, net – 31 December 2023 | 1,680 | 81 | 1,154 | 2,915 |
1 this item reflects the difference between expected and realised premium cash flows for contract cohorts for which the difference is not recognised in the contractual service margin
| CHANGE IN ASSETS IN RESPECT OF INSURANCE ACTIVITIES (REINSURANCE) DURING THE 12 MONTHS ENDED 31 DECEMBER 2023 | Estimates of present value of future cash flows | Non-financial risk adjustment | Contract margin | Total |
|---|---|---|---|---|
| Opening balance, net – 1 January 2023 | 62 | 10 | 43 | 115 |
| Changes that relate to current service | (2) | (3) | (38) | (43) |
| change in contractual service margin | – | – | (43) | (43) |
| change in risk adjustment for non-financial risk | – | (6) | – | (6) |
| experience adjustments1 | (2) | 3 | 5 | 6 |
| Changes that relate to future service | (29) | 5 | 24 | – |
| changes in estimates that adjust the contractual service margin | (10) | – | 10 | – |
| the effects of contracts initially recognised in the period | (19) | 5 | 14 | – |
| Changes that relate to past service, i.e. changes in fulfilment cash flows relating to incurred claims | (6) | (1) | – | (7) |
| Investment components excluded from insurance revenue and insurance service expenses | 1 | – | 2 | 3 |
| Net income from insurance business (Income statement) | (36) | 1 | (12) | (47) |
| Insurance finance income or expenses recognised in other comprehensive income (gross) | 2 | – | – | 2 |
| Changes in the period recognised in the income statement and in other comprehensive income | (34) | 1 | (12) | (45) |
| Cash flows | 20 | – | – | 20 |
| Closing balance, net – 31 December 2023 | 48 | 11 | 31 | 90 |
1 this item reflects the difference between expected and realised premium cash flows for contract cohorts for which the difference is not recognised in the contractual service margin
| CHANGE IN LIABILITIES IN RESPECT OF INSURANCE ACTIVITIES (NET OF REINSURANCE) DURING THE 12 MONTHS ENDED 31 DECEMBER 2022 | Estimates of present value of future cash flows | Non-financial risk adjustment | Contract margin | Total |
|---|---|---|---|---|
| Opening balance, net – 1 January 2022 | 1,806 | 82 | 1,429 | 3,317 |
| Changes that relate to current service | 11 | (39) | (833) | (861) |
| change in contractual service margin | – | – | (790) | (790) |
| change in risk adjustment for non-financial risk | – | (44) | – | (44) |
| experience adjustments1 | 11 | 5 | (43) | (27) |
| Changes that relate to future service | (719) | 34 | 708 | 23 |
| changes in estimates that adjust the contractual service margin | (74) | (6) | 80 | – |
| losses on onerous groups of contracts and reversals of such losses | 14 | – | – | 14 |
| the effects of contracts initially recognised in the period | (659) | 40 | 628 | 9 |
| Changes that relate to past service, i.e. changes in fulfilment cash flows relating to incurred claims | (5) | (4) | – | (9) |
| Investment components excluded from insurance revenue and insurance service expenses | (80) | – | 33 | (47) |
| Net income from insurance business (Income statement) | (793) | (9) | (92) | (894) |
| Insurance finance income or expenses recognised in other comprehensive income (gross) | (9) | – | – | (9) |
| Changes in the period recognised in the income statement and in other comprehensive income | (802) | (9) | (92) | (903) |
| Cash flows | 464 | – | – | 464 |
| Closing balance, net – 31 December 2022 | 1,468 | 73 | 1,337 | 2,878 |
1 this item reflects the difference between expected and realised premium cash flows for contract cohorts for which the difference is not recognised in the contractual service margin
| CHANGE IN ASSETS IN RESPECT OF INSURANCE ACTIVITIES (REINSURANCE) DURING THE 12 MONTHS ENDED 31 DECEMBER 2022 | Estimates of present value of future cash flows | Non-financial risk adjustment | Contract margin | Total |
|---|---|---|---|---|
| Opening balance, net – 1 January 2022 | 64 | 14 | 50 | 128 |
| Changes that relate to current service | 12 | (3) | (39) | (30) |
| change in contractual service margin | – | – | (42) | (42) |
| change in risk adjustment for non-financial risk | – | (5) | – | (5) |
| experience adjustments1 | 12 | 2 | 3 | 17 |
| Changes that relate to future service | (30) | – | 30 | – |
| changes in estimates that do not adjust the contractual service margin | (17) | (3) | 20 | – |
| the effects of contracts initially recognised in the period | (13) | 3 | 10 | – |
| Changes that relate to past service, i.e. changes in fulfilment cash flows relating to incurred claims | (1) | (1) | – | (2) |
| Investment components excluded from insurance revenue and insurance service expenses | 1 | – | 2 | 3 |
| Net income from insurance business (Income statement) | (18) | (4) | (7) | (29) |
| Changes in the period recognised in the income statement and in other comprehensive income | (18) | (4) | (7) | (29) |
| Cash flows | 16 | – | – | 16 |
| Closing balance, net – 31 December 2022 | 62 | 10 | 43 | 115 |
1 this item reflects the difference between expected and realised premium cash flows for contract cohorts for which the difference is not recognised in the contractual service margin