IFRS condensed financial statements
A10 - Reinsurance assets
The reinsurance assets at 30 June/31 December comprised:
(a) Carrying amounts
|
30 June 2009 £m |
30 June 2008 £m |
31 December 2008 £m |
|
|---|---|---|---|
| Long-term business | |||
| Insurance contracts | 3,804 | 4,622 | 4,466 |
| Participating investment contracts | 45 | 23 | 52 |
| Non-participating investment contracts | 954 | 1,400 | 1,047 |
| Outstanding claims provisions | 134 | 117 | 145 |
| Less: Amounts classified as held for sale | (11) | (4) | - |
| 4,926 | 6,158 | 5,710 | |
| General insurance and health | |||
| Outstanding claims provisions | 1,572 | 1,553 | 1,737 |
| Provisions for claims incurred but not reported | 108 | - | 29 |
| 1,680 | 1,553 | 1,766 | |
| Provision for unearned premiums | 393 | 556 | 418 |
| Other technical provisions | 6 | 19 | - |
| Less: Amounts classified as held for sale | - | (13) | - |
| 2,079 | 2,115 | 2,184 | |
| Total | 7,005 | 8,273 | 7,894 |
(b) Movements in respect of long-term business provisions
|
6 months 2009 £m |
6 months 2008 £m |
Full year 2008 £m |
|
|---|---|---|---|
| Carrying amount at 1 January | 5,565 | 5,781 | 5,781 |
| Asset in respect of new business | 107 | 143 | 235 |
| Expected change in existing business asset | (58) | 52 | 243 |
| Variance between actual and expected experience | (37) | (140) | (1,141) |
| Impact of other operating assumption changes | 8 | (38) | (761) |
| Impact of economic assumption changes | (274) | (131) | 306 |
| Other movements | (52) | 28 | (231) |
| Change in asset | (306) | (86) | (1,349) |
| Effect of portfolio transfers, acquisitions and disposals | - | 123 | 140 |
| Foreign exchange rate movements | (456) | 227 | 993 |
| Carrying amount at 30 June/31 December | 4,803 | 6,045 | 5,565 |
(c) Movements in respect of general insurance and health outstanding claims provisions and IBNR
|
6 months 2009 £m |
Restated 6 months 2008 £m |
Full year 2008 £m |
|
|---|---|---|---|
| Carrying amount at 1 January - reported | 1,766 | 1,718 | 1,663 |
| Prior year adjustment - impact of discounting on latent claims | - | (55) | - |
| Carrying amount at 1 January - restated | 1,766 | 1,663 | 1,663 |
| Impact of changes in assumptions | (15) | (3) | 21 |
| Exceptional strengthening of latent claims provisions | - | - | 52 |
| Reinsurers' share of claim losses and expenses | |||
| Incurred in current year | 120 | 78 | 228 |
| Incurred in prior years | (22) | (102) | 12 |
| Reinsurers' share of incurred claim losses and expenses | 98 | (24) | 240 |
| Less: | |||
| Reinsurance recoveries received on claims | |||
| Incurred in current year | (23) | (31) | (107) |
| Incurred in prior years | (109) | (87) | (257) |
| Reinsurance recoveries received in the year | (132) | (118) | (364) |
| Unwind of discounting | 11 | 12 | 24 |
| Change in reinsurance asset recognised as income | (38) | (133) | (27) |
| Effect of portfolio transfers, acquisitions and disposals | - | 8 | 27 |
| Foreign exchange rate movements | (48) | 15 | 105 |
| Other movements | - | - | (2) |
| Carrying amount at 30 June/31 December | 1,680 | 1,553 | 1,766 |
(d) Reinsurers' share of the provision for unearned premiums (UPR)
|
6 months 2009 £m |
6 months 2008 £m |
Full year 2008 £m |
|
|---|---|---|---|
| Carrying amount at 1 January | 418 | 511 | 511 |
| Premiums ceded to reinsurers in the year | 373 | 393 | 797 |
| Less: Reinsurers' share of premiums earned during the year | (386) | (405) | (908) |
| Changes in reinsurance asset recognised as income | (13) | (12) | (111) |
| Reinsurers' share of portfolio transfers and acquisitions | - | 54 | 8 |
| Foreign exchange rate movements | (12) | 3 | 10 |
| Carrying amount at 30 June/31 December | 393 | 556 | 418 |
