Notes to the annual financial statements
for the year ended 31 December 2008
| Group | Company | ||||
| 2008 | 2007 | 2008 | 2007 | ||
| R'000 | R'000 | R'000 | R'000 | ||
| 12. | Insurance liabilities and reinsurance assets | ||||
| Technical provisions | |||||
| Liabilities arising from insurance contracts | |||||
| Outstanding claims | 978,140 | 839,755 | 895,654 | 786,450 | |
| Claims incurred but not reported | 292,843 | 234,592 | 266,244 | 218,027 | |
| Outstanding claims, including claims incurred but not reported | 1,270,983 | 1,074,347 | 1,161,898 | 1,004,477 | |
| Unearned premiums | 920,104 | 818,723 | 725,601 | 648,572 | |
| Liabilities arising from insurance contracts | 2,191,087 | 1,893,070 | 1,887,499 | 1,653,049 | |
| Technical assets | |||||
| Assets arising from reinsurance contracts | |||||
| Outstanding claims | 297,731 | 267,680 | 293,649 | 259,249 | |
| Claims incurred but not reported | 49,717 | 34,678 | 43,607 | 33,486 | |
| Outstanding claims, including claims incurred but not reported | 347,448 | 302,358 | 337,256 | 292,735 | |
| Unearned premiums | 193,399 | 179,570 | 180,078 | 169,001 | |
| Assets arising from insurance contracts | 540,847 | 481,928 | 517,334 | 461,736 | |
| Net liabilities | |||||
| Outstanding claims | 680,409 | 572,075 | 602,005 | 527,201 | |
| Claims incurred but not reported | 243,126 | 199,914 | 222,637 | 184,541 | |
| Outstanding claims, including claims incurred but not reported | 923,535 | 771,989 | 824,642 | 711,742 | |
| Unearned premiums | 726,705 | 639,153 | 545,523 | 479,571 | |
| 1,650,240 | 1,411,142 | 1,370,165 | 1,191,313 | ||
| All of the above balances are current. |
| The movements for the year are summarised below: | |||||||||
| Group | Company | ||||||||
| Gross | Reinsurance | Net | Gross | Reinsurance | Net | ||||
| R’000 | R’000 | R’000 | R’000 | R’000 | R’000 | ||||
| Outstanding claims, including claims incurred but not
reported Year ended 31 December 2007 |
|||||||||
| Balance at beginning of the year | 1,034,143 | (388,296) | 645,847 | 924,995 | (325,247) | 599,748 | |||
| Change in gross provision for outstanding claims | 54,068 | 62,035 | 116,103 | 79,482 | 32,512 | 111,994 | |||
| Net insurance claims expensed during the year | 2,867,178 | (271,384) | 2,595,794 | 2,730,116 | (293,395) | 2,436,721 | |||
| Less: Claims paid during the year | (2,813,110) | 333,419 | (2,479,691) | (2,650,634) | 325,907 | (2,324,727) | |||
| Less: Exchange rate movement | (9,225) | 4,547 | (4,678) | – | – | – | |||
| Other movements | (4,639) | 19,356 | 14,717 | – | – | – | |||
| Balance at end of the year | 1,074,347 | (302,358) | 771,989 | 1,004,477 | (292,735) | 711,742 | |||
| Year ended 31 December 2008 | |||||||||
| Balance at beginning of the year | 1,074,347 | (302,358) | 771,989 | 1,004,477 | (292,735) | 711,742 | |||
| Change in gross provision for outstanding claims | 191,271 | (42,929) | 148,342 | 171,674 | (45,228) | 126,446 | |||
| Net insurance claims expensed during the year | 3,532,513 | (446,210) | 3,086,303 | 3,434,613 | (442,326) | 2,992,287 | |||
| Less: Claims paid during the year | (3,341,242) | 403,281 | (2,937,961) | (3,262,939) | 397,098 | (2,865,841) | |||
| Less: Exchange rate movement | 1,201 | (246) | 955 | – | – | – | |||
| Other movements | 4,164 | (1,915) | 2,249 | (14,253) | 707 | (13,546) | |||
| Balance at end of the year | 1,270,983 | (347,448) | 923,535 | 1,161,898 | (337,256) | 824,642 | |||
| Unearned premium | |||||||||
| Year ended 31 December 2007 | |||||||||
| Balance at beginning of the year | 876,091 | (217,319) | 658,772 | 647,945 | (186,270) | 461,675 | |||
| Change in provision for unearned premium | (17,100) | 16,794 | (306) | 627 | 17,269 | 17,896 | |||
| Premiums written during the year | 4,400,960 | (827,941) | 3,573,019 | 3,964,136 | (600,219) | 3,363,917 | |||
| Less: Premiums earned during the year | (4,418,060) | 844,735 | (3,573,325) | (3,963,509) | 617,488 | (3,346,021) | |||
| Less: Exchange rate movement | (31,500) | 10,260 | (21,240) | – | – | – | |||
| Other movements | (8,768) | 10,695 | 1,927 | – | – | – | |||
| Balance at end of the year | 818,723 | (179,570) | 639,153 | 648,572 | (169,001) | 479,571 | |||
| Year ended 31 December 2008 | |||||||||
| Balance at beginning of the year | 818,723 | (179,569) | 639,154 | 648,572 | (169,001) | 479,571 | |||
| Change in provision for unearned premium | 89,358 | (16,783) | 72,575 | 78,281 | (11,077) | 67,204 | |||
| Premiums written during the year | 5,316,490 | (1,127,520) | 4,188,970 | 4,834,688 | (794,274) | 4,040,414 | |||
| Less: Premiums earned during the year | (5,227,132) | 1,110,737 | (4,116,395) | (4,756,407) | 783,197 | (3,973,210) | |||
| Less: Exchange rate movement | 2,727 | (401) | 2,326 | – | – | – | |||
| Less: Other movements | 9,296 | 3,354 | 12,650 | (1,252) | – | (1,252) | |||
| Balance at end of the year | 920,104 | (193,399) | 726,705 | 725,601 | (180,078) | 545,523 |
