NOTES TO FINANCIAL STATEMENT
Insurance and reinsurance contracts
The breakdown of groups of insurance and reinsurance contracts issued, and reinsurance contracts held, that are in asset position and those in a liability position is set out in the table below:
At 31 December 2023 |
(Restated) At 31 December2022 |
|||||
| Assets | Liabilities | Net | Assets | Liabilities | Net | |
| AED | AED | AED | AED | AED | AED | |
| Insurance contracts issued | (462,340) | 178,638,105 | 178,175,765 | (1,952,985) | 208,064,050 | 206,111,065 |
|
Reinsurance contracts held |
111,451,345 | – | 111,451,345 | 116,878,610 | – | 116,878,610 |
The roll-forward of net asset or liability for insurance contracts issued showing the liability for remaining coverage and the liability for incurred claims, is disclosed in the table:
| Liabilities for remaining coverage | Liabilities for incurred claims
|
||||||
| Excluding loss component
|
Loss component | Estimates of the present value of future cash flows | Risk adjustment | Total | |||
| AED | AED | AED | AED | AED | |||
| Insurance contract assets as at 1 January | (18,423,308) | 582,921 | 15,689,164 | 198,238 | (1,952,985) | ||
| Insurance contract liabilities as at 1 January | 25,459,297 | 22,810,967 | 156,469,044 | 3,324,742 | 208,064,050 | ||
| Net Insurance contract liabilities as at 1 January | 7,035,989 | 23,393,888 | 172,158,208 | 3,522,980 | 206,111,065 | ||
| Insurance revenue | (242,946,852) | – | – | – | (242,946,852) | ||
| Insurance service expenses | 39,706,181 | (18,500,513) | 248,731,711 | 204,026 | 270,141,405 | ||
| Incurred claims and other expenses (Note 23) | – | – | 428,031,556 | 1,233,089 | 429,264,645 | ||
| Changes to liabilities for incurred claims | – | – | (179,299,845) | (1,029,063) | (180,328,908) | ||
| Amortisation of insurance acquisition cash flows | 39,706,181 | – | – | – | 39,706,181 | ||
| Future service: Losses on onerous contracts and reversals of those losses | – | (18,500,513) | – | – | (18,500,513) | ||
| Insurance service result gain /(loss) | (203,240,671) | (18,500,513) | 248,731,711 | 204,026 | 27,194,553 | ||
| Insurance finance expenses through profit and loss | – | – | 7,141,637 | – | 7,141,637 | ||
| Total changes in statement of comprehensive income | (203,240,671) | (18,500,513) | 255,873,348 | 204,026 | 34,336,190 | ||
| Cash flows | |||||||
| Premiums received | 239,213,163 | – | – | – | 239,213,163 | ||
| Claims paid | – | – | (290,543,009) | – | (290,543,009) | ||
| Directly attributable expense paid | – | – | – | – | – | ||
| Insurance acquisition cash flows | (10,941,644) | – | – | – | (10,941,644) | ||
| Total cash flows | 228,271,519 | – | (290,543,009) | – | (62,271,490) | ||
| Insurance contract assets as at 31 December | (863,546) | – | 386,929 | 14,277 | (462,340) | ||
| Insurance contract liabilities as at 31 December | 32,930,382 | 4,893,375 | 137,101,618 | 3,712,730 | 178,638,105 | ||
| Net insurance contract liabilities as at 31 December | 32,066,836 | 4,893,375 | 137,488,547 | 3,727,007 | 178,175,765 | ||
| 2022 Restated | ||||||||
| Liabilities for remaining coverage | Liabilities for incurred claims
|
|||||||
| Excluding loss component
|
Loss component | Estimates of the present value of future cash flows | Risk adjustment | Total
|
||||
| AED | AED | AED | AED | AED | ||||
| Insurance contract assets as at 1 January | – | – | – | – | – | |||
| Insurance contract liabilities as at 1 January | 19,522,717 | 253,781 | 125,015,485 | 3,290,353 | 148,082,336 | |||
| Net Insurance contract liabilities as at 1 January | 19,522,717 | 253,781 | 125,015,485 | 3,290,353 | 148,082,336 | |||
| Insurance revenue | (249,971,841) | – | – | – | (249,971,841) | |||
| Insurance service expenses | 37,542,303 | 23,140,108 | 252,660,289 | 232,627 | 313,575,327 | |||
| Incurred claims and other expenses | – | – | 336,528,049 | 3,522,980 | 340,051,029 | |||
| Changes to liabilities for incurred claims | – | – | (83,867,760) | (3,290,353) | (87,158,113) | |||
| Amortisation of insurance acquisition cash flows | 37,542,303 | – | – | – | 37,542,303 | |||
| Future service: Losses on onerous contracts and reversals of those losses | – | 23,140,108 | – | – | 23,140,108 | |||
| Insurance service result (gain) / loss | (212,429,538) | 23,140,108 | 252,660,289 | 232,627 | 63,603,486 | |||
| Insurance finance expenses through profit and loss | – | – | 1,137,384 | – | 1,137,384 | |||
| Total changes in statement of comprehensive income | (212,429,538) | 23,140,108 | 253,797,673 | 232,627 | 64,740,870 | |||
| Cash flows | ||||||||
| Premiums received | 251,456,170 | – | – | – | 251,456,170 | |||
| Claims paid | – | – | (206,654,950) | – | (206,654,950) | |||
| Directly attributable expense paid | – | – | – | – | – | |||
| Insurance acquisition cash flows | (51,513,360) | – | – | – | (51,513,360) | |||
| Total cash flows | 199,942,810 | – | (206,654,950) | – | (6,712,140) | |||
| Insurance contract assets as at 31 December | (18,423,308) | 582,921 | 15,689,164 | 198,238 | (1,952,985) | |||
| Insurance contract liabilities as at 31 December | 25,459,297 | 22,810,967 | 156,469,044 | 3,324,742 | 208,064,050 | |||
| Net insurance contract liabilities as at 31 December | 7,035,989 | 23,393,888 | 172,158,208 | 3,522,980 | 206,111,065 | |||
| 2023 | ||||||
| Assets for remaining coverage | Assets for incurred claims
|
|||||
| Excluding loss component
|
Loss component | Estimates of the present value of future cash flows | Risk adjustment | Total | ||
| AED | AED | AED | AED | AED | ||
| Reinsurance contract assets as at 1 January | 27,195,140 | 9,637,875 | 77,974,243 | 2,071,352 | 116,878,610 | |
| Reinsurance contract liabilities as at 1 January | – | – | – | – | – | |
| Net Reinsurance contract assets as at 1 January | 27,195,140 | 9,637,875 | 77,974,243 | 2,071,352 | 116,878,610 | |
| Allocation of reinsurance premium | (121,940,988) | (9,637,875) | – | – | (131,578,863) | |
| Net income or (expense) from reinsurance contracts held | 12,621,044 | – | 104,274,386 | (449,318) | 116,446,112 | |
| Incurred claims and other expenses | – | – | 185,338,276 | 128,040 | 185,466,316 | |
| Changes that relate to past service – adjustments to LIC | – | – | (81,063,890) | (577,358) | (81,641,248) | |
| Amortisation of reinsurance acquisition cash flows | 12,621,044 | – | – | – | 12,621,044 | |
| Future service: Loss recovery on underlying contracts | – | – | – | – | – | |
| Reinsurance service result loss /(gain) | (109,319,944) | (9,637,875) | 104,274,386 | (449,318) | (15,132,751) | |
| Reinsurance finance income through profit and loss | – | – | 3,089,647 | – | 3,089,647 | |
| Total changes in statement of comprehensive income | (109,319,944) | (9,637,875) | 107,364,033 | (449,318) | (12,043,104) | |
| Cash flows | ||||||
| Reinsurer premiums paid | 138,548,676 | – | – | – | 138,548,676 | |
| Claim recoveries from reinsurance | – | – | (118,591,864) | – | (118,591,864) | |
| Directly attributable expense paid | – | – | – | – | – | |
| Acquisition cash flows recovered from reinsurance | (13,340,972) | – | – | – | (13,340,972) | |
| Total cash flows | 125,207,704 | – | (118,591,864) | – | 6,615,840 | |
| Reinsurance contract assets as at 31 December | 43,082,898 | – | 66,746,412 | 1,622,035 | 111,451,345 | |
| Reinsurance contract liabilities as at 31 December | – | – | – | – | – | |
| Net reinsurance contract assets as at 31 December | 43,082,898 | – | 66,746,412 | 1,622,035 | 111,451,345 | |
| 2022
Restated |
||||||
| Assets for remaining coverage | Assets for incurred claims | |||||
| Excluding loss component
|
Loss component
|
Estimates of the present value of future cash flows | Risk adjustment
|
Total | ||
| AED | AED | AED | AED | AED | ||
| Reinsurance contract assets as at 1 January | (4,171,902) | – | 70,552,890 | 1,905,057 | 68,286,045 | |
| Reinsurance contract liabilities as at 1 January | – | – | – | – | – | |
| Net Reinsurance contract assets as at 1 January | (4,171,902) | – | 70,552,890 | 1,905,057 | 68,286,045 | |
| Allocation of reinsurer premium | (129,193,984) | – | – | – | (129,193,984) | |
| Net income or (expense) from reinsurance contracts held | 33,345,258 | 9,637,875 | 118,256,822 | 166,295 | 161,406,250 | |
| Incurred claims and other expenses | – | – | 189,325,496 | 2,071,352 | 191,396,848 | |
| Changes that relate to past service – adjustments to LIC | – | – | (71,068,674) | (1,905,057) | (72,973,731) | |
| Amortisation of reinsurance acquisition cash flows | 33,345,258 | – | – | – | 33,345,258 | |
| Future service: Loss recovery on underlying contracts | – | 9,637,875 | – | – | 9,637,875 | |
| Reinsurance service result (loss) / gain | (95,848,726) | 9,637,875 | 118,256,822 | 166,295 | 32,212,266 | |
| Reinsurance finance income through profit and loss | – | – | 515,785 | – | 515,785 | |
| Total changes in statement of comprehensive income | (95,848,726) | 9,637,875 | 118,772,607 | 166,295 | 32,728,051 | |
| Cash flows | ||||||
| Reinsurer premiums paid | 157,874,000 | – | – | – | 157,874,000 | |
| Claim recoveries from reinsurance | – | – | (111,351,254) | – | (111,351,254) | |
| Directly attributable expense paid | – | – | – | – | – | |
| Acquisition cash flows recovered from reinsurance | (30,658,232) | – | – | – | (30,658,232) | |
| Total cash flows | 127,215,768 | – | (111,351,254) | – | (15,864,514) | |
| Reinsurance contract assets as at 31 December | 27,195,140 | 9,637,875 | 77,974,243 | 2,071,352 | 116,878,610 | |
| Reinsurance contract liabilities as at 31 December | – | – | – | – | – | |
| Net reinsurance contract assets as at 31 December | 27,195,140 | 9,637,875 | 77,974,243 | 2,071,352 | 116,878,610 | |
