Annual Report 2022
6.5.15
Insurance liabilities

See accounting policies J, K, P and W.

6.5.15.1 Liabilities arising from insurance contracts

Insurance contracts with retained exposure
GrossOf which reinsurance
31 December 202231 December 202131 December 202231 December 2021
Provision for unearned premiums31030748
Provision for claims (including IBNR)6,7166,744208256
Non-life insurance contracts7,0277,050212263
Life insurance contracts excluding own pension contracts22,60630,747145154
Total liabilities arising from insurance contracts29,63337,797357417
Changes in liabilities arising from non-life insurance contracts
GrossOf which reinsurance
2022202120222021
Provision for unearned premiums
At 1 January307323819
Changes in provision for unearned premiums4-16-3-11
Provision for unearned premiums as at 31 December31030748
Provision for claims (including IBNR)
At 1 January6,7446,522256307
Claims paid-2,866-2,595-112-73
Changes in provision for claims3,2763,0646323
Changes in shadow accounting through equity-159-17900
Changes in shadow accounting through income-278-6700
Provision for claims (including IBNR) as at 31 December6,7166,744208256
Non-life insurance contracts as at 31 December7,0277,050212263
Gross provisions for claims
31 December 202231 December 2021
Claims reported4,2294,516
IBNR2,4872,228
Total provisions for claims6,7166,744
Changes in liabilities arising from life insurance contracts
GrossOf which reinsurance
2022202120222021
At 1 January30,74834,614156160
Premiums received / paid66869600
Regular interest added56656633
Realised gains and losses-30326300
Amortisation of realised gains-279-31300
Benefits-1,475-1,622-9-11
Technical result-96-69-33
Release of cost recovery-118-12400
Changes in shadow accounting through equity-1,600-1,08100
Changes in shadow accounting through income-5,489-2,18300
Other changes-13000
At 31 December22,61030,748147156
Interest margin participation to be written down
At 1 January-13-11-2-2
Write-down recognised in profit or loss2100
Other changes-2-300
At 31 December-13-13-2-2
Provision for discretionary profit sharing, bonusses and discounts
At 1 January121200
Profit sharing, bonuses and discounts granted in the financial year-2000
At 31 December101200
Total life insurance contracts at 31 December22,60630,747145154

In accordance with a.s.r.’s accounting policy, the LAT is performed and the shadow accounting adjustments related to instruments with a revaluation reserve amount below cost that are made to the level that the LAT will not get triggered (i.e. shows a positive margin). The insurance liabilities are deemed to be adequate following the performance of the LAT taking into account the UFR of 3.45% for 2022 (2021: 3.60%). The changes in shadow accounting through equity in the amount of -1,600 million include a reversal of shadow accounting related to instruments with a revaluation reserve amount below cost for an amount of 1,433 million. See accounting policy A.

In 2022, technical result increased, reflecting a positive impact of further optimisation of the strategic asset mix in the investment portfolio including renewable energy investments. Furthermore, mortality results increased compared to 2021, partly due to excess mortality in some portfolios. Disability result in pensions also improved, partly due to an improved estimation of claims. This was partly offset by a sharp decline in equity markets and considerably higher interest rates, resulting in strengthened provisions for unit linked liabilities with guarantees by 39 million.

6.5.15.2 Claims development table, Non-life

The table below is a ten-year summary of movements in gross cumulative claims in connection with the Non-life portfolio for the period from 2013 to 2022.

Ten-year summary of changes in gross cumulative claims
Claims year
31 December 2022
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Total
At year end
1st claim year2,1092,0202,0672,2562,2752,3832,4532,6523,0653,356
20142,061
20152,0471,962
20162,0431,9652,026
20172,0571,9552,0572,271
20182,0511,9482,0662,3152,322
20192,0371,9382,0552,2992,3822,375
20202,0191,9132,0502,3182,3872,4522,471
20212,0021,8982,0302,2972,3542,5132,5362,628
20222,0061,8892,0192,2692,3282,4942,5392,6593,063
Gross claims as at 31 December 20222,0061,8892,0192,2692,3282,4942,5392,6593,0633,356
Cumulative gross paid claims1,8241,7121,7871,9711,9661,9861,9281,9202,1161,481
Gross outstanding claims liabilities (including IBNR)1821782322983625086107399481,8765,931
Claims liabilities prior years839
Shadow accounting-54
Total claim liabilities6,716
Ten-year summary of changes in gross cumulative claims
Claims year
31 December 2021
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Total
At year end:
1st claims year2,2132,1092,0202,0672,2562,2752,3832,4532,6523,065
20132,121
20142,1272,061
20152,1102,0471,962
20162,1112,0431,9652,026
20172,1242,0571,9552,0572,271
20182,1092,0511,9482,0662,3152,322
20192,0912,0371,9382,0552,2992,3822,375
20202,0882,0191,9132,0502,3182,3872,4522,471
20212,0982,0021,8982,0302,2972,3542,5132,5362,628
Gross claims as at 31 December 20212,0982,0021,8982,0302,2972,3542,5132,5362,6283,065
Cumulative gross paid claims1,9021,7961,6831,7481,9291,9091,9131,8421,7851,366
Gross outstanding claims liabilities (including IBNR)1962062152813684456016938421,6995,546
Claims liabilities prior years803
Shadow accounting394
Total claim liabilities6,744

For the acquired entities gross claims in the claims development table includes claims from the original date of the claim.

6.5.15.3 Liabilities arising from insurance contracts on behalf of policyholders

Changes in liabilities arising from insurance contracts on behalf of policyholders
20222021
At 1 January14,56613,137
Premiums received1,0981,042
Interest added8585
Benefits-842-1,362
Effect of fair value changes related to financial assets-1,9391,636
Technical result3124
Release of cost recovery-69-75
Other changes7680
At 31 December13,00714,566

At year-end 2022, the liabilities included a guarantee provision for a carrying amount of 84 million (2021: 46 million) and a provision related to unit-linked insurance contracts and pension contracts for a carrying amount of 42 million (2021: 43 million). These provisions relate to compensation for the cost of these contracts.

An amount of 119 million (2021: 89 million) of the liabilities arising from insurance contracts on behalf of policyholders is related to the a.s.r. DC pension plans.

Other changes relates to the transfer of insurance contracts to insurance contracts on behalf of policyholders due to new product features provided.

Liabilities arising from insurance contracts on behalf of policyholders also include liabilities where conversions and switches have occurred in the insurance contract administration. The insurance contract still meets the definition of and continues to be classified as an insurance contract on behalf of policyholders and therefore continues to be included in the insurance contracts on behalf of policyholders administration. However, as a result of the conversion and switches, liabilities arising from insurance contracts on behalf of policyholders amounting to 2,999 million (2021: 2,919 million) are, in the classification and subsequent presentation, not backed directly with investments on behalf of policyholders. The related investments are included and presented in investments (available for sale) and loans and receivables.