a.s.r. has adopted the following new standards, including any consequential amendments to other standards, with a date of initial application of 1 January 2023:
IFRS 17 Insurance contracts;
IFRS 9 Financial instruments.
The impact of these changes on a.s.r.’s profit before tax and shareholders returns is summarised below. In line with IFRS accounting requirements the comparative figures relating to IFRS 17 have been restated. In addition, a.s.r. has chosen to restate the comparative figures relating to IFRS 9 in line with the overlay approach as permitted under IFRS 17, ensuring better comparability between 2022 and 2023. Due to further analysis of the impact of IFRS 17 and IFRS 9 and harmonisation resulting from the Aegon NL acquisition, the comparative figures related to these standards show some adjustments in comparison to earlier presented comparative figures.
With the exception of IFRS 17 and IFRS 9, there were no changes in EU endorsed published IFRS Standards and Interpretations that were relevant to a.s.r.
7.3.1.1 IFRS 17 Insurance contracts
Recognition, measurement and presentation of insurance contracts
IFRS 17 establishes principles for the recognition, classification, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with discretionary participating features. The standard introduces three models for the measurement of the insurance contracts. The general measurement model (GMM), the variable fee approach (VFA) for contracts with a direct participating feature and the premium allocation approach (PAA) which is a simplified version of the GMM and is used mainly for short-duration contracts.
The GMM and VFA measure insurance liabilities as the total of the present value of future cash flows (inflows as well as outflows), the risk adjustment (RA) and a contractual service margin (CSM). The CSM represents the unearned profits of insurance contracts and is released to the income statement over the expected insurance coverage period and recognised as revenue in each reporting period. The insurance contract revenue depicts the insurance contract services provided arising from the group of insurance contracts at an amount that reflects the consideration to which a.s.r. is entitled to in exchange for those services. Revenue includes the release of the CSM and RA in profit or loss over the coverage period. Insurance service result, comprising of insurance contract revenue and insurance service expenses, is a new income statement line item which is effectively a net result on non-financial risks of all insurance contracts.
Shadow accounting and recognising a provision for realised gains and losses has been discontinued under IFRS 17.
Insurance finance income and expenses are presented separately from insurance contract revenue and insurance service expenses.
The VFA is required for insurance contracts that meet specific requirements whereby a link between payments to the policyholder and the returns on underlying items, such as some ‘participating’, ‘with profits’ and ‘unit linked’ contracts, is key. The interest on the CSM for such contracts is accreted implicitly through adjusting the CSM for the change in the variable fee. The variable fee represents a.s.r.’s share of the fair value of the underlying items less amounts that do not vary based on the return of the underlying items. The CSM is also adjusted for the time value of money and the effect of changes in financial risks not arising from underlying items such as options and guarantees.
a.s.r. applies the PAA to simplify the measurement of contracts in the Non-life segment, except for certain groups of Non-life contracts which do not qualify for the PAA. a.s.r. uses the PAA as the default measurement model for reinsurance contracts with a coverage period of one year or less, but the business line has the option to choose the GMM.
When measuring liabilities for remaining coverage, the PAA is similar to a.s.r.’s previous accounting treatment. When measuring liabilities for incurred claims, a.s.r. discounts cash flows that are expected to occur more than one year after the date on which the claims are incurred and includes an explicit risk adjustment for non-financial risk.
Previously, all acquisition costs were recognised directly in profit or loss. Under IFRS 17, insurance acquisition cash flows that arise before the recognition of the related insurance contracts are recognised as separate assets and are tested for recoverability when triggers are identified. These assets are presented in the carrying amount of the insurance contract liabilities and are included in the insurance contract cash flows once the related contracts have been recognised. Under the GMM and VFA, insurance acquisition cash flows are included in the estimates of the present value of future cash flows of insurance contracts and released to profit or loss in a systematic way based on the passage of time. For contracts under the PAA model a.s.r. made the election to recognise insurance acquisition cash flows directly in the income statement.
Income and expenses from reinsurance contracts held, other than insurance finance income and expenses, are included within the insurance service result in the income statement, but separate from the insurance contracts.
For more information reference is made to accounting policy F.
Under the former a.s.r. accounting policies (IFRS 4) the main principles applied were:
Future obligations in respect of policy benefits for life insurance contracts were calculated based on a net premium method (the present value of future obligations less the present value of future net premiums) using the same principles as for calculating the premium at inception of the insurance contract ‘tarief grondslagen’.
For Non-life a provision for claims, a provision for current risks, and a provision for unearned premiums was recognised. The provision for claims was based on estimates of claims payable. Claims payable related to unpaid claims and claims handling costs, as well as claims incurred but not reported.
Shadow accounting was applied allowing recognised unrealised gains or losses on assets (either through other comprehensive income or profit or loss) to be transferred to the insurance liabilities.
A provision for realised gains and losses as part of the insurance liability was recognised.
The liability adequacy test (LAT) was performed each reporting date to assess the adequacy of insurance liabilities. For this test, the insurance liabilities were calculated in accordance with Solvency II, using the Ultimate Forward Rate prevailing at the reporting date.
All acquisition costs were recognised in the income statement when incurred.
Revenue for insurance contracts was recognised when premiums were earned or received.
The reinsurance expenses were presented under net insurance premiums and amounts recovered from reinsurers were presented under net insurance claims and benefits.
Value of Business acquired (VOBA) represented the difference between the fair value and the carrying amount of insurance portfolios that had been acquired.
Receivables and payables in relation to insurance contracts were presented under loans and receivables and due to customers.
Transition
Changes in accounting policies resulting from the adoption of IFRS 17 have been applied retrospectively to the extent practicable. At 1 January 2022, a.s.r.:
Identified, recognised and measured each group of contracts using the full retrospective approach (as if IFRS 17 had always been applied), the modified retrospective approach or the fair value approach.
Identified, recognised and measured any assets for prepaid insurance acquisition cash flows as if IFRS 17 had always been applied.
Derecognised previously reported balances that would not have existed if IFRS 17 had always been applied. These included the intangible assets ‘value of business acquired’, insurance receivables and insurance payables. Under IFRS 17, these are included in the measurement of the insurance contracts liabilities and assets.
Recognised any resulting net difference in equity. The carrying amount of goodwill from previous business combinations was not adjusted.
Notwithstanding the above, for certain groups of contracts IFRS 17 has not been applied retrospectively, because data was not available. In these cases, a.s.r. applied the modified retrospective approach or the fair value approach as allowed by IFRS 17 at 1 January 2022. To indicate the effect of these groups of contracts on the CSM and insurance contract revenue, a.s.r. has provided additional disclosures. See chapter 7.5.13 and chapter 7.5.14.
a.s.r. has applied the transition provisions in IFRS 17 and has disclosed the effect on the consolidated financial statements at 1 January 2022 in chapter 3.4 of the consolidated interim statement of changes in equity, and in chapter 4.2.3 financial impact of changes in accounting policies and changes in presentation. The application of the transition measurement methods are presented below:
Segment | Product | Reporting year date | Transition measurement method |
---|---|---|---|
Non-life | P&C | | Full retrospective approach |
| Disability | | Modified retrospective approach or Fair value approach |
| Health | | Full retrospective approach |
Life | Life individual | Contracts after 1-1-2016 | Full retrospective approach |
| | Contracts before 1-1-2016 | Fair value approach |
| Pension | Acquisitions after 1-1-2018 | Full retrospective approach |
| | Other contracts | Fair value approach |
| Funeral | Contracts after 1-1-2002 | Full retrospective approach |
| | Contracts before 1-1-2002 | Fair value approach |
Modified retrospective approach
The objective of the modified retrospective approach is to achieve the closest outcome possible to the full retrospective approach using reasonable and supportable information available without undue cost or effort. a.s.r. applies each of the following modifications only to the extent that it did not have reasonable and supportable information to apply IFRS 17 retrospectively.
Modifications on transition for insurance contracts measured under the GMM:
Some groups of insurance contracts issued before 1 January 2022 contain contracts issued more than one year apart. For these groups, the discount rate at 1 January 2022 was used for subsequent measurement instead of the discount rate on initial recognition. These contracts represent 5.5% of the total insurance contracts liabilities at 1 January 2022.
When the modification above was used to determine the CSM (or the loss component) on initial recognition:
The amount of the CSM recognised in the income statement before 1 January 2022 was determined by comparing the CSM on initial recognition and the remaining CSM at 1 January 2022; and
The amount allocated to the loss component before 1 January 2022 was determined using the proportion of the loss component relative to the total estimate of the present value of the future cash outflows plus the risk adjustment for non-financial risk on initial recognition.
Fair value approach
For certain groups of contracts, the fair value approach was used for identifying and measuring groups of contracts at 1 January 2022. Under the fair value approach, a.s.r. determines the CSM (or loss component) as at 1 January 2022 for a group of insurance contracts based on the difference between the fair value of the group and the fulfilment cash flows. When the fair value approach is used a.s.r. does not apply annual cohorts. For these groups the discount rate at 1 January 2022 is used. When insurance contracts have been acquired that contain only a liability for incurred claims a.s.r. has applied the policy choice to continue this accounting at transition date. These contracts represent 63.9% of the total insurance contracts liabilities at 1 January 2022.
Non-life insurance contracts
P&C and Health applied the full retrospective approach. Individual disability and absenteeism insurance applied the fair value approach. Group disability applied the modified retrospective approach.
Life insurance contracts
On transition to IFRS 17, a.s.r. applied the full retrospective approach for all Life individual contracts issued or acquired on or after 1 January 2016, for all Pension portfolios acquired after 1 January 2018 and for all funeral contracts issued or acquired on or after 1 January 2002. For all other contracts a.s.r. applies the fair value approach in identifying and measuring groups of contracts.
Direct participating insurance contracts
a.s.r. applied the fair value approach for all groups of contracts issued or acquired before 1 January 2022.
If the calculation resulted in a CSM, then a.s.r. measured the CSM at 1 January 2022. If the calculation resulted in a loss component, then a.s.r. adjusted the loss component to zero, and increased the liability for remaining coverage. In effect the adjustment to zero is incorporated in equity of the opening balance at transition date.
7.3.1.2 IFRS 9 Financial instruments
See accounting policy E.
Classification of financial assets and financial liabilities
IFRS 9 includes three principal classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). The classification and measurement of financial assets under IFRS 9 is based on a.s.r.’s business models, in which a financial asset is managed, and its contractual cash flow characteristics. In many instances, the classification and measurement under IFRS 9 will be similar to IAS 39, although certain differences will arise. The classification of financial liabilities remains unchanged. Derivatives embedded in contracts for which the host is a financial asset in scope of IFRS 9 are not separated. Instead the hybrid financial instrument as a whole is assessed for classification which is in line with a.s.r.’s previous classification under IAS 39.
Impairment of financial assets
The recognition and measurement of impairments under IFRS 9 is intended to be more forward looking than under IAS 39. The new impairment requirement will apply to all financial assets that are debt instruments and are measured at amortised cost or at fair value through other comprehensive income. Initially, a provision is required for expected credit losses (ECL) resulting from default events that are expected within the next twelve months. In the event of a significant increase in credit risk, a provision is required for ECL resulting from all possible default events over the expected life of the financial asset. For trade receivables that do not contain a significant financing component, the loss allowance should be measured at initial recognition and throughout the life of the receivable at an amount equal to lifetime ECL (simplified approach). Under IFRS 9, credit losses are recognised earlier than under IAS 39. For a.s.r. only other financial assets were in scope of the impairment requirement at transition date, for which a.s.r. applies the simplified approach.
Hedge accounting
The hedge accounting requirements of IFRS 9 introduce a new general hedge accounting model. At first application of IFRS 9 a.s.r. decided not to apply hedge accounting in relation to its insurance business.
Transition
Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except the following assessments have been made based on the facts and circumstances that existed at 1 January 2023:
The determination of the business models within which certain financial assets are held.
The designation and revocation of previous designations of certain financial assets as measured at FVTPL.
In line with Solvency II reporting a.s.r. accounts for debt instruments at their “dirty” fair value, thus including any related accrued interest.
Details of the changes and implications resulting from the adoption of IFRS 9 are presented in chapter 7.3.1.3 and chapter 7.3.1.4 below.
7.3.1.3 Financial impact of changes in accounting policies and changes in presentation
Below, the reconciliation of the 2022 opening and closing consolidated balance sheet is disclosed to account for the impact of IFRS 17 and IFRS 9.
(in € millions) | 31 December 2022 | Reclassification | Remeasurement IFRS9 | Remeasurement IFRS17 | Restated 31 December 2022 |
---|---|---|---|---|---|
Intangible assets | 418 | - | - | -96 | 322 |
Property, plant and equipment | 679 | - | - | - | 679 |
Investment property | 664 | - | - | - | 664 |
Associates and joint ventures at equity method | 79 | - | - | - | 79 |
Investments | 25,640 | 16,726 | -1,289 | - | 41,077 |
Investments on behalf of policyholders | 9,912 | -9,912 | - | - | - |
Investments related to direct participating contracts | - | 9,912 | - | - | 9,912 |
Investments related to investment contracts | 2,000 | -2,000 | - | - | - |
Loans and receivables | 17,171 | -17,171 | - | - | - |
Derivatives | 5,428 | 334 | - | - | 5,761 |
Deferred tax assets | 119 | - | 332 | -134 | 318 |
Reinsurance contracts | 357 | -357 | - | - | - |
Reinsurance contract assets | - | 418 | - | -37 | 381 |
Other assets | 828 | -368 | - | - | 460 |
Cash and cash equivalents | 2,245 | 1 | - | - | 2,246 |
Total assets | 65,539 | -2,417 | -956 | -267 | 61,899 |
| | | | | |
Share capital | 24 | - | - | - | 24 |
Share premium reserve | 1,533 | - | - | - | 1,533 |
Unrealised gains and losses | -922 | 1,187 | - | - | 266 |
Actuarial gains and losses | -168 | - | - | - | -168 |
Retained earnings | 5,333 | -1,185 | -956 | 377 | 3,569 |
Treasury shares | -79 | - | - | - | -79 |
Equity attributable to shareholders | 5,722 | 3 | -956 | 377 | 5,146 |
| | | | | |
Other equity instruments | 1,004 | - | - | - | 1,004 |
Equity attributable to holders of equity instruments | 6,726 | 3 | -956 | 377 | 6,150 |
| | | | | |
Non-controlling interests | 27 | - | - | - | 27 |
Total equity | 6,753 | 3 | -956 | 377 | 6,177 |
| | | | | |
Subordinated liabilities | 1,980 | 26 | - | - | 2,005 |
Liabilities arising from insurance contracts | 29,633 | -29,633 | - | - | - |
Liabilities arising from insurance contracts on behalf of policyholders | 13,007 | -13,007 | - | - | - |
Insurance contract liabilities | - | 32,150 | - | -509 | 31,640 |
Liabilities arising from direct participating insurance contracts | - | 10,598 | - | -135 | 10,463 |
Liabilities arising from investment contracts | 2,000 | -2,000 | - | - | - |
Employee benefits | 2,742 | - | - | - | 2,742 |
Provisions | 18 | - | - | - | 18 |
Borrowings | 214 | -26 | - | - | 188 |
Derivatives | 5,523 | 159 | - | - | 5,681 |
Due to customers | 471 | -471 | - | - | - |
Due to banks | 2,262 | 2 | - | - | 2,264 |
Other liabilities | 938 | -217 | - | - | 721 |
Total liabilities | 58,787 | -2,420 | - | -644 | 55,723 |
| | | | | |
Total equity and liabilities | 65,539 | -2,417 | -956 | -267 | 61,899 |
(in € millions) | 31 December 2021 | Reclassification | Remeasurement IFRS9 | Remeasurement IFRS17 | Restated 1 January 2022 |
---|---|---|---|---|---|
Intangible assets | 428 | - | - | -119 | 310 |
Property, plant and equipment | 556 | - | - | - | 556 |
Investment property | 2,052 | - | - | - | 2,052 |
Associates and joint ventures at equity method | 102 | - | - | - | 102 |
Investments | 33,550 | 14,602 | 1,458 | - | 49,609 |
Investments on behalf of policyholders | 11,574 | -11,574 | - | - | - |
Investments related to direct participating contracts | - | 11,574 | - | - | 11,574 |
Investments related to investment contracts | 1,952 | -1,952 | - | - | - |
Loans and receivables | 15,259 | -15,259 | - | - | - |
Derivatives | 6,212 | 229 | - | - | 6,441 |
Reinsurance contracts | 417 | -417 | - | - | - |
Reinsurance contract assets | - | 488 | - | 34 | 522 |
Other assets | 631 | -71 | - | - | 560 |
Cash and cash equivalents | 2,306 | -1 | - | - | 2,305 |
Total assets | 75,040 | -2,382 | 1,458 | -85 | 74,032 |
| | | | | |
Share capital | 22 | - | - | - | 22 |
Share premium reserve | 956 | - | - | - | 956 |
Unrealised gains and losses | 1,461 | -745 | - | - | 717 |
Actuarial gains and losses | -1,055 | - | - | - | -1,055 |
Retained earnings | 5,061 | 742 | 1,082 | -1,271 | 5,613 |
Treasury shares | -83 | - | - | - | -83 |
Equity attributable to shareholders | 6,363 | -3 | 1,082 | -1,271 | 6,170 |
| | | | | |
Other equity instruments | 1,004 | - | - | - | 1,004 |
Equity attributable to holders of equity instruments | 7,367 | -3 | 1,082 | -1,271 | 7,174 |
| | | | | |
Non-controlling interests | 18 | - | - | - | 18 |
Total equity | 7,385 | -3 | 1,082 | -1,271 | 7,192 |
| | | | | |
Subordinated liabilities | 992 | 18 | - | - | 1,010 |
Liabilities arising from insurance contracts | 37,797 | -37,797 | - | - | - |
Liabilities arising from insurance contracts on behalf of policyholders | 14,566 | -14,566 | - | - | - |
Insurance contract liabilities | - | 40,383 | - | 1,615 | 41,998 |
Liabilities arising from direct participating insurance contracts | - | 12,160 | - | 15 | 12,175 |
Liabilities arising from investment contracts | 1,952 | -1,952 | - | - | - |
Employee benefits | 4,013 | - | - | - | 4,013 |
Provisions | 24 | - | - | - | 24 |
Borrowings | 192 | -26 | - | - | 165 |
Deferred tax liabilities | 69 | - | 376 | -443 | 3 |
Derivatives | 759 | 73 | - | - | 832 |
Due to customers | 573 | -573 | - | - | - |
Due to banks | 5,741 | - | - | - | 5,741 |
Other liabilities | 976 | -98 | - | - | 878 |
Total liabilities | 67,655 | -2,379 | 376 | 1,187 | 66,839 |
| | | | | |
Total equity and liabilities | 75,040 | -2,382 | 1,458 | -85 | 74,032 |
The adoption of IFRS 9 and 17 has had the following impact on a.s.r.’s basic and diluted earnings per ordinary share for the year ended 31 December 2022:
For basic earnings per share, a decrease of € 17.83; and
For diluted earnings per share, a decrease of € 15.39.
7.3.1.4 Transition to IFRS 9
The following table contains the original measurement category and carrying amount under IAS 39 and the new measurement category and carrying amount under IFRS 9 for each class of financial assets and financial liabilities as at 1 January 2023. Also included are the reclasses related to amongst others the 'dirty' fair value. See accounting policy E.
(in € millions) | Original classification under IAS 39 | New classification under IFRS 9 | Original carrying amount | New carrying amount |
---|---|---|---|---|
Financial assets | | | | |
| | | | |
Investments | | | | |
Investments - transferred under repurchase agreements | | | | |
Government bonds | Available for sale | FVTPL (mandatory) | 432 | 437 |
| | | | |
Investments - own risk | | | | |
Real estate equity funds | FVTPL | FVTPL (mandatory) | 4,105 | 4,092 |
Mortgage equity funds | FVTPL | FVTPL (mandatory) | 684 | 705 |
Mortgage equity funds | Available for sale | FVTPL (mandatory) | 303 | 303 |
Government bonds | Available for sale | FVTPL (mandatory) | 8,794 | 8,872 |
Corporate bonds | Available for sale | FVTPL (mandatory) | 7,188 | 7,272 |
Asset-backed securities | Available for sale | FVTPL (mandatory) | 416 | 413 |
Preference shares | Available for sale | FVOCI | 289 | 297 |
Other investment funds | Available for sale | FVTPL (mandatory) | 1,596 | 1,588 |
Other investment funds | FVTPL | FVTPL (mandatory) | 16 | 16 |
Equities | Available for sale | FVOCI | 1,743 | 1,743 |
Equities | FVTPL | FVTPL | 67 | 67 |
Other participating contracts | Available for sale | FVOCI | 6 | 6 |
Government and public sector loans | Amortised Cost | FVTPL (mandatory) | 221 | 227 |
Mortgage loans | Amortised Cost | FVTPL (mandatory) | 10,366 | 9,074 |
Loans to credit institutions | Amortised Cost | FVTPL (mandatory) | 2,627 | 2,644 |
Other investments | Amortised Cost | FVTPL (mandatory) | 3,352 | 3,320 |
| | | 42,206 | 41,077 |
(in € millions) | Original classification under IAS 39 | New classification under IFRS 9 | Original carrying amount | New carrying amount |
---|---|---|---|---|
Investments related to direct participating insurance contracts | | | | |
Real estate equity funds | FVTPL | FVTPL (mandatory) | 170 | 170 |
Mortgage equity funds | FVTPL | FVTPL (mandatory) | 252 | 252 |
Government bonds | FVTPL | FVTPL (mandatory) | 1,526 | 1,543 |
Corporate bonds | FVTPL | FVTPL (mandatory) | 1,386 | 1,386 |
Equities | FVTPL | FVTPL (mandatory) | 6,504 | 6,486 |
Other investments | FVTPL | FVTPL (mandatory) | 75 | 76 |
| | | 9,912 | 9,912 |
| | | | |
Investments related to investment contracts | | | | |
Real estate equity funds | FVTPL | Not applicable | 97 | - |
Government bonds | FVTPL | Not applicable | 261 | - |
Corporate bonds | FVTPL | Not applicable | 149 | - |
Equities | FVTPL | Not applicable | 1,449 | - |
Other investments | FVTPL | Not applicable | 44 | - |
| | | 2,000 | - |
| | | | |
Derivatives assets | FVTPL | FVTPL (mandatory) | 5,428 | 5,761 |
| | | | |
Other financial assets | Amortised Cost | Amortised Cost | 669 | 247 |
| | | | |
Cash and cash equivalents | FVTPL | FVTPL (mandatory) | 2,245 | 2,246 |
| | | | |
Total financial assets | | | 62,459 | 59,243 |
(in € millions) | Original classification under IAS 39 | New classification under IFRS 9 | Original carrying amount | New carrying amount |
---|---|---|---|---|
Financial liabilities | | | | |
| | | | |
Subordinated liabilities | Amortised cost | Amortised cost | 1,980 | 2,005 |
Liabilities arising from investment contracts | FVTPL | Not applicable | 2,000 | - |
Borrowings (excluding lease liabilities) | Amortised cost | Amortised cost | 152 | 126 |
Due to customers | Amortised cost | Not applicable | 471 | - |
Derivatives liabilities | FVTPL | FVTPL (mandatory) | 5,523 | 5,681 |
Due to banks | Amortised cost | Amortised cost | 2,262 | 2,264 |
Other financial liabilities | Amortised cost | Amortised cost | 200 | 55 |
| | | | |
Total financial liabilities | | | 12,588 | 10,132 |
FVTPL | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Investments - transferred under repurchase agreements | | | | |
Government bonds | | | | |
brought forward | - | | | |
reclassified from available for sale | | 432 | | |
reclassified from other assets | | 5 | | |
carried forward | | | | 437 |
| | | | |
Investments - own risk | | | | |
Real estate equity funds | | | | |
brought forward | 4,105 | | | |
remeasurement | | | -14 | |
carried forward | | | | 4,092 |
Mortgage equity funds | | | | |
brought forward | 684 | | | |
reclassified from available for sale | | 303 | | |
remeasurement | | | 21 | |
carried forward | | | | 1,008 |
Government bonds | | | | |
brought forward | - | | | |
reclassified from available for sale | | 8,794 | | |
reclassified from other assets | | 77 | | |
carried forward | | | | 8,872 |
Corporate bonds | | | | |
brought forward | - | | | |
reclassified from available for sale | | 7,188 | | |
reclassified from other assets | | 85 | | |
carried forward | | | | 7,272 |
Asset-backed securities | | | | |
brought forward | - | | | |
reclassified from available for sale | | 416 | | |
reclassified from other assets | | 2 | | |
remeasurement | | | -4 | |
carried forward | | | | 413 |
Other investment funds | | | | |
brought forward | 16 | | | |
reclassified from available for sale | | 1,596 | | |
remeasurement | | | -7 | |
carried forward | | | | 1,605 |
FVTPL | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Equities | 67 | | | 67 |
Government and public sector loans | | | | |
brought forward | - | | | |
reclassified from loans and receivables | | 221 | | |
reclassified from other assets | | 2 | | |
remeasurement | | | 4 | |
carried forward | | | | 227 |
Mortgage loans | | | | |
brought forward | - | | | |
reclassified from loans and receivables | | 10,366 | | |
reclassified from other assets | | 22 | | |
remeasurement | | | -1,314 | |
carried forward | | | | 9,074 |
Loans to credit institutions | | | | |
brought forward | - | | | |
reclassified from loans and receivables | | 2,601 | | |
reclassified from other assets | | 3 | | |
reclassified to investments related to investment contracts | | -27 | | |
remeasurement | | | 67 | |
carried forward | | | | 2,644 |
Other investments | | | | |
brought forward | - | | | |
reclassified from loans and receivables | | 3,352 | | |
reclassified from other assets | | 10 | | |
remeasurement | | | -42 | |
carried forward | | | | 3,320 |
| | | | |
Investments related to direct participating insurance contracts | 9,912 | | | 9,912 |
| | | | |
Investments related to investment contracts | | | | |
brought forward | 2,000 | | | |
reclassified from loans and receivables | | 27 | | |
reclassified from liabilities arising from investment contracts | | -2,027 | | |
carried forward | | | | - |
| | | | |
Derivatives assets | | | | |
brought forward | 5,428 | | | |
reclassified from other assets | | 334 | | |
carried forward | | | | 5,761 |
FVTPL | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Cash and cash equivalents | | | | |
brought forward | 2,245 | | | |
reclassified from other assets | | 1 | | |
carried forward | | | | 2,246 |
| | | | |
Total FVTPL | 24,457 | 33,781 | -1,289 | 56,950 |
FVOCI | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Investments | | | | |
Equities | | | | |
brought forward | - | | | |
reclassified from available for sale | | 1,743 | | |
carried forward | | | | 1,743 |
Preference shares | | | | |
brought forward | - | | | |
reclassified from available for sale | | 289 | | |
reclassified from other assets | | 8 | | |
carried forward | | | | 297 |
Other participating contracts | | | | |
brought forward | - | | | |
reclassified from available for sale | | 6 | | |
carried forward | | | | 6 |
| | | | |
Total FVOCI | - | 2,046 | - | 2,046 |
Available for sale | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Investments | | | | |
brought forward | 20,767 | | | |
reclassified to FVTPL | | -18,728 | | |
reclassified to FVOCI | | -2,038 | | |
carried forward | | | | - |
| | | | |
Total available for sale | 20,767 | -20,767 | - | - |
Amortised cost | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Loans and receivables | | | | |
brought forward | 17,171 | | | |
reclassified to investments | | -16,513 | | |
reclassified to investments related to investment contracts | | -27 | | |
reclassified to other assets | | -245 | | |
reclassified to insurance contract liabilities | | -323 | | |
reclassified to reinsurance contract assets | | -63 | | |
carried forward | | | | - |
| | | | |
Other financial assets | | | | |
brought forward | 669 | | | |
reclassified from loans and receivables | | 245 | | |
reclassified to investments | | -219 | | |
reclassified to derivatives assets | | -336 | | |
reclassified to insurance contract liabilities | | -50 | | |
reclassified to other non-financial assets | | -64 | | |
carried forward | | | | 247 |
| | | | |
Total amortised cost | 17,840 | -17,593 | - | 247 |
FVTPL | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Liabilities arising from investment contracts | | | | |
brought forward | 2,000 | | | |
reclassified from due to customers | | 27 | | |
reclassified to investments related to investment contracts | | -2,027 | | |
carried forward | | | | - |
| | | | |
Derivatives liabilities | | | | |
brought forward | 5,523 | | | |
reclassified from other financial liabilities | | 159 | | |
carried forward | | | | 5,681 |
| | | | |
Total FVTPL | 7,523 | -1,842 | - | 5,681 |
Amortised cost | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Subordinated liabilities | | | | |
brought forward | 1,980 | | | |
reclassified from other financial liabilities | | 25 | | |
carried forward | | | | 2,005 |
Borrowings (excluding lease liabilities) | | | | |
brought forward | 152 | | | |
reclassified to other financial liabilities | | -26 | | |
carried forward | | | | 126 |
Due to customers | | | | |
brought forward | 471 | | | |
reclassified to reinsurance contract assets | | -2 | | |
reclassified to insurance contract liabilities | | -278 | | |
reclassified to liabilities arising from direct participating insurance contracts | | -103 | | |
reclassified to liabilities arising from investment contracts | | -27 | | |
reclassified to other liabilities | | -61 | | |
carried forward | | | | - |
Due to banks | | | | |
brought forward | 2,262 | | | |
reclassified from other financial liabilities | | 2 | | |
carried forward | | | | 2,264 |
Other financial liabilities | | | | |
brought forward | 200 | | | |
reclassified to insurance contract liabilities | | -10 | | |
reclassified to subordinated liabilities | | -26 | | |
reclassified to derivatives liabilities | | -160 | | |
reclassified to due to banks | | -2 | | |
reclassified from due to customers | | 27 | | |
reclassified from borrowings | | 26 | | |
carried forward | | | | 55 |
| | | | |
Total amortised cost | 5,065 | -614 | - | 4,450 |
The following table contains the reconciliation of the closing impairment allowance in accordance with IAS 39 as at 31 December 2022 with the opening loss allowance determined in accordance with IFRS 9 as at 1 January 2023.
Impairment of financial assets | 31 December 2022 (IAS 39) | Reclassification | Remeasurement | 1 January 2023 (IFRS 9) |
---|---|---|---|---|
Investments at FVTPL from available for sale | -227 | - | 227 | - |
Equities and similar investments at FVOCI from available for sale | -147 | - | 147 | - |
Loans and receivables | -71 | 27 | 44 | - |
Other assets | - | -4 | - | -4 |
| | | | |
Total loss allowance | -445 | 24 | 418 | -4 |