See accounting policies F1.
7.5.14.1Life – direct participating insurance contracts
| Liabilities for remaining coverage | Liabilities for incurred claims | Total | |
---|---|---|---|---|
| Excluding loss component | Loss component | | |
At 1 January 2024 | 35,790 | 75 | 228 | 36,093 |
| | | | |
Changes in the income statement | | | | |
Insurance contract revenue of which: | -1,081 | - | - | -1,081 |
Contracts recognised from transition date and retrospective approach | -994 | - | - | -994 |
Contracts under the fair value approach | -87 | - | - | -87 |
| | | | |
Insurance service expenses | | | | |
New incurred claims and benefits | - | -12 | 779 | 767 |
Losses and reversals of losses on onerous contracts | - | 6 | - | 6 |
Claims and benefits | - | -6 | 779 | 772 |
| | | | |
Other insurance service operating expenses | - | - | 155 | 155 |
Amortisation of insurance acquisition cash flows | 4 | - | - | 4 |
Insurance service operating expenses | 4 | - | 155 | 159 |
| | | | |
Total insurance service expenses | 4 | -6 | 934 | 932 |
| | | | |
Investment components | -1,263 | - | 1,263 | - |
| | | | |
Insurance service result | -2,340 | -6 | 2,197 | -149 |
| | | | |
Net finance result from insurance contracts | 3,072 | - | - | 3,071 |
Total changes in the income statement | 732 | -7 | 2,197 | 2,922 |
| | | | |
Cashflows | | | | |
Premiums received | 1,557 | - | - | 1,557 |
Insurance service expenses paid, including investment components | - | - | -2,203 | -2,203 |
Insurance acquisition cash flows | -12 | - | - | -12 |
Total cash flows | 1,545 | - | -2,203 | -658 |
| | | | |
Other | 20 | - | - | 20 |
| | | | |
At 31 December 2024 | 38,087 | 68 | 222 | 38,377 |
| Liabilities for remaining coverage | Liabilities for incurred claims | Total | |
---|---|---|---|---|
| Excluding loss component | Loss component | | |
At 1 January 2023 | 10,270 | 101 | 104 | 10,475 |
| | | | |
Changes in the income statement | | | | |
Insurance contract revenue of which: | -603 | - | - | -603 |
Contracts recognised from transition date and retrospective approach | -498 | - | - | -498 |
Contracts under the fair value approach | -106 | - | - | -106 |
| | | | |
Insurance service expenses | | | | |
New incurred claims and benefits | - | -5 | 402 | 397 |
Losses and reversals of losses on onerous contracts | - | -16 | - | -16 |
Claims and benefits | - | -20 | 402 | 382 |
| | | | |
Other insurance service operating expenses | - | - | 124 | 124 |
Amortisation of insurance acquisition cash flows | 4 | - | - | 4 |
Insurance service operating expenses | 4 | - | 124 | 128 |
| | | | |
Total insurance service expenses | 4 | -20 | 526 | 509 |
| | | | |
Investment components | -838 | - | 838 | - |
| | | | |
Insurance service result | -1,437 | -20 | 1,364 | -94 |
| | | | |
Net finance result from insurance contracts | 2,542 | -6 | - | 2,536 |
Total changes in the income statement | 1,105 | -26 | 1,364 | 2,442 |
| | | | |
Cashflows | | | | |
Premiums received | 1,283 | - | - | 1,283 |
Insurance service expenses paid, including investment components | -1 | - | -1,367 | -1,368 |
Insurance acquisition cash flows | -4 | - | - | -4 |
Total cash flows | 1,278 | - | -1,367 | -89 |
| | | | |
Changes in the composition of the group | 23,226 | - | - | 23,226 |
Other | -89 | - | 128 | 39 |
| | | | |
At 31 December 2023 | 35,790 | 75 | 228 | 36,093 |
| Estimates of the present value of the future cash flows | Risk adjustment for non-financial risk | CSM | Total | ||
---|---|---|---|---|---|---|
| | | Total | Of which, Contracts recognised from transition date and retrospective approach | Of which, contracts under fair value approach | |
At 1 January 2024 | 34,288 | 541 | 1,264 | 1,072 | 193 | 36,093 |
| | | | | | |
Changes in the income statement | | | | | | |
| | | | | | |
Changes that relate to future services | | | | | | |
- Changes in estimates that adjust the CSM | -139 | 51 | 88 | 63 | 25 | - |
- Changes in estimates that do not adjust the CSM, ie losses on groups of onerous contracts and reversals of such losses | 18 | -29 | - | - | - | -10 |
- Effects of contracts initially recognised in the period | 12 | 4 | - | - | - | 16 |
| | | | | | |
Changes that relate to current services | | | | | | |
- CSM recognised in profit or loss for services provided | - | - | -102 | -72 | -30 | -102 |
- Release of the risk adjustment for non-financial risk | - | -40 | - | - | - | -40 |
- Experience adjustments | -14 | - | - | - | - | -14 |
| | | | | | |
Insurance service result | -122 | -14 | -13 | -8 | -5 | -149 |
| | | | | | |
Net finance result from insurance contracts | 3,060 | 2 | 9 | - | 9 | 3,071 |
| | | | | | |
Total changes in the income statement | 2,938 | -12 | -4 | -8 | 4 | 2,922 |
| | | | | | |
Cash flows | | | | | | |
Premiums received | 1,557 | - | - | - | - | 1,557 |
Insurance service expenses paid, including investment components | -2,203 | - | - | - | - | -2,203 |
Insurance acquisition cash flows | -12 | - | - | - | - | -12 |
Total cash flows | -658 | - | - | - | - | -658 |
| | | | | | |
Other | 20 | - | - | - | - | 20 |
| | | | | | |
At 31 December 2024 | 36,587 | 530 | 1,260 | 1,063 | 197 | 38,377 |
For more information on changes in estimates, see section 7.5.13.4.
| Estimates of the present value of the future cash flows | Risk adjustment for non-financial risk | CSM | Total | ||
---|---|---|---|---|---|---|
| | | Total | Of which, Contracts recognised from transition date and retrospective approach | Of which, contracts under fair value approach | |
At 1 January 2023 | 10,244 | 69 | 162 | - | 162 | 10,475 |
| | | | | | |
Changes in the income statement | | | | | | |
| | | | | | |
Changes that relate to future services | | | | | | |
- Changes in estimates that adjust the CSM | -24 | 30 | -6 | -32 | 27 | - |
- Changes in estimates that do not adjust the CSM, ie losses on groups of onerous contracts and reversals of such losses | -22 | -11 | - | - | - | -33 |
- Effects of contracts initially recognised in the period | 13 | 4 | - | - | - | 18 |
| | | | | | |
Changes that relate to current services | | | | | | |
- CSM recognised in profit or loss for services provided | - | - | -65 | -32 | -33 | -65 |
- Release of the risk adjustment for non-financial risk | - | -17 | - | - | - | -17 |
- Experience adjustments | 4 | - | - | - | - | 4 |
| | | | | | |
Insurance service result | -29 | 6 | -71 | -64 | -7 | -94 |
| | | | | | |
Net finance result from insurance contracts | 2,498 | 2 | 36 | -1 | 37 | 2,536 |
| | | | | | |
Total changes in the income statement | 2,469 | 7 | -35 | -65 | 30 | 2,442 |
| | | | | | |
Cash flows | | | | | | |
Premiums received | 1,283 | - | - | - | - | 1,283 |
Insurance service expenses paid, including investment components | -1,368 | - | - | - | - | -1,368 |
Insurance acquisition cash flows | -4 | - | - | - | - | -4 |
Total cash flows | -89 | - | - | - | - | -89 |
| | | | | | |
Changes in the composition of the group | 21,624 | 465 | 1,137 | 1,137 | - | 23,226 |
Other | 39 | - | - | - | - | 39 |
| | | | | | |
At 31 December 2023 | 34,288 | 541 | 1,264 | 1,072 | 193 | 36,093 |
At year-end 2024, the liabilities included a guarantee provision for a carrying amount of € 58 million (2023: € 63 million) and a provision related to unit-linked insurance contracts of € 36 million (2023: € 37 million). These provisions relate to compensation for the costs of these contracts.
An amount of € 417 million (2023: € 229 million) of the liabilities arising from direct participating insurance contracts is related to the a.s.r. pension DC plans.
For more information on the assumptions used and changes in estimates, see section 7.5.13.4.
7.5.14.2Contracts issued and acquired in the period
The following tables summarise the effect on the measurement components of insurance contracts arising from the initial recognition of contracts that were initially recognised in the year.
2024 | Profitable contracts issued | Onerous contracts issued | Contracts acquired | Total |
---|---|---|---|---|
Insurance service expenses payable | 39 | 25 | - | 64 |
Insurance acquisition cash flows | 8 | 4 | - | 12 |
Estimates of the present value of future cash outflows | 47 | 29 | - | 76 |
| | | | |
Estimates of the present value of future cash inflows | -47 | -17 | - | -64 |
Risk adjustment for non-financial risk | - | 4 | - | 4 |
CSM | - | - | - | - |
Losses recognised on initial recognition | - | 16 | - | 16 |
2023 | Profitable contracts issued | Onerous contracts issued | Contracts acquired | Total |
---|---|---|---|---|
Insurance service expenses payable | - | 64 | 21,624 | 21,689 |
Insurance acquisition cash flows | - | 5 | - | 5 |
Estimates of the present value of future cash outflows | - | 69 | 21,624 | 21,693 |
| | | | |
Estimates of the present value of future cash inflows | -1 | -55 | -23,226 | -23,282 |
Risk adjustment for non-financial risk | - | 4 | 465 | 469 |
CSM | - | - | 1,137 | 1,137 |
Losses recognised on initial recognition | - | 18 | - | 18 |
7.5.14.3Expected release of the CSM
The following table illustrates when a.s.r. expects to recognise the remaining CSM as revenue.
| < 1 year | 1-2 years | 2-3 years | 3-4 years | 4-5 years | 5-10 years | > 10 years | Total |
---|---|---|---|---|---|---|---|---|
2024 | 94 | 88 | 82 | 76 | 71 | 280 | 570 | 1,260 |
2023 | 97 | 90 | 85 | 79 | 73 | 278 | 562 | 1,264 |
7.5.14.4Pre-recognition cash flows
Pre-recognition cash flows amounting € 11 million (2023: € 11 million) mainly concern acquisition cash flows relating to insurance contracts, specifically Werknemerspensioen, not yet recognised.