7.5.14Liabilities arising from direct participating insurance contracts

See accounting policies F1.

7.5.14.1Life – direct participating insurance contracts

Changes in liabilities arising from direct participating insurance contracts by remaining coverage and incurred claims current year VFA
Liabilities for remaining coverageLiabilities for incurred claimsTotal
Excluding loss componentLoss component
At 1 January 202435,7907522836,093
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--12779767
Losses and reversals of losses on onerous contracts-6-6
Claims and benefits--6779772
Other insurance service operating expenses--155155
Amortisation of insurance acquisition cash flows4--4
Insurance service operating expenses4-155159
Total insurance service expenses4-6934932
Investment components-1,263-1,263-
Insurance service result-2,340-62,197-149
Net finance result from insurance contracts3,072--3,071
Total changes in the income statement732-72,1972,922
Cashflows
Premiums received1,557--1,557
Insurance service expenses paid, including investment components---2,203-2,203
Insurance acquisition cash flows-12---12
Total cash flows1,545--2,203-658
Other20--20
At 31 December 202438,0876822238,377
Changes in liabilities arising from direct participating insurance contracts by remaining coverage and incurred claims prior year VFA
Liabilities for remaining coverageLiabilities for incurred claimsTotal
Excluding loss componentLoss component
At 1 January 202310,27010110410,475
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--5402397
Losses and reversals of losses on onerous contracts--16--16
Claims and benefits--20402382
Other insurance service operating expenses--124124
Amortisation of insurance acquisition cash flows4--4
Insurance service operating expenses4-124128
Total insurance service expenses4-20526509
Investment components-838-838-
Insurance service result-1,437-201,364-94
Net finance result from insurance contracts2,542-6-2,536
Total changes in the income statement1,105-261,3642,442
Cashflows
Premiums received1,283--1,283
Insurance service expenses paid, including investment components-1--1,367-1,368
Insurance acquisition cash flows-4---4
Total cash flows1,278--1,367-89
Changes in the composition of the group23,226--23,226
Other-89-12839
At 31 December 202335,7907522836,093
Changes in liabilities arising from direct participating insurance contracts by measurement component current year VFA
Estimates of the present value of the future cash flowsRisk adjustment for non-financial riskCSMTotal
TotalOf which, Contracts recognised from transition date and retrospective approachOf which, contracts under fair value approach
At 1 January 202434,2885411,2641,07219336,093
Changes in the income statement
Changes that relate to future services
- Changes in estimates that adjust the CSM-13951886325-
- Changes in estimates that do not adjust the CSM, ie losses on groups of onerous contracts and reversals of such losses18-29----10
- Effects of contracts initially recognised in the period124---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 contracts3,06029-93,071
Total changes in the income statement2,938-12-4-842,922
Cash flows
Premiums received1,557----1,557
Insurance service expenses paid, including investment components-2,203-----2,203
Insurance acquisition cash flows-12-----12
Total cash flows-658-----658
Other20----20
At 31 December 202436,5875301,2601,06319738,377

For more information on changes in estimates, see section 7.5.13.4.

Changes in liabilities arising from direct participating insurance contracts by measurement component prior year (VFA)
Estimates of the present value of the future cash flowsRisk adjustment for non-financial riskCSMTotal
TotalOf which, Contracts recognised from transition date and retrospective approachOf which, contracts under fair value approach
At 1 January 202310,24469162-16210,475
Changes in the income statement
Changes that relate to future services
- Changes in estimates that adjust the CSM-2430-6-3227-
- 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 period134---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 adjustments4----4
Insurance service result-296-71-64-7-94
Net finance result from insurance contracts2,498236-1372,536
Total changes in the income statement2,4697-35-65302,442
Cash flows
Premiums received1,283----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 group21,6244651,1371,137-23,226
Other39----39
At 31 December 202334,2885411,2641,07219336,093

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.

Contracts issued and acquired: Liabilities arising from direct participating insurance contracts
2024Profitable contracts issuedOnerous contracts issuedContracts acquiredTotal
Insurance service expenses payable3925-64
Insurance acquisition cash flows84-12
Estimates of the present value of future cash outflows4729-76
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
Contracts issued and acquired: Liabilities arising from direct participating insurance contracts
2023Profitable contracts issuedOnerous contracts issuedContracts acquiredTotal
Insurance service expenses payable-6421,62421,689
Insurance acquisition cash flows-5-5
Estimates of the present value of future cash outflows-6921,62421,693
Estimates of the present value of future cash inflows-1-55-23,226-23,282
Risk adjustment for non-financial risk-4465469
CSM--1,1371,137
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.

Expected release of the CSM
< 1 year1-2 years2-3 years3-4 years4-5 years5-10 years> 10 yearsTotal
202494888276712805701,260
202397908579732785621,264

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.