The following table provides an overview of the Liabilities arising from insurance and investment contracts as at 31 December.
 Download XLS |
|
Insurance |
Investment |
Total |
Non-life |
Other (incl. |
|
|
contracts |
contracts |
Life contracts |
contracts |
eliminations) |
Total |
2007 |
|
|
|
|
|
|
Liability for future policyholder benefits |
38,084 |
19,557 |
57,641 |
|
(1,835) |
55,806 |
Claims reserves |
|
|
|
7,122 |
(16) |
7,106 |
Unearned premiums |
|
|
|
1,571 |
|
1,571 |
Reserve for policyholder profit sharing |
291 |
278 |
569 |
|
|
569 |
Shadow accounting adjustment |
(258) |
35 |
(223) |
3 |
(100) |
(320) |
Gross |
38,117 |
19,870 |
57,987 |
8,696 |
(1,951) |
64,732 |
Reinsurance |
(46) |
|
(46) |
(963) |
53 |
(956) |
Net |
38,071 |
19,870 |
57,941 |
7,733 |
(1,898) |
63,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
|
|
|
|
Liability for future policyholder benefits |
36,421 |
16,420 |
52,841 |
|
(1,899) |
50,942 |
Claims reserves |
|
|
|
6,664 |
17 |
6,681 |
Unearned premiums |
|
|
|
1,519 |
|
1,519 |
Reserve for policyholder profit sharing |
162 |
156 |
318 |
1 |
|
319 |
Shadow accounting adjustment |
355 |
104 |
459 |
|
(156) |
303 |
Gross |
36,938 |
16,680 |
53,618 |
8,184 |
(2,038) |
59,764 |
Reinsurance |
(115) |
|
(115) |
(915) |
27 |
(1,003) |
Net |
36,823 |
16,680 |
53,503 |
7,269 |
(2,011) |
58,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2005 |
|
|
|
|
|
|
Liability for future policyholder benefits |
35,303 |
13,663 |
48,966 |
|
(1,890) |
47,076 |
Claims reserves |
|
|
|
6,443 |
(23) |
6,420 |
Unearned premiums |
|
|
|
1,409 |
(1) |
1,408 |
Reserve for policyholder profit sharing |
138 |
72 |
210 |
|
|
210 |
Shadow accounting adjustment |
927 |
238 |
1,165 |
18 |
(188) |
995 |
Gross |
36,368 |
13,973 |
50,341 |
7,870 |
(2,102) |
56,109 |
Reinsurance |
(231) |
|
(231) |
(983) |
47 |
(1,167) |
Net |
36,137 |
13,973 |
50,110 |
6,887 |
(2,055) |
54,942 |
Changes in the Liabilities arising from Life insurance and investment contracts (gross of reinsurance) are shown below.
| Download XLS |
|
Life insurance |
Investment |
|
contracts |
contracts |
|
|
|
Balance as at 1 January 2006 |
36,368 |
13,973 |
Acquisitions/divestments of subsidiaries |
35 |
|
Net additions through income statement |
1,085 |
2,816 |
Shadow accounting adjustment |
(572) |
(134) |
Transfer between liabilities |
22 |
25 |
Balance as at 31 December 2006 |
36,938 |
16,680 |
Acquisitions/divestments of subsidiaries |
685 |
15 |
Net additions through income statement |
1,357 |
3,202 |
Foreign exchange differences |
(48) |
|
Shadow accounting adjustment |
(614) |
(70) |
Transfer between liabilities |
(201) |
43 |
Balance as at 31 December 2007 |
38,117 |
19,870 |
Changes in the Liabilities arising from insurance contracts for Non-life products (gross of reinsurance) are shown below.
| Download XLS |
|
|
Non-life insurance |
|
|
contracts |
|
|
|
Balance as at 1 January 2006 |
|
7,870 |
Acquisitions/divestments of subsidiaries |
|
(1) |
Addition to liabilities current year |
3,069 |
|
Claims paid current year |
(1,404) |
|
Change in liabilities current year |
1,665 |
|
Addition to liabilities prior years |
(93) |
|
Claims paid prior years |
(1,300) |
|
Change in liabilities prior years |
(1,393) |
|
|
|
272 |
Change in unearned premiums |
|
96 |
Interest accrual and other changes |
|
(52) |
Foreign exchange differences |
|
17 |
Shadow accounting adjustment |
|
(18) |
Balance as at 31 December 2006 |
|
8,184 |
Acquisitions/divestments of subsidiaries |
|
2 |
Addition to liabilities current year |
3,770 |
|
Claims paid current year |
(1,735) |
|
Change in liabilities current year |
2,035 |
|
Addition to liabilities prior years |
(139) |
|
Claims paid prior years |
(1,285) |
|
Change in liabilities prior years |
(1,424) |
|
|
|
611 |
Change in unearned premiums |
|
98 |
Interest accrual and other changes |
|
(71) |
Foreign exchange differences |
|
(131) |
Shadow accounting adjustment |
|
3 |
Balance as at 31 December 2007 |
|
8,696 |
A Liability Adequacy Testing (LAT) was carried out at year end to assess whether the recognised liabilities are adequate, using current portfolio yields to estimate future cash flows.
A similar LAT was carried out, applying current market yields to the investment portfolio, excluding unrealised capital gains to determine future cash flows.
The Fortis LAT policy includes harmonised processes and testing to ensure that liabilities arising from insurance and investment contracts are properly monitored, tested and are adequate. This includes a formal process of testing at each reporting date on the level of homogeneous product groups. The testing performed on 2007 year end data confirmed the adequacy of reported liabilities.
The effect of changes in assumptions used to measure the liabilities related to Life and Non-life insurance contracts was not material in 2007, 2006 and 2005.
