Insurance provisions

  Direct insurance Accepted reinsurance Total
(€ million) 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011
Life insurance provisions(1) 299,602 288,208 2,292 2,133 301,894 290,341
Provisions for outstanding claims 4,822 4,487 862 803 5,684 5,290
Mathematical provisions 231,673 231,588 1,225 1,085 232,898 232,672
Provisions for policies where the investment risk is borne by the
policyholders and provisions for pension funds
41,048 46,804 20 46 41,068 46,850
Other insurance provisions 22,060 5,330 185 199 22,245 5,529
of which provisions for liability adequacy test 731 1,175 71 92 802 1,267
of which deferred policyholder liabilities 4,000 -12,185 0 0 4,000 -12,185

(1) After the elimination of intra-group transactions between segments

  Direct insurance Accepted reinsurance Total
(€ million) 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011
Life amounts ceded to reinsurers from insurance provisions(1) 872 827 858 805 1,729 1.632
Provisions for outstanding claims 317 250 175 140 493 390
Mathematical provisions 286 293 681 664 967 957
Provisions for policies where the investment risk is borne by the policyholders and provisions for pension funds 161 160 0 0 161 160
Other insurance provisions 108 124 1 1 108 125

(1) After the elimination of intra-group transactions between segments

Life insurance provisions and financial liabilities related to policies of the life segment
  Net
(€ million) 31.12.2012 31.12.2011
Insurance contracts 194,721 207,313
Investment contracts with discretionary participation feature 87,744 80,165
Total insurance provisions 282,464 287,478
Investments contracts fair valued 12,650 11,563
Investments contracts at amortised cost 4,947 4,107
Total financial liabilities 17,597 15,670
Total 300,061 303,148

Total insurance provisions include the following items: mathematical provisions and provisions for policies where the investment risk is borne by policyholders and for pension fund net of reinsurance, which amounted to € 231,931 million and € 40,907 million, respectively; net ageing provisions for life segment, which amounted to € 9,627 million and were accounted for in other insurance provisions of the life segment.

The policies with significant insurance risk accounted for 64.9% of the total life portfolio (68.4% in 2011), while the investment contracts with discretionary participation feature account for 29.2% (26.4% in 2011).

Mathematical provisions ageing for the life segment
  Gross direct amount
(€ million) 31.12.2012 31.12.2011
Carrying amount as at 31 December previous year 240,661 234,246
Foreign currency translation effects 99 -35
Premiums and payments -2,272 -2,593
Interests and bonuses credited to policyholders 8,820 9,186
Change of the management component 33 -23
Transfer to Non-current assets or disposal groups classified as held for sale 0 0
Acquisitions, disinvestments and other movements -6,041 -120
Carrying amount as at 31 December current year 241,299 240,661

Interest and bonuses credited to policyholders include the attribution of financial returns.

The impact of acquisitions, disinvestments and other movements include the disposal of Migdal Group.

Provisions for policies where the investment risk is born by policyholders and for pensions funds
  Gross direct amount
(€ million) 31.12.2011 31.12.2011
Carrying amount as at 31 December previous year 46,804 49,386
Foreign currency translation effects 303 -384
Premiums and payments -199 1,385
Interests and bonuses credited to policyholders 4,402 -3,160
Change of the management component -10,262 -423
Transfer to Non-current assets or disposal groups classified as held for sale 0 0
Acquisitions, disinvestments and other movements 41,048 46,804

The impact of acquisitions, disinvestments and other movements include the disposal of Migdal Group. Net of this impact, the development of provisions highlights the increase in value of assets backing unit/index linked policies due to financial markets movements.

Deferred policyholders liabilities
(€ million) 31.12.2012 31.12.2011
Carrying amount as at 31 December previous year -12,185 -4,362
Foreign currency translation effects 3 5
Change of the period 16,185 -7,829
Acquisitions and disinv estments -2 0
Carrying amount as at 31 December current year 4,000 -12,185

The development of the period was mainly due to the significant recovery in value recorded mainly in the Group bond portfolio classified as available for sale instruments.

 

 

AttachmentSize
Life business development92.47 KB
FY12 technical reserves67.03 KB