Notes to the Financial Statements
The table below illustrates how outcomes during the financial year in respect of the key actuarial variables, would have impacted the equity before tax for that financial year.
Net impact
Gross insurance impact
Reinsurance impact
Impact on insurance finance income or expense (IFIE)
Impact on reinsurance loss recovery component (RLRC)
Impact on loss component Impact on equity net of reinsurance $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Impact on CSM release Impact on AIACF Impact on equity gross of reinsurance Impact on CSM (post release) Impact on reinsurance CSM release Impact on IFIE Impact on equity Impact on reinsurance CSM (post release)
Variable Change
FY24 Interest rates
+ 100 bp - 100 bp
— — (3,751)
23,609
19,858
—
—
— (16,465) (16,465)
— 3,393
— — 3,786 (30,231) (26,445)
—
—
— 20,837 20,837
— (5,608)
Mortality and morbidity +10% (71,613) (2,479) (21,325)
5,274 (90,142) (5,095)
55,236 12,603 (10,261) 57,577
85,739 (32,565)
-10% 54,349 4,510 19,352 (5,274)
72,936 20,328 (39,163) 6,014 273 (15,496)
(14,715) 10,261 (43,617) (99,700)
29,319
Lapses
+10% 18,248 -10% (21,565)
13 (10,018) (24) 8,977
(2,229)
1,913 760 (12,823)
10,689 (6,808)
2,669 (9,942) (436) 425 (8,626) (663)
20,906 (2,907) (363) 17,637 (18,344)
7,695
Expenses
+10% (6,506) (271) (2,274)
— —
— — — — — —
— (8,626) — 8,604
-10% 6,506 271
2,252
(425)
8,604 663
Gross insurance premium rate Reinsurance premium rate
+10% 45,946 4,028 22,872 (3,454)
69,392 18,252 (28,643)
3,983
— (24,660)
24,660 44,732
+10%
— — —
—
— —
— (18,122)
8,176 (9,946) (120,638)
(9,946)
FY23 Interest rates
+ 100 bp - 100 bp
— — (2,519)
23,046 20,527
—
—
— (13,446) (13,446)
— 7,082
— — 2,543 (28,576) (26,034)
—
—
— 16,631
16,631
— (9,402)
Mortality and morbidity +10% (67,953) (2,425) (18,269)
3,092 (85,555) (6,700)
52,406
11,357 (7,605) 56,157
77,725 (29,397)
-10% 40,261 5,820 16,975 (3,160)
59,896 30,997 (30,262) (1,410) 7,403 (5,794)
(14,127)
7,557 (36,832)
(97,098)
23,065
Lapses
+10% 7,685 776 (7,842)
(2,029)
1,016 1,098 (3,681)
6,889 (5,091)
-10% (16,279) (144) 8,314 2,593
(5,516) (1,721) (7,505) (2,085) 7,092 2,366
12,670 (2,480) (256) 9,935 (17,072)
4,419
Expenses
+10% (5,077) (268) (2,271) -10% 4,566 498 2,249
111
— —
— — — — — —
— (7,505) — 7,092
(221)
This information in the sensitivity table is based on linear changes to assumptions which impact all affected product groups equally. The impact of any future assumption change will be dependent on a range of factors including the nature of the assumption change, product impacted, the profitability of the impacted product, and the measurement model utilised. Assumption changes impact the insurance contracts liabilities in different ways: 1. For profitable groups of contracts, assumption changes related to future service will impact the CSM, with a second order impact on current year profits. 2. For onerous groups of contracts, assumption changes will result in change to the insurance contract liabilities, with a direct impact on current year profits. 3. For stepped premium contracts, assumption changes related to future renewal contracts will impact the assessment of the recoverability of the AIACF, with an impact on current year profits. 4. For assumptions changes which impact reinsurance contracts, there will also be offsetting impacts on either the reinsurance contract liabilities or the reinsurance CSM, or both. ClearView has both onerous and profitable groups of contracts, so assumption changes impact both CSM and current year profits. Furthermore, for onerous contracts, a change in the gross loss component will be offset by a change in the reinsurance loss recovery component in the current period.
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ClearView Annual Report 2024
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