Notes to the Financial Statements
ClearView has both stepped premium gross contracts (short-term contract boundary representing circa 79% of the in-force portfolio) and level premium gross contracts (long-term contract boundary representing circa 21% of the in-force portfolio). For gross onerous contracts, to the extent that assumption changes relate to a long-term contract boundary, the present value impact is capitalised and has a larger impact than those that are treated as a short-term contract boundary.
5.3 Insurance revenue and expenses
5.3.1 Insurance revenue and insurance service result
2024 $’000
2023
FY24
$’000
Insurance revenue Amounts relating to the changes in the LRC • CSM recognised in profit or loss for the services provided • Change in the risk adjustment for non-financial risk expired
52,468 12,494 239,153 (9,006) 38,802 333,911
42,753 11,366 205,176 (6,412) 37,932 290,815 (199,314) (11,973) (26,437) (37,932)
• Expected incurred claims and other expenses after loss component allocation
Premium variance for current or past services Insurance acquisition cash flows recovery
Total insurance revenue
Insurance service expenses Incurred claims and other directly attributable expenses Changes that relate to past service - adjustments to the LIC Losses on onerous contracts and reversal of those losses
(246,659) (18,458) (44,884) (38,802)
Insurance acquisition cash flows amortisation
Impairment of assets for insurance acquisition cash flows and reversal of impairment
(23,377) (372,180)
(14,345)
(290,001)
Total insurance service expenses
Net income/(expenses) from reinsurance contracts held Amounts relating to the changes in the remaining coverage • CSM recognised in profit or loss for the services received
9,615
2,092
• Changes in the risk adjustment recognised for non-financial risk expired
(9,644) (110,331)
(9,686) (90,519) (4,084) (102,197)
• Expected claims and other expenses recovery Premium variance for current and past services
(6,661)
(117,021)
Reinsurance expenses
Claims recovered and other incurred directly attributable expenses
96,497
85,465
Recoveries and reversals of recoveries of losses on onerous underlying insurance contracts Changes that relate to past service - adjustments to assets for incurred claims
27,404 31,533 38,413
19,820 4,932 8,020 8,834
Total net expenses from reinsurance contracts held
144
Total insurance service result
135
ClearView Wealth Limited
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