ClearView Annual report 2024

Notes to the Financial Statements

Asset for remaining coverage

Excluding loss-recovery component

Asset for incurred claims 1

Loss-recovery component

Total

2023

$'000

$'000

$'000

$'000

Net opening balance Opening reinsurance contract assets Opening reinsurance contract liabilities

(50,484) (40,304) (90,788)

75,601 5,647 81,248

84,063 16,579 100,642

109,180 (18,078)

91,102

Total net opening balance

Net income/(expenses) from reinsurance contracts held Reinsurance expenses Claims recovered and other incurred directly attributable expenses Recoveries and reversals of recoveries of losses on onerous underlying insurance contracts Changes that relate to past service - adjustments to assets for the incurred claims Total net income/(expenses) from reinsurance contracts held Finance income from reinsurance contracts held Total amounts recognised in comprehensive income Cash flows Premiums paid net of ceding commissions and other directly attributable expenses paid

(102,197)

— (102,197)

— (20,793)

106,258

85,465

19,820

— 19,820

4,932

4,932

(102,197)

(973)

111,190

8,020

(6,196)

3,610

(6,108)

(8,694)

(108,393)

2,637

105,082

(674)

127,371

— — —

— 127,371

Recoveries from reinsurance

(87,176) (87,176)

(87,176) 40,195

127,371

Total cash flows

Net closing balance Closing reinsurance contract assets Closing reinsurance contract liabilities

(60,730) (11,080) (71,810)

83,527

115,723

138,520 (7,897)

358

2,825

Total net closing balance 130,623 1 ClearView entered into two incurred claims treaties with its main reinsurer Swiss Re Life and Health Australia (Swiss Re) for its lump sum and income protection portfolios to manage its financial exposure to its reinsurer and address the concentration risk. Under the treaties, ClearView LifeSolutions and ClearChoice lump sum and income protection claims are substantially settled on an earned premium and incurred claims basis. As at 30 June 2024, ClearView received $193.6 million of the reinsurer’s share of incurred claims liability (30 June 2023: $176.7 million). 83,885 118,548

146

ClearView Annual Report 2024

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