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Why significant to the audit
How our audit addressed the key audit matter • Evaluated the appropriateness of the methodology used by management to calculate the loss component on onerous contracts and assessed the application of this methodology to derive the loss component. • Assessed the adequacy of the financial statement disclosures related to transition included in the Notes in accordance with the requirements of AASB 17 Insurance Contracts.
2. Insurance and Reinsurance Contract Assets and Liabilities
Financial report reference : Note 5
Why significant to the audit
How our audit addressed the key audit matter Our audit procedures included the following:
The valuation methodology to estimate the Insurance and Reinsurance Contract Assets and Liabilities adopted by the Group involves complex and subjective judgments about future events. As at 30 June 2024: • Insurance Contract Assets total $122.6 million • Insurance Contract Liabilities total $460.0 million • Reinsurance Contract Assets total $189.5 million • Reinsurance Contract Liabilities total $10.0 million Included within Insurance Contract Assets and Liabilities is $280.8 million of Asset for Insurance Acquisition Cashflows. Key assumptions used in the Group’s model to determine the value of the Insurance and Reinsurance Contract Assets and Liabilities include: • Interest rates • Mortality and morbidity • Lapses
• Assessed the Group’s governance process and relevant controls to determine the methodology and assumptions. • Assessed the effectiveness of relevant controls over assumptions and policy information used as inputs into the Group’s valuation models. • Evaluated the results of the experience investigations carried out by the Group to determine whether they supported the assumptions used by the Group. Our audit procedures included the following in the evaluation and application of methodology in the valuation: • Assessed the changes made to actuarial models and associated governance procedures. • Analysed earnings for the period to assess any large experience gains/losses and evaluated any material unexplained items.
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
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ClearView Wealth Limited
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