--------- ---------- -------- --------- --------------- ---------
Total Gross 260,243 98,397 15,329 18,623 6,753 399,345
--------- ---------- -------- --------- --------------- ---------
Net 141,061 88,635 13,900 17,722 6,753 268,071
--------- ---------- -------- --------- --------------- ---------
(c) General insurance risks
Property classes
Property cover mainly compensates the policyholder for damage
suffered to their properties or for the value of property lost.
Property insurance may also include cover for pecuniary loss
through the inability to use damaged insured commercial
properties.
For property insurance contracts, there can be variability in
the nature, number and size of claims made in each period.
The nature of claims may include fire, business interruption,
weather damage, subsidence, accidental damage to insured vehicles
and theft. Subsidence claims are difficult to predict because the
damage is often not apparent for some time. Changes in soil
moisture conditions can give rise to changes in claim volumes over
time. The ultimate settlements can be small or large with a greater
risk of a settled claim being re-opened at a later date.
The number of claims made can be affected by weather events,
changes in climate and crime rates. Climate change may give rise to
more frequent and severe extreme weather events, such as river
flooding, hurricanes and drought, and their consequences, for
example, subsidence claims. If a weather event happens near the end
of the financial year then the uncertainty about ultimate claims
cost in the financial statements is much higher because there is
insufficient time for adequate data to be received to assess the
final cost of claims.
Individual claims can vary in amount since the risks insured are
diverse in both size and nature. The cost of repairing property
varies according to the extent of damage, cost of materials and
labour charges.
Contracts are underwritten on a reinstatement basis or repair
and renovation basis as appropriate. Costs of rebuilding
properties, of replacement or indemnity for contents and time taken
to restart operations for business interruption are the key factors
that influence the level of claims. Individual large claims are
more likely to arise from fire, storm or flood damage. The greatest
likelihood of an aggregation of claims arises from earthquake,
weather or fire events.
Claims payment, on average, occurs within a year of the event
that gives rise to the claim. However, there is variability around
this average with larger claims typically taking longer to
settle.
Liability classes
The main exposures are in respect of liability insurance
contracts which protect policyholders from the liability to
compensate injured employees (employers' liability) and third
parties (public liability).
Claims that may arise from the liability portfolios include
damage to property, physical injury, disease and psychological
trauma. The Group has a different exposure profile to most other
commercial lines insurance companies as it has lower exposure to
industrial risks. Therefore, claims for industrial diseases are
less common for the Group than injury claims such as slips, trips
and back injuries.
The frequency and severity of claims arising on liability
insurance contracts, including the liability element of motor
contracts, can be affected by several factors. Most significant are
the increasing level of awards for damages suffered, the courts'
move to periodic payments awards and the increase in the number of
cases that have been latent for a long period of time.
The severity of bodily injury claims is highly influenced by the
value of loss of earnings and the future cost of care. The
settlement value of claims arising under public and employers'
liability is particularly difficult to predict. There is
uncertainty as to whether any payments will be made and, if they
are, the amount and timing of the payments. Key factors driving the
high levels of uncertainty include the late notification of
possible claim events and the legal process.
Late notification of possible claims necessitates the holding of
provisions for incurred claims that may only emerge some years into
the future. In particular the effect of inflation over such a long
period can be considerable and is uncertain. A lack of comparable
past experience makes it difficult to quantify the number of claims
and, for certain types of claims, the amounts for which they will
ultimately settle. The legal and legislative framework continues to
develop which has a consequent impact on the uncertainty as to the
length of the claims settlement process and the ultimate settlement
amounts.
Claims payment, on average, occurs about three to four years
after the event that gives rise to the claim. However, there is
significant variability around this average.
Provisions for latent claims
The public and employers' liability classes can give rise to
very late reported claims, which are often referred to as latent
claims. These can vary in nature and are difficult to predict. They
typically emerge slowly over many years. The Group has reflected
this uncertainty and believes that it holds adequate reserves for
latent claims that may result from exposure periods up to the
reporting date.
Note 27 to the full financial statements presents the
development of the estimate of ultimate claim cost for public and
employers' liability claims occurring in a given year. This gives
an indication of the accuracy of the estimation technique for
incurred claims.
(d) Life insurance risks
The Group provides whole-of-life insurance policies to support
funeral planning products, for most of which the future benefits
are linked to inflation and backed by index-linked assets. The risk
that actual claims payments exceed the carrying amount of the
insurance liabilities may occur if the timing of claims is
different from assumed.
Uncertainty in the estimation of the timing of future claims
arises from the unpredictability of long-term changes in overall
levels of mortality. The Group bases these estimates on standard
industry and national mortality tables. The most significant
factors that could alter the expected mortality rates profile are
epidemics, widespread changes in lifestyle and continued
improvement in medical science and social conditions. The primary
risk on these contracts is the level of future investment returns
on the assets backing the liabilities over the life of the
policyholders. The interest rate and inflation risk within this has
been largely mitigated by holding index-linked assets of a similar
term to the expected liabilities profile. The main residual risk is
the spread risk attaching to corporate bonds held to match the
liabilities. The small mortality risk is retained by the Group and
directly impacts shareholders' equity.
Finance risk and capital management
The Group is exposed to financial risk through its financial
assets, financial liabilities, reinsurance assets and insurance
liabilities. In particular the key financial risk is that the
proceeds from its financial assets are not sufficient to fund the
obligations arising from its insurance contracts. The most
important components of financial risk are interest rate risk,
credit risk, currency risk and equity price risk.
There has been no change from the prior period in the nature of
the financial risks to which the Group is exposed. The Group's
management and measurement of financial risks is informed by either
stochastic modelling or stress testing techniques.
(a) Categories of financial instruments
Financial assets
------------------------------------------
Designated Held Loans and Financial Other assets
for
at fair trading receivables* liabilities** and Total
value liabilities
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 December
2014
Financial
investments 886,170 - 16 - - 886,186
Other assets - - 116,485 - 2,909 119,394
Cash and cash
equivalents - - 107,526 - - 107,526
Assets classified
as held for sale - - ***6,204 - - 6,204
Other liabilities - - - (40,338) (4,277) (44,615)
Net other - - - - (580,062) (580,062)
------------- ---------- --------------- -------------- -------------- -------------
Total 886,170 - 230,231 (40,338) (581,430) 494,633
------------- ---------- --------------- -------------- -------------- -------------
At 31 December
2013
Financial
investments 938,383 158 ***7,911 - - 946,452
Other assets - - 121,411 - 3,053 124,464
Cash and cash
equivalents - - 107,241 - - 107,241
Other liabilities - - - (31,571) (6,397) (37,968)
Ecclesiastl.8fe (LSE:ELLA)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Ecclesiastl.8fe (LSE:ELLA)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
