4.0 - Imperial

2009 2008
Rm
Rm
Financial Statements
2. Other investments and loans
(note 11 to the group annual financial statements)
2.1 Financial assets held at fair value
Balance at beginning of year 1 635 1 844
Additions 1 123 1 895
Disposals (1 787) (2 121)
Fair value adjustment (138) 17
Balance at end of year 833 1 635
2.2 Reconciliation to group annual financial statements
Financial assets at fair value – insurance businesses 833 1 635
Financial assets at fair value – other operations 8 309
841 1 944
3. Insurance assets and liabilities
3.1 Liabilities under insurance contracts
Short-term operations
Outstanding claims, including claims incurred but not reported
– Balance at beginning of year 706 680
– Claims settled in the year (1 328) (1 263)
– Increase in liabilities 1 247 1 289
Balance at end of year 625 706
Outstanding claims 465 563
Incurred but not reported 160 143
Balance at end of year 625 706
This amount is reflected in trade and other payables
3.2 Unearned premium provision
Balance at beginning of year 742 792
Premiums written during the year 2 149 1 953
Premiums earned during the year (2 228) (2 003)
Balance at end of year 663 742
3.3 Long-term operations
Balance at beginning of year 722 891
Transfer to income statement (109) (160)
Arising from translation of foreign liabilities (3) (9)
Balance at end of year 610 722
Process used to decide on long-term insurance assumptions
The business was divided up into homogeneous groupings and then each grouping was analysed. Best estimate assumptions were
then derived based on these experience investigations. Where data was limited, market statistics were used. Recent trends evident in
the data were allowed for.
The value of insurance liabilities is based on best estimate assumptions of future experience plus compulsory margins as required in
terms of PGN 104, plus additional discretionary margins determined by the statutory actuary.
Imperial holdings limited Annual Report 2009 135