Jubilee Insurance 2010 Annual Report

JUBILEE HOLDINGS
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 ST DECEMBER 2010
55
NOTES (continued)
35. Movements in insurance liabilities and reinsurance assets
Group
(i) Short-Term insurance business
2010 2009
Gross Reinsurance Net Gross Reinsurance Net
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000
Notified claims 2,213,174 771,780 1,441,394 1,941,381 752,158 1,189,223
Incurred but not reported 525,460 134,734 390,726 419,631 52,796 366,835
Total at start of the year 2,738,634 906,514 1,832,120 2,361,012 804,954 1,556,058
Cash paid for claims settled in year (2,869,214) (898,436) (1,970,778) (2,311,200) (389,129) (1,922,071)
Increase in liabilities
arising from current year claims 1,340,153 667,277 672,876 2,915,411 481,297 2,434,114
arising from prior year claims 1,605,571 357,617 1,247,954 (226,589) 9,392 (235,981)
Total at end of year 2,815,144 1,032,972 1,782,172 2,738,634 906,514 1,832,120
Notified claims 2,306,036 832,861 1,473,175 2,213,174 774,088 1,439,086
Incurred but not reported 509,108 200,111 308,997 525,460 132,426 393,034
Total at the end of year 2,815,144 1,032,972 1,782,172 2,738,634 906,514 1,832,120
(ii) Long-Term insurance business
2010 2009
Gross Reinsurance Net Gross Reinsurance Net
Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000
Notified claims 243,457 55,571 187,886 184,388 56,117 128,271
Acturial value of polcy holders benefits 3,607,214 - 3,607,214 - - -
Total at start of the year 243,457 55,571 187,886 184,388 56,117 128,271
Cash paid for claims settled in year (407,586) (151,799) (255,787) (354,611) (131,255) (223,356)
Increase in liabilities
arising from current year claims 110,144 75,321 34,823 174,431 130,709 43,722
arising from prior year claims 407,586 127,286 280,300 239,249 - 239,249
Total at end of year 353,601 106,379 247,222 243,457 55,571 187,886
Notified claims 353,601 106,879 246,722 243,457 55,571 187,886
Acturial value of polcy holders benefits 4,595,180 - 4,595,180 3,607,214 - 3,607,214
Total at the end of year 4,948,781 106,879 4,841,902 3,850,671 55,571 3,795,100
Total at the end of year Long term + Short term 7,763,925 1,139,851 6,624,074 6,589,305 962,085 5,627,220
36. HEDGE RESERVES
The Group has hedged the foreign exchange movement of its US$ 15m investment in Bujagali Holding Power Company Limited by borrowing a US$
15m denominated loan. The hedge is expected to be 89% effective for the next three year period. The hedge reserve is included in the translation
reserve. Below is the movement in the hedge reserve:
2010 2009
Kshs ‘000 Kshs ‘000
Loan translation difference (182,015) 106,958
Currency translation difference 210,017 120,656
Balance of the hedge reserve 28,002 13,698
JUBILEE HOLDINGS