TIO 2007 Annual Report

Notes to the Financial Statements 30 June 2007Risk margins appliedClass of business 2007 2006% %TIO Insurance & Banking 14.512 12.944MAC Fund 10.745 10.746(c)Reconciliation of movement in discounted outstanding claims liability2007 2006TIO Gross Reinsurance Net Gross Reinsurance Net$’000 $’000 $’000 $’000 $’000 $’000Brought forward 343,249 (43,654) 299,595 327,058 (33,057) 294,001Effect of changes in assumptions 1,054 (1,539) (485) (8,429) 304 (8,125)Increase in claims incurred/recoveriesanticipated over the year 67,481 (10,001) 57,480 90,914 (22,734) 68,180Incurred claims recognised in theincome statement 68,535 (11,540) 56,995 82,485 (22,430) 60,055Net claim payments (72,763) 14,161 (58,602) (66,294) 11,833 (54,461)At 30 June 339,021 (41,033) 297,988 343,249 (43,654) 299,5952007 2006TIO (Insurance & Banking) Gross Reinsurance Net Gross Reinsurance Net$’000 $’000 $’000 $’000 $’000 $’000Brought forward 115,088 (19,578) 95,510 109,901 (14,361) 95,540Effect of changes in assumptions 1,573 (1,117) 456 (6,196) 3,327 (2,869)Increase in claims incurred/recoveriesanticipated over the year 30,384 (6,943) 23,441 53,066 (19,572) 33,494Incurred claims recognised in theincome statement 31,957 (8,060) 23,897 46,870 (16,245) 30,625Net claim payments (41,535) 11,655 (29,880) (41,683) 11,028 (30,655)At 30 June 105,510 (15,983) 89,527 115,088 (19,578) 95,5102007 2006MAC Fund Gross Reinsurance Net Gross Reinsurance Net$’000 $’000 $’000 $’000 $’000 $’000Brought forward 228,161 (24,076) 204,085 217,157 (18,696) 198,461Effect of changes in assumptions (519) (422) (941) (2,233) (3,023) (5,256)Increase in claims incurred/recoveriesanticipated over the year 37,097 (3,058) 34,039 37,848 (3,162) 34,686Incurred claims recognised in theincome statement 36,578 (3,480) 33,098 35,615 (6,185) 29,430Net claim payments (31,228) 2,506 (28,722) (24,611) 805 (23,806)At 30 June 233,511 (25,050) 208,461 228,161 (24,076) 204,08584