Professional Templates for Ghana's Non-Life Insurance Industry
This reconciliation is mandatory for all non-life insurers under IFRS 17 paragraph 100. Must be presented for both gross amounts and reinsurance contracts held separately.
| Component | Present Value of Future Cash Flows (GHS '000) | Risk Adjustment (GHS '000) | CSM (GHS '000) | Total (GHS '000) |
|---|---|---|---|---|
| Opening Balance (1 Jan 2024) | 45,320 | 3,450 | 8,230 | 57,000 |
| New Business Written | 12,500 | 950 | 2,100 | 15,550 |
| Expected Premium Receipts | -28,400 | - | - | -28,400 |
| Expected Claims & Expenses | 18,200 | - | - | 18,200 |
| Experience Adjustments | 1,250 | -120 | -180 | 950 |
| CSM Recognized in P&L | - | - | -2,850 | -2,850 |
| Risk Adjustment Released | - | -680 | - | -680 |
| Finance Income/Expense | 1,820 | 140 | 320 | 2,280 |
| Closing Balance (31 Dec 2024) | 50,690 | 3,740 | 7,620 | 62,050 |
| CSM Movement Components | Q1 2024 (GHS '000) | Q2 2024 (GHS '000) | Q3 2024 (GHS '000) | Q4 2024 (GHS '000) | YTD Total (GHS '000) |
|---|---|---|---|---|---|
| Opening CSM Balance | 8,230 | 8,450 | 8,320 | 8,180 | 8,230 |
| New Business Added | 650 | 480 | 520 | 450 | 2,100 |
| Interest Accretion | 380 | 390 | 385 | 378 | 1,533 |
| Changes in Estimates (Favorable) | 120 | -85 | 45 | -95 | -15 |
| Changes in Estimates (Unfavorable) | -180 | -220 | -150 | -125 | -675 |
| Foreign Exchange Impact | 25 | -35 | -45 | 38 | -17 |
| CSM Recognized (Coverage Units) | -725 | -660 | -745 | -720 | -2,850 |
| Closing CSM Balance | 8,450 | 8,320 | 8,180 | 7,506 | 7,506 |
| Coverage Units Analysis | |||||
| Total Coverage Units | 24,500 | 23,800 | 23,200 | 22,600 | 94,100 |
| Coverage Units Released | 6,125 | 5,950 | 6,380 | 6,328 | 24,783 |
| Release Percentage | 25.0% | 25.0% | 27.5% | 28.0% | 26.3% |
For Motor: Policy count × remaining coverage period | For Property: Sum insured × time | For Engineering: Contract value × percentage completion | For Marine: Voyage days or sum insured
Ghana insurers typically use Cost of Capital (CoC) or Confidence Level approach. This template supports both methods as approved by NIC Circular No. IC/REG/2023/04.
| Line of Business | Best Estimate Liabilities (GHS '000) | Standard Deviation (GHS '000) | Risk Adjustment % Applied | Risk Adjustment Amount (GHS '000) |
|---|---|---|---|---|
| Motor Comprehensive | 18,500 | 2,220 | 12.0% | 2,220 |
| Motor Third Party | 24,300 | 3,645 | 15.0% | 3,645 |
| Fire & Burglary | 8,200 | 738 | 9.0% | 738 |
| Marine & Aviation | 3,450 | 414 | 12.0% | 414 |
| Engineering | 5,600 | 840 | 15.0% | 840 |
| General Accident | 4,200 | 462 | 11.0% | 462 |
| Total Portfolio | 64,250 | 8,319 | 12.9% | 8,319 |
| Movement Component | Amount (GHS '000) | Impact on P&L |
|---|---|---|
| Opening Risk Adjustment (1 Jan 2024) | 7,850 | - |
| Risk Adjustment on New Business | 1,250 | Deferred |
| Risk Adjustment Released to P&L | -890 | Income |
| Changes in Risk Assessment | 109 | Expense |
| Closing Risk Adjustment (31 Dec 2024) | 8,319 | Net Income: 781 |
Claims development patterns reflect Ghana's unique factors: delayed reporting for motor third party claims, seasonal flooding impacts on property claims, and foreign exchange impacts on marine claims.
| Accident Year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Ultimate |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 12,450 | 14,230 | 15,120 | 15,450 | 15,680 | 15,750 | 15,820 | 15,890 | 15,920 | 15,950 | 15,950 |
| 2016 | 13,200 | 15,450 | 16,380 | 16,890 | 17,120 | 17,250 | 17,320 | 17,380 | 17,420 | - | 17,420 |
| 2017 | 14,500 | 16,820 | 17,980 | 18,450 | 18,720 | 18,890 | 18,980 | 19,050 | - | - | 19,050 |
| 2018 | 15,600 | 18,120 | 19,450 | 19,980 | 20,280 | 20,450 | 20,550 | - | - | - | 20,550 |
| 2019 | 16,800 | 19,650 | 21,120 | 21,750 | 22,080 | 22,280 | - | - | - | - | 22,280 |
| 2020 | 14,200 | 16,450 | 17,680 | 18,120 | 18,380 | - | - | - | - | - | 18,380 |
| 2021 | 18,500 | 21,780 | 23,450 | 24,120 | - | - | - | - | - | - | 24,120 |
| 2022 | 20,300 | 23,950 | 25,780 | - | - | - | - | - | - | - | 26,540 |
| 2023 | 22,100 | 26,080 | - | - | - | - | - | - | - | - | 28,950 |
| 2024 | 24,500 | - | - | - | - | - | - | - | - | - | 32,110 |
| Development Period | Motor Third Party | Motor Comprehensive | Property | Marine | Weighted Average |
|---|---|---|---|---|---|
| 12-24 months | 1.182 | 1.085 | 1.095 | 1.065 | 1.118 |
| 24-36 months | 1.089 | 1.025 | 1.035 | 1.015 | 1.048 |
| 36-48 months | 1.042 | 1.008 | 1.012 | 1.003 | 1.021 |
| 48-60 months | 1.018 | 1.002 | 1.004 | 1.001 | 1.009 |
| 60+ months (Tail) | 1.008 | 1.001 | 1.001 | 1.000 | 1.003 |
Outstanding Claims Reserve: GHS 45,280,000 | IBNR Reserve: GHS 12,450,000 | Total Claims Liabilities: GHS 57,730,000 | Reserve Adequacy Ratio: 108.5%
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