1. Note Financial assets and liabilities classified as fair value through profit or loss on initial recognition Financial assets and liabilities at amortised cost PPS ProfitShare accounts and reinsurance contracts Total carrying amount Fair value 7 15 691 – – 15 691 15 691 7 6 607 – – 6 607 6 607 7 20 042 – – 20 042 20 042 7 57 – – 57 57 7 11 500 – – 11 500 11 500 9 – – 1 382 1 382 1 382 13 – 1 069 – 1 069 1 069 14 – 2 915 – 2 915 2 915 10 – – (32 293) (32 293) (32 293) – – (7 290) (7 290) (7 290) – – (240) (240) (240) 9 – – (118) (118) (118) 15 (4 495) – – (4 495) (4 495) 16 (15 086) – – (15 086) (15 086) 9 – – (13) (13) (13) 20 – (221) – (221) (221) (a) * Fair value analysis of financial statement line items with a fair value (continued) The note has been restated to align with IFRS 17 disclosures and to remove prepayments from the table Qualifying policyholders’ residual interest in the net assets of the PPS Group Group R’m 2022 Restated* Equity securities(a) Local listed International listed Debt securities(a) Government and local bonds International listed Unit trusts and pooled funds(a) Reinsurance contract assets Receivables Cash and cash equivalents PPS Profit-Share accounts Liability for remaining coverage and incurred claims Short-term insurance policy liabilities Investment contract liabilities Debt securities are designated at fair value through profit and loss and Equity securities and Unit trusts and pooled funds are mandatorily held at fair value through profit and loss. Payables Liabilities to unit trust holders Reinsurance contract liabilities NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2023 33 8. 8.2 Product Currency 2021 2022 2023 2021 2022 2023 Personal Lines ZAR 5.5% 8.1% 8.6% 6.7% 8.7% 8.9% Commercial Lines ZAR 5.5% 8.1% 8.6% 6.7% 8.7% 8.9% Health Professional Indemnity ZAR 5.5% 8.1% 8.6% 6.7% 8.7% 8.9% Product Currency 2021 2022 2023 2021 2022 2023 Personal Lines ZAR 8.3% 9.6% 9.7% 10.7% 11.9% 12.1% Commercial Lines ZAR 8.3% 9.6% 9.7% 10.7% 11.9% 12.1% Health Professional Indemnity ZAR 8.3% 9.6% 9.7% 10.7% 11.9% 12.1% Risk adjustment for non-financial risk Short-term insurance liabilities (continued) Short-term insurance contracts – assumptions (continued) Insurance contract liabilities are calculated by discounting expected future cash flows at a risk-free rate, plus an illiquidity premium where applicable. Risk-free rates are determined with reference to the yields published by the Prudential Authority and prescribed for use within the Prudential Standards. Discount rates The Group has estimated the risk adjustment using a confidence level (probability of sufficiency) approach at least at the 60th percentile. That is, the Group has assessed its indifference to uncertainty for all product lines (as an indication of the compensation that it requires for bearing non-financial risk) as being equivalent to at least the 60th percentile confidence level less the mean of an estimated probability distribution of the future cash flows. The Group has estimated the probability distribution of the future cash flows, and the additional amount above the expected present value of future cash flows required to meet the target percentiles. Discount rates applied for discounting of future cash flows are listed below: The risk adjustment for non-financial risk is the compensation that the Group requires for bearing the uncertainty about the amount and timing of the cash flows of groups of insurance contracts. The risk adjustment reflects an amount that an insurer would rationally pay to remove the uncertainty that future cash flows will exceed the expected value amount. 1 year 3 year 5 year 10 year 150 Notes to the Consolidated Financial Statements
RkJQdWJsaXNoZXIy MTY2ODY3Ng==