4.10. Technical reserves
As at 31 December 2016
| (CZK’000) | Gross reserve | Inwards reinsurance | Share of reinsurers | Net reserve |
|---|---|---|---|---|
| Unearned premium reserve | 1,644,873 | 13,123 | (698,631) | 959,365 |
| Life insurance reserve | 4,590,950 | – | – | 4,590,950 |
| Reserve for claims | 6,719,002 | 308,044 | (2,938,007) | 4,089,039 |
| Reserve for bonuses and discounts | 65,236 | 14,377 | – | 79,613 |
| Other technical Reserves (Reserve for liabilities of Czech Bureau of Insurers) | 175,818 | – | – | 175,818 |
| Total | 13,195,879 | 335,544 | (3,636,638) | 9,894,785 |
As at 31 December 2015
| (CZK’000) | Gross reserve | Inwards reinsurance | Share of reinsurers | Net reserve |
|---|---|---|---|---|
| Unearned premium reserve | 1,559,066 | 15,511 | (684,786) | 889,791 |
| Life insurance reserve | 4,687,559 | – | – | 4,687,559 |
| Reserve for claims | 6,556,595 | 187,362 | (2,757,147) | 3,986,810 |
| Reserve for bonuses and discounts | 64,208 | 18,847 | – | 83,055 |
| Other technical Reserves (Reserve for liabilities of Czech Bureau of Insurers) | 220,320 | – | – | 220,320 |
| Total | 13,087,748 | 221,720 | (3,441,933) | 9,867,535 |
Inward and outward reinsurance parts of the technical reserves are disclosed in note 4.15.
Reserve for claims
| (CZK’000) | 31 December 2016 | 31 December 2015 |
|---|---|---|
| Gross RBNS reserve | 5,441,201 | 5,110,251 |
| Gross IBNR reserve | 1,585,845 | 1,633,706 |
| Total reserve for claims | 7,027,046 | 6,743,957 |
Run off analysis
Estimate of ultimate claims costs as at 31 December 2016
| Claims incurred in (CZK’000) | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At the end of accounting period | 2,851,835 | 3,942,622 | 4,095,866 | 4,561,277 | 5,094,078 | 5,373,523 | 5,052,116 | 6,286,779 | 5,489,641 | 5,137,543 | 5,343,191 | 53,228,471 |
| One year later | 2,706,470 | 3,808,619 | 3,847,369 | 4,055,347 | 4,777,820 | 4,841,998 | 4,591,462 | 5,686,107 | 5,209,976 | 4,882,279 | – | 44,407,447 |
| Two years later | 2,594,736 | 3,609,241 | 3,629,426 | 3,830,103 | 4,670,936 | 4,675,219 | 4,463,863 | 5,463,296 | 5,110,578 | – | – | 38,047,398 |
| Three years later | 2,530,074 | 3,555,809 | 3,589,288 | 3,782,566 | 4,669,918 | 4,660,298 | 4,428,225 | 5,454,256 | – | – | – | 32,670,434 |
| Four years later | 2,532,975 | 3,523,394 | 3,526,441 | 3,698,690 | 4,570,701 | 4,622,518 | 4,358,140 | – | – | – | – | 26,832,859 |
| Five years later | 2,510,518 | 3,500,869 | 3,464,114 | 3,701,102 | 4,564,727 | 4,603,714 | – | – | – | – | – | 22,345,044 |
| Six years later | 2,484,989 | 3,475,559 | 3,442,967 | 3,711,794 | 4,504,649 | – | – | – | – | – | – | 17,619,958 |
| Seven years later | 2,451,375 | 3,455,387 | 3,402,616 | 3,626,355 | – | – | – | – | – | – | – | 12,935,733 |
| Eight years later | 2,455,462 | 3,422,289 | 3,350,163 | – | – | – | – | – | – | – | – | 9,227,914 |
| Nine years later | 2,438,278 | 3,382,770 | – | – | – | – | – | – | – | – | – | 5,821,048 |
| Ten years later | 2,437,118 | – | – | – | – | – | – | – | – | – | – | 2,437,118 |
| Current estimate of cumulative claims | 2,437,118 | 3,382,770 | 3,350,163 | 3,626,355 | 4,504,649 | 4,603,714 | 4,358,140 | 5,454,256 | 5,110,578 | 4,882,279 | 5,343,191 | 47,053,213 |
| Cumulative payments as at 31 December 2016 | 2,248,379 | 3,196,580 | 3,149,752 | 3,419,138 | 4,211,470 | 4,145,701 | 3,988,923 | 5,011,446 | 4,407,370 | 3,980,688 | 2,923,466 | 40,682,913 |
| Reserve as at 31 December 2016 | 188,739 | 186,190 | 200,411 | 207,217 | 293,179 | 458,013 | 369,217 | 442,810 | 703,208 | 901,591 | 2,419,725 | 6,370,300 |
| Reserve as at 31 December 2016 from prior years | – | – | – | – | – | – | – | – | – | – | – | 159,530 |
| Reserve for claims administration | – | – | – | – | – | – | – | – | – | – | – | 497,216 |
| Total reserve for claims | – | – | – | – | – | – | – | – | – | – | – | 7,027,046 |
Run off analysis
Estimate of ultimate claims costs as at 31 December 2015
| Claims incurred in (CZK’000) | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At the end of accounting period | 2,070,586 | 2,851,835 | 3,942,622 | 4,095,866 | 4,561,277 | 5,094,078 | 5,373,523 | 5,052,116 | 6,286,779 | 5,489,641 | 5,137,543 | 49,955,866 |
| One year later | 1,777,930 | 2,706,470 | 3,808,619 | 3,847,369 | 4,055,347 | 4,777,820 | 4,841,998 | 4,591,462 | 5,686,107 | 5,209,976 | – | 41,303,098 |
| Two years later | 1,759,445 | 2,594,736 | 3,609,241 | 3,629,426 | 3,830,103 | 4,670,936 | 4,675,219 | 4,463,863 | 5,463,296 | – | – | 34,696,265 |
| Three years later | 1,746,235 | 2,530,074 | 3,555,809 | 3,589,288 | 3,782,566 | 4,669,918 | 4,660,298 | 4,428,225 | – | – | – | 28,962,413 |
| Four years later | 1,746,745 | 2,532,975 | 3,523,394 | 3,526,441 | 3,698,690 | 4,570,701 | 4,622,518 | – | – | – | – | 24,221,464 |
| Five years later | 1,701,518 | 2,510,518 | 3,500,869 | 3,464,114 | 3,701,102 | 4,564,727 | – | – | – | – | – | 19,442,848 |
| Six years later | 1,671,074 | 2,484,989 | 3,475,559 | 3,442,967 | 3,711,794 | – | – | – | – | – | – | 14,786,383 |
| Seven years later | 1,652,576 | 2,451,375 | 3,455,387 | 3,402,616 | – | – | – | – | – | – | – | 10,961,954 |
| Eight years later | 1,630,544 | 2,455,462 | 3,422,289 | – | – | – | – | – | – | – | – | 7,508,295 |
| Nine years later | 1,628,942 | 2,438,278 | – | – | – | – | – | – | – | – | – | 4,067,220 |
| Ten years later | 1,614,604 | – | – | – | – | – | – | – | – | – | – | 1,614,604 |
| Current estimate of cumulative claims | 1,614,604 | 2,438,278 | 3,422,289 | 3,402,616 | 3,711,794 | 4,564,727 | 4,622,518 | 4,428,225 | 5,463,296 | 5,209,976 | 5,137,543 | 44,015,866 |
| Cumulative payments as at 31 December 2016 | 1,542,584 | 2,247,171 | 3,188,501 | 3,145,060 | 3,399,572 | 4,189,783 | 4,104,363 | 3,963,086 | 4,922,452 | 4,118,085 | 2,986,274 | 37,806,931 |
| Reserve as at 31 December 2016 | 72,020 | 191,107 | 233,788 | 257,556 | 312,222 | 374,944 | 518,155 | 465,139 | 540,844 | 1,091,891 | 2,151,269 | 6,208,935 |
| Reserve as at 31 December 2016 from prior years | – | – | – | – | – | – | – | – | – | – | – | 111,691 |
| Reserve for claims administration | – | – | – | – | – | – | – | – | – | – | – | 423,331 |
| Total reserve for claims | – | – | – | – | – | – | – | – | – | – | – | 6,743,957 |
Movements on gross technical reserves can be analyzed as follows:
| (CZK’000) | 1 January 2016 | Additions | Use | 31 December 2016 |
|---|---|---|---|---|
| Unearned premium reserve | 1,574,577 | 83,419 | – | 1,657,996 |
| Life insurance reserve | 4,687,559 | – | (96,609) | 4,590,950 |
| Reserve for claims | 6,743,957 | 283,089 | – | 7,027,046 |
| Reserve for bonuses and discounts | 83,055 | – | (3,442) | 79,613 |
| Reserve for liabilities of Czech Bureau of Insurers | 220,320 | – | (44,502) | 175,818 |
| Total | 13,309,468 | 366,508 | (144,553) | 13,531,423 |
| (CZK’000) | 1 January 2016 | Additions | Use | 31 December 2016 |
|---|---|---|---|---|
| Unearned premium reserve | 1,493,139 | 81,438 | – | 1,574,577 |
| Life insurance reserve | 4,772,199 | – | (84,640) | 4,687,559 |
| Reserve for claims | 6,481,870 | 262,087 | – | 6,743,957 |
| Reserve for bonuses and discounts | 71,400 | 11,655 | – | 83,055 |
| Reserve for liabilities of Czech Bureau of Insurers | 253,099 | – | (32,779) | 220,320 |
| Total | 13,071,707 | 355,180 | (117,419) | 13,309,468 |