Notes

Note 6 - Technical result and technical provisions

  Parent company   Consolidated accounts
      21.02.16     21.02.16
      to 20.02.17     to 20.02.17
Amounts in USD 000's P&I M&E Total P&I M&E Total
             
Technical result            
Gross written premium 398,974 0 398,974 531,601 202,959 734,561
             
Gross earned premium 398,945 0 398,945 531,474 235,890 767,364
Ceded reinsurance (257,105) 0 (257,105) (117,371) (32,810) (150,181)
Earned premium for own account 141,840 0 141,840 414,103 203,080 617,183
             
Claims incurred, gross            
Incurred this year 299,766 0 299,766 397,158 94,579 491,737
Incurred previous years (22,587) 0 (22,587) (84,713) 123,421 38,708
Total claims incurred, gross 277,179 0 277,179 312,444 218,001 530,445
             
Reinsurers' share of gross incurred claims (122,324) 0 (122,324) 13,141 (50,541) (37,400)
Claims incurred for own account 154,856 0 154,856 325,585 167,460 493,045
             
  Parent company    Consolidated accounts
  As at 20.02.17 As at 20.02.17
Amounts in USD 000's P&I M&E Total P&I M&E Total
             
Technical provisions gross            
Provisions, at the beginning of the year (880,525) 0 (880,525) (1,252,748) (319,750) (1,572,498)
Claims paid  330,024 0 330,024 437,152 220,127 657,279
Claims incurred - gross this year (299,766) 0 (299,766) (397,158) (94,579) (491,737)
Claims incurred - gross previous years 22,587 0 22,587 84,713 (123,421) (38,708)
Foreign currency adjustment 0 0 0 0 4 4
Provisions, at the end of the year (827,679) 0 (827,679) (1,128,040) (317,619) (1,445,660)
             
Reinsurers' share of claims provision 441,512 0 441,512 242,142 51,175 293,317
Provisions net, at the end of the year (386,167) 0 (386,167) (885,898) (266,445) (1,152,343)
             
Provision for unearned premiums, gross (28) 0 (28) (128) (100,582) (100,709)
Reinsurers' share of premium provision 14 0 14 14 3,408 3,423
Provision for unearned premiums, net (14) 0 (14) (113) (97,173) (97,287)
     
The Company is a member of the International Group of P&I Clubs.           
Net technical provision regarding Pooling Agreement  61,733 0 61,733 148,348 0 148,348
     
Provision for outstanding claims            
Technical provision gross (827,679) 0 (827,679) (1,128,040) (317,619) (1,445,660)
Technical provision net (386,167) 0 (386,167) (885,898) (266,445) (1,152,343)
     
Provided guarantees outside cover, not recognised in the balance sheet, amount to USD 2.8 million as at 20 February 2017 (USD 3.9 million as at 20 February 2016). 
Sensitivity analysis has been performed in order to evaluate how sensitive gross claims reserve is dependent on the actuarial methods applied. The Company applied the following methods: Development factor method, Bornhuetter Ferguson, a priori reduced method and Benktander. Based on these methodologies the gross claim reserve for the group ranges between USD 1,435 million and USD 1,456 million. The claim reserves for the parent ranges between USD 820 million and 834 million.