92 LV= Annual Report 2012
Notes to the Financial Statements continued
31 December 2012
21. Insurance contract liabilities (continued)
c) Movement in long-term linked insurance contract liabilities (continued)
2012 2011
Gross Reinsurance Net Gross Reinsurance Net
Society £m £m £m £m £m £m
Balance at 1 January 77.9 (23.0) 54.9 68.7 (50.4) 18.3
Premiums received 81.2 (15.7) 65.5 23.9 (19.4) 4.5
Liabilities paid for death maturities, surrenders,
benefits & claims (40.8) 14.2 (26.6) (31.7) 13.6 (18.1)
New business (12.9) (22.5) (35.4) 2.9 (5.1) (2.2)
Benefits and claims variation (9.5) (0.1) (9.6) (2.2) 0.6 (1.6)
Fees deducted (6.4) – (6.4) (1.5) 1.1 (0.4)
Accretion of investment income or change in unit prices 3.5 (1.2) 2.3 – (0.7) (0.7)
- Mortality/morbidity (9.1) (8.0) (17.1) 0.1 (0.2) (0.1)
- Expense (15.4) 1.1 (14.3) (3.9) 2.2 (1.7)
- Lapse and surrender rates – – – 0.2 (0.1) 0.1
- Discount rate 8.6 (2.5) 6.1 11.9 (9.1) 2.8
- Model changes – – – (6.8) 6.0 (0.8)
- Other (0.1) 22.2 22.1 16.3 38.5 54.8
Balance at 31 December 77.0 (35.5) 41.5 77.9 (23.0) 54.9
d) Movement in long-term claims liabilities
2012 2011
Gross Reinsurance Net Gross Reinsurance Net
Group £m £m £m £m £m £m
Balance at 1 January 40.0 – 40.0 44.6 – 44.6
Claims notified 651.7 (61.8) 589.9 663.1 (54.5) 608.6
Claims paid during the year (649.3) 61.8 (587.5) (667.7) 54.5 (613.2)
Balance at 31 December 42.4 – 42.4 40.0 – 40.0
2012 2011
Gross Reinsurance Net Gross Reinsurance Net
Society £m £m £m £m £m £m
Balance at 1 January 39.9 – 39.9 44.4 – 44.4
Claims notified 646.6 (61.8) 584.8 657.3 (102.4) 554.9
Claims paid during the year (644.2) 61.8 (582.4) (661.8) 102.4 (559.4)
Balance at 31 December 42.3 – 42.3 39.9 – 39.9
e) Movement in general insurance unearned premiums
2012 2011
Gross Reinsurance Net Gross Reinsurance Net
Group £m £m £m £m £m £m
Balance at 1 January 747.4 (13.0) 734.4 624.7 (10.2) 614.5
Premiums written in the year 1,484.9 (35.0) 1,449.9 1,455.6 (27.7) 1,427.9
Premiums earned during the year (1,486.3) 33.2 (1,453.1) (1,332.9) 24.9 (1,308.0)
Balance at 31 December 746.0 (14.8) 731.2 747.4 (13.0) 734.4
f) Movement in general insurance claims liabilities
2012 2011
Gross Reinsurance Net Gross Reinsurance Net
Group £m £m £m £m £m £m
Balance at 1 January 1,029.9 (100.9) 929.0 840.1 (76.4) 763.7
Movement in claims incurred in prior accident years 32.7 (23.5) 9.2 35.0 (22.7) 12.3
Claims incurred in the current accident year 1,080.1 (25.5) 1,054.6 927.5 (9.2) 918.3
Claims paid during the year (855.6) 14.9 (840.7) (772.7) 7.4 (765.3)
Balance at 31 December 1,287.1 (135.0) 1,152.1 1,029.9 (100.9) 929.0