Disaggregated Information (AASB1038_07-04_COMPmay19_01-20)

For each statutory fund and for the shareholder fund the following shall be disclosed:

(a) investment assets;

(b) other assets;

(c) life insurance liabilities;

(d) life investment contract liabilities and assets or liabilities arising in respect of the management services element of life investment contracts;

(e) liabilities other than life insurance liabilities or life investment contract liabilities;

(f) retained earnings, showing the amount directly attributable to shareholders and other retained earnings;

(g) premium revenue split between life insurance contracts and life investment contracts;

(h) investment income;

(i) claims expense split between life insurance contracts and life investment contracts;

(j) other operating expenses;

(k) investment income paid or allocated to policyholders;

(l) profit or loss before tax;

(m) profit or loss after tax; and

(n) transfers to or from other funds.

Disaggregated information for each life fund and the shareholder fund is useful because, under Australian legislation, each life insurer may have more than one fund and, in general, the assets of each life fund are only available to meet the liabilities and expenses of that life fund.

A life insurer shall disclose the information required by paragraphs 18.1(a) to 18.1(m) disaggregated between those amounts relating to investment-linked business and those relating to non-investment-linked business.

The risks and potential rewards for a life insurer differ substantially as between investment-linked business and non-investment-linked business. Accordingly, disaggregated information about these is considered to be useful in assessing the financial performance and financial position of a life insurer. The information required by paragraph 18.2 is for the entity’s life insurance business as a whole; it is not required for each life fund.

[Deleted by the AASB]

Disclosures required by paragraphs 18.1 and 18.2 shall include all imputed inflows and outflows as income and expenses where they can be reliably measured.

As discussed in paragraph 11.1.1, life insurers often impute inflows and outflows to different classes of policyholders and shareholders to help ensure that they are treated equitably. Whereas, in relation to the statement of comprehensive income and the statement of financial position, paragraph 11.1 only permits the recognition of imputed inflows and outflows relating to transactions with external parties, paragraph 18.3 requires all imputed inflows and outflows to be included in the disaggregated information to reflect the performance of each segment of the life insurer.