RevenueRevenue

Revenue

All assets of a statutory fund are to be measured at Fair Value, with movements in Fair Values recognised in Profit or Loss and reported as revenue or expense in these forms.

1. Insurance Policy Revenue:

Only premiums received from life insurance policies are accounted for as Insurance Policy Revenue. Premiums for life investment business are recognised as Deposits, and adjusted for as changes in policy liabilities.

The revenue components of amounts contractually received or receivable for insurance policies should be shown gross of reinsurance, with outwards reinsurance components to be shown separately.

Direct insurance premiums, policy conversions (inwards) and inwards life reinsurance premiums should be shown separately.

1.1 Life Insurance Direct Premiums

Report regular and single premiums received or receivable for life insurance business written directly. Show amounts gross of outwards reinsurance, but exclude amounts for inwards reinsurance (see item 1.3, below).

Include only revenue components of life insurance contracts, and exclude any deposit components. Include premiums in respect of deferred and immediate annuities that are life insurance business.

1.2 Policy Conversions – inwards

Report the premium elements of Conversions between statutory funds. The inward (premium) side of the conversion is shown here, while the outward (claim) side is shown at item 6.5 (Policy Conversions – outwards); any deposit components are to be taken into account in items 9.2 and/or 10.5.

Premium and Claim elements of policy conversions are not expected to apply for Life Investment Contracts, due to section 5 of AASB 1038 Life Insurance Contracts (AASB 1038). In those cases, only deposit components are expected to apply.

1.3 Inwards Life Reinsurance Premium Revenue

Report premiums for life insurance business written as inwards reinsurance. Show amounts gross of outwards (retrocession) reinsurance.

Include only revenue components, and exclude any deposit components. Include premiums in respect of deferred and immediate annuities that are life insurance business written as inwards reinsurance.

1.4 Total Premiums from Non-Life Insurance Business

Is generally only expected to apply, if permitted to write general insurance business under section 234 of the Life Insurance Act 1995.

1.5 Outward Reinsurance Premiums Expense

Outwards Reinsurance Premiums Expense is to be entered as expense amounts (i.e. as negative amounts).

Include only revenue components, and exclude any deposit components. Include premiums in respect of deferred and immediate annuities that are life insurance business.