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The South African Insurance Industry Survey 2016 | 61

The income statements for the quarter ended 30 June (one quarter into the contracts) and for the year ended 31 December are as follows:

Income statement Cummulative accounts Cummulative accounts

Gross written premium 30 June - after 1 quarter 31 Dec - year end (3 quarters)
UPP movement
Revenue recognised for coverage Current basis PAA BBA Current basis PAA BAA
Release of risk adjustment - -
Release of CSM 120 000 - - 120 000 - -
Expected claims - -
Acquistion costs (90 000) - (30 000) -
Revenue 440 1543
- (30 000) 12 300 - 90 000 36 900
11 100 33 300
-- 6 000 -- 18 000
29 840 89 743
-- -

-- -

-- -

30 000 30 000 90 000 90 000

Reported claims incurred (10 100) (10 100) (10 100) (32 500) (32 500) (32 500)
Movement in IBNR (1 600) (1 000) (1 000) (2 600) (800) (800)
Risk adjustment - (258) -
Claims incurred - (160) - (35 100)
(11 700) (11 260) (11 100) (35 558) (33 300)

Acquisition costs incurred (24 000) (6 000) (6 000) (24 000) (18 000) (18 000)
Movement in DAC 18 000 - - 6 000 - -
Acquisition expense (6 000)
(6 000) (6 000) (18 000) (18 000) (18 000)

Profit or loss 12 300 12 740 12 740 36 900 38 443 38 443

The profit or loss continues to remain consistent between PAA and BBA. The additional prudency included in the IBNR under the current basis results in a lower
profit for the current basis.