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64 | The South African Insurance Industry Survey 2016

Below is the income statements for the three months ending 31 March 2021 (the end of the contracts) and for the four months ending
30 April 2021 (once all claims incurred prior to 31 March have been paid):

Income statement Following year new accounts Following year new accounts

Gross written premium 31 Mar - end of contract 30 Apr - claims all paid
UPP movement
Revenue recognised for coverage Current basis PAA BBA Current basis PAA BAA
Release of risk adjustment - -
Release of CSM -- - -- -
Expected claims - -
Acquistion costs (30 000) - 30 000 -
Revenue 693 858
- (30 000) 12 300 - 30 000 12 300
11 100 11 100
-- 6 000 -- 6 000
30 093 30 258
-- -

-- -

-- -

30 000 30 000 30 000 30 000

Reported claims incurred (11 350) (11 350) (11 350) (12 100) (12 100) (12 100)
Movement in IBNR (350) 250 250 2600 800 800
Risk adjustment - 93 - - -
Claims incurred (258)
(11 700) (11 008) (11 100) (9 500) (11 043) (11 300)

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

Profit or loss 12 300 12 993 12 993 14 500 12 958 12 958