Many insurance companies are reporting their half-year (HY23) results under IFRS 17 for the first time. With so much activity in recent months, now is a good time to reflect on what we’ve seen in reporting so far, outline expectations for HY23, and look forward to what we may expect at year-end.
This article tackles the evolving practice and the challenge of KPIs for insurance companies where there are inconsistencies with which they are calculated. From a life perspective, we are seeing different definitions of the value of new business, with varied practices in terms of the treatment of reinsurance, loss components, risk adjustment and non-directly attributable expenses.
Year-end 2023 will be the first time that all IFRS 17 notes and KPIs are communicated to the market, and will therefore be the first time that investors and analysts can make a full comparison of the impact of IFRS 17 on an insurer’s financial statements.
This next phase is critical in communicating the performance of your business under IFRS 17 to the market. Beyond the compliance aspect of IFRS17 implementation, we encourage you to see KPIs and your external reporting as an opportunity to control the narrative of your organisation’s performance with the external market. Observe what others are doing, and what analysts are focused on, and if you are interested to hear what we’re seeing in more detail, read the full report here.
How can we help?
If you have any queries or would like to know more about IFRS 17 reporting or how our dedicated teams can support you, please contact our team.
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