AIA Financial Overview and ESG Commitment
IFRS 9 and 17 Update
IFRS 17 Insurance Contract Liabilities are Largely Unchanged
AIA
IFRS 4
Insurance
Contract
Liabilities
Total Insurance Contract Liabilities ($b)
239
1
Elimination
of DAC
IFRS 4
Insurance
As at 1 Jan 2022
211
214
Best
Estimate
Liabilities
155
239
(BEL)
Contract
211
Liabilities net
IFRS 4
of DAC
IFRS 4
Risk
Adjustment
4
(RA)
CSM
55
IFRS 17
IFRS 17
Insurance
Contract
Liabilities
ā
Deferred Acquisition Costs (DAC) is
eliminated for comparison with IFRS 17 as
acquisition costs are accounted for within the
Insurance Contract Liabilities under IFRS 17
Insurance Contract Liabilities (net of DAC)
are stable between IFRS 4 and IFRS 17
Best Estimate Liabilities (BEL) represent
the present value of best estimate cashflows
using the IFRS 17 discount rates
Risk Adjustment (RA) is an explicit add-on
for non-financial risk over and above the
best estimate assumptions
Contractual Service Margin (CSM) of $55b
represents the stock of future profits within
the balance sheet
Note: IFRS 17 insurance contract liabilities are presented net of insurance contract assets and assets for insurance acquisition cash flows to be consistent with IFRS 4 insurance contract liabilities net of DAC
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