2022-23 SGI CANADA Annual Report
Net provision for unpaid claims
Beginning of the year:
Net unpaid claims - discounted
PFAD and discount
Net unpaid claims - undiscounted
Net unpaid claims, Preceding accident year - undiscounted
Net unpaid claims, prior years, beginning of the year - undiscounted
Payments made during the year relating to prior year claims
Deficiency relating to prior year estimated unpaid claims
Net unpaid claims, prior years - undiscounted
Net unpaid claims, current year:
Preceding accident year
Current accident year
Net unpaid claims, end of the year- undiscounted
PFAD and discount, end of the year
Net unpaid claims, end of the year - discounted
The net provision for unpaid claims is summarized as follows:
Net unpaid claims
Gross unpaid claims
2023
2022
2023
(thousands of $)
2022
$
686,780 $
624,430
(22,436)
(37,681)
664,344
586,749
(127,362)
(97,769)
536,982
488,980
(180,198)
(178,411)
14,972
21,599
371,756
332,168
263,133
204,814
119,679
127,362
754,568
664,344
9,736
22,436
$
764,304 $
686,780
(thousands of $)
Reinsurance recoverable
2023
2022
Net unpaid claims
2023
2022
Provision for reported claims,
undiscounted
$
524,878 $ 499,394 $ 28,738 $ 57,182
$ 496,140 $ 442,212
Provision for claims incurred but
not reported
PFAD
Effects of discounting
256,807
71,934
(61,883)
217,404
(1,621)
(4,728)
$ 791,736
68,713
1,558
(45,212)
(1,243)
$ 740,299 $ 27,432
2,969
(1,904)
258,428
70,376
(60,640)
222,132
65,744
(43,308)
$ 53,519
$ 764,304 $ 686,780
Management believes that the unpaid claims provision is appropriately established in the aggregate and is adequate
to cover the ultimate net cost on a discounted basis. The determination of this provision, which includes unpaid
claims, adjustment expenses and expected salvage and subrogation, requires an assessment of future claims
development. This assessment takes into account the consistency of the Corporation's claim handling procedures,
the amount of information available, the characteristics of the line of business from which the claims arise and
the delay inherent in claims reporting. This provision is an estimate and as such is subject to variability that may
arise from future events, such as the receipt of additional claims information, changes in judicial interpretation
of contracts or significant changes in frequency and severity of claims. This estimate is principally based on
the Corporation's historical experience and may be revised as additional experience becomes available.
2022-23 SGI CANADA Annual Report 59View entire presentation