Investor Presentaiton
Glossary
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Other Comprehensive Income ('OCI') refers to items of income and expense that are not recognized in profit or loss in accordance with IFRS Standards
Contractual Service Margin ('CSM') refers to a component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the entity
will recognize as it provides insurance contract services under the insurance contracts in the group
Risk Adjustment ('RA') under IFRS 17 for non-financial risk is the compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises
from non-financial risks as the entity fulfils insurance contracts
Present Value of Expected Premiums ('PVEP'): explicit, unbiased and probability-weighted estimate (i.e. expected value) of the present value of the future premiums that will arise as
the entity fulfils insurance contracts from newly issued contracts during the period
New Business Value ('IFRS17 NBV'): the value of newly issued contracts during the current year. It consist of the sum of (i) the New business contractual service margin, (ii) the present
value of the future profits of short term newly issued contracts during the period, carried by Life entities, considering expected renewals, (iii) the present value of the future profits of pure
investment contracts accounted for under IFRS 9, net of (iv) the cost of reinsurance, (v) taxes and (vi) minority interests
New Business Value Margin ('IFRS17 NBV Margin'): ratio of (i) New Business Value to (ii) Present Value of Expected Premiums
New Business Contractual Service Margin ('N BCSM'): a component of the carrying amount of the asset or liability for newly issued insurance contracts during the period, representing
the unearned profit the entity will recognize as it provides insurance contract services
Underlying Earnings new definition: Underlying earnings represent the net income (Group share), before the impact of the following items, net of taxes and minority interests:
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realized gains and losses, change in impairment valuation allowances on assets at cost or designated at fair value through other comprehensive income (including expected
credit loss) and not backing direct participating businesses;
profit or loss on financial assets and derivatives accounted for under fair value through profit and loss and not backing direct participating businesses, foreign exchange impacts
on assets and liabilities;
impairments of goodwill, impairments and amortization of intangibles related to customers and distribution agreements;
integration and restructuring costs related to newly acquired companies as well as restructuring and associated costs related to productivity improvement plans; and
exceptional operations (primarily changes in scope and discontinued operations).
Additionally, throughout this document, Contractual Service Margin and Risk Adjustment, unless otherwise explicitly stated, are pre-tax liabilities
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IFRS17 Presentation | November 3, 2022
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