AIA's Financial Overview Post IFRS 17 Transition
Non-Participating Business (GMM) Accounting Treatment
AIA
Non-Participating Business (GMM)
Accounting Treatment of Insurance Contract Liabilities and Invested Asset Movements
Insurance Contract Liabilities
Assumption Changes
Operating
Invested Assets
Mark-to-Market Movement
Discount Rates
Fixed
Income
Equities &
Real Estate (2)
IFRS 17
CSM
OCI(1)
OCI(1)
Net Profit
Implications
IFRS 17 vs IFRS 4
OCI is smaller and shareholders' equity more stable
■ Discount rate changes on insurance contract liabilities and
mark-to-market on fixed income both flow through OCI
IFRS 4
Locked-in
Locked-in
OCI
Net Profit
Net profit treatment similar vs IFRS 4
■ >95% of invested assets continue on mark-to-market basis
Notes: Excludes unit-linked and short-term contracts under PAA approach for simplicity
(1)
(2)
Except for unit-linked with significant protection benefits which is recognised through net profit
The classification of real estate under IFRS 17 in the table represents investment properties. Classification of properties held for own use generally follows IAS 16. The classification of real estate under IFRS 4 in the table represents investment properties only
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