insurance annual report 2012rbf.gov.fj/docs2/rbf 2012 insurance annual report.pdf · the australian...

RESERVE BANK OF FIJI

INSURANCE ANNUALREPORT

2012

Our Vision- Leading Fiji to Economic Success

Our Mission- Enhance our role in the development of the economy

- Provide proactive and sound advice to Government

- To develop an internationally reputable financial system

- Conduct monetary policy to foster economic growth

- Disseminate timely and quality information

- Recruit, develop and retain a professional team

Our Values- Professionalism in the execution of our duties

- Respect for our colleagues

- Integrity in our dealings

- Dynamism in addressing our customers’ needs

- Excellence in everything

Our Objectives- To administer the Insurance Act (1998) efficiently and

effectively;

- To ensure that the law relating to insurance and

supervision is proactive, relevant and effective;

- To promote professional standards of management and

business practice in the insurance industry;

- To provide information, advice and dialogue relating to

insurance and insurance supervision;

- To support orderly growth of the insurance industry

and its services; and

- To maintain a professional supervisory body that

delivers a high standard of service.

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Contents

Letter to the Minister 2

Governor’s Foreword 3

Economic Overview 4

International Insurance Market 7

Domestic Insurance Market 10

Regulation and Supervision 12

General Insurance 17

Life Insurance 22

Insurance Brokers 27

Calendar of Events 30

Appendices 33

General Insurance 34

Life Insurance 58

Insurance Brokers 69

Key Disclosure Statements of Licensed Insurance Companies 75

List of Licensed Insurers and Brokers as at 31 December 2012 80

List of Licensed Insurance Agents as at 31 December 2012 81

Fiji: Key Economic and Financial Indicators 86

Fiji: Key Insurance Indicators 87

(Note: All values in this Report are in Fiji Dollars unless otherwise specified. Some variations in calculations due to rounding off.)

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2

Letter to the Minister


Private Mail Bag, Suva, Fiji Tel: (679) 331 3611 Fax: (679) 330 4363 Email: [email protected] Website: www.rbf.gov.fj

Governor

28 June 2013 Commodore Josaia Voreqe Bainimarama Prime Minister and Minister for Finance Ministry of Finance Ro Lalabalavu House Victoria Parade SUVA Dear Sir Insurance Annual Report 2012 Pursuant to the requirements of section 165 of the Insurance Act (1998), I am pleased to submit the Insurance Annual Report on the administration of the Insurance Act (1998) and other matters during the year ended 31 December 2012. Yours sincerely

………………….. Barry Whiteside Governor attch:



Governor

28 June 2013 Commodore Josaia Voreqe Bainimarama Prime Minister and Minister for Finance Ministry of Finance Ro Lalabalavu House Victoria Parade SUVA Dear Sir Insurance Annual Report 2012 Pursuant to the requirements of section 165 of the Insurance Act (1998), I am pleased to submit the Insurance Annual Report on the administration of the Insurance Act (1998) and other matters, during the year ended 31 December 2012. Yours sincerely

………………….. Barry Whiteside Governor attch:


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strengthen the promotion of transparency and comparison of insurer performance across the industry. Non-life insurers were also required for the first time in 2012, to prepare and provide their Financial Condition Reports and Liability Valuation Reports to the Reserve Bank, as part of prudential reporting. This has always been the requirement for life insurers only.

Looking ahead, interest rates are likely to stay at low levels for the foreseeable future, and investment returns are likely to remain weak, compelling non-life insurance providers to improve underwriting margins. This will require difficult decisions on pricing. Insurance companies therefore need to be more selective in entering or exiting new markets, utilising distribution channels and managing costs, while maintaining productivity.

The increasing severity and frequency of natural disasters are reshaping insurer views of risk, further demonstrating an increased scope for catastrophe modeling to mitigate risks. Technology investment to support growth and improve risk management is a strategic necessity.

As life insurers undertake their re-pricing initiatives, they will also seek to maintain the strength of their balance sheet and capital positions. Managing to a new economic reality will require rethinking strategies for a sustainable competitive advantage.

As regulators seek to reinforce consumer confidence in the industry, insurers must consider the far-reaching implications of changing regulations on their operations, structures and business models. The industry is confronting significant regulatory and accounting changes that will impact existing processes, controls, resources and systems.

All players in the insurance industry should be proud of how they help contribute to the protection of our people and communities, against adverse circumstances. This has been clearly demonstrated in the industry’s continued efforts to respond to recent catastrophes, and is reflected in the life industry’s ongoing development of products to suit the needs of our local people. Despite this, there is an ongoing need to improve the public perception around the value of insurance, so that more Fijians are encouraged to participate in seeking protection.

I take this opportunity to acknowledge the continuing cooperation of the insurance industry towards improving compliance with the regulatory guidelines and their contribution in providing such an important service to the nation.

............................................. Barry Whiteside

Governor

While 2011 was marked by a historically high incidence of disasters and the ongoing financial crisis, 2012 also had its share of insurance shaking trends and events.

The 2012 events affected the insurance industry to varying degrees across countries. In some, natural disasters were the main theme, affecting the non-life insurance sector. In other countries, especially those of the Euro zone, difficult macroeconomic conditions posed challenges for the industry as a whole. Most countries were affected by continued financial market volatility.

Many had predicted that 2012 would be the year of the customer, with many leading insurers focusing on improving the customer experience to differentiate themselves from competitors and expand their global market share. However the year presented some common issues in the different world markets such as the uncertain economic environment, low interest rates which impacted investment returns, and numerous proposed regulations.

Globally, underwriting results improved in 2012 compared to 2011, which was a year with high catastrophe losses. While the growth in non-life premiums accelerated slightly, growth in life premiums was however close to zero. Mergers and acquisitions in the insurance industry remained fairly active in 2012, against a backdrop of sluggish economic growth globally, economic distress in Europe and a shifting regulatory environment.

In spite of the economic slowdown, growth opportunities were identified particularly in emerging markets in the Asia-Pacific region, attributed to the geographic diversity and a growing customer base.

Natural disasters were certainly the main theme for Fiji’s insurance industry in 2012. The domestic non-life industry for the first time, reported an underwriting loss of $2.8 million, which contributed to an industry net loss after tax of $6.1 million. The two floods in western Viti Levu, and Cyclone Evan, were major contributors to this result.

The assets of the local insurance industry noted a growth of 16.4 percent on a consolidated level. Gross premium income for the non-life industry grew by 16.5 percent, while the life industry registered a positive annual growth of 17.4 percent in gross premium income. Industry profitability, however, declined in 2012, when compared to 2011.

Reinsurance and capital support across the industry were assessed to be adequate in 2012. The insurance industry recorded a solvency surplus of $156.5 million, a 9.8 percent increase over the year.

2012 saw the first year of the publication of Key Disclosure Statements of insurers in Fiji, following the implementation of the Reserve Bank’s Insurance Supervision Policy Statement No. 11, in December 2011. These publications are expected to

Governor’s Foreword

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4

Economic OverviewDuring the year, the world economy performed against a background of lacklustre performance in many

advanced economies with high fiscal debt, weak external demand,

subdued domestic activity, and depressed labour markets.

INTERNATIONAL ECONOMIC DEVELOPMENTS According to the International Monetary Fund (IMF), growth in

the world economy in 2012 decelerated further to 3.2 percent

from 4.0 percent in 2011. During the year, the world economy

performed against a background of lacklustre performance in

many advanced economies with high fiscal debt, weak external

demand, subdued domestic activity, and depressed labour

markets. The European debt crisis, and uncertainties surrounding

the expected consolidation of fiscal policies in the United States

(US) towards the year end, continued to pose downside risks to

the overall global economic health. Monetary and fiscal stimuli

were further boosted by policymakers as many economies were

losing steam. This however, was complicated by the expected

austerity measures for certain economies and withdrawal of

stimulus since the onset of the global financial crisis.

The economic performances of Fiji’s major trading partners were

generally subdued in 2012. In the US, growth faltered towards

year end, led by a sharp fall in government spending, as well

as declines in business inventories and exports. Nonetheless,

signs of strength in consumer spending, business investment

and housing market recovery suggested that the economy will

continue to grow, albeit slowly, after a 2.2 percent growth in

2012. The Federal Reserve launched its third round of an open-

ended quantitative easing program, which would remain for

some time to support recovery.

The Euro zone slid into a recession in the third quarter of 2012.

Leading indicators continued to falter reflecting underlying

weakness in the economic climate in the region and around the

world. In its efforts to reduce borrowing costs and improve

credit conditions, the European Central Bank cut its benchmark

interest rate in July by 25 basis points to a record low of 0.75

percent. Consistent with these developments and with the

persistent weak consumer and investor sentiments weighing on

growth, the economy is estimated to have contracted by 0.6

percent in 2012.

The Japanese economy expanded by 2.0 percent in 2012, mainly

supported by increases in both public and private reconstruction

during the first half of the year. However, growth contracted in

the third and fourth quarter as exports and industrial production

fell, reflecting the weakness in global demand. As a result, the

Bank of Japan raised its asset purchase program further to

stimulate demand and overcome deflation.

The Australian and New Zealand economies performed relatively

better although growth had softened on par with the weakness

in most advanced and developing and emerging market

economies. The Reserve Bank of Australia reduced its cash rate

four times during the year to 3.0 percent, while the Reserve

Bank of New Zealand maintained a stimulatory environment and

kept its official cash rate unchanged at 2.5 percent. In 2012,

the Australian economy expanded by 3.3 percent while in New

Zealand, growth was recorded at 2.5 percent.

ECONOMIC DEVELOPMENTS IN FIJIThe Fijian economy is estimated to have expanded by 2.5 percent in 2012, following a 1.9 percent growth a year earlier, despite subdued global economic activity and domestic weather shocks. During the year, the strength in the domestic economy broadly came through the service and industrial sectors. Upbeat performance in the financial intermediation and wholesale, retail trade dominated growth in the services sector while the buoyant industrial performance was led by manufacturing and construction activities. On the downside, the primary sector was estimated to have contributed marginally as a result of losses to agricultural output from the floods in the first quarter and Cyclone Evan in the fourth quarter of 2012, while the prolonged softness in global demand for forestry products negatively impacted growth in the forestry industry.

Per

cent

Source: IMF World Economic Outlook (April 2013)

Graph 1 | World GDP Growth Rates

2004

2006

2008

2010

2012

3.2

4.0

5.2

2.8

5.45.3

4.64.9

6

5

4

3

2

1

0

-1 -0.6

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Consumption activity gained momentum during the year,

supported by the Government through reductions in income tax

rates to historically low levels, effective from 1 January 2012.

Higher disposable incomes were also complemented by stronger

labour market, stable inward remittance flows, and credit

growth. Consistent with this, Net Value Added Tax collections

rose over the year by 9.3 percent, while new lending for

consumption purposes rose by 25.4 percent to $246.8 million.

Personal remittances were close to the peak in 2006 after rising

by 5.3 percent to $305.8 million in 2012.

The Reserve Bank’s business expectations survey confirmed

that business confidence and investment had improved

following positive developments in the household sector

and the Government’s stimulus measures during the year.

Construction activity was also upbeat. In 2012, the total value

of work-put-in-place by the sector rose year-on-year by 8.0

percent, primarily driven by the public sector activity which

rose by 160.2 percent. Nonetheless, the majority of projects

that eventuated during the year focused on tourism and other

public related and residential sectors, underlying some restraint

by other sectors to expand their productive capacities and on

concerns of continued uncertainty in the world economy. New

lending for investment related purposes grew by 28.1 percent

over the year, underpinned by real estate and the building and

construction sectors. In addition, imports of investment goods

rose on an annual basis by 2.1 percent in 2012.

Conditions in the labour market improved over the year, in line

with growing business confidence and investment. The Reserve

Bank’s business expectation and the job advertisement surveys

showed that more firms were expecting to hire additional

workers over the short to long term. In 2012, the number of

jobs advertised rose by 24.6 percent, driven by most sectors

except agriculture, finance and manufacturing.

Government’s fiscal strategy in 2012 was aimed at directing

resources to key sectors and industries to generate quick returns

while placing greater emphasis on fast-tracking structural

reforms to eliminate red tape and bureaucracy in order to entice

private sector investment. In this respect, a fiscal deficit of

1.9 percent of Gross Domestic Product (GDP) was budgeted

for 2012 which was revised downwards to 1.6 percent of

GDP in November. Fiscal sustainability through prudent fiscal

policies continue to be the cornerstone of the Government’s key

macroeconomic objectives in the medium term. At the end of

December 2012, Government debt stood at 50.2 percent of

GDP, compared to 52.9 percent recorded in the same period

in 2011.

Inflationary pressures during the year were generally subdued,

consistent with the persistent weakness in global demand and

easing commodity prices. However, weather related domestic

supply shocks at the beginning of 2012 caused temporary

disturbances with inflation peaking at 6.4 percent in April but

the resilience in domestic supply resulted in prices normalising

earlier-than-expected. Inflation consistently fell subsequently,

even during the peak Christmas period towards the end of the

year, suggesting the near absence of demand-side pressures on

prices. At the end of 2012, inflation was 1.5 percent, the lowest

in 13 years.

Expansion in money and credit aggregates continued during

the first half of 2012, however, growth slowed for the next six

months as it responded endogenously to movements in foreign

reserves. Growth in broad money slowed to 5.9 percent in

December 2012, down from a growth of 11.5 percent in 2011.

The slow growth was mainly on account of a deceleration in

narrow money, which fell to 4.6 percent compared to 41.8

percent a year earlier. In 2012, domestic credit growth

averaged around 3.4 percent, led by a gradual improvement in

credit to the private sector which recorded an average growth

of 4.8 percent.

Given the high level of liquidity, together with enhanced

competition and efficiency in the banking system, the

commercial banks’ weighted average lending rate persistently

trended downwards and reached 6.57 percent in November

2012, before increasing slightly to 6.65 percent at year-

end. Weighted average savings and time deposit rates fell to

0.74 percent and 2.28 percent, respectively. The continued

improvement in the investment climate should sustain increased

credit growth and support broad economic activity into the

medium term.

(r) - revised (e) - estimateSources: Fiji Bureau of Statistics and Macroeconomic Policy Committee

Graph 2 | Fiji’s GDP Growth Rate

1.9

2006

1.9

2012

(e)

2.5

6

4

2

0

-2

-4

2010

(r)

0.1

-1.3

2008

1.0

-0.9-1.3

2004

5.4

Per

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6

According to the provisional accrual trade data, the merchandise

trade deficit (excluding aircraft) narrowed by 2.2 percent in

2012 (to $1.88 billion), compared to a 3.6 percent growth in

2011. Domestic export earnings rose by 3.7 percent in the

review period, owing to higher earnings from sugar, mineral

water, timber, ginger and textiles, which more than offset the

decreases in fish, fruits and vegetables, gold, garments and other

domestic exports. Earnings from re-exports rose significantly

by 26.2 percent, while total exports (excluding aircraft) grew

by 12.1 percent in 2012 compared to the 19.2 percent growth

in 2011. Over the same period, growth in imports (excluding

aircraft) slowed to 4.9 percent, compared to a growth of 10.8

percent in 2011. All broad categories of imports noted increases.

Graph 3 | Commercial Banks’ Lending and Deposit Rates

Source: Reserve Bank of Fiji

Loans

Time Deposit

Savings Deposit

2009

2010

2011

2012

2

0

4

6

8

10

Per

cent

Source: Fiji Bureau of Statistics

Graph 4 | Trade Deficit

-2,40020

03

2004

2005

2006

2007

2008

2009

2010

2011

2012

-2,000

-1,600

-1,200

-800

-400

0

$ M

illio

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International Insurance Market2012 saw a lower level of catastrophe events compared to 2011. As such, total economic

losses (both insured and uninsured) stood at US$186 billion,

well below the US$403 billion reported in 2011.

OVERALL PERFORMANCEIn 2012, there were some 318 catastrophe events that resulted

in global insured losses of US$77 billion, being third highest since

1970. Despite these high magnitude losses, the international

insurance and reinsurance companies continued to be resilient.

MARKET ENVIRONMENT AND PERFORMANCE1 General Insurers

Premium growth for the global general insurance industry

remained weak as an increase of only 3.0 percent was recorded.

This was largely attributed to the growth in premium income

in emerging2 markets as advanced3 markets recorded minimal

growth in 2012.

Premium growth for emerging markets was reported at 7.9

percent in 2012 mainly due to the strong development in

Eastern Europe, which recorded an increase of 6.1 percent

(2011: 2.8 percent). All other regions also recorded increases,

and contributed to the overall growth for the year.

The overall growth in premium contributed to a slight

improvement in the underwriting result4 of global general

insurers. However, this improvement was not sufficient to boost

overall profitability as it continued to be affected by the declining

return on investment amidst a low interest rate environment.

Consequently, the global general insurance industry recorded a

lower return on equity (ROE) of 5.0 percent.

Life Insurers

Premium growth for the global life insurance industry was

stagnant in 2012. This was mainly attributed to the slow

developments in the inforce premiums and new businesses

amidst low macroeconomic growth and the volatile financial

markets.

On the other hand, premium income in the emerging markets

increased by 2.3 percent in 2012, largely contributed by the

growth in Latin America (9.0 percent), Central and Eastern

Europe (6.8 percent) and Africa (3.2 percent). However,

premium income in both China and India declined by 2.0 percent

underpinned by regulatory changes.

Premium income of advanced markets also declined slightly

by 0.4 percent. The decline in premium income was more

pronounced in countries like North America (1.9 percent),

Western Europe (5.0 percent) and Oceania (4.4 percent).

However, strong growth was recorded in the Asian countries

such as Japan, Hong Kong, Singapore, Korea and Taiwan.

Contrary to 2011, the profitability of the global life insurance

industry declined in 2012 largely due to the declining interest

rate environment. ROE was around 10.0 percent (2011: 12.0

percent).

Premium Rate Movements

Premium rates have been moving upwards at a gradual pace after

several years of soft market pricing. In the US, property and

casualty premium rates rose by an average of 2.0 percent during

the first quarter. This intensified to an average of 5.0 percent

by year end5, with rate increases noted for both commercial and

personal insurance lines. For commercial lines, increases were

noted in the property, automobile, workers’ compensation and

general liability classes. Homeowners and automobile classes

contributed to the increase in personal insurance line.

1 Sourced from Global Insurance Review 2012 and Outlook 2013/14.2 Emerging markets include Latin America, Eastern Europe, Africa, South East Asia, and Middle East excluding Israel.3 Advanced markets include North America, Western Europe, Israel, Oceania, Japan, Korea, Hong Kong, Singapore and Taiwan.4 Underwriting result is defined as the difference between premiums and the sum of expenses and claims costs.5 www.marketscouts.com.6 J.P. Morgan News Release, 31 January 2013.

Source: www.marketscouts.com

Graph 5 | US Property and Casualty Rates Movement in 2011 and 2012

Per

cent

6

0

5

-1

4

-2

3

-3

2

-4

1

-5

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

In the Oceania region, the Australian6 general insurance industry’s

premiums rates also increased in 2012. The premium rates for

the home and commercial insurance categories rose by 9.0

percent and 5.0 percent during the year.

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Reinsurers

Capital levels of the global reinsurance industry grew by 11.0 percent to US$505 billion in 2012 due to favourable earnings and new capital inflows in support of new startups.

According to an estimate provided by Aon Benfield Aggregate (ABA)7, around US$100 billion was written as gross reinsurance premiums in 2012. The net profit before tax increased to US$35.7 million (2011: US$ 15.6 billion), following a lower level of insured catastrophic losses.

Overall, the growth in reinsurance premiums was primarily generated from the general insurance industry. Severe natural catastrophes experienced in 2011 resulted in rate increases, ranging from 5 percent to 10 percent, for property catastrophe covers in 2012. Higher increases in rates were noted in regions experiencing large catastrophe losses.

In contrast, reinsurance premium income for the life classes is estimated to have declined by 1.6 percent in 2012, attributed to regulatory changes in advanced markets.

TOTAL GLOBAL LOSSES8 2012 saw a lower level of catastrophe events compared to 2011. As such, total economic losses (both insured and uninsured) stood at US$186 billion, well below the US$403 billion reported in 2011. Since 2002, earthquakes, tropical cyclones and flooding were on average, major contributors of global economic losses.

7 Aon Benfield Aggregate Report, 31 December 2012.8 Sigma No.2/2013 – Natural catastrophes and manmade disasters in 2012.9 Includes Illinois, Indiana, Iowa, Michigan, East Nebraska, East Kansas, South Minnesota and parts of Missouri.

Source: Aon Benfield

100

200

300

400

500

0

US$

Bill

ion

Tropical Cyclone Earthquake EU WindstormSevere Weather Winter Weather OthersFlooding Wildfire

2002

2006

2007

2009

2010

2011

2012

2008

2003

2005

2004

Graph 6 | Economic Losses from Catastrophe Events by Year and Type

highest after 2011 and 2005, years that were affected by a series of earthquakes, floods and hurricanes.

There were nine natural disasters in 2012, which recorded insured losses of at least US$1 billion each. Out of these, Hurricane Sandy was the costliest event, recording insured losses of US$35 billion, followed by the drought in the North American Corn Belt9, which resulted in insured losses of US$11 billion.

Some of the costliest manmade disasters, in terms of insured losses, included the cruise liner Costa Concordia running aground off the Tuscan coast in Italy; fires at the offshore drilling platforms in Nigeria and the North Sea; and the explosion at a large oil refinery in Venezuela.

North America’s total insured losses were around US$65 billion, which were primarily due to Hurricane Sandy and severe droughts. Moreover, early season tornado outbreaks in the Ohio Valley and South Eastern regions of the US made up insured losses of US$2.5 billion. A further US$2 billion of insured losses resulted from fast moving and violent storms in the Ohio Valley and Mid Atlantic regions.

In Europe, insured losses from natural catastrophes and manmade disasters were in excess of US$5 billion. The majority of the natural catastrophe costs to insurers resulted from the earthquakes in Italy (US$1.6 billion). Others included the sudden cooling in the Eurasian continent and heavy flooding in the United Kingdom (UK). The running aground of Costa Concordia was the costliest manmade disaster in Europe.

Insured losses in Asia were in excess of US$3 billion. These were caused by Typhoon Bopha in the Eastern Coast of Mindanao Island in the Philippines; an earthquake in Iran; and the floods in India and Pakistan. Powerful storms in Japan and Typhoon

Bolaven in South Korea also added to the insured losses recorded

for Asia.

Graph 7 | Insured Catastrophes Losses 1970-2012

Source: Swiss Re Economic Research and Consulting

120

80

60

40

20

0

1970

1975

1980

1985

1990

1995

2000

2005

2010

US$

Bill

ion

Earthquake/Tsunami

Manmade disasters

Weather related catastrophes

From the total economic losses reported in 2012, US$77 billion

was insured. This was lower than the US$126 billion recorded

in 2011. Of the total insured losses, US$71 billion stemmed

from natural catastrophes, while manmade disasters accounted

for around US$6 billion. Insured losses of 2012 were the third

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OUTLOOK FOR 2013The performance of the global insurance industry is expected to improve in the coming years on the back of positive macroeconomic forecasts.

The demand for general insurance is also anticipated to increase amidst positive forecasts for the global economy. Moreover, the pricing of general insurance products is expected to improve as some increases have already been noted in the US and Australia. While this may improve the underwriting results of the general insurance industry, overall profitability may not rebound quickly as it is anticipated that investment yields will continue to be on the downward side.

Similarly, a slow growth in premium income is anticipated for the life insurance industry. This outcome is largely dependent on the development of macroeconomic conditions.

The global reinsurance industry is anticipated to increase premium rates of classes that have suffered significant losses in the past years.

The number of catastrophic events declined in 2012 to 318 compared to 325 in 2011, and 304 events in 2010.

In 2012, there were 168 natural catastrophes and 150 manmade disasters. The catastrophic events of 2012 claimed the lives of 13,929 people. Out of these, around 9,000 deaths were related to natural catastrophes, while the remaining were victims of manmade disasters.

The majority of the catastrophic events occurred in the Asia region, which accounted for 36 percent of total number of catastrophic events and 51 percent of total number of victims.

Africa recorded the second highest number of catastrophic events (53) and victims (2,300).

North America had the third largest number of catastrophic events (43) however, recorded the largest economic and insured losses of US$118 billion and US$65 billion respectively. The number of victims in this region was around 560. This alludes to greater insurance coverage in this region compared to other regions.

Region No. Victims in %Insured

loss in US$b

in %Total

loss in US$b

North America 43 560 4.0 64.6 83.7 118.5

Latin America and Caribbean 30 1,167 8.4 0.9 1.2 4.2

Europe 33 1,480 10.7 5.4 7.0 26.8

Africa 53 2,300 16.5 0.2 0.2 1.5

Asia 115 7,177 51.5 3.4 4.4 30.5

Oceania/ Australia 7 97 0.7 0.3 0.4 1.1

Seas/Space 37 1,148 8.2 2.4 3.1 3.1

Total 318 13,929 100 77.2 100 185.7

Table 1 | Catastrophes in 2012 by Region

Source: Swiss Re Economic and Consulting


Graph 8 | Number of Events 1970-2012

300

250

200

150

100

50

0

1970

1975

1980

1985

1990

1995

2000

2005

2010

Natural catastrophesManmade disasters

Num

ber


Graph 9 | Number of Victims 1970-2012

Natural catastrophesManmade disasters

10,000

1,000,000

100,000

1,000

Num

ber

In the Oceania region, insured losses were around US$0.3 billion,

mainly caused by the Queensland and New South Wales flooding

in Australia.

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10

Fiji’s insurance industry remained sound despite the significant

impact of three major catastrophic events in 2012 as solvency

surpluses continued to be recorded during the year.

Claims incurred by the general insurance industry were the

largest to date, as total claims reported for the January and

March floods and Cyclone Evan outweighed the claims reported

for the floods and Cyclone Mick in 2009. A total of $89.7 million

in claims had been reported for the three catastrophes of 2012

compared to $43.7 million for the three catastrophes of 2009.

Domestic Insurance MarketFiji’s insurance industry recorded the highest claims payment to date, as the catastrophic events of 2012 took their

toll on general insurers’ profitability. Nevertheless, the domestic insurance industry remained resilient

as insurers continued to meet the minimum solvency requirements.

Table 2 | General Insurance Industry Catastrophe Claims

Event

Total Claims Reported ($m)

Number of Claims Reported

2009 2012 2009 2012

Floods 28.5 33.0 418 838

Cyclone 15.2 56.7 240 977

Total 43.7 89.7 658 1,815Source: General Insurance Companies

The growth in premium income led to a stronger balance sheet

position of the domestic insurers, as the consolidated assets

grew over the year. Total assets of the domestic insurance

industry mainly comprised investment assets, the majority of

which are admitted for solvency purposes.

OVERVIEW OF INDUSTRY PERFORMANCEGross premiums of the domestic insurance industry have been

increasing for the past 5 years and grew further to $258.5

million in 2012. An annual growth of 16.9 percent in gross

premiums was recorded in 2012, well above the 3.5 percent

increase in 2011.

The growth in premium was mainly driven by the general

insurance industry, which recorded an increase of $20.6 million,

while the life insurance industry recorded a growth of $16.7

million. The increases were attributed to the greater number of

policies written in 2012 relative to the prior year.

Insurance penetration in the domestic insurance industry

improved in 2012, as combined gross premium of the insurance

industry as a percentage of GDP increased to 3.5 percent from

3.3 percent10 in 2011.

Net policy and claim payments for 2012 were $141.8 million, an

increase of 33.9 percent over the year. This was mainly driven

by the large claim payments by general insurance industry, as

the catastrophic events of 2012 led to a 65.4 percent increase

in net claims payments to $74.6 million. Net policy payments by

the life insurance industry also increased over the year to $67.2

million, although at a slower pace of 7.0 percent compared to

the increase of 11.2 percent in 2011.

Graph 10 | Insurance Industry Premiums and Claims

Source: Insurance Companies

250

200

150

100

50

0

$ M

illio

n

2008

2009

2010

2011

2012

Net Claims Paid + Net Policy PaymentsConsolidated Life and General Insurers Net Premium

10 Revised.

Net profit after tax of the domestic insurance industry remained positive at $64.9 million, although this was 50.6 percent below the 2011 figure. More pertinently, it was the life insurance industry that did well, earning a net profit after tax of $71.1 million, while the general insurance industry recorded a net loss of $6.1 million due to increased claim payments.

The assets of the domestic insurance industry grew by 16.4 percent to $1,214.8 million, as assets of both the general and life insurance industries increased relative to the prior year.

Assets of the life insurance industry expanded by $93.1 million to $843.2 million, as investment income was either reinvested or held as cash, and led to the increases in cash on hand and investment assets. The $78.0 million growth in the general insurance industry’s assets, to $371.6 million, was attributed to the increase in amounts due from reinsurers.

Investment assets dominated the domestic insurance industry’s total assets at 70.3 percent, with government securities representing the majority of the investments portfolio, followed by bank deposits.

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The life insurance industry represented a greater part of the

total assets of the domestic insurance industry at 69.4 percent

(2011: 71.9 percent).

Table 3 | Shareholders’ Funds of Fiji Licensed Insurers

Shareholders’ Funds ($m) 2008 2009 2010 2011 2012

Paid-up Capital 23.9 24.0 24.0 38.0 38.0Retained profit/loss 86.5 98.0 124.3 125.8 118.5Other reserves 16.3 55.0 29.4 30.9 25.5Total 126.7 177.0 177.7 194.7 182.0


OUTLOOKThe domestic insurance industry is expected to recuperate

after another year of high losses. An improvement in income is

expected as the domestic economy expands.

Growth in income is anticipated to be driven by the general

insurance industry, as premiums increase, following the 2012

catastrophes, coupled with the increasing trend of general

reinsurance premium rates on the global front. The life insurance

industry is expected to continue with its steady paced growth

in 2013.

However, the spillover of claims for Cyclone Evan into 2013

and the increase in stamp duty, may dampen the expected

improvement in underwriting results from premium growth.

Additionally, the waning of investment returns amidst the

declining interest rate environment will also have a negative

impact on insurers’ profitability.

Liabilities of the domestic insurance industry reached the billion

dollar mark in 2012, following an increase of 21.6 percent to

$1,032.9 million. Both the general and life insurance industries

reported increases during the year.

The expansion of $88.8 million in the liabilities of the life

insurance industry to $775.3 million was driven by the growth

in the balance of revenue account. Liabilities of the general

insurance industry increased by a larger amount of $95.0

million to $257.6 million, as greater provisions were held for

outstanding claims.

$ M

illio

n

Industry Assets Industry Liabilities

1,200

1,400

1,000

800

600

400

200

0

2008

2009

2010

2011

2012


Graph 11 | Insurance Industry Assets and Liabilities

Shareholders’ funds contracted by 6.5 percent to $182.0

million, mainly due to the decline in retained earnings. The

decrease in general insurers’ shareholders’ funds, of $16.9

million, outweighed the $4.2 million increase in life insurers’

shareholders’ funds.

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The Reserve Bank’s mission includes developing an internationally

reputable and sound financial system. Fundamental to its

achievement is the effective regulation and supervision of the

Fijian insurance industry. These roles are primarily executed

under the mandate of the Insurance Act (the Act) and the

Insurance Regulations 1998.

The supervision of the insurance industry is carried out by

examining risk profiles, ensuring compliance with supervisory

policies, and assessing the institutions’ financial conditions. This

is carried out with the underlying objective of safeguarding the

interests of policyholders.

REGULATIONAdministration of the Insurance Act 1998

The Reserve Bank is responsible for the administration of the

Act in formulating policies for insurers, insurance brokers and

insurance agents that are in line with international best practices.

Other responsibilities include consulting with the Minister for

Finance on matters concerning insurance, including regulations,

rates, terms and conditions of policies and other significant

functions that may be incidental to insurance business in Fiji.

In support of these administrative functions, section 3(2)(a)

of the Act permits the Reserve Bank to develop prudential

guidelines that govern the conduct of insurance business

and insurance broking business in Fiji. As such, 11 Insurance

Supervision Policy Statements have been issued to date to

provide minimum guidelines of prudential insurance practices

and good governance.

LICENSING AND INSURANCE MARKET STRUCTURE11

Licensed Insurers

During the year, the licences of two life insurers and seven

general insurance companies were renewed under the Act. The

Reserve Bank also received some enquiries of interest in general

insurance business licence requirements throughout 2012.

Licensed Brokers

All four licensed insurance brokers complied with the licensing

Regulation and SupervisionThe Reserve Bank regulates and supervises the insurance industry through examining the financial

condition of licensed insurers and brokers with the underlying objective of

safeguarding the interests of policyholders.

requirements under the Act to the satisfaction of the Reserve

Bank. This includes having a current professional indemnity and

fidelity guarantee policy during the period of conducting broking

business as required under section 44; and deposit requirements

under section 20 of the Act. As such, licences for all four

insurance brokers were renewed in 2012.

Licensed Insurance Agents

As stipulated under section 43 of the Act, all insurance agents

appointed by the nominated insurer, are required to be licensed

by the Reserve Bank.

In 2012, the number of licences issued to insurance agents

increased by 91 to 448. This total consisted of 21 licences

issued to corporate agents while the remaining 427 were for

individuals. From the total number of agents licences issued,

there were 65 general insurance licences, 64 health and 319 life

licences (Refer to Appendix for the list of agents).

Under Official Management

The Reserve Bank continued to wind down the Insurance Trust

of Fiji (ITF) in accordance with the instructions of the Minister

for Finance, and the provisions of section 87(2) of the Act. The

winding down process includes liquidating the institution’s assets

to fully discharge the company’s liabilities by way of settling

claims and related administration costs.

FAI Insurances (Fiji) Limited (FAI) continued to be under official

management of QBE Insurance (Fiji) Limited (QBE). QBE has been

running off FAI’s liabilities and had requested for the cancellation

of licence in 2012. This process will be finalised in 2013.

Both the ITF and FAI continued to be exempted from paying

annual licence fees as per section 30(3) of the Act.

SPECIFIC REQUIREMENTS RELATING TO INSURERSMargin of Solvency

Life and general insurers are required to maintain a margin of

solvency at all times. This requirement is prescribed under

section 31 of the Act.

Specifically, for life insurers, the sum of assets in Fiji over liabilities

11 Refer to Appendix for market participants.

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in Fiji must not be below:

• $1,000,000;or

• the sum of 5 percent of the amount of net liabilitiesunder life policies (in Fiji if the life insurer is incorporated outside Fiji) up to net liabilities of $100,000,000 plus 2.5 percent of the amount of net liabilities under life policies (in Fiji if the life insurer is incorporated outside Fiji) that exceed $100,000,000; whichever is greater.

Similarly, general insurers must maintain at all times surplus of assets over liabilities in Fiji of not less than:

• $1,000,000;or

• 20percentofnetpremiumincomederivedinFijiinthelast 12 months; or

• 15 percent of net claims outstanding provision;whichever is the greatest.

In 2012, only the life insurance industry recorded an improvement in the solvency surplus which increased by $22.1 million to $84.6 million. Admissible assets grew by $23.0 million to $106.6 million.

Contrary to 2011, the solvency surplus of the general insurance industry fell by $8.1 million to $71.9 million largely due to the catastrophic events of 2012.

The 2012 solvency surpluses of the general and life insurers

continue to indicate the soundness and ability of the domestic

insurance industry to meet policyholder obligations as and when

they fall due.

Deposits

Section 20 of the Act specifies the deposit requirements

for licensed insurers and insurance brokers. The insurers are

required to hold deposits with a market value of not less than the

surplus of assets over liabilities that are to be maintained under

the prescribed solvency requirements. Likewise, the insurance

brokers under section 20(2) are to maintain a deposit, or provide

a guarantee with a market value of, or amounts of not less than

the deductible or excess amounts applicable to the professional

indemnity and fidelity guarantee covers required under section

44. Such deposits are to be in the prescribed nature and form

acceptable to the Reserve Bank.

The purpose of these requirements is to provide a certain degree

of comfort and protection for the policy holders by setting aside

unencumbered assets of the licensed insurer or insurance broker

for unforeseen circumstances.

All licensed insurance companies and brokers complied with this

requirement in 2012.

Policy and Claims Registers

Section 59 of the Act states that insurers must keep registers

of policies and claims. It also requires that separate registers be

kept for insurance business inside and outside Fiji.

All licensed insurers maintained these registers in 2012.

Reinsurance Arrangements

Licensed insurance companies are required under section 39 of the Act to have in place at all times reinsurance arrangements with respect to risks insured in the course of conducting insurance business in Fiji. These arrangements are submitted to and approved by the Reserve Bank after the commencement of the period of cover.

The Reserve Bank’s Insurance Supervision Policy Statement No. 6 – Reinsurance Management Strategy provides minimum guidelines on reinsurance arrangements. Throughout 2012, the Reserve Bank assessed the reinsurance arrangements submitted

by the licensed insurance companies.

Offshore Placements

Section 17 allows an individual or company to buy insurance cover abroad with an insurer with the permission of the Reserve Bank. Guidelines on meeting these requirements are prescribed in the Insurance Supervision Policy Statement No. 2 of the Reserve Bank.

Table 4 | Solvency Surplus

As at 31 December

Admissible Assets MRSM* SS**

$m

2008 General 75.7 19.4 56.3

Life 41.7 16.4 25.3

Total 117.4 35.8 81.6

2009 General 76.6 18.7 57.9

Life 84.5 17.3 67.2

Total 161.1 36.0 125.1

2010(r) General 90.7 18.0 72.7

Life 68.9 18.5 50.4

Total 159.6 36.5 123.1

2011(r) General 99.4 19.4 80.0

Life 83.6 21.1 62.5

Total 183.0 40.5 142.5

2012 General 92.5 20.6 71.9

Life 106.6 22.0 84.6

Total 199.1 42.6 156.5* Minimum Required Solvency Margin** Solvency SurplusSource: Reserve Bank of Fiji

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Table 5 | Offshore Placement Summary

Risk2010 2011 2012

No. $m No. $m No. $mTerm Life 17 0.8 14 0.5 30 0.7Medical 11 0.2 25 0.3 14 0.3Aviation 32 3.2 30 1.4 31 2.5Professional Indemnity 76 0.8 73 0.8 71 1.5Comprehensive Liability 85 1.1 112 2.2 88 2.0MD and BI* 64 14.8 72 11.0 71 14.6Marine Hull 68 1.1 69 1.7 102 3.6Others 391 6.4 477 4.4 493 4.5Total 744 28.4 872 22.3 900 29.7

* Material Damage and Business InterruptionSource: Reserve Bank of Fiji

The number of offshore applications approved in 2012 increased

by 28 to 900. Increases were noted in all classes except for

medical, professional indemnity, comprehensive liability and

material damage and business interruption. Marine hull recorded

the largest increase over the year.

Total premiums remitted increased by $7.5 million to $29.7

million. Premiums for all classes increased except for medical

and comprehensive liability. The largest increase was recorded in

the material damage and business interruption class.

Actuarial Reports

Section 62 of the Act requires life insurance companies to

provide an actuarial report of its liabilities to the Reserve Bank at

the end of each calendar year. The two life insurers continued to

meet these requirements, submitting their actuarial reports to

the Reserve Bank on a timely basis.

In addition, the Reserve Bank implemented its Insurance

Supervision Policy Statement No. 10 – Role of Insurance

Actuaries in Fiji in 2012, which required life and general insurers

to submit their Liability Valuation Report (LVR) and Financial

Condition Report (FCR). These technical reports were assessed

by the supervisors with the assistance of the Reserve Bank’s

Consultant Actuary and there were no matters of concern.

SUPERVISIONSupervision forms the core of the Reserve Bank’s role in

administering the Act. Licensed insurers and insurance brokers

are supervised under Reserve Bank’s Supervisory Framework

which applies a risk based supervisory approach. This runs in

tandem with ensuring compliance with various provisions in the

Act. The framework basically encompasses two major activities:

• Offsitesupervision;and

• Onsiteexaminations.

Offsite Supervision

Offsite supervision involves the analysis of prudential returns that

are periodically submitted to the Reserve Bank. It also includes

ensuring compliance with the Act, prudential consultations and

other industry meetings.

Submission of returns

Insurance companies and insurance brokers are required under

sections 60 and 66 of the Act to submit annual audited

accounts and prescribed periodical statements to the Reserve

Bank. Periodical returns for insurers are to be submitted within

six weeks after the end of each quarter while insurance brokers

submit within four weeks after quarter end. Annual audited

accounts are to be submitted within three months after each

calendar year.

Offsite Supervision Reports

Analysis of the prescribed returns form the basis of offsite

supervision as it enables the Reserve Bank to determine

financial viability and stability of the insurance industry. Reports

on the financial analysis are communicated to the Financial

System Policy Committee, the Board of the Reserve Bank and

the insurance industry through the dissemination of quarterly

statistics. Financial Condition Reports with quarterly statistics

are also published in the Reserve Bank’s Quarterly Reviews.

Audit and Actuarial Meetings

The Reserve Bank also holds trilateral audit meetings with

the insurance companies and their appointed auditors before

and after the annual audits. This also forms part of the offsite

supervision. The pre-audit meeting gives an opportunity for

the auditor to briefly discuss the proposed scope and plan of

the audit. The meeting is also an opportunity for the licensed

insurance company to provide an update on its financial

performance and future business developments.

Post audit trilateral meetings are normally conducted in

conjunction with actuarial meetings. In these meetings, the

Reserve Bank discusses the audited financial statements and

management letter issues with the institution. The meeting also

includes discussions on their actuarial reports.

The Reserve Bank conducted nine pre-audit and post audit

meetings for the two life insurers and seven general insurers

in 2012.

The Governor of the Reserve Bank also met with individual

insurance companies and collectively with the brokers in 2012.

This was part of the consultative approach taken by the Reserve

Bank to better understand emerging issues faced by each

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insurance service provider. More importantly, the consultative

meeting focused on strategic discussions of business plans in the

wider context of Fiji’s economic development.

Onsite Examinations

Section 71 of the Act allows the Reserve Bank to conduct

onsite examinations of licensed insurers and brokers. This is to

primarily identify key inherent risks of the institution and ensure

that appropriate mechanisms are in place to mitigate these risks.

Furthermore, these onsite examinations are used as an

effective tool to better understand the respective institution’s

business and the technicalities surrounding underwriting, claims

management and reinsurance arrangements.

In 2012, the Reserve Bank conducted onsite examinations for

two general insurers and two insurance brokers. The Australian

Prudential Regulation Authority (APRA) provided technical

assistance on the examination of one general insurer under its

annual Pacific Onsite Supervision Programme (POSP) which is

funded by AusAID.

INDUSTRY DEVELOPMENTS AND ISSUESMicroinsurance

Microinsurance has continued to grow in importance over the past few years as it is seen as a catalyst for promoting greater financial inclusion in developing countries. According to the Head of the International Labour Organisation’s (ILO) Microinsurance Innovation Facility, “Microinsurance, which currently provides coverage to 500 million people, could pass the one billion mark by the end of the decade”. The Reserve Bank continues to support development in this key area. There are currently two microinsurance products in the Fiji market and over the past year, there has been a gradual increase in the uptake of the microinsurance products.

A special report titled “Microinsurance in Fiji: An Evaluation of Demand for Insurance” that was commissioned and published by the Pacific Financial Inclusion Programme (PFIP), highlighted the demand for microinsurance among the four potential distribution partners in Fiji. The PFIP, in partnership with Life Insurance Corporation of India (LICI) piloted a new microinsurance funeral product in 2012 with two faith based organisations, namely Partners in Community Development Fiji (PCDF) and the Then India Sanmarga Ikya (TISI) Sangam. The PCDF project was launched with an iTaukei community in Wailevu, Savusavu while the TISI Sangam project was launched with a Fijian community in Nadi.

The Reserve Bank also participated in the “2012 Pan Pacific Regulators Workshop: Making Insurance Work for the Poor”;

which was organised by the Pacific Central Banks Financial Inclusion Working Group (PIWG) in partnership with the PFIP, Asian Development Bank, Access to Insurance Initiatives and Alliance for Financial Inclusion.

The key outcome of this Workshop was the development of a National Action Plan on Microinsurance. The Reserve Bank has endorsed this Action Plan and is currently working on implementing the formulated strategies. The review of the Act which continued throughout 2012 and will progress into 2013 will ensure an enabling law which would play a crucial role in the implementation of the National Action Plan, and the development of microinsurance.

Complaints

The increase in public awareness has greatly improved public

knowledge on consumerism issues related to financial products

and services. The customers of insurance products are now

more aware of their rights and responsibilities.

The establishment of the complaints management policy

framework by the Reserve Bank has enabled insurance companies

and brokers to look more seriously at customer complaints. The

framework provides an avenue for policyholders to raise their

grievances with the Reserve Bank if they are not satisfied with

the response from the insurance companies.

In 2012, the Reserve Bank received 15 complaints against

insurers compared to 24 in 2011. For life insurers, the number of

complaints declined from 13 in 2011 to 10 in 2012. Common

complaints received were related to death beneficiaries’ claim,

services provided by insurance agents, disagreement on fees

and charges, and claims. The general insurers’ complaints were

mainly related to outstanding premiums, non disclosure of

material information and mortgage protection insurance claims.

The Reserve Bank met 15 complainants during the year who

had grievances against their insurance providers compared to 19

meetings in 2011. In order to amicably resolve the grievances,

the Reserve Bank consults all the parties concerned. As at 31

December 2012, 13 complaints were resolved, while only two

remain under investigation.

Industry Meetings

In 2012, the Reserve Bank continued its industry liaison through

the Insurance Task Force (ITF). The ITF provides an industry

platform for the insurance companies, insurance brokers and the

regulator to deliberate on industry issues. The Reserve Bank is

the secretariat for this forum.

During the year, the ITF reorganised its subcommittee framework

to focus on the priorities for the year. A subcommittee was

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appointed to carry out a detailed review on the proposed

changes to the Insurance Act 1998 compiled from feedback of

the insurance industry players such as the underwriters, brokers

and the regulators. A second subcommittee was formed to

drive the development of the Insurance Code of Conduct for

the insurance industry. The ITF met twice during the year to

deliberate on the reviews of the subcommittee and other

industry issues.

PRIORITIES GOING FORWARDReview of the Insurance Act 1998

The Reserve Bank continued with the review of the Act in

2012. The proposed amendments were provided to the

Insurance Act Review Subcommittee12 for their deliberation. The

subcommittee, which include representatives from the industry

met four times and provided feedback on Reserve Bank’s

submission.

The Reserve Bank deliberated on the feedback and will revert to

the industry through the Insurance Task Force in 2013.

Policy Development

In tandem with the review of the Act, the Reserve Bank continues

to develop relevant insurance prudential policies to align with

international best practices. During this review process, industry

consultations would be sought to ensure that revised policies are

suitable for Fiji’s developing insurance market.

Review of Solvency Framework

In 2012, the Reserve Bank commenced discussions to formulate

a policy on risk based solvency requirements for both life and

general insurers. This is to align the current requirements to

the Reserve Bank’s risk based supervision framework as well as

international best practices. As a guideline, the formulation of

policy will be based on standards observed by the International

Association of Insurance Supervisors (IAIS). The Reserve Bank

will continue to develop this initiative in conjunction with the

Insurance Task Force in 2013.

Licensing of Insurance Agents

The Reserve Bank reviewed the processes for licensing insurance

agents in 2012. The improved processes will be fine tuned with

the industry and planned for implementation in 2013.

Code of Conduct

The industry continued work on the development of the

code of conduct. The Licensed Insurance Brokers Association

comprising the four licensed brokers in Fiji completed a draft

in 2012. This is under review with the Reserve Bank and will

be finalised in 2013. The Insurance Council of Fiji, comprising

licensed insurance underwriters is expected to develop a draft

code for underwriters in 2013 which will be finalised together

with the Brokers’ Code of Conduct.

Staff Development

The Reserve Bank is committed to staff training and development

to continuously improve its supervisory functions. Inhouse

training was provided in 2012 by the Reserve Bank Consultant

Actuary in various technical areas to further develop on-the-

job skills and enhance intellectual capacity. Further technical

training by the Actuary will be provided in 2013.

Furthermore, staff continued to pursue insurance correspondence

courses with Financial Stability Institute (FSI) Connect, an online

learning tool and information resource developed by the Financial

Stability Institute for financial sector supervisors around the

world.

The APRA assisted onsite continued to provide a platform

to further develop supervisory skills and improve the onsite

examination process of insurance companies. This was part

of the POSP which also involved supervisors from the Pacific

region. The Reserve Bank is grateful for the technical assistance

from APRA and program funding provided through AusAID.

12 This is a subcommittee of the Insurance Task Force.

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OVERALL PERFORMANCEThe overall performance for the general insurance industry weakened in 2012. Although gross premium income grew over the year, natural catastrophes such as the two major floods and the tropical cyclone subdued the underwriting profitability of the industry. However, all general insurance companies continued to comply with the minimum solvency requirements under the

Insurance Act 1998.

GROSS PREMIUMS13 The general insurance industry grew considerably in 2012 with gross premium income increasing by 16.5 percent to $145.6 million (2011: $125.0 million). This was mainly attributed to the underwriting of new policies during the year.

General InsuranceThe general insurance industry experienced challenges in 2012 with various catastrophes

having an impact on the insurers’ profitability. Despite these challenges,

the industry continued to demonstrate strong solvency position.

Table 6 | Premium Growth

YearGross

PremiumNet Premium

IncomeRetention

Ratio

$m % Change $m % Change %

2008 117.9 4.6 92.9 4.7 78.8

2009 119.5 1.4 88.4 (4.8) 73.9

2010 120.8 1.1 89.8 1.6 74.3

2011 125.0 3.5 96.9 7.9 77.5

2012 145.6 16.5 103.0 6.3 70.7 Source: General Insurance Companies

The rise in gross premium income was mainly driven by fire, motor vehicle and medical classes, which increased by $11.8 million, $3.5 million and $3.4 million respectively.

Gross premium for householders, workers’ compensation, term life, professional indemnity and “others” classes marginally grew in 2012.

Gross premium income for the motor compulsory third party (CTP) class declined by 18.7 percent over the year to $9.0 million. This was mainly attributed to the introduction of a 20.0 percent CTP levy by the Fijian Government in 2012 and decline in the number of motor CTP policies from 91,838 in 2011 to 91,351 in 2012. The levy was required to be borne by insurers as such, no variations were noted in the motor CTP premium rates.

In terms of composition, fire class continued to be the major contributor to the gross premium pool at 33.6 percent, followed by motor vehicle at 20.1 percent and medical at 15.1 percent.

Table 7 | Distribution of Gross Premium

Year Fire Motor Marine Pers.* Liab.** Others Total$m

2008 31.1 24.5 2.9 34.2 20.2 5.0 117.9 2009 31.0 25.3 3.5 35.4 19.7 4.6 119.5 2010 33.4 25.5 3.0 34.2 20.4 4.3 120.8 2011(r) 37.1 25.8 3.0 35.1 19.9 4.1 125.0 2012 48.9 29.3 3.1 40.3 19.3 4.7 145.6

% Change2008 9.9 4.3 (12.1) 3.6 3.1 0.0 4.6 2009 (0.3) 3.3 20.7 3.5 (2.5) (8.0) 1.4 2010 7.7 0.8 (14.3) (3.4) 3.6 (6.5) 1.1 2011 11.1 1.2 0.0 2.6 (2.5) (4.7) 3.5 2012 31.8 13.6 3.3 14.8 (3.0) 14.6 16.5

% Share2008 26.4 20.8 2.5 29.0 17.1 4.2 100.02009 25.9 21.2 2.9 29.6 16.5 3.9 100.02010 27.6 21.1 2.5 28.3 16.9 3.6 100.02011 29.7 20.6 2.4 28.1 15.9 3.3 100.02012 33.6 20.1 2.1 27.7 13.3 3.2 100.0* Personal - Householders, Medical, Term Life, Burglary, and Person-

al Accident.** Liabilities - Motor CTP, Professional Indemnity, Public Liability

and Workers’ Compensation. Source: General Insurance Companies

The total number of policies issued and renewed also increased from 136,358 in 2011 to 137,170 in 2012, attributed to the increases in individual and group policies by 719 and 93 respectively. The number of policies issued for fire, motor vehicle and medical classes increased in 2012. Policies for fire class increased by 241 to 4,192, while motor vehicle increased by 2,293 to 14,292. Similarly, the number of group policies for the medical class increased by 62 to 491, covering 29,596 persons.

REINSURANCE CESSIONS Premiums ceded offshore under the treaty and facultative reinsurance arrangements amounted to $42.6 million. This represented 29.3 percent of the general insurers’ gross premium pool compared to 22.5 percent in 2011.

The increase in reinsurance premiums mainly stemmed from the fire class which grew by $15.6 million to $33.4 million. This was due to the high reinsurance reinstatement premiums following the catastrophic events of 2012. “Others”, medical and workers’ compensation classes marginally contributed to the growth in reinsurance premiums.

13 Gross premium is the total premiums (amount paid by the policy holder) less third party collections (such as stamp duty, fire levy, VAT and Motor CTP levy).

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On the other hand, reinsurance premiums for householders,

motor vehicle and motor CTP classes declined by an aggregate

of $1.0 million. Similarly, all other classes such as term life,

marine cargo, public liability, personal accident, professional

indemnity and burglary reported marginal reductions in 2012.

The fire and householders classes held the highest levels of

reinsurance, representing 78.3 percent and 8.2 percent of the

general insurance industry’s total reinsurance cost.

Medical class, while accounting for 15.1 percent of the gross

premium income, continued to have low reinsurance coverage

of $0.2 million. This was due to the limited availability of

reinsurance for medical class.

Treaty reinsurance accounted for 98.4 percent of the total

reinsurance costs, while the remaining was ceded through

facultative reinsurance. The majority of the covers placed

in 2012 by the general insurance industry were with rated

reinsurance companies.

NET PREMIUM INCOMENet Premium Income14 increased by 6.3 percent to $103.0

million (2011: $96.9 million). The growth of $20.6 million in

gross premium income outpaced the rise of $14.6 million in

reinsurance outward expenses.

Motor vehicle and medical classes were the major contributors

to the growth in net premium income. These classes increased

by $3.8 million and $3.3 million respectively. This was followed

by the term life and householders classes at $1.1 million each.

The increase in net premium income was partially offset by the

decreases noted in fire and motor CTP classes by $3.8 million

and $1.8 million respectively. This was mainly underpinned

by rising reinsurance costs for fire class and decline in gross

premium income for motor CTP.

14 The difference between gross premium income and reinsurance outwards. This is the portion of gross premium that the insurer retains.

Table 8 | Distribution of Net Premiums

Years Fire Motor Marine Pers.* Liab.** Others Total$m

2008 15.5 22.8 2.6 29.3 18.3 4.4 92.9 2009 11.0 23.4 2.7 31.6 16.8 2.9 88.4 2010 12.4 23.7 2.2 29.5 18.0 4.0 89.8 2011 19.3 24.1 2.3 30.0 17.8 3.4 96.9 2012 15.5 27.9 2.6 35.6 17.6 3.8 103.0

% Change

2008 8.4 5.6 (7.1) 2.8 7.0 0.0 4.7 2009 (29.0) 2.6 3.8 7.8 (8.2) (34.1) (4.8)2010 12.7 1.3 (18.5) (6.6) 7.1 37.9 1.6 2011 55.6 1.7 4.5 1.7 (1.1) (15.0) 7.9 2012 (19.7) 15.8 13.0 18.7 (1.1) 11.8 6.3

% Share2008 16.7 24.6 2.8 31.5 19.7 4.7 100.0 2009 12.5 26.5 3.0 35.7 19.0 3.3 100.0 2010 13.8 26.4 2.4 32.9 20.0 4.5 100.0 2011 19.9 24.8 2.4 30.9 18.4 3.6 100.0 2012 15.0 27.1 2.5 34.6 17.1 3.7 100.0 * Personal - Householders, Medical, Term Life, Burglary, and Person-

al Accident.** Liabilities - Motor CTP, Professional Indemnity, Public Liability and

Workers’ Compensation.Source: General Insurance Companies

Motor vehicle class continued to dominate the net premium

income pool at 27.1 percent. This was followed by medical and

fire classes at 21.2 percent and 15.0 percent respectively.

Graph 13 | Composition of Net Premium Income for 2012 ($103.0 million)

Source: General Insurance Companies

Motor Vehicle

Marine

Fire

Liability

Others

Personal

27.1%

34.6%

2.5%

15.0%

17.1%

3.7%


Graph 12 | Retention Ratio by General Class

Per

cent

Fire Motor MarinePersonal Liability Others

100

80

60

40

20

0

2009

2010

2011

2008

2012

CLAIMS

In 2012, the gross claim payments increased by 45.6 percent

to $78.9 million as a result of the floods and Cyclone Evan

(2011: $54.2 million). Fire, motor vehicle and “others” classes

experienced large claims during the year. Fire increased by

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$18.2 million while motor vehicle and “others” classes increased

by $4.5 million and $2.7 million respectively.

Fire, motor vehicle and “others” classes were also the major contributors to the increase in the number of claim payments for 2012. Fire class recorded the largest increase of 479 claims, followed by motor vehicle and “others” at 135 and 65 claims respectively. Marginal increases in the claims for householders, motor CTP and medical classes also contributed towards the growth in gross claim payments.

Despite the rise in gross claims payment, the total number of claims reported in 2012 reduced by 3,180 to 58,288. This was indicative of higher claims experience in monetary terms compared to 2011. The overall reduction in the number of claims reported stemmed from medical and term life classes which fell by 4,285 and 51 to 51,714 and 161 respectively.

While the number of claims reported consisted mainly of the medical class at 88.7 percent, a lower gross claims payment of $11.5 million was reported in 2012.

On the contrary, motor vehicle and fire classes made up 6.6 percent and 1.2 percent of the total number of claims reported, with greater claim payments of $18.3 million and $30.3 million respectively.

Total reinsurance recoveries stood at a massive $80.4 million (2011: $15.6 million) as a result of the catastrophic events of 2012. The fire class reported the major increase of $62.4 million to $73.8 million and accounted for the majority of the

reinsurance recoveries at 91.8 percent.

UNDERWRITING RESULT The overall net loss ratio (net claims incurred as a percentage of net earned premiums) worsened over the year to 80.9 percent (2011: 49.9 percent). Net claims incurred rose by $29.3 million compared to $1.5 million increase in net earned premiums.

The fire class reported the highest net loss ratio, increasing from 20.8 percent to 195.7 percent in 2012. This resulted from high

Table 9 | Distribution of Net Loss Ratios (%)

Year Fire Motor Marine Pers* Liab** Others Total

2008(r) 36.2 66.5 70.8 54.7 27.2 62.2 49.9

2009 114.5 66.9 194.8 58.3 19.7 88.0 65.3

2010 61.2 51.5 (93.9) 59.1 19.1 34.6 44.8

2011(r) 20.8 60.8 45.4 60.5 42.8 43.8 49.9

2012 195.7 63.8 42.6 59.9 52.9 205.1 80.9* Personal - Householder, Medical, Term Life, Burglary and Personal

Accident.** Liabilities - Motor CTP, Professional Indemnity, Public Liability and

Workers’ Compensation.Source: General Insurance Companies

net claims incurred arising from the floods and Cyclone Evan. Contrastingly, an improvement was noted in net loss ratios for

marine and personal classes.

The underwriting expense reported an increase of 9.2 percent

to $20.5 million largely driven by the rise in commission

expenses. This led to the worsening of the underwriting expense

ratio (underwriting expenses to net earned premiums) to 22.2

percent (2011: 20.7 percent).

The combined underwriting ratio (the net loss ratio plus the

underwriting expenses ratio) also increased to 103.1 percent

from 70.6 percent in 2011.

Similarly, the underwriting result of the general insurance

industry decreased by 110.5 percent to a deficit of $2.8 million

in 2012 (2011: $26.7 million surplus). Higher net claims

incurred coupled with increased reinsurance costs contributed

to this deficit.

* Personal - Householder, Medical, Term Life, Burglary and Personal Accident.

** Liabilities - Motor CTP, Professional Indemnity, Public Liability and Workers’ Compensation.


Table 10 | Underwriting Result by Class ($m)

Year Fire Motor Marine Pers* Liab** Others Total

2008(r) 5.2 4.4 0.4 7.4 11.5 0.8 29.7

2009 (5.9) 4.4 (3.0) 6.9 11.7 (0.4) 13.7

2010 2.2 8.0 4.2 6.4 12.8 1.9 35.5

2011 5.1 6.0 0.8 5.3 8.1 1.4 26.7

2012 (17.6) 5.5 0.9 6.6 6.2 (4.4) (2.8)

NON UNDERWRITING INCOMENon underwriting income declined by 13.7 percent in 2012 and stood at $9.7 million. This was underpinned by interest income reducing by $2.1 million amidst the low interest rate environment prevalent during the year. Loss on sale of assets also marginally reduced the underwriting income. The overall reduction was partially offset by increases in dividends, other non underwriting income and rent, which grew by $0.7 million, $0.5 million and $0.1 million respectively.

OPERATING RESULT 2012 was viewed as the most unprofitable year for the general insurance industry. While losses varied amongst institutions, the industry results have been driven by the large players with greater exposure in the flood and cyclone affected areas.

A net loss before tax of $6.2 million was reported compared to the profit of $24.2 million in 2011. After accounting for

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BALANCE SHEET Assets

Total assets of the general insurance industry recorded the largest annual growth in the past 10 years of 26.6 percent to $371.6 million (2011: $293.6 million). The growth in total assets was mainly due to the increase in amounts due from reinsurers and cash on hand.

The amounts due from reinsurers had increased by $65.0 million to $80.2 million. These related to reinsurance claims made by some of the general insurance companies under their treaties which cushioned the impact of the claims relating to the floods and Cyclone Evan of 2012. Cash on hand expanded by $10.1 million to $36.9 million due to inflows from insurance premiums and maturing investments.

Graph 15 | Distribution of Assets for General Insurance Companies


$ M

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0

50

100

150

200

250

300

350

400

2008

2009

2010

2011

2012

Investment assets contracted by 4.7 percent to $183.3 million.

Related party shares, bonds and bank deposits declined by $4.3

million, $4.4 million and $2.0 million respectively. Bank deposits

continued to be the major component of investments at 85.2

percent (2011: 82.3 percent).

The composition of assets remained the same over the year with

investments continuing to account for majority of the industry’s

assets at 49.3 percent. Amounts due from reinsurers and cash

on hand represented 21.6 percent and 9.9 percent respectively.

Liabilities

Total liabilities of the general insurance industry were reported at

a record high of $257.6 million, increasing by 58.4 percent over

the year. This was mainly underpinned by increased underwriting

provisions and other liabilities.

Following the increase in claims relating to the 2012 floods

and Cyclone Evan, underwriting provisions increased by $83.6

million to $213.3 million, while other liabilities increased by

$17.3 million to $38.6 million largely due to premium payments

owing to related parties.

In terms of composition, outstanding claims provision accounted for 54.9 percent of the industry’s liabilities followed by unearned

premium provisions at 27.1 percent.

Owners’ Equity

Total capital of the general insurance industry declined by 12.9 percent to $114.1 million due to the reductions in retained earnings and asset revaluation reserve.

The retained earnings declined by $11.8 million to $73.4 million as a net loss after tax of $6.1 million and dividend payments of $5.6 million were recorded. On the other hand, asset revaluation reserves declined by $5.7 million to $0.6 million as a result of changes in the valuation practices of some general insurance companies.

$ M

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50

100

150

200

250

300

2008

2009

2010

2011

2012


Graph 16 | Distribution of Liabilities for General Insurance Companies

taxation expenses of $0.1 million, net loss after tax was $6.1 million (2011: profit after tax of $16.8 million).

Graph 14 | Operating and Underwriting Results

$Mill

ion

2008

2009

2010

2011

40

35

30

25

20

15

10

5

0

-5

-10

Operating and Underwriting Result

Net Profit

Investments and Others

2012


Term Deposits

Other Assets

Outstanding PremiumsAmt Due from ReinsurersSharesFixed AssetsGovernment Securities

Outstanding Provision

Outstanding Claims Provision

Unearned Premium ProvisionOther Liabilities

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NET LOSS15 RATIOS OF FIJI GENERAL INSURANCE BUSINESS


15 Net Loss Ratio is claims incurred as a percentage of net earned premiums.16 Negative loss ratio for marine class in 2010 is due to higher reinsurance recoveries in marine hull resulting in negative claims incurred.

Graph 18 | Marine16

250

200

150

100

50

0

-150

-100

-50

Per

cent

Graph 19 | Motor Vehicle

807060

5040

30

2010

0

Per

cent

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Graph 17 | Fire

Per

cent

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

250

200

150

100

50

0

Graph 20 | Motor CTP

Graph 22 | Total

8090

706050403020

100

Per

cent

Graph 21 | Medical

8090

70

60

5040

30

20

10

0

Per

cent

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22

Source: Life Insurance Companies

Graph 23 | Composition of Gross Premiums for 2012 ($112.9 million)

Endowment

Term

Other (Individual)

Group Life (Term)

Whole of Life

92.9%

3.1%

2.2%

1.7%

0.1%

OVERALL PERFORMANCEThe life insurance industry performed satisfactorily in 2012.

The industry continued to reflect positive after tax surpluses

however, a slight decline was recorded after four years of

consecutive increases. The decline was attributed to the

significant increase in total outgoings coupled with the reduction

in total income.

The balance sheet of the life insurance industry remained strong

with the major components of assets, liabilities and owners’

funds growing over the year.

PREMIUMSGross premium income for the life insurance industry continued

to increase in 2012 and stood at $112.9 million (2011: $96.2

million). The investment linked products continued to be

popular in 2012, and this contributed to the annual growth of

17.4 percent in gross premiums. Investment linked products

have similar features as endowment policies.

The purchase of endowment17 policies also grew by 19.1 percent

to $104.8 million in 2012. Endowment policies accounted for

the bulk of the life insurance industry’s gross premiums at 92.9

percent.

Life InsuranceThe balance sheet growth of the life insurance sector remained strong in 2012

with adequate capital. New business coupled with reduced terminations,

led to an expansion of net insurance premiums recorded.

$2.5 million in 2012 while “others” classes grew by 1.8 percent

to $2.0 million. Whole of life class on the contrary, recorded a

decline of 8.9 percent in gross premiums to $3.5 million. Whole

of life, term life and “others” classes accounted for 3.1 percent,

2.2 percent and 1.7 percent of the gross premiums respectively.

Prior to 2010, the “others” individual class was the second

largest.

Net insurance premiums also increased by 17.6 percent to

$112.2 million in 2012 (2011: $95.4 million). Reinsurance

premiums ceded offshore decreased by 10.8 percent to $0.7

million.

In terms of the business profile, ordinary life policies continued

to account for the bulk of the life insurance business at 98.2

percent. Of these ordinary life policies, endowment policies

represented 94.6 percent of premiums. In 2012, there were

no industrial life policies written by the life insurance companies.

PERFORMANCE OF LIFE BUSINESS New Business

The new life insurance business written in 2012 grew by 1,125

policies to 13,926 (2011: 12,801). The trend for new life

businesses have been fluctuating with 2011 recording a decline

of 1,828 policies.

17 Endowment life policies cover the risk for a specified period at the end of which the sum assured is paid back to the policyholder along with the entire bonus accumulated during the term of the policy. In the event of death of the insured during the policy duration, the policy ceases and the beneficiary is paid a sum of money as per the condition of the insurance contract.

Table 11 | New Business of Life Insurers

YearNo. of Policies Sum Insured ($m)

Premium($m)Partic. Non

Partic. Partic. Non Partic.

2008 11,610 407 190.5 165.1 15.7

2009 10,488 830 182.3 142.0 11.7

2010 13,982 647 213.7 153.2 14.6

2011 12,786 15 220.4 138.3 30.6

2012 13,900 26 252.2 190.4 46.8

% Change

2008 (10.0) 1,528.0 (3.4) (1.5) (3.1)

2009 (9.7) 103.9 (4.3) (14.0) (25.5)

2010 33.3 (22.0) 17.2 7.9 24.8

2011 (8.6) (97.7) 3.1 (9.7) 109.6

2012 8.7 73.3 14.4 37.7 52.9Source: Life Insurance Companies

Term life and “others” classes contributed marginally to the

growth in gross premiums. Term life increased by 5.7 percent to

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The majority of the new life business consisted of participating

policies18 of which 99.4 percent were endowment policies.

New life businesses for non participating policies also increased

from 15 to 26 policies in 2012 and were all term life insurance

policies.

Table 12 | Distribution of New Sum Insured of Life Insurers

YearOrdinary Life Insurances

Total ($m)

Whole of Life Endowment Term

Life$m

2008 4.5 186.0 165.1 355.62009 2.8 179.5 142.0 324.32010 3.0 210.7 153.2 366.92011 3.9 216.5 138.3 358.72012 2.2 250.0 190.4 442.6

% Change2008 28.6 (4.0) (1.5) (2.5)2009 (37.8) (3.5) (14.0) (8.8)2010 7.1 17.4 7.9 13.12011 30.0 2.8 (9.7) (2.2)2012 (43.6) 15.5 37.7 23.4

% Share

2008 1.3 52.3 46.4 100.0

2009 0.9 55.3 43.8 100.02010 0.8 57.4 41.8 100.02011 1.1 60.3 38.6 100.02012 0.5 56.5 43.0 100.0


In line with the upward trend in new life policies, sums insured

increased in 2012. Total sums insured for new life policies

increased by 23.4 percent to $442.6 million (2011: $358.7

million). This has mainly stemmed from the growth in sums

insured for the endowment and term life policies. Endowment

policies increased by 15.5 percent to $250.0 million while term

life policies increased by 37.7 percent to $190.4 million in line

with the increased take up of the products.

Sums insured for whole of life policies, on the other hand,

decreased by 43.6 percent to $2.2 million following the decline

in the number of new policies written during the year.

As the number of new business and sums insured increased, total

premiums also grew by 52.6 percent to $46.7 million (2011:

$30.6 million) which mainly comprised of single premium

endowment policies.

Endowment policies accounted for 98.1 percent of the

premiums generated from the new policies written during the

year. Term life and whole of life policies made up 1.5 percent

and 0.4 percent of new business premiums. In 2012, new

life business accounted for 28.9 percent of the total business

written in the year.

Table 13 | Distribution of New Business Premiums of Life Insurers

Year

Ordinary Life Insurance Total Premiums

($m)

Wholeof Life Endowment Term

Life

$m2008 0.3 14.7 0.7 15.72009 0.2 10.8 0.7 11.72010 0.2 13.7 0.7 14.62011 0.3 29.7 0.6 30.62012 0.2 45.8 0.7 46.7

% Change2008 50.0 (3.9) 16.7 (2.5)2009 (33.3) (26.5) 0.0 (25.5)2010 0.0 26.9 0.0 24.82011 50.0 116.8 (14.3) 109.62012 (33.3) 54.2 16.7 52.6

% Share2008 1.9 93.6 4.5 100.02009 1.7 92.3 6.0 100.02010 1.4 93.8 4.8 100.02011 1.0 97.0 2.0 100.02012 0.4 98.1 1.5 100.0


Terminations

The number of policies terminated in 2012 fell to 12,576 from

15,155 in 2011 due to a lower level of forfeitures. In line with

the reduction in the number of the policies terminated, the rate

of termination19 reached its lowest level of 14.2 percent since

2008.

18 Participating policies entitle policyholders to a share of surpluses or profits that may be distributed by the insurer.19 Rate of termination is total number of policies terminated as a percentage of total number of business in force at year end.

Table 14 | Termination of Annual Premiums of Life Insurers

YearDeath Maturity Surrender Forfeiture Others Total

$m

2008 0.3 1.3 4.1 10.2 0.3 16.2

2009 0.3 0.9 3.7 8.9 3.8 17.6

2010 0.4 0.8 3.7 7.1 2.2 14.2

2011 0.4 1.4 3.7 9.9 0.9 16.3

2012 0.3 2.3 3.5 8.0 1.1 15.2

% Change

2008 (25.0) (7.1) (18.0) (10.5) 0.0 (12.4)

2009 0.0 (30.8) (9.8) (12.7) 1,166.7 8.6

2010 33.3 (11.1) 0.0 (20.2) (42.1) (19.3)

2011 0.0 75.0 0.0 39.4 (59.1) 14.8

2012 (25.0) 64.3 (5.4) (19.2) 22.2 (6.7)

% Share

2008 1.9 8.0 25.3 62.9 1.9 100.0

2009 1.7 5.1 21.0 50.6 21.6 100.0

2010 2.8 5.6 26.1 50.0 15.5 100.0

2011 2.5 8.6 22.7 60.7 5.5 100.0

2012 2.0 15.1 23.0 52.6 7.3 100.0Source: Life Insurance Companies

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Table 15 | Terminations of Sum Insured of Life Insurers

YearDeath Maturity Surrender Forfeiture Others Total

$m

2008 8.6 28.6 126.1 272.7 23.5 459.5

2009 8.4 25.5 124.8 253.1 8.5 420.3

2010 10.2 28.8 125.8 242.3 28.1 435.2

2011 9.8 26.5 105.7 229.9 22.1 394.0

2012 8.4 31.4 79.5 220.5 18.3 358.1

% Change

2008 (21.1) 5.5 (22.1) (10.0) 23.7 (11.9)

2009 (2.3) (10.8) (1.0) (7.2) (63.8) (8.6)

2010 21.4 12.9 0.8 (4.3) 230.6 3.5

2011 (3.9) (7.9) (15.9) (5.1) (21.4) (9.4)

2012 (14.3) 18.5 (24.8) (4.1) (17.2) (9.1)

% Share

2008 2.0 6.2 27.4 59.3 5.1 100.0

2009 2.0 6.1 29.7 60.2 2.0 100.0

2010 2.3 6.6 28.9 55.7 6.5 100.0

2011 2.5 6.7 26.8 58.4 5.6 100.0

2012 2.3 8.8 22.2 61.6 5.1 100.0Source: Life Insurance Companies

Table 16 | Life Business in Force

YearNo. of Policies Sums Insured

($m) Premiums($m)

Partic. Non partic. Partic. Non partic.

2008 84,717 1,476 1,215.6 353.3 79.4

2009 83,380 1,869 1,231.7 352.4 76.0

2010 85,911 1,800 1,287.2 324.7 78.5

2011 84,896 1,417 1,324.3 311.8 122.8

2012 87,372 1,295 1,425.0 329.4 159.8

% Change

2008 (2.2) 21.8 1.3 (1.9) 3.7

2009 (1.6) 26.6 1.3 (0.3) (4.3)

2010 3.0 (3.7) 4.5 (7.9) 3.3

2011 (1.2) (21.3) 2.9 (3.9) 56.4

2012 2.9 (8.6) 7.6 5.6 30.1Source: Life Insurance Companies

20 Forfeited policies as a percentage of the average new policies written in the current year and preceding year.21 Surrendered policies as a percentage of policies in force at commencement of year.22 Individual business plus group business.23 Non participating policies do not entitle the policyholders to a share in surpluses or profits of the insurer.

Business in Force

The trend for business in force has been fluctuating over the

past five years, however participating policies have continued to

dominate the life business when compared to non participating

policies.

Total life insurance policies22 in force grew by 2,354 policies

to 88,667. This was largely attributed to the increase in new

business, reduction in terminations and transfers, and revival of

old policies that had lapsed in the previous years.

Total sums insured and annual premiums grew by 7.2 percent

and 30.1 percent respectively in 2012. The annual growth in

premiums for life policies mainly stemmed from endowment

policies which increased by 32.6 percent to $150.4 million in

2012 (2011: $113.4 million).

The premium income from term life policies remained consistent

in 2012 while the premiums for whole of life policies declined by

2.7 percent to $3.6 million.

Participating policies continued to account for the majority of

the total number of life policies in force at 98.5 percent, and the

balance with non participating23 policies.

Of the 13,926 new businesses written in 2012, 748 related

to single premium business with total sums insured of $31.1

million and annual premiums of $30.3 million. During the year,

132 single premium policies were terminated with sums insured

of $6.1 million and premiums of $2.7 million. Policies which

matured accounted for 43.2 percent followed by surrenders at

31.8 percent. Single premium policies in force at year end stood

at 3,117 with total sums insured of $123.9 million and annual

premiums of $73.9 million.

Premiums foregone as a result of policies terminated during

the year decreased by 6.7 percent to $15.2 million (2011:

$16.3 million). Forfeitures accounted for 52.6 percent of the

premiums foregone followed by surrenders at 23.0 percent.

The sums insured for terminated policies also decreased by

9.1 percent to $358.1 million (2011: $394.0 million). The

movement was in line with reduction in the number of policies

terminated during 2012. The reduction was driven mainly by

the decline in participating policies by 2,322 with sums insured

of $33.2 million.

Forfeitures accounted for majority of the termination of sums

insured at 61.6 percent followed by surrenders at 22.2 percent.

Forfeitures and Surrenders

In 2012, the level of forfeitures and surrenders were lower

compared to 2011. Total policies terminated through forfeitures

and surrenders stood at 10,367 from 12,948 in 2011. The

decrease was mainly attributed to the number of policies

forfeited declining from 9,112 in 2011 to 6,275 in 2012. As a

result, the forfeiture rate20 improved from 66.4 percent in 2011

to 47.0 percent in 2012.

On the contrary, termination by way of surrender increased by

6.7 percent to 4,092 policies in 2012. The surrender rate21 in

turn worsened to 4.6 percent from 4.4 percent in 2011. The

surrender rate has been fluctuating between 4.4 to 5.3 percent

since 2008.

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24 Expressed as after tax revenue surplus as a percentage of the average assets in the current and preceding year.

Table 17 | Distribution of Annual Premiums for Life Business in Force

YearOrdinary Life Insurances Total

Premiums ($m)

Whole of Life Endowment Term Life$m

2008 4.6 72.6 2.2 79.4

2009 4.5 69.3 2.2 76.0

2010 4.0 72.4 2.1 78.5

2011 3.7 113.4 5.7 122.8

2012 3.6 150.4 5.8 159.8

% Change

2008 (4.2) 4.3 0.0 3.7

2009 (2.2) (4.5) 0.0 (4.3)

2010 (11.1) 4.5 (4.5) 3.3

2011 (7.5) 56.6 171.4 56.4

2012 (2.7) 32.6 1.8 30.1

% Share

2008 5.8 91.4 2.8 100.0

2009 5.9 91.2 2.9 100.0

2010 5.1 92.2 2.7 100.0

2011 3.1 92.3 4.6 100.0

2012 2.3 94.1 3.6 100.0Source: Life Insurance Companies

INCOME AND OUTGOINGSIncome

Total income for the life insurance industry fell over the year by 8.2 percent to $189.4 million due to the lower interest rates prevailing in the market which saw a slower appreciation of asset values and lower return on deposit investments.

Asset value appreciation was $29.3 million in 2012, a decline from $59.7 in 2011. Similarly, interest income on investments declined to $43.7 million (2011: $47.5 million).

Net insurance premiums however, partially subdued the falling total income, increasing by 17.6 percent to $112.2 million (2011: $95.4 million), in line with the new businesses written during the year coupled with lower terminations.

In terms of business portfolio composition, net insurance premiums continued to account for most of the life insurance industry’s total income at 59.2 percent followed by interest income at 23.1 percent and asset value appreciation at 15.5 percent.

Outgoings

Total outgoings increased by 29.6 percent in 2012 to $115.3 million (2011: $89.0 million). There were notable increases in policy liabilities, net policy payments, operating expenses and commission incurred during the year.

Policy liabilities increased to $18.4 million while net policy

payments increased to $67.2 million. Operating expense also

increased to $21.8 million while net commissions incurred

increased to $8.0 million.

Net policy payments continued to account for majority of the

total outgoings at 58.3 percent, followed by operating expenses

at 18.9 percent, increase in policy liabilities at 16.0 percent and

net commissions incurred at 6.9 percent.

Gross policy payments increased by 6.2 percent over the year to

$67.2 million (2011: $63.3 million).

Table 18 | Policy Payments

Year

Gross Policy Payments

Total($m)

Maturity Death Surrender Others

$m

2008 30.6 6.0 18.9 0.2 55.7

2009 32.2 6.7 20.4 0.2 59.5

2010 29.0 8.2 18.9 0.5 56.6

2011 33.1 9.3 20.2 0.7 63.3

2012 41.4 6.9 18.7 0.2 67.2Source: Life Insurance Companies

Payment for matured policies continued to be the major benefit

payments at $41.4 million (2011: $33.1 million) and accounted

for 61.6 percent of the total gross policy payments. The bulk

($62.2 million or 92.6 percent) of the benefit payments were

for endowment policies.

Benefit payments through surrenders decreased by 7.4 percent

to $18.7 million and accounted for 27.8 percent of the gross

policy payments.

OPERATING RESULTSThe life insurance industry’s revenue surplus before tax

decreased by 36.9 percent to $74.1 million (2011: $117.4

million). The decrease was mainly underpinned by the increase

in total outgoings of 29.6 percent coupled with reduction in

total income of 8.2 percent. Total outgoings increased largely

due to policy liabilities while the lower asset value appreciation

contributed to the decline in total income.

This resulted in the after tax revenue surplus decreasing by 38.0

percent to $71.1 million. Return on assets24 for the life insurance

industry fell to 8.9 percent from 16.3 percent in 2011.

Bonuses paid to policyholders amounted to $1.3 million

compared to $1.8 million provided in 2011. There were no

dividends proposed or paid during the year.

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BALANCE SHEETAssets

Total assets of the life insurance industry continued to expand

in 2012, growing by an annual average of 11.0 percent since

2010, to reach $843.2 million (2011: $750.1 million). The

annual growth in assets was more evident in government

securities, cash on hand and shares.

Government securities grew by 20.7 percent to $460.1 million,

while cash on hand increased by 445.2 percent to $55.6 million.

Investments in the form of shares also increased by 58.2 percent

to $102.6 million.

Bank deposits, on the other hand, decreased by 73.6 percent

to $20.8 million as a result of reinvestment of funds into

higher yielding assets. Other secured loans and debentures also

declined to $80.9 million and $18.7 million.

$Mill

ion

LoansOutstanding Premiums

Other Assets Other InvestmentsGovernment Securities

0

100

200

300

400

500

600

700

800

900

2008

2009

2010

2011

2012


Graph 24 | Distribution of Assets for Life Insurance Industry

In terms of composition of total assets, investments in

government securities continued to account for the largest

share of assets at 54.6 percent. Shares and other secured loans

account for 12.2 percent and 9.6 percent, while cash on hand

was at 6.6 percent.

The investment portfolio continued to account for the largest

share of the life insurance industry’s assets at 79.6 percent

(2011: 82.2 percent).

Liabilities

Life insurance industry’s liabilities are actuarially valued each year

as per the requirement of the Act to determine the net statutory

liability25 of the insurers.

Total liabilities for the life insurance industry increased by 12.9

percent to $775.3 million (2011: $686.5 million) largely

attributed to the increase in the balance of revenue account.

The balance of revenue account increased by 12.6 percent

during the year to $745.6 million in line with the growth in

gross premiums. The balance of revenue account continued to

represent the bulk of the liabilities at 96.2 percent.

Sundry creditors also increased by 30.0 percent to $8.4 million

while taxation provisions and claims admitted but not paid grew

to $6.3 million and $6.4 million respectively.

The net statutory liabilities of life insurance industry increased

over the year and stood at $681.9 million compared to $621.3

million in 2011.

Owners’ Funds

Total owners’ funds increased by 6.7 percent over the year to

$67.9 million. This was largely attributed to retained profits,

which increased by 10.8 percent to $45.1 million.

25 Net Statutory Liabilities represents the estimated total liabilities of life insurers to policyholders.

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OVERALL PERFORMANCEPremiums handled by brokers in 2012 exceeded $100 million,

recording a notable growth from 2011.

The increase in broking business transacted contributed to the

expansion in the balances of both assets and liabilities with higher

than marginal growth in outstanding premiums and amounts due

to insurers respectively.

The growth also generated more revenue for the industry in

2012, translating to higher profits which improved retained

earnings and accordingly the overall growth in owners’ funds.

PREMIUMSTotal premiums handled by the broking industry increased by

38.3 percent to $137.2 million (2011: $99.2 million). This was

mainly attributed to the fire and property and medical and life

classes, which increased by $24.4 million and $5.5 million.

Insurance BrokersThe insurance broking industry continued its growth trend over the last three years,

in terms of premiums transacted, attributed to a combination

of increased premium rates and new business.

Table 19 | Total Premiums Transacted by Insurance Brokers

Year Fire and Property

Trans-port and Marine

Liability*Medical

and Life

Miscellane-ous** Total

$m

2008 43.2 14.0 9.6 12.9 10.3 90.0

2009 44.6 14.0 9.5 12.7 8.4 89.2

2010 46.2 14.5 8.9 12.1 9.7 91.4

2011 50.8 15.6 9.8 13.5 9.5 99.2

2012 75.2 20.9 12.1 19.0 10.0 137.2

% Change

2008 2.9 2.2 (4.0) (4.4) (7.2) (0.3)

2009 3.2 0.0 (1.0) (1.6) (18.4) (0.9)

2010 3.6 3.6 (6.3) (4.7) 15.5 2.5

2011 10.0 7.6 10.1 11.6 (2.1) 8.5

2012 48.0 34.0 23.5 40.7 5.3 38.3 * Liabilities - Motor CTP, Professional Indemnity, Public Liability and

Workers’ Compensation** Miscellaneous - Others+ CIT and Burglary, Personal AccidentSource: Insurance Brokers

The majority of the insurance premiums handled by the

insurance brokers were collected on behalf of the local insurance

companies. This accounted for 78.0 percent while the remaining

22.0 percent were collected for the offshore insurance

companies.

Fire and property class continued to maintain the largest share of

total premiums handled at 54.8 percent (2011: 51.2 percent).

This was followed by the transport and marine classes at 15.2

percent, medical and life classes at 13.9 percent, liability at 8.8

percent and miscellaneous classes at 7.3 percent.

INSURANCE BROKING ACCOUNTThe balance of the insurance broking account as at 31 December

2012 declined by 46.9 percent to $5.1 million indicating more

monies withdrawn than received during the year. This augurs

well for the industry implying brokers continuing to remit

premiums to the respective insurance companies.

Total monies received grew by 8.4 percent to $132.0 million

(2011: $121.8 million). Monies received for local insurance

companies accounted for 79.4 percent while 20.2 percent

related to offshore insurance companies. General insurance

business continued to account for the bulk of monies received

at 99.6 percent. This was also reflected in the growth in gross

premium income of the general insurance industry.

Source: Insurance Brokers

Graph 25 | Distribution of Premiums Transacted by Brokers in 2012

Fire and Property

Liability

Medical and Life

Miscellaneous

Transport and Marine

54.8%

15.2%

8.8%

13.9%

7.3%

Transport and marine class also grew by 34.0 percent to $20.9

million, while the liability class noted an increase of 23.5 percent

to $12.1 million.

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OPERATING RESULTSThe operating performance of the broking industry recorded a turnaround in 2012 with net profit recording a growth of 68.4 percent compared to a decline of 20.8 percent in 2011.

Total revenue of the industry increased by 15.6 percent to $14.1 million (2011: $12.2 million) largely due to increased brokerage income earned during the year.

Total brokerage earned increased by 16.4 percent to $13.5 million, fuelled by the growth in premiums handled. Commission

Table 21 | Operating Results of Insurance Brokers

Year Total Brokerage

Other Income

Total Expenses

Operating Profit / Loss

$m

2008 12.3 0.5 8.0 3.2

2009 11.6 0.4 8.5 2.4

2010 11.2 0.6 8.3 2.4

2011 11.6 0.6 9.5 1.9

2012 13.5 0.6 10.0 3.2

% Change

2008 0.0 (37.5) (2.4) (5.9)

2009 (5.7) (20.0) 6.3 (25.0)

2010 (3.4) 50.0 (2.4) 0.0

2011 3.6 0.0 14.5 (20.8)

2012 16.4 0.0 5.3 68.4Source: Insurance Brokers

Overall, majority of the growth in revenue for the industry

was sourced from the local broking business which generated

78.4 percent of the industry’s revenue. On the other hand, the

offshore broking business noted an increase of 47.6 percent to

$3.1 million in 2012 (2011: $2.1 million).

Total expenses for the insurance broking industry increased

over the year by 5.3 percent to $10.0 million. The increase in

expenses was largely driven by salaries and wages and “other”

expenses. “Other” expenses accounted for 51.5 percent of

industry’s total expense. Salaries and wages represented 37.7

percent.

The efficiency ratio (total expenses to total revenue) improved

to 71.3 percent in 2012 from 77.6 percent in 2011. This

resulted in the insurance broking industry’s after tax profit to

increase by 68.4 percent over the year to $3.2 million (2011:

$1.9 million).

BALANCE SHEETAssets

Total assets of the insurance broking industry grew by 19.5

percent over the year to $41.0 million (2011: $34.3 million),

largely due to the growth in outstanding premiums.

Outstanding premium grew by 80.6 percent to $29.8 million,

mainly due to the amounts owed in the 30 days and under

category and accounted for 54.7 percent of the industry’s assets.

On the other hand, investments decreased by 70.9 percent to

$0.6 million, attributed to withdrawals of term deposits.

Table 20 | Insurance Broking Account

Year B/f from last year

Total Monies Received

Total Monies Withdrawn

Balance at year end

$m

2008 2.1 95.1 94.8 2.4

2009 2.4 96.8 97.2 2.0

2010 2.0 100.1 97.7 4.4

2011 4.4 121.8 116.6 9.6

2012 9.6 132.0 136.5 5.1

% Change

2008 133.3 4.6 6.0 4.3

2009 14.3 1.8 2.5 (16.7)

2010 (16.7) 3.5 0.5 120.0

2011 120.0 21.7 19.3 118.2

2012 118.2 8.4 17.1 (46.9)Source: Insurance Brokers

Total monies withdrawn also grew by 17.1 percent to $136.5

million (2011: $116.6 million). Of these, payments to local

insurance companies accounted for 67.1 percent while

payments to offshore insurance companies represented 18.0

percent. Payments to self also increased to $19.1 million and

represented 14.0 percent of monies withdrawn.


Graph 26 | Payments to Insurance Brokers as a Percentage of Total Monies Withdrawn

$Mill

ion

Percent

25 16

14

12

10

8

6

4

2

0

20

15

10

5

0

2008

2009

2010

2011

2012

Payments to Self Percentage of Total Monies Withdrawn

accounted for 95.5 percent of total brokerage income while the

remainder represented fees income.

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Fixed AssetsOutstanding Premium

Other Assets InvestmentsInsurance Broking Account

2008

2009

2010

2011

2012


Graph 27 | Distribution of Assets for Insurance Brokers

Liabilities

Total liabilities grew by 15.2 percent over the year to $33.4

million (2011: 29.0 million). This was mainly due to the increase

in premiums owing to insurers, however offset by the decreases

in “other” other liabilities and provision for dividends.

Amounts due to insurers grew by $12.6 million to $29.0 million

and continued to represent bulk of the industry’s liabilities at

86.7 percent. “Other” other liabilities and provision for dividends

decreased by $4.8 million and $3.1 million respectively.

Owners’ Funds

Total owners’ funds increased by 41.5 percent over the year

to $7.5 million (2011: $5.3 million). This increase was mainly

attributed to the rise in retained profits to $6.9 million. Retained

profits represented 91.0 percent of total owners’ funds.


Graph 28 | Distribution of Liabilities for Insurance Brokers

Provisions

Amount due to Insurers Amount due to Related PersonsCurrent LiabilitiesOther Liabilities

0

5

10

15

20

25

30

35

$Mill

ion

$Mill

ion

0

5

10

15

20

25

30

35

40

45

2009

2008

2010

2011

2012

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INTERNATIONAL EVENTS IN 2012List of major losses in 2012 according to loss category:

Calendar of Events

No. of Events No. of Victims26 Insured loss27

(in US$m)

NATURAL CATASTROPHES 168 8,948 71,278

Floods 63 2,979 2 ,712

Storms 61 3,129 54,065

Earthquakes 15 717 1,787

Droughts, bush fires, heat waves 8 139 11,524

Cold, frost 13 1,806 250

Hail 5 900

Other natural catastrophes 3 178 40

MANMADE DISASTERS 150 4,981 5,961

Major fires, explosions 40 1,367 2,933

Industry, warehouses 19 497 1,137

Oil, gas 12 94 1,696

Other buildings 5 454

Other fires, explosions 4 322 100

Aviation disasters 11 449 557

Crashes 8 449 142

Space 3 415

Maritime disasters 43 1,701 2,208

Freighters 4 14 224

Passenger ships 26 1,679 719

Tankers 3 6 130

Drilling platforms 6 2 929

Other maritime accidents 4 206

Rail disasters (incl. cableways) 5 141

Mining accidents 2 66

Miscellaneous 49 1,257 263

Social unrest 15 152 116

Terrorism 25 785

Other miscellaneous losses 9 320 147

TOTAL 318 13,929 77,239

Source: Swiss Re, Sigma 2/2013

26 Dead or Missing.27 Property and business interruption, excluding liability and life insurance losses.

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Calendar of Events

INTERNATIONAL EVENTS IN 2012 (CONT.)The 20 most costly insurance losses in 2012:

Date Insured loss28 (in US$m)

No. of Victims29

Event Country

October 35,00030 237 Hurricane Sandy US, et al

July 11,00031 123 Drought in the Corn Belt US

March 2,500 42 Severe storms, tornadoes US

April 2,500 1 Thunderstorms, large hail, tornadoes US

June 2,000 28 Derecho storm with winds up to 146 km/h, tornadoes, hail US

May 1,700 - Thunderstorms, hail, tornadoes US

May 1,622 26 Earthquakes (MW 5.9 and MW 5.7), aftershocks Italy

August 1,60032 40 Hurricane Isaac US, et al

June 1,000 - Thunderstorms, large hail, tornadoes US

June 950 - Thunderstorms, large hail, tornadoes US

April 910 6 Thunderstorms, >100 tornadoes, hail, flooding (Wichita) US

April 841 4 Storms with winds up to 150 km/h Japan

June 813 1 Floods caused by heavy rains (two events) UK

November 813 4 Floods caused by heavy rains UK

April 775 - Thunderstorms, tornadoes, hail, heavy rains US

August 532 - Hailstorm Canada

January 515 32 Cruise liner Costa Concordia capsizes after hitting rocks Italy

June 450 2 Waldo Canyon Fire; 346 houses destroyed US

January 443 5 Windstorm Andrea Germany, et al

March npa33 2 Explosion at chemical plant Germany

Source: Swiss Re, Sigma No. 2/2013

28 Property and business interruption, excluding liability and life insurance losses.29 Dead and missing.30 Swiss Re estimate include US$20 billion to US$25 billion of private insurance industry loss and flood claims covered by the National Flood Insurance Program (NFIP).31 Swiss Re estimate include losses from Multi Peril Crop Insurance Federal Scheme.32 Swiss Re estimate includes flood claims covered by the NFIP.33 Not publicly available.

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LOCAL EVENTS IN 2012:

Calendar of Events

Exact Dates Event - 2012

21 January to 12 February Flash floods in the western Viti Levu.

27 February Insurance Task Force Meeting was held.

28 February Onsite examination for one insurance broker.

March Submission of Financial Condition Reports and Liability Valuation Reports by Insurance Companies for the first time, as per the requirement of the Insurance Supervision Policy Statement No. 10.

7 March Onsite examination for one insurance broker.

29 March to 1 April Flash floods in western Viti Levu.

13 to 24 May RBF trilateral post audit meetings with Insurance Companies.

29 June The 2011 Insurance Annual Report was submitted to the Minister for Finance.

June Publication of Summary Key Disclosure Statements in Newspapers by all Insurance Companies, as per the require-ment of the Insurance Supervision Policy Statement No. 11.

25 June to 6 July APRA assisted onsite examination for one general insurance company.

28 August The 2011 Insurance Annual Report was tabled in Cabinet.

10 to 14 September Onsite examination for one general insurance company.

19 October Insurance Task Force Meeting was held.

19 October An Insurance Task Force Subcommittee was formed for the review of the Insurance Act 1998.

19 October An Insurance Task Force Subcommittee was formed for the development of a Code of Conduct for the Insurance Industry.

1 November Fire at the Naviti Resort that partially destroyed the establishment.

29 November RBF commenced the Review of Insurance Agents Licensing Framework.

December Renewal of licences of insurance agents, brokers and insurers for 2013.

December RBF trilateral pre- audit meetings with insurance companies.

16 to 17 December Cyclone Evan hit Fiji, causing colossal damage to western Viti Levu, Yasawa Islands and Mamanuca Islands.

22 December Fire at the New World Supermarket in Nakasi.

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Statistical Tables

- General Insurance 34

- Life Insurance 58

- Insurance Brokers 69

- Key Disclosure Statements of Licensed Insurance Companies 75

- List of Licensed Insurers, Brokers and Agents as at 31 December 2012 79

- Fiji: Key Indicators 85

Appendices

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Table 1 – (i) – (xiv) Underwriting Operations 35

Table 2 – Profit and Loss Statement 50

Table 3 – Consolidated Balance Sheet 51

Table 4 – Consolidated Statement of Premiums 53

Table 5 – Consolidated Statement of Claims and Commissions 54

Table 6 – Consolidated Statement of Reinsurance Arrangements 55

Table 7 – Consolidated Statement of Claims Run-off by Accident Year 56

Table 8 – Consolidated Statement of Gross Aggregate Exposures 57

General Insurance Appendices Contents

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Table 1 UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

CONSOLIDATED 2008 2009 2010 2011 2012

PART A - PREMIUMS

Gross premium income 117,890.3 119,535.6 120,776.1 125,003.9 145,598.3

less

Reinsurance outwards 24,961.3 31,142.6 30,955.7 28,070.8 42,645.5

NET PREMIUM INCOME 92,929.0 88,393.0 89,820.4 96,933.1 102,952.8

add

Retained unearned premiums - opening 45,324.8 49,128.7 (a) 50,535.6 46,724.9 52,970.9 (a)

less

Retained unearned premiums - closing 47,139.5 (a) 50,535.6 46,724.9 52,971.7 (a) 63,714.5

NET EARNED PREMIUMS 91,114.3 86,986.0 93,631.1 90,686.3 92,209.2

PART B - CLAIMS

Net claims paid 39,848.8 52,145.9 51,202.4 45,085.4 67,242.9

add

Net claims outstanding - closing 60,638.5 (a) 65,401.4 (a) 55,867.3 56,010.7 63,344.6

less

Net claims outstanding - opening 55,023.8 60,750.6 (a) 65,083.1 (a) 55,867.3 56,010.7

NET CLAIMS INCURRED 45,463.5 56,796.7 41,986.6 45,228.8 74,576.8

PART C - UNDERWRITING EXPENSES

Commission expense 10,844.8 10,950.5 10,371.3 11,233.1 13,620.4

Acquisition expense 5,082.8 5,531.7 5,780.6 7,529.5 6,860.8

TOTAL EXPENSES 15,927.7 16,482.2 16,151.9 18,762.6 20,481.1

UNDERWRITING SURPLUS / (DEFICIT) 29,723.2 13,707.1 35,492.7 26,694.9 (2,848.7)

NET LOSS RATIO (%) 49.9 65.3 44.8 49.9 80.9

EXPENSE RATIO (%) 17.5 18.9 17.3 20.7 22.2

(a) - does not correspond due to adjustments.


General Insurance

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36

Table 1(i) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

FIRE 2008 2009 2010 2011 2012

PART A - PREMIUMS


less



add

Retained unearned premiums - opening 11,515.6 13,465.6 (a) 13,356.7 9,592.1 14,746.7

less

Retained unearned premiums - closing 12,327.9 (a) 13,356.7 9,592.1 14,746.7 19,403.4


PART B - CLAIMS

Net claims paid 3,452.5 9,469.0 12,315.5 4,547.3 20,841.2

add

Net claims outstanding - closing 9,107.8 (a) 12,398.6 (a) 10,169.4 8,560.3 8,970.1

less

Net claims outstanding - opening 7,232.4 9,119.3 (a) 12,570.8 (a) 10,169.4 8,560.3





TOTAL EXPENSES 4,207.2 4,263.1 4,115.8 6,101.5 7,260.0

UNDERWRITING SURPLUS / (DEFICIT) 5,167.9 (5,872.7) 2,175.5 5,093.0 (17,653.5)

NET LOSS RATIO (%) 36.2 114.5 61.2 20.8 195.7

EXPENSE RATIO (%) 28.6 38.3 25.4 43.2 66.9



General Insurance

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Table 1(ii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

HOUSEHOLDERS 2008 2009 2010 2011 2012

PART A - PREMIUMS


less



add


less



PART B - CLAIMS

Net claims paid 1,427.4 2,040.7 1,482.5 927.8 1,656.5

add

Net claims outstanding - closing 1,424.3 (a) 1,757.6 (a) 931.1 1,083.0 3,930.4

less

Net claims outstanding - opening 841.1 (a) 1,425.1 (a) 1,287.0 (a) 931.1 1,083.0



Commission expense 895.8 920.6 896.6 858.3 923.8

Acquisition expense 144.6 178.4 152.9 262.7 173.0

TOTAL EXPENSES 1,040.4 1,098.9 1,049.5 1,121.0 1,096.7

UNDERWRITING SURPLUS / (DEFICIT) 1,770.8 1,889.7 2,899.3 1,485.5 (639.4)

NET LOSS RATIO (%) 41.7 44.3 22.2 29.3 90.8

EXPENSE RATIO (%) 21.6 20.5 20.7 30.4 22.1



General Insurance

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Table 1(iii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

MOTOR VEHICLE 2008 2009 2010 2011 2012

PART A - PREMIUMS


less



add


less



PART B - CLAIMS

Net claims paid 13,337.8 15,419.5 12,921.9 13,776.7 17,416.5

add

Net claims outstanding - closing 7,698.2 (a) 7,852.1 6,942.8 7,852.3 6,869.1

less

Net claims outstanding - opening 6,200.1 7,751.4 (a) 7,852.1 6,942.8 7,852.3





TOTAL EXPENSES 3,061.2 3,253.7 3,278.6 3,467.3 3,806.4

UNDERWRITING SURPLUS / (DEFICIT) 4,418.7 4,438.6 8,041.8 5,998.6 5,512.4

NET LOSS RATIO (%) 66.5 66.9 51.5 60.8 63.8

EXPENSE RATIO (%) 13.7 14.0 14.1 14.4 14.8



General Insurance

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General Insurance

Table 1(iv) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

MARINE HULL 2008 2009 2010 2011 2012

PART A - PREMIUMS


less

Reinsurance outwards 184.4 482.9 525.1 353.1 281.2

NET PREMIUM INCOME 1,020.9 1,107.7 923.4 923.8 1,091.0

add

Retained unearned premiums - opening 624.9 467.3 (a) 600.9 505.7 472.9

less

Retained unearned premiums - closing 442.9 (a) 600.9 505.7 472.9 645.0

NET EARNED PREMIUMS 1,202.9 974.0 1,018.6 956.6 918.9

PART B - CLAIMS

Net claims paid 1,095.4 225.4 1,516.0 395.0 136.5

add

Net claims outstanding - closing 1,620.9 6,349.8 1,943.1 1,962.3 2,354.3

less

Net claims outstanding - opening 1,267.1 1,620.9 6,349.8 1,943.1 1,962.3

NET CLAIMS INCURRED 1,449.3 4,954.3 (2,890.7) 414.2 528.5




TOTAL EXPENSES 170.8 354.3 216.4 150.5 162.2

UNDERWRITING SURPLUS / (DEFICIT) (417.2) (4,334.6) 3,692.9 391.9 228.1

NET LOSS RATIO (%) 120.5 508.6 (283.8) 43.3 57.5

EXPENSE RATIO (%) 14.2 36.4 21.2 15.7 17.7



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Table 1(v) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

MARINE CARGO 2008 2009 2010 2011 2012

PART A - PREMIUMS


less



add


less



PART B - CLAIMS

Net claims paid 682.9 311.6 719.1 630.0 444.2

add

Net claims outstanding - closing 953.2 727.2 629.8 640.9 643.5

less

Net claims outstanding - opening 1,196.2 953.2 727.2 629.8 640.9

NET CLAIMS INCURRED 439.9 85.6 621.7 641.1 446.8




TOTAL EXPENSES 197.6 221.5 219.0 280.8 258.8

UNDERWRITING SURPLUS / (DEFICIT) 828.8 1,305.8 546.2 444.1 664.0

NET LOSS RATIO (%) 30.0 5.3 44.8 46.9 32.6

EXPENSE RATIO (%) 13.5 13.7 15.8 20.6 18.9



General Insurance

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Table 1(vi) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

BURGLARY 2008 2009 2010 2011 2012

PART A - PREMIUMS


less Reinsurance outwards 1.1 3.9 23.2 15.7 14.5


add Retained unearned premiums - opening 725.4 710.8 (a) 711.6 572.5 603.8

less Retained unearned premiums - closing 701.0 (a) 711.6 572.5 603.8 556.4


PART B - CLAIMS Net claims paid 1,213.7 1,148.2 869.6 466.1 848.4

add Net claims outstanding - closing 850.6 568.4 322.5 372.3 303.1

less Net claims outstanding - opening 966.5 850.6 568.4 322.5 372.3

NET CLAIMS INCURRED 1,097.8 866.0 623.7 515.9 779.2

PART C - UNDERWRITING EXPENSES Commission expense 127.5 131.8 115.8 95.2 95.6


TOTAL EXPENSES 195.6 202.4 179.8 159.2 147.3

UNDERWRITING SURPLUS / (DEFICIT) 116.0 368.0 489.4 407.6 260.7

NET LOSS RATIO (%) 77.9 60.3 48.2 47.7 65.6

EXPENSE RATIO (%) 13.9 14.1 13.9 14.7 12.4



General Insurance

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Table 1(vii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

MOTOR CTP 2008 2009 2010 2011 2012

PART A - PREMIUMS


less

Reinsurance outwards 1,212.2 2,182.6 1,258.9 1,196.7 905.5


add

Retained unearned premiums - opening 5,583.5 5,885.7 5,552.0 5,341.1 5,319.2

less

Retained unearned premiums - closing 5,885.7 5,552.0 5,341.1 5,319.2 4,857.9


PART B - CLAIMS

Net claims paid 3,240.4 3,552.0 1,840.7 4,030.7 4,324.1

add


less






TOTAL EXPENSES 592.6 670.4 679.7 614.4 499.1


NET LOSS RATIO (%) 38.5 15.3 15.3 53.4 57.0

EXPENSE RATIO (%) 6.0 7.2 6.7 6.2 5.8



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Table 1(viii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

PERSONAL ACCIDENT 2008 2009 2010 2011 2012

PART A - PREMIUMS

Gross premium income 862.2 765.6 730.5 741.6 746.6

less


NET PREMIUM INCOME 834.2 743.6 688.8 664.3 689.9

add


less


NET EARNED PREMIUMS 834.2 759.2 701.6 626.3 634.8

PART B - CLAIMS

Net claims paid 24.9 16.7 19.1 144.9 3.6

add


less

Net claims outstanding - opening 159.5 347.7 273.5 118.5 66.9

NET CLAIMS INCURRED 213.0 (57.5) (135.9) 93.3 (24.7)




TOTAL EXPENSES 192.5 140.5 140.2 185.4 141.7


NET LOSS RATIO (%) 25.5 (7.6) (19.4) 14.9 (3.9)

EXPENSE RATIO (%) 23.1 18.5 20.0 29.6 22.3



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Table 1(ix) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

PROFESSIONAL INDEMNITY 2008 2009 2010 2011 2012

PART A - PREMIUMS

Gross premium income 488.9 494.6 723.2 844.6 1,023.6

less


NET PREMIUM INCOME 431.4 444.9 639.7 747.1 938.1

add


less


NET EARNED PREMIUMS 540.5 431.5 568.0 684.0 811.9

PART B - CLAIMS

Net claims paid 1.6 11.2 10.9 4.3 17.3

add


less

Net claims outstanding - opening 32.9 (a) 44.3 51.6 49.6 125.6

NET CLAIMS INCURRED 13.0 18.4 8.9 80.3 19.4




TOTAL EXPENSES 94.4 97.5 96.1 139.0 151.1


NET LOSS RATIO (%) 2.4 4.3 1.6 11.7 2.4

EXPENSE RATIO (%) 17.5 22.6 16.9 20.3 18.6



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Table 1(x) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

PUBLIC LIABILITY 2008 2009 2010 2011 2012

PART A - PREMIUMS


less



add

Retained unearned premiums - opening 989.3 960.0 (a) 939.2 1,045.5 1,186.0

less

Retained unearned premiums - closing 931.5 (a) 939.2 1,045.5 1,186.0 1,333.2


PART B - CLAIMS

Net claims paid 214.5 511.2 513.7 620.8 273.5

add

Net claims outstanding - closing 2,333.7 (a) 2,615.0 (a) 2,603.2 (a) 2,553.9 3,415.4

less

Net claims outstanding - opening 2,974.0 2,340.2 (a) 2,625.6 (a) 2,648.3 (a) 2,553.9

NET CLAIMS INCURRED (425.7) 786.0 491.3 526.4 1,135.1




TOTAL EXPENSES 302.0 306.9 302.6 348.9 345.8

UNDERWRITING SURPLUS / (DEFICIT) 1,865.0 598.9 926.3 930.2 650.0

NET LOSS RATIO (%) (24.4) 46.5 28.6 29.2 53.3

EXPENSE RATIO (%) 17.3 18.1 17.6 19.3 16.2



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Table 1(xi) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

WORKERS’ COMPENSATION 2008 2009 2010 2011 2012

PART A - PREMIUMS


less



add


less



PART B - CLAIMS

Net claims paid 1,582.8 2,004.2 1,764.9 2,149.2 2,027.7

add


less






TOTAL EXPENSES 836.3 859.9 838.5 904.1 878.2


NET LOSS RATIO (%) 25.6 20.2 25.7 31.7 53.9

EXPENSE RATIO (%) 13.6 15.2 14.8 17.0 15.4



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Table 1(xii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

MEDICAL 2008 2009 2010 2011 2012

PART A - PREMIUMS


less



add

Retained unearned premiums - opening 4,055.9 3,747.9 (a) 4,689.1 5,065.4 6,655.2 (a)

less

Retained unearned premiums - closing 3,568.0 (a) 4,689.1 5,065.6 6,656.5 (a) 8,921.4


PART B - CLAIMS

Net claims paid 8,279.8 11,324.7 11,749.4 11,185.1 11,261.5

add


less






TOTAL EXPENSES 2,762.7 3,037.8 3,068.5 3,553.7 3,990.7

UNDERWRITING SURPLUS / (DEFICIT) 3,519.2 2,143.3 223.0 2,526.8 4,378.4

NET LOSS RATIO (%) 58.5 67.0 78.6 64.1 57.2

EXPENSE RATIO (%) 18.3 19.4 20.0 21.0 20.4



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Table 1(xiii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

TERM LIFE 2008 2009 2010 2011 2012

PART A - PREMIUMS


less

Reinsurance outwards 1,749.6 977.8 1,080.8 1,002.2 891.9


add

Retained unearned premiums - opening 1,336.1 1,817.5 2,139.2 2,290.7 1,502.6 (a)

less

Retained unearned premiums - closing 1,817.5 2,139.2 2,290.7 1,502.1 (a) 1,956.7


PART B - CLAIMS

Net claims paid 3,373.3 3,996.5 3,754.8 4,742.1 3,680.4

add


less






TOTAL EXPENSES 1,434.5 1,209.7 1,156.5 1,024.8 1,101.8

UNDERWRITING SURPLUS / (DEFICIT) 1,532.3 1,780.2 2,060.5 509.3 2,043.2

NET LOSS RATIO (%) 54.4 56.4 53.3 75.7 49.4

EXPENSE RATIO (%) 22.0 17.6 16.8 16.2 17.7



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Table 1(xiv) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY

($’000)

OTHERS 2008 2009 2010 2011 2012

PART A - PREMIUMS


less

Reinsurance outwards 608.7 1,763.8 308.9 659.6 813.1


add

Retained unearned premiums - opening 2,234.1 2,312.5 (a) 2,281.0 2,089.3 (a) 1,840.0

less

Retained unearned premiums - closing 2,255.7 (a) 2,281.0 2,089.2 (a) 1,840.0 2,117.7


PART B - CLAIMS

Net claims paid 1,921.7 2,115.1 1,724.2 1,465.2 4,311.4

add

Net claims outstanding - closing 3,467.6 3,917.9 (a) 3,622.3 (a) 3,738.7 6,738.5

less

Net claims outstanding - opening 2,671.2 3,467.6 3,887.4 (a) 3,577.2 (a) 3,738.7





TOTAL EXPENSES 839.9 765.6 810.9 712.0 641.2

UNDERWRITING SURPLUS / (DEFICIT) 810.0 (416.1) 1,942.8 1,371.6 (4,387.8)

NET LOSS RATIO (%) 62.2 88.0 34.6 43.8 205.1

EXPENSE RATIO (%) 19.2 26.3 19.2 19.2 18.0



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Table 2 PROFIT AND LOSS STATEMENT FOR THE GENERAL INSURANCE INDUSTRY

($’000)

CONSOLIDATED 2008 2009 2010 2011 2012

PART A - PROFIT AND LOSS ACCOUNT

Non-underwriting income 6,290.0 8,902.7 9,754.9 10,365.4 8,278.6

Other non-underwriting income 570.0 1,335.8 687.2 855.0 1,402.4

Total non-underwriting income 6,860.0 10,238.5 10,442.1 11,220.4 9,681.0

Underwriting surplus / (deficit) 29,723.2 13,707.2 35,492.7 26,694.9 (2,848.7)

Expenses not included in Return 6A 10,933.4 11,666.1 15,016.7 13,710.3 13,090.1

Abnormal / extraordinary items 13.4 0.0 1,725.2 0.0 0.0

PRE-TAX PROFIT/ (LOSS) 25,663.2 12,279.6 32,643.3 24,205.0 (6,257.8)

Taxation expense 7,591.6 3,305.3 9,819.7 7,452.2 (107.9)

PROFIT/ (LOSS) AFTER TAXATION 18,071.6 8,974.3 22,823.6 16,752.9 (6,149.9)

PART B - APPROPRIATION ACCOUNT

Unappropriated profit / (loss) brought forward from last period 51,623.6 61,003.7 69,429.4 91,702.9 85,115.6

add

Profit/ (loss) after taxation for the current period 18,071.6 8,974.3 22,823.6 16,752.9 (6,149.9)

less

Dividends, transfers and other appropriations 8,691.5 548.6 550.0 23,340.2 5,603.7

UNAPPROPRIATED PROFIT/(LOSS) CARRIED FORWARD 61,003.7 69,429.4 91,702.9 85,115.6 73,362.1



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Table 3 CONSOLIDATED BALANCE SHEET OF THE GENERAL INSURANCE INDUSTRY

($’000)

ASSETS 2008 2009 2010 2011 2012

CURRENT ASSETS

Cash on hand 26,641.1 17,621.3 13,702.1 26,842.9 36,917.7

Outstanding premiums 21,150.7 20,994.2 26,160.2 21,941.2 26,918.5

Amounts due from reinsurers 13,978.3 44,653.9 23,784.4 15,249.0 (r) 80,222.0

Deferred reinsurance expense 2,699.2 2,346.7 6,851.0 5,514.7 6,236.9

Deferred acquisition expense 4,431.2 4,775.7 4,672.5 5,290.8 6,797.0

Prepayments 1,016.5 94.0 178.3 102.4 207.2

Sundry debtors 2,257.5 2,767.9 3,276.2 3,706.0 4,228.2

Other current assets 1,535.0 518.9 544.4 527.3 977.3

Total 73,709.4 93,772.6 79,169.1 79,174.6 162,504.7

LOANS Loans to directors and persons prescribed in section 32(1)(a): 0.0 0.0 0.0 0.0 0.0Loans to related persons 4,131.9 4,704.9 8,928.9 9,028.9 10,450.3

Unsecured employee loans 71.9 30.3 39.7 18.7 31.4

Other loans 5,134.9 4,214.5 5,461.7 4,042.9 4,022.5

Total 9,338.7 8,949.7 14,430.3 13,090.5 14,504.2

INVESTMENTS

Land and buildings 5,045.7 8,411.6 6,048.9 6,304.2 7,820.2

Government securities 9,971.2 8,225.7 6,128.1 6,549.3 2,100.0

Bank deposits 127,824.6 137,084.8 149,645.0 158,281.8 156,259.7

Debentures 0.0 0.0 0.0 0.0 0.0

Shares 12,761.3 18,261.2 15,180.3 15,156.5 10,894.3

Other Investments 5,883.6 4,143.1 6,820.7 6,105.5 6,246.9

Total 161,486.4 176,126.3 183,823.0 192,397.3 183,321.1

FIXED ASSETS

Motor vehicles 657.9 525.1 885.4 772.5 811.8

Furniture and fittings 439.7 343.9 407.7 413.3 630.5

Computer hardware 442.2 392.0 471.8 383.9 464.7

Computer software 4.0 261.0 439.3 119.6 63.0

Other Fixed Assets 647.1 640.4 3,821.9 4,036.7 4,280.8

Total 2,190.8 2,162.4 6,026.1 5,726.0 6,250.8

INTANGIBLE ASSETS

Future income tax benefit 1,071.0 1,606.5 1,532.2 1,043.1 3,087.7

Goodwill 0.0 0.0 0.0 0.0 0.0

Establishment costs 0.0 0.0 0.0 0.0 0.0

Other intangible assets 0.0 0.0 0.0 0.0 0.0

Total 1,071.0 1,606.5 1,532.2 1,043.1 3,087.7

OTHER ASSETSOther amounts due from related per-sons 13.6 0.0 0.0 2,104.5 0.0

Other 75.3 88.6 159.6 75.0 1,966.9

Total 89.9 88.6 159.6 2,179.5 1,966.9

TOTAL ASSETS 247,885.4 282,706.0 285,140.3 293,611.2 371,635.4

(r)-revised.


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Table 3 (cont’d) CONSOLIDATED BALANCE SHEET OF THE GENERAL INSURANCE INDUSTRY

($’000)

LIABILITIES 2008 2009 2010 2011 2012

UNDERWRITING PROVISIONS

Unearned premium provision 51,419.4 52,882.3 53,562.1 58,413.4 69,903.4

Outstanding claims provision 72,738.4 107,968.8 78,129.0 69,514.4 141,521.1

CAE provision 1,787.3 1,674.3 1,472.5 1,721.8 1,856.1

Other 0.0 41.0 25.3 0.0 0.0

Total 125,945.1 162,566.4 133,188.9 129,649.6 213,280.6

OTHER PROVISIONS

Taxation 4,064.4 1,395.1 4,538.0 2,716.6 28.1

Dividends 5,307.3 3.9 3.1 4,593.3 3.1

Stamp duty 815.1 1,052.1 991.0 1,275.0 1,437.1

Fire service levy 457.4 438.3 539.9 567.6 908.9

Employee entitlements 444.8 531.7 499.1 590.9 672.3

Doubtful debts 1,446.8 1,428.8 1,314.2 1,028.5 1,398.7

Other 985.9 697.3 661.6 861.1 1,190.0

Total 13,521.6 5,547.3 8,546.9 11,633.0 5,638.1

BORROWINGS

Borrowings from related persons 0.0 0.0 0.0 0.0 0.0

Other borrowings 0.0 0.0 0.0 0.0 0.0

Total 0.0 0.0 0.0 0.0 0.0

OTHER LIABILITIES

Amounts due:

- to insurers 0.0 0.0 0.0 0.0 0.0

- to reinsurers 7,450.4 8,216.8 13,067.1 13,840.5 18,965.8

- to related persons 5,555.4 2,021.4 2,909.1 1,121.8 12,846.1

- to agents and brokers 1,199.6 1,325.1 1,246.0 1,375.2 1,618.0

Sundry creditors 3,085.5 2,207.4 3,970.9 3,880.9 2,600.1

Other 1,323.4 1,437.3 78.9 1,097.8 2,607.4

Total 18,614.4 15,207.9 21,272.0 21,316.2 38,637.4

TOTAL LIABILITIES 158,081.1 183,321.6 163,007.8 162,598.7 257,556.2

NET ASSETS 89,804.2 99,425.4 122,132.5 131,012.5 114,079.3

OWNERS’ FUNDS

Paid-up capital 14,807.8 14,938.0 14,938.0 28,938.0 28,938.0

Retained profits / (loss) 61,003.7 69,429.4 91,702.9 85,115.6 73,362.1

Balance of head office account 8,140.4 8,539.9 8,980.4 9,468.6 10,002.6

Asset revaluation reserve 4,675.7 5,325.8 5,370.1 6,345.4 625.4

General reserve 0.0 0.0 0.0 0.0 0.0

Other 1,176.7 1,151.4 1,141.1 1,144.9 1,151.2

TOTAL OWNERS’ FUNDS 89,804.2 99,384.5 122,132.5 131,012.5 114,079.3


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Tabl

e 4

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105

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00

00

1,36

30

00

29,5

9617

,728

3,97

653

,309

Sour

ce: G

ener

al In

sura

nce

Com

pani

es

General Insurance

Insu

ran

ce

An

nu

al R

ep

ort

20

12

54

Tabl

e 5

CON

SOLI

DAT

ED S

TATE

MEN

T O

F CL

AIM

S AN

D C

OM

MIS

SIO

NS

OF

THE

GEN

ERAL

INSU

RAN

CE IN

DU

STR

Y FO

R T

HE

YEAR

EN

DED

31

DEC

EMB

ER 2

012

($’0

00)

PAR

TICU

LAR

S FI

RE

H

OU

SE-

HO

LDER

SM

OTO

RVE

HIC

LEM

ARIN

EH

ULL

MAR

INE

CAR

GO

CIT

and

BU

RG

LAR

YM

OTO

R

CTP

PER

SON

ALAC

CID

ENT

PRO

F.IN

DEM

NIT

YPU

BLI

CLI

ABIL

ITY

WO

RK

ERS

COM

PM

EDIC

AL

TER

MLI

FEOT

HER

TOTA

L

PAR

T A

- CL

AIM

S

GRO

SS C

LAIM

S PA

ID

- D

irec

t bus

ines

s30

,330

.81,

847.

818

,333

.153

7.0

467.

884

8.4

4,33

1.9

3.6

17.3

338.

72,

027.

711

,453

.34,

028.

54,

345.

078

,911

.1

- In

war

ds r

eins

uran

ce b

usin

ess

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Sub-

tota

l 30

,330

.81,

847.

818

,333

.153

7.0

467.

884

8.4

4,33

1.9

3.6

17.3

338.

72,

027.

711

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.34,

028.

54,

345.

078

,911

.1

REI

NSU

RAN

CE R

ECOV

ERIE

S

-

Loca

l rei

nsur

ers

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

60.4

0.0

60.4

-

Ove

rsea

s pr

opor

tiona

l 76

1.9

43.2

0.0

0.0

1.2

0.0

0.0

0.0

0.0

63.5

0.0

191.

828

7.7

9.1

1,35

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-

Ove

rsea

s no

n-pr

opor

tiona

l8,

727.

814

8.1

916.

740

0.5

22.4

0.0

7.8

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0.0

1.7

0.0

0.0

0.0

24.5

10,2

49.4

Sub-

tota

l

9,

489.

419

1.3

916.

740

0.5

23.7

0.0

7.8

0.0

0.0

65.2

0.0

191.

834

8.0

33.6

11,6

68.2

NET

CLA

IMS

PAID

20

,841

.21,

656.

517

,416

.513

6.5

444.

284

8.4

4,32

4.1

3.6

17.3

273.

52,

027.

711

,261

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680.

44,

311.

467

,242

.9

Net

cla

ims

outs

tand

ing

- cl

osin

g8,

970.

13,

930.

46,

869.

12,

354.

364

3.5

303.

116

,664

.538

.612

7.7

3,41

5.4

7,90

8.0

3,66

0.8

1,72

0.9

6,73

8.5

63,3

44.6

Net

cla

ims

outs

tand

ing

- op

enin

g8,

560.

31,

083.

07,

852.

31,

962.

364

0.9

372.

316

,104

.866

.912

5.6

2,55

3.9

6,86

0.3

3,75

6.5

2,33

2.9

3,73

8.7

56,0

10.7

NET

CLA

IMS

INCU

RR

ED

21

,250

.94,

503.

916

,433

.252

8.5

446.

877

9.2

4,88

3.7

(24.

7)19

.41,

135.

13,

075.

411

,165

.83,

068.

47,

311.

174

,576

.8

PAR

T B

- U

ND

ERW

RIT

ING

EXPE

NSE

S

Com

mis

sion

exp

ense

:

- B

roke

r5,

624.

857

9.4

1,51

2.5

93.6

113.

772

.71.

772

.699

.017

9.5

431.

21,

606.

814

9.6

328.

510

,865

.5

- A

gent

s(7

3.9)

344.

372

6.9

17.8

19.3

22.9

278.

422

.14.

642

.810

9.6

673.

443

6.7

129.

92,

754.

8

Acqu

isiti

on e

xpen

se1,

709.

117

3.0

1,56

7.0

50.8

125.

851

.721

9.1

47.0

47.5

123.

533

7.5

1,71

0.5

515.

518

2.8

6,86

0.8

UN

DER

WR

ITIN

G E

XPEN

SE7,

260.

01,

096.

73,

806.

416

2.2

258.

814

7.3

499.

114

1.7

151.

134

5.8

878.

23,

990.

71,

101.

864

1.2

20,4

81.1

PAR

T C

- U

ND

ERW

RIT

ING

RES

ULT

(17,

653.

5)(6

39.4

)5,

512.

422

8.1

664.

026

0.7

3,18

5.0

517.

764

1.3

650.

01,

751.

34,

378.

42,

043.

2(4

,387

.8)

(2,8

48.7

)

PAR

T D

- U

ND

ERW

RIT

ING

RAT

IOS

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

Loss

rat

io

195.

790

.863

.857

.532

.665

.657

.0(3

.9)

2.4

53.3

53.9

57.2

49.4

205.

180

.9

Expe

nse

ratio

66.9

22.1

14.8

17.7

18.9

12.4

5.8

22.3

18.6

16.2

15.4

20.4

17.7

18.0

22.2

Com

bine

d ra

tio

262

.611

2.9

78.6

75.2

51.5

78.0

62.8

18.4

21.0

69.5

69.3

77.6

67.1

223.

110

3.1

Sour

ce: G

ener

al In

sura

nce

Com

pani

es

General Insurance

55

Insu

ran

ce

An

nu

al R

ep

ort

20

12

Tabl

e 6

CON

SOLI

DAT

ED S

TATE

MEN

T O

F R

EIN

SUR

ANCE

AR

RAN

GEM

ENTS

FO

R T

HE

GEN

ERAL

INSU

RAN

CE IN

DU

STR

Y AS

AT

31 D

ECEM

BER

201

2

($’0

00)

PAR

TICU

LAR

SFI

RE

H

OU

SE-

HO

LDER

SM

OTO

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ARIN

EH

ULL

MAR

INE

CAR

GO

CIT

and

BU

RG

LA-

RY

MOT

OR

CT

PPE

RSO

NAL

ACCI

DEN

TPR

OF.

IND

EMN

ITY

PUB

LIC

LIAB

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OR

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MP

MED

-IC

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TER

MLI

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HER

TOTA

L

PAR

T A

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ISK

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(NET

)

-

Bas

e re

tent

ion

6,22

2.2

6,22

2.2

2,86

1.6

1,38

5.0

1,38

5.0

1,78

5.0

2,71

1.6

1,78

5.0

885.

02,

861.

62,

861.

645

0.0

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01,

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033

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-

Addi

tiona

l co-

insu

ranc

e (if

any

)0.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

0

Sub-

tota

l (H

RR

)6,

222.

26,

222.

22,

861.

61,

385.

01,

385.

01,

785.

02,

711.

61,

785.

088

5.0

2,86

1.6

2,86

1.6

450.

050

0.0

1,18

5.0

33,1

00.9

MAX

IMU

M E

VEN

T R

ETEN

TIO

N (N

ET)

-

Bas

e re

tent

ion

9,9

73.4

9,97

3.4

3,01

1.6

1,53

5.0

1,53

5.0

1,93

5.0

2,71

1.6

1,93

5.0

885.

02,

861.

62,

861.

645

0.0

500.

02,

070.

042

,238

.3

-

Addi

tiona

l co-

insu

ranc

e (if

any

)0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0 0.

0

Sub-

tota

l (M

ER)

9,97

3.4

9,97

3.4

3,01

1.6

1,53

5.0

1,53

5.0

1,93

5.0

2,71

1.6

1,93

5.0

885.

02,

861.

62,

861.

645

0.0

500.

02,

070.

042

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PAR

T B

- L

IMIT

S

Max

imum

acc

epta

nce

/ und

erw

ritin

g lim

it28

9,49

7.6

287,

997.

611

,890

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985.

413

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532.

049

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.07,

765.

035

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2,27

0.2

553,

287.

075

0.0

1,25

0.0

220,

800.

01,

596,

711.

4

Max

imum

aut

omat

ic p

er r

isk

capa

city

289,

497.

628

7,99

7.6

11,3

90.4

7,98

5.4

13,5

79.1

4,53

2.0

49,7

87.0

5,76

5.0

35,3

20.0

110,

270.

255

1,28

7.0

250.

075

0.0

220,

800.

01,

589,

211.

4

PAR

T C

- CO

VER

Max

imum

cat

astr

ophe

cov

er a

rran

ged

917,

847.

891

7,84

7.8

92,0

66.3

68,7

50.0

68,7

50.0

50,0

00.0

49,7

87.0

143,

300.

00.

021

,970

.254

6,28

7.0

0.0

2,00

0.0

5,00

0.0

2,88

3,60

6.1

MPL

use

d (if

any

)1

11

11

00

00

00

00

05

Num

ber

of re

inst

atem

ents

55

30

00

01

00

00

02

16

Accu

mul

ated

loss

(sto

p lo

ss)

00

00

00

00

00

00

00

0

Sour

ce: G

ener

al In

sura

nce

Com

pani

es

General Insurance

Insu

ran

ce

An

nu

al R

ep

ort

20

12

56

Tabl

e 7

CON

SOLI

DAT

ED S

TATE

MEN

T O

F CL

AIM

S R

UN

-OFF

BY

ACCI

DEN

T YE

AR F

OR

TH

E G

ENER

AL IN

SUR

ANCE

IND

UST

RY

AS A

T 31

DEC

EMB

ER 2

012

($’0

00)

PAR

TICU

LAR

S B

Y VA

LUES

($ o

r N

o. v

alue

as

appr

opri

ate)

FIR

E

HO

USE

-H

OLD

ERS

MOT

OR

VEH

ICLE

MAR

INE

HU

LLM

ARIN

ECA

RG

OCI

T an

dB

UR

GLA

RY

MOT

OR

CT

PPE

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NAL

ACCI

DEN

TPR

OF.

IND

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ITY

PUB

LIC

LIAB

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OR

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SCO

MP

MED

-IC

AL

TER

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FEOT

HER

TOTA

L

No.

of c

laim

s re

port

ed th

is fi

nanc

ial y

ear

whe

re th

e e

vent

giv

ing

rise

to th

e cl

aim

occ

urre

d:

(a

) thi

s ye

ar

641

497

3,62

627

5192

790

540

258

45,6

0513

738

351

,441

(b

) in

the

year

pri

or to

(a)

2213

217

122

1839

03

1110

56,

084

2385

6,64

3

(c

) in

the

year

two

year

s pr

ior

to (a

)2

29

00

122

01

142

220

510

7

(d

) in

any

year

ear

lier

than

(c)

101

70

00

280

06

393

12

97

TOTA

L N

O. O

F CL

AIM

S R

EPO

RTE

D67

551

33,

859

2873

111

168

09

5844

451

,714

161

475

58,2

88

Gro

ss c

laim

pay

men

ts th

is fi

nanc

ial y

ear

whe

re th

e e

vent

giv

ing

rise

to th

e cl

aim

occ

urre

d ($

):

(a

) thi

s ye

ar21

,539

.01,

480.

314

,774

.345

8.7

328.

161

6.4

131.

30.

40.

067

.030

6.4

9,02

5.2

2,58

3.0

2,26

4.9

53,5

74.8

(b

) in

the

year

pri

or to

(a)

2,43

8.2

299.

93,

096.

647

.113

3.0

174.

848

3.9

3.3

17.3

117.

125

3.8

2,07

8.6

1,29

3.3

1,03

6.2

11,4

73.1

(c

) in

the

year

two

year

s pr

ior

to (a

)69

8.0

15.8

200.

131

.30.

053

.471

8.5

0.0

0.0

4.2

318.

616

2.0

0.0

456.

52,

658.

2

(d

) in

any

year

ear

lier

than

(c)

5,65

5.7

51.7

262.

20.

06.

63.

72,

998.

20.

00.

015

0.5

1,14

8.9

187.

515

2.2

587.

511

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.9

TOTA

L G

RO

SS C

LAIM

S PA

YMEN

TS30

,330

.81,

847.

818

,333

.153

7.0

467.

884

8.4

4,33

1.9

3.6

17.3

338.

72,

027.

711

,453

.34,

028.

54,

345.

078

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.1

No.

of c

laim

s ou

tsta

ndin

g at

end

of fi

nanc

ial y

ear

whe

re th

e ev

ent g

ivin

g ri

se to

the

clai

m o

ccur

red:

(a

) thi

s ye

ar27

532

573

611

3125

720

524

179

540

3011

92,

372

(b

) in

the

year

pri

or to

(a)

151

208

38

1363

04

1112

564

230

547

(c

) in

the

year

two

year

s pr

ior

to (a

)3

111

23

23

600

38

106

111

1632

9

(d

) in

any

year

ear

lier

than

(c)

315

518

23

138

00

3714

722

229

475

TOTA

L N

O. O

F O

UTS

TAN

DIN

G C

LAIM

S32

433

21,

107

2543

4433

30

1280

557

637

3519

43,

723

Gro

ss e

xpec

ted

futu

re p

aym

ents

on

outs

tand

ing

repo

rted

cla

ims

whe

re th

e ev

ent g

ivin

g ri

se to

the

clai

m o

ccur

red

($):

(a

) thi

s ye

ar51

,012

.74,

412.

84,

521.

741

7.8

345.

477

.01,

345.

40.

022

.040

2.4

779.

31,

416.

858

4.3

2,59

1.8

67,9

29.3

(b

) in

the

year

pri

or to

(a)

641.

954

.964

0.4

546.

079

.865

.01,

999.

00.

068

.733

4.7

733.

025

2.8

9.3

974.

46,

399.

9

(c

) in

the

year

two

year

s pr

ior

to (a

)56

.48.

929

0.1

475.

111

.716

.91,

607.

60.

016

.014

1.9

1,11

6.3

30.1

21.0

553.

14,

345.

2

(d

) in

any

year

ear

lier

than

(c)

5,02

5.6

195.

642

9.4

746.

50.

825

.37,

461.

50.

00.

01,

437.

53,

292.

621

2.0

54.6

799.

519

,680

.8G

ross

pro

visi

on fo

r IB

NR

cla

ims

(all

ac-

cide

nt y

ears

)25

,894

.01,

000.

62,

044.

157

4.4

190.

411

2.6

6,53

5.3

38.6

21.0

1,16

1.6

1,94

7.6

1,78

5.0

1,24

9.3

1,94

7.8

44,5

02.1

TOTA

L G

RO

SS O

/S P

ROV

ISIO

N82

,630

.55,

672.

87,

925.

62,

759.

862

8.0

296.

918

,948

.838

.612

7.7

3,47

8.2

7,86

8.6

3,69

6.7

1,91

8.5

6,86

6.6

142,

857.

1

Rei

nsur

ance

reco

veri

es e

xpec

ted

on re

port

ed o

utst

andi

ng c

laim

s w

here

the

even

t giv

ing

rise

to th

e cl

aim

occ

urre

d ($

):

(a

) thi

s ye

ar50

,939

.51,

702.

41,

020.

216

4.5

0.9

0.0

22.5

0.0

0.0

21.1

0.6

36.1

25.6

149.

354

,082

.8

(b

) in

the

year

pri

or to

(a)

438.

80.

00.

070

.90.

00.

00.

00.

00.

00.

00.

00.

00.

00.

050

9.7

(c

) in

the

year

two

year

s pr

ior

to (a

)10

9.7

0.0

149.

30.

00.

00.

032

.50.

00.

050

.00.

00.

00.

00.

034

1.5

(d

) in

any

year

ear

lier

than

(c)

4,23

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ated

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ce: G

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pani

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57

Insu

ran

ce

An

nu

al R

ep

ort

20

12

Tabl

e 8

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SOLI

DAT

ED S

TATE

MEN

T O

F G

RO

SS A

GG

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OR

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12

58

Life Insurance Appendices Content

Table 9 – Consolidated Statement of Revenue and Distribution 59

Table 10 – Consolidated Statement of Revenue and Distribution for Statutory Funds 60

Table 11 – Consolidated Assets and Liabilities 61

Table 12 – Consolidated Statement of Premiums and Commissions 63

Table 13 – Consolidated Statement of Policy payments 64

Table 14 – Consolidated Statement of Business Profile 65

Table 15 – Consolidated Statement of Business Profile Single Premium Business 66

Table 16 – Consolidated Summary and Valuation of Policies 67

Table 17 – Consolidated Valuation of Balance Sheet 68

59

Insu

ran

ce

An

nu

al R

ep

ort

20

12

Tabl

e 9

CON

SOLI

DAT

ED S

TATE

MEN

T O

F R

EVEN

UE

AND

DIS

TRIB

UTI

ON

FO

R T

HE

LIFE

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CE IN

DU

STR

Y

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00)

PAR

TICU

LAR

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L ST

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Y FU

ND

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UN

DS

TOTA

L

2008

2009

2010

2011

2012

2008

2009

2010

2011

2012

2008

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2010

2011

2012

PAR

T A

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EVEN

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Net

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2

Sour

ce: L

ife In

sura

nce

Com

pani

es

Life Insurance

Insu

ran

ce

An

nu

al R

ep

ort

20

12

60

Tabl

e 10

CON

SOLI

DAT

ED S

TATE

MEN

T O

F R

EVEN

UE

AND

DIS

TRIB

UTI

ON

FO

R S

TATU

TOR

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ND

S O

F TH

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FE IN

SUR

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IND

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00)

PAR

TICU

LAR

S

PA

RTI

CIPA

TIN

GN

ON

-PAR

TICI

PATI

NG

TOTA

L

2008

2009

2010

2011

2012

2008

2009

2010

2011

2012

2008

2009

2010

2011

2012

A.

REV

ENU

E

Net

Insu

ranc

e Pr

emiu

ms

77,9

50.5

81,4

52.7

82,0

26.6

91,1

64.5

10

7,69

4.3

4,51

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4,32

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4.2

4,20

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4,47

7.3

82,4

65.1

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n / (

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ife In

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Com

pani

es

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Table 11 CONSOLIDATED ASSETS AND LIABILITIES OF THE LIFE INSURANCE INDUSTRY

($’000)

ASSETS 2008 2009 2010 2011 2012

Current Assets

Cash on hand 5,856.5 5,385.5 22,572.4 10,190.3 55,558.2

Outstanding Premiums 15,634.2 15,837.3 16,371.0 16,452.7 15,806.3

Amounts due from reinsurers 59.8 102.5 27.1 79.4 0.0

Deferred reinsurance expense 0.0 0.0 0.0 0.0 0.0

Deferred acquisition expense 0.0 0.0 0.0 0.0 0.0

Prepayments 730.2 557.2 350.0 358.5 305.7

Sundry debtors 5,628.1 12,937.8 7,577.1 7,127.5 8,797.7

Other Current Assets 134.3 230.3 (104.5) 2,533.0 1,272.0

Total 28,043.1 35,050.6 46,793.0 36,741.4 81,739.9

Loans

Loans to directors and other persons 0.0 0.0 0.0 0.0 0.0

Loans to related persons 0.0 0.0 0.0 0.0 0.0

Unsecured employee loan 0.0 0.0 0.0 0.0 0.0

Other Loans 94,149.6 92,741.8 93,622.1 87,320.0 80,867.6

Total 94,149.6 92,741.8 93,622.1 87,320.0 80,867.6

Investments

Land and Buildings 58,445.8 60,754.0 54,880.5 55,321.4 54,858.1

Government securities 206,055.6 276,685.2 294,733.8 381,208.3 460,146.8

Bank deposits 46,589.0 59,621.6 63,460.6 78,956.9 20,825.1

Debentures 30,540.1 26,686.4 26,030.8 22,896.0 18,659.7

Shares 60,180.2 55,921.1 51,135.4 64,890.0 102,635.2

Other Investments 15,682.9 16,360.1 12,881.0 13,621.7 13,818.7

Total 417,493.7 496,028.4 503,122.1 616,894.3 670,943.6

Fixed Assets

Furniture and Fittings 4,709.7 4,906.0 1,624.7 3,296.5 3,236.2

Motor vehicles 1,342.5 1,272.9 736.9 1,238.6 1,054.9

Computer Hardware and Software 817.6 1,214.4 1,035.5 416.8 1,626.7

Other Fixed Assets 58.3 50.6 47.0 41.0 36.1

Total 6,928.1 7,443.9 3,444.0 4,992.9 5,953.8

Intangible Assets

Intangible Assets 0.0 0.0 0.0 0.0 0.0

Total 0.0 0.0 0.0 0.0 0.0

Other Assets

Other 9,667.1 7,322.4 7,432.3 4,168.0 3,738.1

Total 9,667.1 7,322.4 7,432.3 4,168.0 3,738.1

TOTAL ASSETS 556,281.6 638,587.1 654,413.4 750,116.8 843,243.1


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Table 11 (cont’d) CONSOLIDATED ASSETS AND LIABILITIES OF THE LIFE INSURANCE INDUSTRY

($’000)

LIABILITIES 2008 2009 2010 2011 2012

Balance of revenue account at year end 490,264.1 520,634.0 557,812.4 662,176.9 745,604.8

Claims admitted but not paid 5,878.4 5,126.9 5,754.4 5,387.4 6,405.4

Unearned premium provision 0.0 0.0 0.0 0.0 0.0

Other 0.0 0.0 0.0 0.0 0.0

Total 496,142.5 525,760.8 563,566.8 667,564.3 752,010.2

Other Provisions

Taxation 1,003.7 1,434.5 1,542.1 4,473.5 6,287.8

Dividends 0.0 0.0 0.0 0.0 0.0

Stamp duty 0.0 0.0 0.0 0.0 0.0

Fire service levy 0.0 0.0 0.0 0.0 0.0

Employee entitlements 2,143.6 2,082.4 2,524.2 2,302.6 3,041.0

Doubtful debts 3,866.4 14,171.4 14,214.9 4,978.5 4,864.5

Other 0.0 0.0 0.0 0.0 0.0

Total 7,013.7 17,688.2 18,281.3 11,754.6 14,193.2

Borrowings

Borrowings from related persons 0.0 0.0 0.0 0.0 0.0

Other borrowings 9,422.8 9,551.3 8,996.0 0.0 0.0

Total 9,422.8 9,551.3 8,996.0 0.0 0.0

Other Liabilities

Amounts due:

- to insurers 0.0 0.0 0.0 0.0 0.0

- to reinsurers 95.9 159.8 63.7 274.5 327.9

- to related persons (32.0) 510.5 1,100.8 368.5 323.3

- to agents and brokers 0.0 0.0 0.0 0.0 0.0

Sundry creditors 6,767.9 7,260.8 6,748.8 6,491.7 8,439.3

Other 26.1 18.1 34.2 0.0 0.0

Total 6,857.9 7,949.2 7,947.5 7,134.7 9,090.5


NET ASSETS 36,844.6 77,637.6 55,621.9 63,663.2 67,949.2

OWNERS’ FUNDS

Paid-up capital 9,091.1 9,091.1 9,091.1 9,091.1 9,091.1

Retained profits / (loss) 25,485.7 28,567.3 32,597.9 40,709.3 45,101.7

Balance of head office account 371.5 374.7 273.6 273.6 232.5

Asset revaluation reserve (9,197.4) 28,510.8 2,565.6 2,495.3 2,430.2

General reserve 0.0 0.0 0.0 0.0 0.0

Other 11,093.6 11,093.6 11,093.6 11,093.6 11,093.6

TOTAL OWNERS’ FUNDS 36,844.6 77, 637.6 55,621.9 63,663.2 67,949.2


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Table 12 CONSOLIDATED STATEMENT OF PREMIUMS AND COMMISSIONS OF THE LIFE INSURANCE INDUSTRY FOR THE YEAR ENDED 31 DECEMBER 2012

($’000)

PARTICULARS ORDINARY LIFE (INDIVIDUAL) INDUSTRI-

AL LIFE

GROUP LIFE

(TERM)

OTHER(INDIVID-

UAL)

OTHER(GROUP)

TOTAL WHOLE OF

LIFEENDOW-

MENT TERM

PART A - PREMIUMS

Direct Insurance Premiums:

- new 162.8 37,943.1 445.2 0.0 0.0 279.6 0.0 38,830.7

- renewal 3,336.6 66,881.2 2,022.5 0.0 138.1 1,679.8 0.0 74,058.1

Sub total - Direct 3,499.4 104,824.3 2,467.7 0.0 138.1 1,959.4 0.0 112,888.8

Reinsurance Premiums Inwards 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

GROSS INSURANCE PREMIUMS 3,499.4 104,824.3 2,467.7 0.0 138.1 1,959.4 0.0 112,888.8

Reinsurance Premiums Ceded:

- treaty local 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

- treaty overseas 333.5 295.8 35.5 0.0 0.0 52.3 0.0 717.1

- facultative local 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

- facultative overseas 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sub total - Cessions 333.5 295.8 35.5 0.0 0.0 52.3 0.0 717.1

NET INSURANCE PREMIUMS 3,165.8 104,528.5 2,432.2 0.0 138.1 1,907.1 0.0 112,171.6

Gross Consideration for Annuities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Reinsurance Outwards 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

NET CONSIDERATION FOR ANNUITIES 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

PART B - COMMISSIONS

Paid or Payable:

(i) Direct business

- new 137.3 2,474.8 85.0 0.0 0.0 69.4 0.0 2,766.5

- renewal 229.3 4,875.9 44.3 0.0 0.0 36.1 0.0 5,185.6

(ii) Reinsurance business 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Sub total - Paid or Payable 366.6 7,350.7 129.3 0.0 0.0 105.6 0.0 7,952.1

Received or Receivable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

NET COMMISSIONS INCURRED 366.6 7,350.7 129.3 0.0 0.0 105.6 0.0 7,952.1

Note: Premium shown are actual received. Single premium business is included in the endowment premium.


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Table 13 CONSOLIDATED STATEMENT OF POLICY PAYMENTS OF THE LIFE INSURANCE INDUSTRY FOR THE YEAR ENDED 31 DECEMBER 2012

($’000)

PARTICULARS ORDINARY LIFE (INDIVIDUAL) INDUSTRI-

AL LIFE

GROUP LIFE

(TERM)

OTHER (INDIVID-

UAL)

OTHER (GROUP)

TOTAL WHOLE OF

LIFE ENDOW-

MENT TERM

POLICY PAYMENTS

Gross Policy Payments

- maturities 0.0 41,416.0 0.8 0.0 0.0 0.0 0.0 41,416.8

- death 2,733.5 3,240.5 888.1 0.0 19.9 14.8 0.0 6,896.7

- annuities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

- surrenders 1,166.1 17,480.0 7.6 0.0 0.0 0.0 0.0 18,653.7

- accident and health 0.0 53.0 1.3 0.0 0.0 128.0 0.0 182.3

- other 0.8 31.6 0.0 0.0 0.0 0.0 0.0 32.4

Total 3,900.4 62,221.0 897.8 0.0 19.9 142.8 0.0 67,182.0

Reinsurance Claims Payments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Policy Payments 3,900.4 62,221.0 897.8 0.0 19.9 142.8 0.0 67,182.0

Reinsurance Recoveries 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

NET POLICY PAYMENTS 3,900.4 62,221.0 897.8 0.0 19.9 142.8 0.0 67,182.0


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Table 14 CONSOLIDATED STATEMENT OF BUSINESS PROFILE FOR THE LIFE INSURANCE INSUSTRY AS AT 31 DECEMBER 2012

INDIVIDUAL BUSINESS NO. OF POLICIES AMOUNT INSURED ($’000) PREMIUMS

PARTIC. NON-PARTIC. PARTIC. NON-PARTIC. ($’000)

NEW LIFE BUSINESS

Ordinary Life Insurances

- Whole of Life insurances 81 0 2,227.2 0.0 155.8

- Endowment insurances 13,071 0 218,873.7 0.0 15,548.6

- Term insurances 0 26 0.0 190,446.3 748.7

Sub total - ordinary life 13,152 26 221,100.8 190,446.3 16,453.2

Industrial Life Insurances 0 0 0.0 0.0 0.0

Annuities 0 0 0.0 0.0 0.0

Total 13,152 26 221,100.8 190,446.3 16,453.2

TERMINATIONS AND TRANSFERS

Policies other than annuities

- Death 324 1 4,088.1 4,105.4 240.8

- Maturity 1,566 4 13,896.5 15,956.8 856.0

- Expiry of term 0 0 0.0 10,308.4 39.5

- Surrender 4,050 0 37,166.2 40,167.0 2,436.3

- Forfeiture 6,148 127 109,397.8 111,112.2 8,047.7

- Net transfers 0 0 0.0 0.0 0.0

- Others 222 2 3,909.0 1,888.5 946.0

Sub total - policies other than annuities 12,310 134 168,457.6 183,538.3 12,566.2

Annuities 0 0 0.0 0.0 0.0

Total 12,310 134 168,457.6 183,538.3 12,566.2

BUSINESS IN FORCE AT END OF YEAR

1. LIFE BUSINESS IN FORCE

Ordinary Life Insurances

- Whole of Life insurances 2,476 3 86,664.0 1.1 3,554.7

- Endowment insurances 82,677 9 1,265,599.1 12.4 79,989.7

- Term insurances 0 385 0.0 278,145.9 2,279.5

Sub total - ordinary life 85,153 397 1,352,263.0 278,159.4 85,823.9

Industrial Life Insurances 0 0 0.0 0.0 0.0

Annuities 0 0 0.0 0.0 0.0

Total 85,153 397 1,352,263.0 278,159.4 85,823.9

2. OTHER BUSINESS IN FORCE

- Accident 0 0 0.0 809,438.2 1,968.8

- Other 0 0 0.0 0.0 0.0

Sub total - other business 0 0 0.0 809,438.2 1,968.8

Total 85,153 397 1,352,263.0 1,087,597.6 87,792.7

GROUP BUSINESS NO. OFPOLICIES

NO. OFLIVES

SUMSINSURED ($’000)

PREMIUMS($’000)

NEW BUSINESS:

Life (Term) Insurances 2 100 270.0 0.0 2.5

Accident Insurances 0 0 0.0 0.0 0.0

Others 0 0 0.0 0.0 0.0

Total 2 100 270.0 0.0 2.5

BUSINESS IN FORCE:

Life (Term) Insurances 3 2,851 15,071.0 0.0 173.5

Accident Insurances 0 0 0.0 0.0 0.0

Others 0 0 0.0 0.0 0.0

Total 3 2,851 15,071.0 0.0 173.5

TOTAL GROUP BUSINESS 5 2,951 15,341.0 0.0 176.0

Note: This table does not include single premium business. Refer to table 15 for single premium business.


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Table 15 CONSOLIDATED STATEMENT OF BUSINESS PROFILE – SINGLE PREMIUM BUSINESS ONLY FOR THE LIFE INSURANCE INDUSTRY AS AT 31 DECEMBER 2012

INDIVIDUAL BUSINESS NO. OF POLICIES AMOUNT INSURED ($’000) PREMIUMS

($’000)PARTIC. NON-PARTIC. PARTIC. NON-PARTIC.

NEW SINGLE PREMIUM BUSINESS

- Whole of Life insurances 0 0 0.0 0.0 0.0

- Endowment insurances 748 0 31,115.2 0.0 30,251.8

- Term insurances 0 0 0.0 0.0 0.0

Sub total – Single Premium 0 0 0.0 0.0 0.0

Total 748 0 31,115.2 0.0 30,251.8

TERMINATIONS AND TRANSFERS

Policies other than annuities

- Death 4 3 55.0 125.3 66.0

- Maturity 57 0 1,526.5 0.0 1,497.7

- Expiry of term 0 26 0.0 1,355.1 74.7

- Surrender 38 4 1,047.5 1,146.9 1,026.4

- Forfeiture 0 0 0.0 0.0 0.0

- Net transfers 0 0 0.0 0.0 0.0

- Others 0 0 0.0 846.9 1.8

Sub total - policies other than annuities 99 33 2,629.0 3,474.2 2,666.6

Annuities 0 0 0.0 0.0 0.0

Total 99 33 2,629.0 3,474.2 2,666.6SINGLE PREMIUM BUSINESS IN FORCE AT END OF YEAR - Whole of Life insurances 0 0 0.0 0.0 0.0

- Endowment insurances 2,219 0 72,750.7 0.0 70,402.7

- Term insurances 0 898 0.0 51,200.7 3,538.2

- Others 0 0 0.0 0.0 0.0

Total 2,219 898 72,750.7 51,200.7 73,941.0

GROUP BUSINESS NO. OFPOLICIES

NO. OFLIVES

SUMSINSURED ($’000)

PREMIUMS($’000)

NEW SINGLE PREMIUM BUSINESS:

Life (Term) Insurances 0 0 0.0 0.0

Accident Insurances 0 0 0.0 0.0

Others 0 0 0.0 0.0

Sub total – new business 0 0 0.0 0.0

SINGLE PREMIUM BUSINESS IN FORCE:

Life (Term) Insurances 0 0 0.0 0.0

Accident Insurances 0 0 0.0 0.0

Others 0 0 0.0 0.0

Sub total – business in force 0 0 0.0 0.0

Total 0 0 0.0 0.0


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Table 16 CONSOLIDATED SUMMARY AND VALUATION OF POLICIES FOR THE LIFE INSURANCE INDUSTRY AS AT 31 DECEMBER 2012

($’000)

TYPE OF INSURANCEPARTICULARS OF POLICIES FOR VALUATION VALUATION BASIS

No. of Policies

Sum Insured Bonuses Office Year-

ly PremiumNet Yearly Premiums

Sum Insured Bonuses Net Yearly

PremiumsNet

LiabilityORDINARY INSURANCE

G.P.1 With Immediate Participation in Profits For: Whole Term of Life Insurance 2,476 86,664.0 42,478.6 3,552.3 115.2 53,930.7 16,485.0 23,076.8 47,339.0

Endowment Insurance 54,790 970,119.6 152,822.5 57,576.0 12,493.6 617,975.1 105,445.2 308,897.8 414,522.5

Others 30,106 368,230.2 84,414.5 22,020.3 18,379.6 195,830.1 125,814.2 166,692.0 154,952.4

Extra Premium 0 0.0 0.0 395.8 0.0 0.0 0.0 0.0 0.0

Adjustment 0 0.0 0.0 0.0 0.0 65,273.7 0.0 0.0 65,273.7

Total Insurances 87,372 1,425,013.7 279,715.6 83,544.4 30,988.5 933,009.6 247,744.5 498,666.6 682,087.5

Deduct Reinsurances 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Net Insurances 87,372 1,425,013.7 279,715.6 83,544.4 30,988.5 933,009.6 247,744.5 498,666.6 682,087.5

G.P.2 With Deferred Participation in Profits For: Whole Term of Life Insurance 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Endowment Insurance 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Others 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Extra Premium 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Adjustment 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Insurances 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Net Insurances 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Net Insurances With Profits 87,372 1,425,013.7 279,715.6 83,544.4 30,988.5 933,009.6 247,744.5 498,666.6 682,087.5

PARTICULARS OF POLICIES FOR VALUATION VALUATION BASIS

TYPE OF INSURANCE No. of Policies

Sum Insured Bonuses Office Year-

ly PremiumNet Yearly Premiums

Sum Insured Bonuses Net Yearly

PremiumsNet Lia-

bility G.P.3 Without Participation in Profits For: Whole Term of Life Insurance 3 1.1 0.0 0.0 0.0 4.3 0.0 0.0 4.3


Others 1,288 344,687.7 0.0 2,314.6 161.9 12,272.4 2,696.0 12,996.7 1,971.7

Extra Premium 0 0.0 0.0 141.0 0.0 0.0 0.0 0.0 0.0

Adjustment 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Insurances 1,300 344,701.1 0.0 2,455.5 161.9 12,288.6 2,696.0 12,966.7 1,987.9

Deduct Reinsurances 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Total Net Insurances Without Profits 1,300 344,701.1 0.0 2,455.5 161.9 12,288.6 2,696.0 12,996.7 1,987.9

G.P.4 Endowments For: Whole Term of Life Insurance 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Others 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Extra Premium 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Adjustment 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Endowments 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Total Net Endowments 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

G.P.5 Annuities

Immediate Annuities on Lives 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Others

Total Annuities 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Total Net Annuities 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

G.P.6 Accidents Accidents, Deaths, Disablement Benefits 0 809,438.2 0.0 1,838.5 0.0 7,986.5 469.0 10,586.9 (2,131.4)

Extra premiums 0 0.0 0.0 130.2 0.0 0.0 0.0 0.0 0.0

Total Accidents 0 809,438.2 0.0 1,968.8 0.0 7,986.5 469.0 10,586.9 (2,131.4)

Total Net Ordinary Insurances 88,672 2,579,153.0 279,715.6 87,968.7 31,150.4 953,284.8 250,909.4 522,250.3 681,944.0


Life Insurance

Insu

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68

Tabl

e 17

CON

SOLI

DAT

ED V

ALU

ATIO

N B

ALAN

CE S

HEE

T FO

R T

HE

LIFE

INSU

RAN

CE IN

DU

STR

Y

($’0

00)

PAR

TICU

LAR

SPA

RTI

CIPA

TIN

GN

ON

-PAR

TICI

PATI

NG

Tota

l

2008

2009

2010

2011

2012

2008

2009

2010

2011

2012

2008

2009

2010

2011

2012

NET

LIA

BIL

ITIE

S U

ND

ER P

OLI

CIES

(i) O

n R

egis

ters

in F

iji42

7,37

9.5

466,

033.

5 53

5,98

9.0

620,

924.

2 68

2,08

7.5

39,3

00.6

66

,140

.8

4,27

2.8

377.

0 (1

43.5

)46

6,68

0.0

532,

174.

2 54

0,26

1.8

621,

301.

2 68

1,94

4.0

(ii) O

ther

(spe

cify

)0.

0 0.

0 0.

00.

0 0.

00.

0 0.

0 0.

00.

0 0.

00.

0 0.

0 0.

00.

0 0.

0

TOTA

L N

ET L

IAB

ILIT

IES

427,

379.

5 46

6,03

3.5

535,

989.

062

0,92

4.2

682,

087.

539

,300

.6

66,1

40.8

4,

272.

837

7.0

(143

.5)

466,

680.

0 53

2,17

4.2

540,

261.

862

1,30

1.2

681,

944.

0

In

crea

se /

(dec

reas

e) in

po

licy

liabi

litie

s10

,028

.2

9,76

7.6

10,2

95.1

28,2

91.0

48

,457

.22,

581.

9 4,

688.

4 6,

909.

112

,236

.9

14,8

25.8

12,6

10.2

14

,456

.1

17,2

04.2

40,5

27.9

63

,283

.0

B

ALAN

CE O

F ST

ATU

TOR

Y FU

ND

437,

407.

7 47

5,80

1.1

546,

284.

064

9,21

5.2

730,

922.

4*41

,882

.570

,829

.211

,182

.012

,613

.914

,682

.347

9,29

0.2

546,

630.

355

7,46

6.0

661,

829.

174

5,60

4.8*

* th

e ba

lanc

e of

sta

tuto

ry f

und

incl

udes

$3

37

,78

0 b

eing

one

insu

rer’s

sha

reho

lder

sur

plus

, whi

ch is

not

incl

uded

in t

he p

olic

y lia

bilit

ies.

Sour

ce: L

ife In

sura

nce

Com

pani

es

Life Insurance

69

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Table 18 – Consolidated Profit and Loss Statement 70

Table 19 – Consolidated Balance Sheet 71

Table 20 – Consolidated Insurance Broking Account 73

Table 21 – Consolidated Statement of Premiums 74

Insurance Brokers Appendices Content

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70

Table 18 CONSOLIDATED PROFIT AND LOSS STATEMENT FOR THE INSURANCE BROKING INDUSTRY

($’000)

PARTICULARS 2008 (b) 2009 2010 2011 2012

REVENUE

Brokerage Earned:

- as Commission 11,516.2 11,301.9 10,583.2 11,187.6 12,917.0

- as Fees 747.9 263.5 581.1 428.3 602.0

- in Any Other Form 0.0 0.0 56.7 0.0 0.0

Total Brokerage 12,264.1 11,565.5 11,221.0 11,615.9 13,519.0

Interest Income Earned 212.7 285.7 331.7 357.5 262.9

Other Investment Income 0.0 0.0 0.0 0.0 0.0

Consultancy Fees or Commissions 0.0 0.0 0.0 0.0 0.0

Other Revenue 244.0 90.7 236.4 232.6 345.1

Total Revenue for the Year 12,720.8 11,941.9 11,789.1 12,206.0 14,127.0

EXPENSES

Salaries and Wages 2,371.7 2,926.6 2,884.2 3,360.1 3,800.6

Directors’ Fees 78.2 56.6 6.1 39.3 112.9

PI and Fidelity Guarantee Insurance 62.4 123.5 42.4 31.5 49.1

Rent 555.9 484.8 518.3 566.3 595.6

Travel 146.1 148.6 177.3 239.4 189.2

Audit fees 60.1 58.0 63.6 53.9 61.7

Training 61.2 71.1 60.2 60.0 69.7

Other Expenses 4,620.4 4,615.6 4,562.7 5,119.1 5,191.8

Total Expenses for the Year 7,956.2 8,484.9 8,314.9 9,469.6 10,070.7

Abnormal/extraordinary items 0.0 (7.3) 0.0 0.0 0.0

PROFIT / (LOSS) BEFORE TAX 4,764.7 3,449.7 3,474.1 2,736.3 4,056.4

Taxation Expense 1,606.1 1,075.1 1,055.8 840.7 847.1

NET PROFIT / (LOSS) FOR THE YEAR 3,158.5 2,374.6 2,418.3 1,895.5 3,209.2

DISTRIBUTION Retained Profit / (Loss) Brought Forward From Last Period 7,211.5 (c) 5,021.8 5,096.4 6,314.7 4,610.2

Dividend/Capital Withdrawals (Paid Or Proposed) 5,400.0 2,300.0 1,200.0 3,600.0 950.0

Other Transfers 51.7 (r) 0.0 (r) 0.0 0.0 0.0RETAINED PROFIT / (LOSS) carried forward to next period 5,021.8 5,096.4 6,314.7 4,610.2 6,869.5

(b) - exclusion of one broker(c) - does not correspond due to adjustments(r) - revised


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71

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Table 19 CONSOLIDATED BALANCE SHEET OF THE INSURANCE BROKING INDUSTRY

($’000)

ASSETS 2008 (b) 2009 2010 2011 2012

CURRENT ASSETS

Cash on Hand 2,412.1 2,890.3 1,265.6 2,131.1 2,094.0

Insurance Broking Account 2,412.8 1,965.2 4,420.7 9,560.2 5,067.9

Outstanding Premiums:

- 30 days and under 11,127.4 14,139.7 11,591.3 6,694.5 22,432.1

- over 30 days but less than 3 months 5,647.1 4,983.6 7,325.5 6,935.2 4,273.4

- over 3 months 2,784.4 1,854.5 3,904.7 2,901.9 3,148.9

Prepayments 145.7 104.9 115.3 167.8 202.5

Sundry Debtors 1,157.7 1,163.7 1,008.7 1,561.7 1,007.2

Other 4.2 1.6 751.7 0.0 0.3

Total 25,691.4 27,103.6 30,383.5 29,952.3 38,226.3

LOANS

Loans:

- Secured 0.0 0.0 0.0 0.0 0.0

- Unsecured 0.0 0.0 0.0 0.0 0.0

Loans to Related Persons:

- Secured 0.0 0.0 0.0 0.0 0.0

- Unsecured 0.0 0.0 0.0 0.0 0.0

Total 0.0 0.0 0.0 0.0 0.0

INVESTMENTS

Land and Buildings 0.0 0.0 0.0 0.0 0.0

Government Securities 0.0 0.0 0.0 0.0 0.0

Bank Deposits 4,272.1 2,034.2 1,301.7 2,099.8 612.0

Debentures with:

- Related persons 0.0 0.0 0.0 0.0 0.0

- Non Related persons 0.0 0.0 0.0 0.0 0.0

Shares in:

- Related persons 0.0 0.0 0.0 0.0 0.0

- Non Related Persons 0.0 0.0 0.0 0.0 0.0

Total 4,272.1 2,034.2 1,301.7 2,099.8 612.0

FIXED ASSETS

Motor Vehicles 327.1 197.5 310.2 522.9 650.6

Furniture and Fittings 970.3 981.6 979.4 943.2 785.8

Computer Hardware 97.3 231.6 165.7 116.5 77.6

Computer Software 0.7 22.0 27.3 35.1 31.0

Other 163.7 193.9 246.6 204.2 150.2

Total 1,559.0 1,626.6 1,729.2 1,821.8 1,695.0

OTHER ASSETS

Amounts Due from Related Persons 76.1 23.8 0.0 0.0 0.0

Other Amounts Due 0.0 0.0 0.0 0.0 0.0

Future Income Tax Benefit 140.1 303.4 328.7 266.6 296.0

Goodwill 538.0 379.0 279.0 179.0 179.0

Other 2.0 2.0 0.0 2.7 0.3

Total 756.1 708.2 607.7 448.2 475.2

TOTAL ASSETS 32,278.7 31,472.6 34,022.1 34,322.1 41,008.6

(b) - exclusion of one broker


Insurance Brokers

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72

Table 19 (cont’d) CONSOLIDATED BALANCE SHEET OF THE INSURANCE BROKING INDUSTRY

($’000)

LIABILITIES 2008 (b) 2009 2010 2011 2012

BORROWINGS

- Borrowings from Related Persons 284.8 309.6 376.6 535.2 603.6

- Other Borrowings 52.1 32.1 14.6 0.0 0.0

Overdraft 9.8 34.8 78.5 11.5 11.5

Other 0.0 0.0 0.0 0.0 9.6

Total 346.7 376.6 469.7 546.7 624.7

PROVISIONS

Taxation 1,139.5 982.1 855.5 171.6 127.9

Dividends / Proprietor Withdrawals 3,000.0 850.0 0.0 3,100.0 0.0

Doubtful Debts 72.4 132.6 133.2 195.8 133.3

Other 305.5 435.6 442.0 510.8 610.9

Total 4,517.4 2,400.3 1,430.7 3,978.2 872.1

OTHER LIABILITIES

Amounts Due:

- to Insurers 19,260.0 20,168.4 22,238.5 16,442.9 29,020.9

- to Reinsurers 0.0 0.0 0.0 0.0 0.0

- to Related Persons 1,223.1 1,623.6 1,445.1 2,036.6 1,885.0

Sundry Creditors 284.3 303.6 352.4 287.6 127.7

Other 994.8 873.2 1,092.5 5,741.7 930.5

Total 21,762.2 22,968.8 25,128.5 24,508.8 31,964.0


NET ASSETS 5,652.4 5,727.0 6,993.2 5,288.7 7,547.9

OWNERS’ FUNDS

Paid-up Capital 172.0 172.0 219.9 219.9 219.9

Retained Profits / (Loss) 5,021.8 5,096.4 6,314.7 4,601.4 6,869.5

Balance of Head Office Account 0.0 0.0 0.0 8.9 0.0

Other 458.6 458.6 458.6 458.6 458.6

TOTAL OWNERS’ FUNDS 5,652.4 5,727.0 6,993.2 5,288.7 7,547.9

(b) - Exclusion of one broker


Insurance Brokers

73

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12

Tabl

e 20

CON

SOLI

DAT

ED IN

SUR

ANCE

BR

OK

ING

ACC

OU

NT

OF

THE

INSU

RAN

CE B

RO

KIN

G IN

DU

STR

Y

($’0

00)

PAR

TICU

LAR

SG

ENER

AL IN

SUR

ANCE

BU

SIN

ESS

LIFE

INSU

RAN

CE B

USI

NES

STO

TAL

INSU

RAN

CE B

USI

NES

S

2008

(b)

2009

2010

2011

2012

2008

(b)

2009

2010

2011

2012

2008

(b)

2009

2010

2011

2012

BR

OU

GHT

FOR

WAR

D F

RO

M L

AST

YEAR

2,14

1.0

(c)

2,27

5.3

(c)

1,71

7.1

4,29

0.0

9,38

5.6

2.2

136.

824

8.1

130.

817

4.6

2,14

3.3

(c)

2,41

2.1

1,96

5.2

4,42

0.7

9,56

0.2

MO

NEY

REC

EIVE

D D

UR

ING

THE

YEAR

Prem

ium

s fr

om o

r on

beh

alf o

f ins

ured

s or

inte

ndin

g in

sure

ds fo

r or

on

acco

unt o

f lic

ense

d in

sure

rs75

,555

.774

,186

.376

,326

.193

,834

.510

9,33

4.2

521.

146

3.1

537.

940

8.8

263.

676

,076

.874

,649

.576

,864

.094

,243

.410

9,59

7.8

Prem

ium

s fr

om o

r on

beh

alf o

f ins

ured

s or

inte

ndin

g

insu

reds

for

or o

n ac

coun

t of u

nlic

ense

d in

sure

rs18

,518

.718

,714

.822

,622

.122

,355

.126

,446

.617

9.6

264.

538

3.2

100.

824

6.7

18,6

98.3

18,9

79.4

23,0

05.3

22,4

56.0

26,6

93.3

Clai

ms

mon

eys

from

or

on b

ehal

f of l

icen

sed

insu

rers

for

or o

n ac

coun

t of i

nsur

eds

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Clai

ms

mon

eys

from

or

on b

ehal

f of u

nlic

ense

d in

sure

rs fo

r or

on

acc

ount

of:

-

insu

reds

0.

02,

985.

668

.390

.80.

00.

00.

00.

00.

00.

00.

029

85.6

68.3

90.8

0.0

-

in

tere

st

124.

314

5.1

173.

622

7.5

203.

80.

00.

00.

00.

00.

012

4.3

145.

117

3.6

227.

520

3.8

-

o

ther

220.

472

.142

.94,

746.

7(4

,502

.2)

0.0

0.0

0.0

0.0

0.0

220.

472

.142

.94,

746.

7(4

,502

.2)

Tota

l94

,419

.196

,104

.099

,233

.012

1,25

4.6

131,

482.

570

0.7

727.

692

1.1

509.

651

0.3

95,1

19.8

96,8

31.6

100,

154.

112

1,76

4.4

131,

992.

8

MO

NEY

S W

ITH

DR

AWN

DU

RIN

G TH

E YE

AR

For

paym

ents

to o

r on

beh

alf o

f lic

ense

d in

sure

rs63

,452

.863

,933

.963

,315

.079

,477

.791

,356

.045

4.3

382.

542

8.9

373.

823

0.4

63,9

07.0

64,3

16.4

63,7

44.0

79,8

51.5

91,5

86.4

For

paym

ents

to o

r on

beh

alf o

f unl

icen

sed

insu

rers

17,4

39.5

17,2

73.3

20,9

99.2

21,0

44.8

24,3

74.7

111.

823

3.8

609.

592

.021

6.6

17,5

51.3

17,5

07.1

21,6

08.7

21,1

36.8

24,5

91.3

For

paym

ents

to o

r on

beh

alf o

f an

insu

red

or in

tend

ing

insu

red

569.

53,

959.

251

5.8

709.

785

1.5

0.0

0.0

0.0

0.0

0.0

569.

53,

959.

251

5.8

709.

785

1.5

For

paym

ents

to s

elf

12,7

78.8

11,4

95.9

11,5

42.5

14,3

80.7

19,1

07.1

0.0

0.0

0.0

0.0

0.0

12,7

78.8

11,4

95.9

11,5

42.5

14,3

80.7

19,1

07.1

For

repa

ymen

ts o

f mon

eys

paid

into

the

acco

unt i

n er

ror

43.5

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

43.5

0.0

0.0

0.0

0.0

Paym

ents

app

rove

d by

the

Res

erve

Ban

k un

der

sect

ion

65(4

)0.

00.

028

7.6

546.

134

8.8

0.0

0.0

0.0

0.0

0.0

0.0

0.0

287.

654

6.1

348.

8

Tota

l94

,284

.296

,662

.296

,660

.111

6,15

9.0

136,

038.

156

6.1

616.

41,

038.

446

5.8

447.

094

,850

.397

,278

.697

,698

.611

6,62

4.8

136,

485.

1

BAL

ANCE

OF

ACCO

UN

T AT

YEA

R E

ND

2,

276.

0 (c

)1,

717.

14,

290.

09,

385.

64,

830.

013

6.8

248.

113

0.8

174.

623

7.9

2,41

2.8

1,96

5.2

4,42

0.7

9,56

0.2

5,06

7.9

(b)

- ex

clus

ion

of o

ne b

roke

r.(c

) -

does

not

cor

resp

ond

due

to a

djus

tmen

ts.

Sour

ce: I

nsur

ance

Bro

kers

Insurance Brokers

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ce

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20

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74

Table 21 CONSOLIDATED STATEMENT OF PREMIUMS OF THE INSURANCE BROKING INDUSTRY

($’000)

PARTICULARS 2008 (b) 2009 2010 2011 2012

PREMIUMS HANDLED DURING YEAR

GENERAL INSURANCE BUSINESS

Fire 40,954.0 42,316.2 44,063.5 48,974.4 72,756.4

Householders 2,293.7 2,260.5 2,125.8 1,877.4 2,502.2

Motor vehicle 10,198.0 10,083.3 10,642.7 11,524.2 15,220.1

Marine Hull 2,555.7 2,561.5 2,510.1 2,449.5 3,924.7

Marine Cargo 1,219.7 1,362.9 1,360.1 1,582.6 1,785.9

CIT and Burglary 602.2 583.7 427.3 470.8 490.5

Motor - CTP 0.0 0.0 0.0 0.0 0.0

Personal Accident 764.1 688.7 659.2 577.1 936.3

Professional Indemnity 1,706.2 1,525.7 1,434.9 1,794.8 2,224.8

Public Liability 3,002.6 3,230.0 2,652.5 3,378.4 4,235.1

Workers Compensation 4,884.4 4,791.3 4,838.1 4,580.8 5,637.6

Medical 9,287.9 8,997.6 9,219.2 10,839.7 15,866.6

Term Life 3,610.1 3,653.6 2,866.5 2,668.9 2,674.8

Other 8,966.5 7,139.3 8,594.5 8,476.4 8,633.8

Total 90,045.1 89,194.3 91,394.4 99,195.0 136,888.8

LIFE INSURANCE BUSINESS

Whole of Life 0.0 0.0 0.0 0.0 0.0

Endowment 0.0 0.0 0.0 0.0 0.0

Term Life 0.0 0.0 0.0 0.0 354.6

Other 0.0 0.0 0.0 0.0 0.0

Total 0.0 0.0 0.0 0.0 354.6

TOTAL PREMIUMS HANDLED 90,045.1 89,194.3 91,394.4 99,195.0 137,243.3

Brokerage received or receivable on premium handled 12,264.1 11,549.8 11,221.0 11,615.9 13,519.0

(b)- exclusion of one broker


Insurance Brokers

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General Insurance Companies 76

Life Insurance Companies 78

Key Disclosure Statements of Licensed

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General Insurers’ Disclosure StatementsBSP Health Dominion Insurance FijiCare

2011 2012 2011 2012 2011 2012PROFITABILITYNet operating profit/(loss) after tax ($’000) -177 -654 2,991 1,786 -428 356

As a percentage of average total owners’ fund -2.67% -10.52% 14.23% 7.73% -12.07% 10.12%

As a percentage of average total assets -1.39% -5.01% 7.78% 4.43% -4.91% 4.27%

SIZE - as at end of year

Total assets ($’000) 12,928 13,162 39,787 40,851 8,249 8,445

The percentage change in total assets over 12 months 3.23% 1.81% 7.35% 2.67% -10.03% 2.37%

SOLVENCY REQUIREMENT as at end of year ($000)

Adjusted Net Assets 5,891 4,714 9,548 13,710 2,938 3,269

Minimum Required Solvency Margin 1,602 1,990 2,096 2,320 1,360 1,312

Solvency Surplus 4,289 2,724 7,452 11,390 1,578 1,957

Total Owners’ Fund 6,546 5,892 22,939 23,274 3,340 3,704

UNDERWRITING PROVISIONS - as at end of year ($000)

Unearned Premium Provisions 3,695 4,508 4,370 4,705 2,574 2,654

Admitted Claims 251 640 7,267 7,639 1,181 445

Incurred But Not Reported 662 627 3,887 4,037 481 575

REINSURANCE - as at end of year ($000)

Reinsurance Outwards 475 402 2,590 2,839 743 853

Reinsurance/Gross Premium 5.60% 3.88% 19.82% 19.67% 9.85% 11.50%

BALANCE SHEET ($000)

Investments 7,806 3,680 17,110 15,401 5,821 5,038

Loans - - 12,885 14,296 3 2

Other Current Assets 4,955 9,150 9,542 10,788 2,270 3,178

Fixed Assets - - 145 153 135 180

Intangible Assets 167 332 105 188 - 32

Other Assets - - - 25 21 15

TOTAL ASSETS 12,928 13,162 39,787 40,851 8,249 8,445

Underwriting Provisions 4,608 5,775 15,524 16,382 4,332 3,733

Other Provisions 202 124 1,241 1,029 -211 175

Borrowings - - - - - -

Other Liabilities 1,572 1,371 82 167 788 833

TOTAL LIABILITIES 6,382 7,270 16,848 17,577 4,910 4,741

NET ASSETS 6,546 5,892 22,939 23,274 3,339 3,704

Total Owners’ Funds 6,546 5,892 22,939 23,274 3,339 3,704

CONTINGENT LIABILITIES - 103 - - 195 117

UNDERWRITING AND PROFIT and LOSS STATEMENTS ($000)

Net Premium Income 8,009 9,949 10,479 11,599 6,802 6,559

Net Earned premiums 7,674 9,136 11,069 11,093 7,161 6,493

Net Claims incurred 4,203 5,208 6,334 7,563 4,640 3,636

Underwriting expenses 958 1,164 1,419 2,017 2,405 2,319

Underwriting surplus/deficit 2,513 2,764 3,315 1,514 116 538

Non-underwriting income 791 114 1,918 1,793 380 258

Management/Administration Expenses 3,262 3,697 1,260 1,183 823 472

Other Extraordinary Items - - - - - -

NET PROFIT/(LOSS) BEFORE TAX 42 -819 3,973 2,123 -328 324

Taxation Expense 219 -165 982 338 100 -32

NET PROFIT/(LOSS) AFTER TAX -177 -654 2,991 1,785 -428 356

Note: General and Life insurers are required to publish disclosure statements effective from the calendar year of 2011. All years’ data columns correspond to the disclosure statements published for that year. Ratios such as percentage change in total assets over 12 months, operating profit as a percentage of average total owner’s fund and operating profit as a percentage of average total assets, will not necessarily correspond to the prior year asset and owner’s fund base in this table due to changes in accounting practices in the year of publication.

Source: General Insurers Published Disclosure Statements - Fiji Operations

General Insurers Key Disclosure Statements

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General Insurers Key Disclosure Statements

General Insurers’ Disclosure StatementsNew India Assurance QBE Insurance Sun Insurance Tower Insurance2011 2012 2011 2012 2011 2012 2011 2012

PROFITABILITYNet operating profit/(loss) after tax ($’000) 6,241 -5,323 3,761 -3,705 2,439 1,660 1,609 -745

As a percentage of average total owners’ fund 12.96% -10.83% 21.97% -43.26% 13.22% 8.41% 18.09% -10.18%

As a percentage of average total assets 7.00% -4.89% 6.26% -4.95% 4.76% 3.03% 6.32% -2.76%


Total assets ($’000) 94,570 123,044 56,885 97,494 53,321 56,305 24,347 29,697The percentage change in total assets over 12 months 12.83% 30.11% -10.00% 86.33% 8.38% 5.60% -8.35% 21.97%

SOLVENCY REQUIREMENT as at end of year ($000)

Adjusted Net Assets 50,822 45,053 10,402 4,436 15,149 15,981 4,690 5,353

Minimum Required Solvency Margin 4,821 5,614 4,193 3,655 3,203 3,078 2,112 2,622

Solvency Surplus 46,002 39,439 6,209 781 11,945 12,903 2,578 2,731

Total Owners’ Fund 51,532 46,743 16,632 5,061 19,422 20,082 7,696 6,944

UNDERWRITING PROVISIONS - as at end of year ($000)

Unearned Premium Provisions 12,738 14,874 15,135 22,060 9,875 10,180 10,026 10,922

Admitted Claims 14,341 25,712 14,207 40,950 14,259 15,329 3,549 6,741

Incurred But Not Reported 1,474 16,555 2,235 14,415 4,490 6,448 683 1,409

REINSURANCE - as at end of year ($000)

Reinsurance Outwards 2,181 5,300 11,030 22,562 4,352 4,695 6,698 5,995

Reinsurance/Gross Premium 8.30% 15.88% 34.47% 55.25% 21.37% 23.37% 38.81% 31.38%


Investments 80,215 82,152 25,850 26,612 40,379 35,213 9,199 9,207

Loans 3 7 - - 200 200 - -

Other Current Assets 13,667 40,390 28,013 67,691 8,560 16,483 14,661 18,452

Fixed Assets 631 392 862 1,436 3,703 3,899 251 192

Intangible Assets - - 55 1,420 480 511 236 604

Other Assets 54 103 2,105 335 - - - 1,242

TOTAL ASSETS 94,570 123,044 56,885 97,494 53,321 56,305 24,347 29,697

Underwriting Provisions 29,137 57,827 31,577 77,425 29,433 32,796 14,473 19,270

Other Provisions 556 614 6,833 1,439 1,540 1,004 1,412 1,005

Borrowings - - - - - - - -

Other Liabilities 13,345 17,860 1,843 13,569 2,927 2,423 766 2,478

TOTAL LIABILITIES 43,038 76,301 40,253 92,433 33,900 36,223 16,651 22,753

NET ASSETS 51,532 46,743 16,632 5,061 19,422 20,082 7,696 6,944

Total Owners’ Funds 51,532 46,743 16,632 5,061 19,422 20,082 7,696 6,944

CONTINGENT LIABILITIES 2 2 5 2 - - - -

UNDERWRITING AND PROFIT and LOSS STATEMENTS ($000)

Net Premium Income 24,103 28,072 20,965 18,274 16,017 15,391 10,558 13,110

Net Earned premiums 20,760 25,935 17,685 12,257 15,984 15,085 10,354 12,210

Net Claims incurred 10,216 26,282 6,490 11,410 9,257 11,172 4,469 9,879

Underwriting expenses 5,626 6,355 5,679 5,686 1,611 1,675 1,064 1,266

Underwriting surplus/deficit 4,917 -6,702 5,516 -4,840 5,116 2,238 4,821 1,065

Non-underwriting income 3,750 2,526 1,111 1,904 2,637 2,724 564 334

Management/Administration Expenses - - 1,443 2,078 3,952 3,037 2,960 2,614

Other Extraordinary Items - - - - - - - -

NET PROFIT/(LOSS) BEFORE TAX 8,668 -4,176 5,184 -5,013 3,800 1,925 2,425 -1,215

Taxation Expense 2,427 1,147 1,423 -1,308 1,361 264 816 -470

NET PROFIT/(LOSS) AFTER TAX 6,241 -5,323 3,761 -3,705 2,439 1,660 1,609 -745


Source: General Insurers Published Disclosure Statements - Fiji Operations

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Life Insurers Key Disclosure Statements

Life Insurers’ Disclosure StatementsBSP Life LICI

2011 2012 2011 2012PROFITABILITY

After Tax Surplus ($’000) 38,864 10,768 75,797 60,324

As a percentage of average total owners’ fund 68.38% 17.07% 2703.14% 2221.21%

As a percentage of average total assets 9.66% 2.51% 25.27% 16.39%


Total Assets ($000) 412,358 444,905 337,758 398,338

The percentage change in total assets over 12 months 5.15% 7.89% 28.80% 17.94%

SOLVENCY REQUIREMENT as at end of year ($000):

Adjusted Net Assets 35,112 50,178 48,465 56,505

Minimum Required Solvency Margin 10,528 9,987 10,577 12,062

Solvency Surplus 24,584 40,191 37,888 44,443

Total Owners’ Fund 60,894 65,286 2,769 2,663

LIABILITIES ($000): - as at end of the year

Balance of Revenue Account 332,126 355,578 330,051 390,027


Investments 319,408 322,774 297,486 348,170

Loans 55,166 48,566 32,154 32,301

Current Assets 28,951 64,127 7,790 17,613

Fixed Assets 4,683 5,748 310 205

Intangible Assets - - - -

Other Assets 4,150 3,690 18 49

TOTAL ASSETS 412,358 444,905 337,758 398,338

Policy holders funds 332,126 360,771 331,069 391,240

Other Provisions 15,221 12,766 902 1,427

Borrowings - - - - Other liabilities 4,117 6,082 3,017 3,009TOTAL LIABILITIES 351,464 379,619 334,989 395,676

NET ASSETS 60,894 65,286 2,769 2,663

Total Owners’ Funds 60,894 65,286 2,769 2,663

CONTINGENT LIABILITIES 1,589 678 99 180

Statement of Revenue and Distribution for Statutory Funds ($000)

Net Insurance Premiums 45,413 46,866 49,956 65,305

Investment Income 52,194 20,486 21,910 27,183

Other Income 445 16,316 36,472 13,248

TOTAL INCOME 98,052 83,668 108,338 105,736

Net policy Payments 39,741 33,325 23,064 33,857

Net Commissions Incurred 2,495 2,969 4,430 4,983

Operating Expenses 15,646 16,714 3,601 5,052

Increase/ (Decrease) in policy liabilities - 18,424 not applicable not applicable

TOTAL OUTGOING 57,882 71,432 31,095 43,892

PRE- TAX REVENUE SURPLUS/ (DEFICIT) 40,170 12,236 77,243 61,844

Taxation Expense 1,306 1,468 1,446 1,519

AFTER- TAX REVENUE SURPLUS / (DEFICIT ) 38,864 10,768 75,797 60,324

BALANCE OF REVENUE ACCOUNT BEFORE DISTRIBUTION 394,859 422,213 330,397 390,375

Bonuses provided or Paid for 1,839 1,348 - -

Transfers - - 346 348

BALANCE OF REVENUE ACCOUNT AFTER DISTRIBUTION 393,020 420,865 330,051 390,027


Source: Life Insurers Published Disclosure Statements - Fiji Operations

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List of Licensed Insurers and Brokers in Fiji as at 31 December 2012 80

List of Licensed Insurance Agents as at 31 December 2012

A. BSP Life (Fiji) Limited 81

B. BSP Health Care (Fiji) Limited 82

C. Life Insurance Corporation of India 82

D. New India Assurance Company Limited 84

E. FijiCare Insurance Limited 84

F. Tower Insurance (Fiji) Limited 84

G. Sun Insurance (Fiji) Limited 84

H. QBE Insurance (Fiji) Limited 84

I. Dominion Insurance Company Limited 84

List of Licensed Insurers, Brokers and

Agents

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80

Company Country of

Incorporation OwnershipA LIFE INSURERS

BSP Life (Fiji) Ltd Fiji PNGLife Insurance Corporation of India India India

B GENERAL INSURERSBSP Health Care (Fiji) Ltd Fiji PNGDominion Insurance Ltd Fiji FijiFAI Insurances (Fiji) Ltd Fiji AustraliaFijiCare Insurance Ltd Fiji AustraliaNew India Assurance Company Ltd India IndiaSun Insurance Company Ltd Fiji FijiQBE Insurance (Fiji) Ltd Fiji AustraliaTower Insurance (Fiji) Ltd Fiji New Zealand

C BROKERSAon (Fiji) Ltd Fiji AustraliaMarsh (Fiji) Ltd Fiji New Zealand/FijiUnity Insurance Brokers (Fiji) Ltd Fiji FijiInsurance Holdings (Fiji) Ltd Fiji New Zealand/Fiji


List of Licensed Insurers and Brokers In Fijias at 31 December 2012

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* Also an agent of another Insurance Company ** Licence was cancelled


A. BSP LIFE (FIJI) LIMITED

No. NAME LICENCE No.

1 Abdul Ifraan* 2286

2 Akariva Ratumaitavuki 2482

3 Akash Lal 2456

4 Akuila Curu* 2288

5 Alan Tuinasoni 2309

6 Alice Heffernan* 2248

7 Alisi Qutei 2294

8 Ambika Nand* 1447

9 Andrew Morris 2540

10 Andrew Adams* 978

11 Apisai Samuta 1408

12 Arvind Chand* 2333

13 Ashok Kumar* 2290

14 Atunaisa Davuiqalita 1400

15 Atunaisa Nailatica* 2284

16 Avinash Raj 2429

17 Baleilautoka Saukuru 2489

18 Bank South Pacific* 1693

19 Bernadette Kutty 2531

20 Betanaqori Ciwasagavulu* 2299

21 Bipin Patel* 952

22 Cyril Fong* 2252

23 Daniel Kumar 2488

24 Dharmendra Prasad 2535

25 Dharmeshwar Deo 2485

26 Dhirendra Prasad 2446

27 Dion Young 2476

28 Elena Ravuiwasa 2480

29 Elizabeth Parker 2398

30 Emele Nayacalevu 1829

31 Enele Malele 2433

32 Epeli Sokidrau 2457

33 Eroni Tuianuavou 2422

34 Fabian Corrie* 920

35 Francisca Adricula 2478

36 Girja Prasad 1171

37 Hafiz Din* 1758

38 Harry Berwick 2246

39 Henry Samuels 2532

40 Inoke Rokobui* 2237

41 Ioane Koroveibau 2272

42 Iowana Ravea 2292

43 Isikeli Tawailasa 873

44 Isikeli Lui 2543

45 Jainand Maharaj 2263

46 Jeremaia Dakui* 2273

47 Jitendra Sami 2490

48 Joan Bulamaisolomone 1813

49 Joeli Bula 2451

50 John Elder* 1073

51 Joji Rokosuka* 1390

52 Jope Tuivanuavou* 1705

53 Jope Buinimasi* 1628

54 Jope Vugakoto* 2308

55 Josaia Tikomailepanoni 2527

56 Josaia Tawake 2536

57 Josevata Vikila 2334

58 Jovilisi Bale 2542

59 Kala Singh* 2281

60 Kamla Prasad* 1147

61 Kamlesh Lal 2453

62 Karam Chand * 2296

A. BSP LIFE (FIJI) LIMITED - Cont.


63 Karun Gandhi* 1106

64 Kasanita Kuruyawa 2270

65 Keni Cawa 2426

66 Kiniviliame Waqairawai 2275

67 Laijia Momo 2264

68 Litia Luvunakoro* 2277

69 Livai Tagicakibau 2146

70 Lorima Baba 2258

71 Louise Blake 2493

72 Lui Talesalusalu 2541

73 Luisa Koroiqacia 2304

74 Maake Tabua 2481

75 Maikali Dimuri* 1608

76 Makelesi Koroi 2428

77 Makipani Gonelevu* 2295

78 Manoa Bose 2396

79 Maria Watiribi 2528

80 Mariana Ranadi 2306

81 Meli Tora* 2459

82 Miriama Vueta 2268

83 Mohammed Rafik 2262

84 Mosese Uluinaceva 2335

85 Mosese Ravutu 2259

86 Motuosima Pangalu 2477

87 Mubbashir Mohammed 2494

88 Naibuka Mara 2425

89 Naisa Waqa 2447

90 Naveen Chand* 1520

91 Neeleshni Naicker 2539

92 Paras Sukul 2282

93 Pradeep Kumar* 1776

94 Parvin Kaur* 2313

95 Paul Vakatoto* 2256

96 Peni Radravu 2432

97 Peni Tabualevu 2530

98 Peniasi Vakacerewale 2293

99 Penisoni Khan* 1848

100 Peter Sharma* 1894

101 Pita Vuloaloa 2280

102 Pranil Nand 2427

103 Pratap Singh 2243

104 Ratu Tomasi Veitaliadrua 2534

105 Raveen Singh 2538

106 Ravendra Prabhu* 1624

107 Ravin Chand* 1503

108 Ravindra Moltan 2544

109 Ravinesh Prasad 2529

110 Raymond Stoddart* 1723

111 Rick Croker* 1930

112 Ritesh Nand 2266

113 Ritesh Maharaj* 1515

114 Ronal Chandra* 2450

115 Ronald Lal* 2109

116 Rovil Singh 2537

117 Sachin Lakhan 1563

118 Saiasi Maisema 1391

119 Saimoni Kaloukigau* 2279

120 Sakeasi Rayaqoma 2430

121 Salesi Temo 2253

122 Samuel Maharaj 2491

123 Samuela Waqaniburotukula 2526

124 Sanaila 2400

List of Licensed Insurance Agents In Fijias at 31 December 2012

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A. BSP LIFE (FIJI) LIMITED - Cont.


125 Saneel Nand 2454

126 Sanjay Mani 2401

127 Sega Waqalevu 2455

128 Seini Talainaivalu 2479

129 Senimelia Serusaivou 2274

130 Seremaia Caqusau 2397

131 Shaneel Prasad* 1992

132 Shivlesh Prasad 2307

133 Sikipio Fihaki* 2340

134 Simione Kuruvoli 1853

135 Sitiveni Ratubalavu 2533

136 Sonam Singh 2487

137 Sunia Radovu 2040

138 Susan Rusia* 2199

139 Susie Emberson* 2249

140 Taito Gukivuli 2424

141 Taitusi Cakau 2260

142 Tevita Baleinamaka* 1550

143 Tevita Momoedonu 2458

144 Timoci Tamanisokula* 2244

145 Timoci Namuaira 2271

146 Tomasi Baleilomaloma 2276

147 Tomasi Lovo* 2486

148 Veresa Vatia 2492

149 Victoria Vollmer 2525

150 Vidya Rattan 2250

151 Vijay Sharma* 1540

152 Vijay Singh* 1958

153 Vijay Nath 2483

154 Vikash Anand 2484

155 Vilitati Qumivutia 2251

156 Vimlesh Kumar* 2261

157 Viniana Ratuvou* 1469

158 Vishwa Nand* 1544

159 Warden Krishna* 1184

160 Watisoni Waqaicece 2303

B. BSP HEALTH CARE (FIJI) LIMITED


1 Abdul Ifraan* 2286

2 Akuila Curu* 2288

3 Alice Heffernan* 2248

4 Ambika Nand* 1447

5 Andrew Adams* 978

6 Arvind Chand* 2333

7 Ashok Kumar* 2290


9 Atunaisa Nailatica* 2284

10 Betanaqori Ciwasagavulu* 2299

11 Bipin Patel* 952

12 Edward Ram 2255

13 Fabian Corrie* 920

14 Hafiz Din* 1758

15 Inoke Rokobui* 2237

16 Jeremaia Dakui* 2273

17 John Elder* 1073

18 Joji Rokosuka* 1390

19 Jope Vugakoto* 2308


21 Jope Buinimasi* 1628

22 Kamla Prasad* 1147

23 Karam Chand* 2296

B. BSP HEALTH CARE (FIJI) LIMITED - Cont.



25 Macquaire Travel World Service Limited 2312

26 Maikali Dimuri* 1608

27 Makipani Gonelevu* 2295

28 Meli Tora* 2459

29 Naveen Chand* 1520

30 Parvin Kaur* 2313

31 Paul Vakatoto* 2256

32 Penisoni Khan* 1848

33 Peter Sharma* 1894

34 Pradeep Kumar* 1776

35 Ravendra Prabhu* 1624

36 Ravin Chand* 1503

37 Raymond Stoddart* 1723

38 Rick Croker* 1930

39 Ritesh Maharaj* 1515

40 Ronal Chandra* 2450

41 Ronald Lal* 2109

42 Saimoni Kaloukigau* 2279

43 Shaneel Prasad* 1992

44 Sikipio Fihaki* 2340

45 Susan Rusia* 2199

46 Susie Emberson* 2249

47 Tevita Baleinamaka* 1550

48 Timoci Tamanisokula* 2244

49 Tomasi Lovo* 2486

50 Vijay Sharma* 1540

51 Vijay Singh* 1958

52 Vimlesh Kumar* 2261

53 Viniana Ratuvou* 1469

54 Vishwa Nand* 1544

55 Warden Krishna* 1184

C. LIFE INSURANCE CORPORATION OF INDIA


1 Adi Seru Makutu 2075

2 Aklesh Kumar 2238

3 Alan Veeran 1191

4 Alanieta Verevou 2177

5 Alesi Radalau 2166

6 Alvin Singh 2383

7 Aminisitai Drugusorovoli 2324

8 Anil Amin 2384

9 Anupurna Goundar 2501

10 ANZ Banking Group Limited* 2473

11 Areesh Chand 1912

12 Arvin Lal 2385

13 Arvind Sharma 2522

14 Asena Tuvukona 532

15 Ashnil Sharma 2547

16 Ashwin Pratap 2516

17 Asilika Lalakohai 2167

18 Ateca Vucunivavalagi 1933

19 Atelini Buloukanaivalu 2520

20 Avinita Narayan 2502

21 Avishek Narayan 2378

22 Bala Kumar 2355

23 Cama Seruilumi 2498

24 Chandar Deo 1051

25 Chandra Shah 1393

26 Christine Cinavilakeba 2523


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C. LIFE INSURANCE CORPORATION OF INDIA - Cont.


27 Dharam Prakash 2345

28 Dineshwar Sharma 2521

29 Dineshwar Lal 2356

30 Ekari Saune 2499

31 Emele Sevu 2342

32 Faga Inoke 2509

33 Francis Waqasaqa 2140

34 Frank Vatubai 2325

35 Gluck Whippy 2320

36 Ishwari Prasad 2174

37 Jai Chand 2326

38 James Krishna 1409

39 Janendra Prasad 1285

40 Jaswant Lal 2512

41 Jaynendra Raj 2505

42 Jenendra Kumar 1276

43 Jiujiuwa Vakaloloma 2508

44 Joeli Qio 2070

45 Jona Saukilagi 2145

46 Josateki Silatolu 2343

47 Josefa Rusaqoli 2549

48 Josese Tokalau 1885

49 Kaiafa Ledua 2082

50 Kalpana Sharma* 1345

51 Karmesh Mishra 1176

52 Kaurasi Ralifo 2437

53 Kavinesh Gaunder 2511

54 Kelepi Matai 2941

55 Kelevi Nagone 2212

56 Kesaia Tagi 2507

57 Keshmi Sharma 2496

58 Kishorbhai Patel 1415

59 Krishna Naidu 1983

60 Krishna f/n Kali 1142

61 Lavenia Kanatutu 2546

62 Litia Luvunakoro* 2277

63 Litiana Maramaniaisokula 2165

64 Losana Tuitovoka 2387

65 Mahendra Deepak 1919

66 Makarita Riamakau 2510

67 Maria Cema Tuiloa 2376

68 Matai Vakasisikakala 2441

69 Matelita Ravula 2500

70 Mere Ravusoni 2358

71 Mereadani Batikara 2506

72 Merewairita Butani 2104

73 Mesake Biumaiwai 1231

74 Mikaele Tabalala 1934

75 Mohammed Ifran 1922

76 Mohindar Mehta 1859

77 Moreen Prasad 2359

78 Morotikei Baleivuya 2066

79 Mosese Gatakeiviti 2513

80 Naibuka Ratulailai 2417

81 Nand Lal* 1646

82 Naresh Prasad 2038

83 Nikolau Vulaca 1347

84 Nitin Lal 2239

85 Oriva Tubuinase 2337

86 Peni Seru 2242

87 Petero Kamenio 2362

88 Pita Ravula 1024



89 Prakash Singh* 1666

90 Praneet Reddy 2463

91 Prawin Parbhu 2444

92 Prem Kumar 2386

93 Presley Lal 2413

94 Rahool Sharma* 1267

95 Rajesh Singh 1928

96 Rajesh Singh* 1467

97 Rajeshwar Prasad 2234

98 Rajni Prasad 2353

99 Rakesh Narayan 1872

100 Ram Chandar 2411

101 Ramesh Waqalenisau 2550

102 Ramesh Kumar 933

103 Rashmikant Chauhan 2471

104 Raveen Goundar 2381

105 Ravindra Deo 2151

106 Rekha Parmar 2445

107 Rishi Ram 1054

108 Ritesh Kumar 2420

109 Rohini Narayan 839

110 Romita Singh 2297

111 Ronal Kumar 2330

112 Rupeni Rabici 2368

113 Sailesh Singh 2517

114 Sainimere Cemumu 699

115 Saiyasi Davokia 2524

116 Sajnil Prasad 2127

117 Salen Shiner 2497

118 Salome Lewatabu Tokalau 1982

119 Sambhu Datt 1056

120 Samuel Veeran 1159

121 Sanil Kumar 2462

122 Sanjay Kumar 1923

123 Sanjila Prasad 2317

124 Sarwan Kumar 1778

125 Satendra Nath 1123

126 Shairina Nair 2369

127 Shalesh Prasad 1360

128 Shalvindra Narayan 2519

129 Sham Narayan 836

130 Shandil Chand 2352

131 Shashi Gounder 2348

132 Shiu Narayan 1131

133 Simeli Waiwaisoro 2419

134 Sinta Naidu* 1344

135 Sowani Balawa 2548

136 Stefan Starzynski 1153

137 Stephen Wong 552

138 Sujita Prasad 2017

139 Sulueti Vunibola 1932

140 Sunil Kumar 1232

141 Sunyal Ram 2467

142 Surandar 2410

143 Surujmati Nand 1794

144 Susie Kumar 2021

145 Tarsen Singh 2046

146 Timaima Samulo 2515

147 Timoci Guniyaga 2503

148 Ujagar Singh* 1369

149 Vasemaca Kaisuva 2504

150 Venal Naidu 2323


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151 Venkataiya 2412

152 Vignas Rao 1637

153 Vijay Nair* 1138

154 Vijay Prasad 2408

155 Viliame Tabualevu 1953

156 Vimlesh Mani 2388

157 Vinod Kumar* 2346

158 Wate Rainima 2390

159 Wili Veivutuni 2518

E. FIJICARE INSURANCE LIMITED


1 Abdul Shazraan 2391

2 Abhinesh Narayan 2407

3 Microfinance Unit West 2365

4 Rajesh Singh* 1467

5 Anandilal Amin and Associates* 589

6 Home Finance Company Limited* 1599

7 Prakash Singh* 1666

8 Rajiv Ravinesh Raj 2341

9 Rohini Devi 2404

F. TOWER INSURANCE (FIJI) LIMITED


1 ANZ Banking Group Limited* 2475


3 Dharam Singh 1028

4 Home Finance Company Limited* 1599



7 Maharaj’s Insurance Services 2009

8 Niranjans Autoport Limited 1453

9 Paul Yee 1931

10 Rahool Sharma* 1267

11 Rick Croker 1930

12 Saiyad Ali 1479

13 Sanrojni Ram 2474

14 Westpac Banking Corporation 1890

G. SUN INSURANCE COMPANY LIMITED


1 Abdul Shair 2514

2 Avikash Pillay 2405

3 Deven Sharma 2314

4 Fiji Development Bank 1944

5 Hemant Kumar 1588

6 Mahesh Prasad 2229

7 Nand Lal 1646

8 Praveen Sharma* 1700

9 Satendra Sharma 1070

10 Ujagar Singh* 1369

11 Vijendra Prasad 626

12 Vinod Chand 1699

H. QBE INSURANCE (FIJI) LIMITED


1 ANZ Banking Group Limited** 1480

2 Cyril Fong* 2252

3 Dharmendra Prasad 1822

4 Samuela Vodo 1777

D. NEW INDIA ASSURANCE CO LIMITED


1 Anandilal Amin and Associates* 589

2 Autoworld Trading Fiji Limited 1907

3 Darrell Rajcharan 2472

4 Emosi Seduadua 1654

5 Finance Pacific Corporation Limited 2089

6 Hema Kumar 1868

7 Kala Singh* 2281

8 Kalpana Sharma* 1345

9 Merchant Finance and Invest-ment Limited 2162

10 Mohammed Aiyub 1440

11 Mubarak Mohammed 2176

12 Nadi Plumbing Works (Fiji) Limited 2036

13 Palas Auto Services Limited 2026

14 Ron Gounder 2393

15 Sarojni Harris 1896

16 Satish Kumar 1262

17 Shyam Narayan 916

18 Sinta Naidu* 1344

19 Surendra Lal 2421

20 Usman Ali 2004

21 Venkat Naidu 1036

22 Vinod Kumar* 2346

I. DOMINION INSURANCE LIMITED


1 Credit Corporation (Fiji ) Limited 2328

2 Dorine Charan 1950

3 Hari Sharma 1293

4 Jang Bahadur 1112

5 Jiten Singh 1908

6 Karam Chand* 2296

7 Karuna Sharma 2090

8 Manoj Jeet 1597

9 Mohammed Sheik 2023

10 Pushpa Kumar 2024

11 Rohit Chand 2044

12 Vijay Kumar 1425

13 Vijay Nair* 1138


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Fiji: Key Economic and Financial Indicators 86

Fiji: Key Insurance Indicators 87

Fiji: Key Indicators

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Fiji: Key Economic and Financial Indicators2008 2009 2010 2011 2012

I GROSS DOMESTIC PRODUCTGDP at Market Price ($m) 5,785.0 5,721.5(r) 6,186.7(r) 6,730.8(p) 7,316.6(e) Per Capita GDP at Current Factor Cost ($) 5,848.5 5,801.9(r) 6,153.1(r) 6,608.2(p) 7,078.8(e) Constant Price GDP Growth Rate (%) 1.0 (1.3)(r) 0.1(r) 1.9(p) 2.5(e)

II LABOUR MARKETLabour Force 329,755(e) 332,582(e) 335,400(e) 338,300(e) 341,200(e) Wage and Salary Earners (mid-year) 130,600(e) 132,600(e) 134,600(e) 136,600(e) 138,700(e)

III INFLATION (year-on-year % change)All Items 6.6 6.8 5.0 7.7 1.5

IV GOVERNMENT FINANCE ($m)Total Revenue and Grants 1,454.9 1,415.9 1,537.8 1,804.1 1,960.0(r) Total Expenditure (excluding loan repayments) 1,426.8 1,644.7 1,668.7 1,898.3 2,077.9(r)

V EXTERNAL TRADE1

Current Account Balance ($m) (867.7) (233.3)(r) (270.0)(r) (152.4)(r) 70.2(p) Capital Account Balance ($m) 8.2 4.6(r) 5.6(r) 10.6(r) 7.1(p) Financial Account Balance ($m) (713.6) (497.0)(r) (298.6)(r) (463.7)(r) (310.9)(p) Current Account Balance (% of GDP) (15.0) (4.1)(r) (4.4)(r) (2.3)(r) 1.0(p)

VI FOREIGN EXCHANGE RESERVES ($m)Foreign Reserves 558.7 1,090.6 1,302.7 1,512.5 1,635.5

VII MONEY AND CREDIT (year-on-year % change)Narrow Money (16.3) (7.0) 11.8 41.8 4.4 Currency in Circulation 8.5 13.0 8.2 5.4 7.0 Quasi-Money 3.6 17.1 0.2 (1.2) 7.8 Domestic Credit2 4.1 7.2 (0.6) 0.5 2.7

VIII INTEREST RATES (%p.a.)RBF Overnight Policy Rate3 n.a n.a 2.50 0.50 0.50Lending Rate 7.72 7.52 7.42 7.42 6.65Savings Deposit Rate 0.64 0.92 1.02 0.91 0.74Time Deposit Rate 3.00 5.83 4.73 2.97 2.28Minimum Lending Rate 6.32 3.50 3.00 1.00 1.00

IX EXCHANGE RATESUnited States dollar4 0.5669 0.5185 0.5496 0.5493 0.5595Real Effective Exchange Rate(January 1999 = 100) 107.45 91.65 94.26 99.27 100.02

Notes:1 Balance of payments data for 2008-2012 has been compiled in accordance with International Monetary Fund Balance of Payments Manual,

6th edition.2 Credit to the private sector is adjusted for AMB’s non-performing loans and advances.3 The RBF Overnight Policy Rate came into effect in 2010.4 Mid rates, F$1 equals: end of period.

Key:(e): estimate(p): provisional(r): revisedn.a: not available

Sources: Commercial Banks, Fiji Bureau of Statistics, Ministry of Finance, Macroeconomic Policy Committee and Reserve Bank of Fiji

Fiji: Key Economic and Financial Indicators

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Market Structure 2008 2009 2010 2011 2012Number of registered insurers 10 10 10 9 9

Life 2 2 2 2 2

General 8 8 8 7 7

Brokers 4 4 4 4 4

Re-insurers (not insured but locally incorporated) 0 0 0 0 0

Number of licenses issued to insurance agents

Life 304 247 262 295 319

General 145 128 131 130 129

Gross Premium

Total ($m) 201.6 206.1 207.9 221.2 258.5

Life ($m) 83.7 86.6 87.1 96.2 112.9

General ($m) 117.9 119.5 120.8 125.0 145.6

Total (% of GDP at market price) 3.5 3.6 (r) 3.4 3.3 (p) 3.5 (e)

Life (% of GDP at market price) 1.4 1.5 1.4 1.4 (p) 1.5 (e)

General (% of GDP at market price) 2.0 2.1 2.0 1.9 (p) 2.0 (e)

Assets

Total ($m) 804.2 921.3 939.5 1,043.7 1,214.8

Life ($m) 556.3 638.6 654.4 750.1 843.2

General ($m) 247.9 282.7 285.1 293.6 371.6

Key: (e) – estimate (p) – provisional (r) - revised


Life Insurance 2008 2009 2010 2011 2012

New Business

Number of Policies 12,017 11,318 14,629 12,801 13,926

Sums Insured ($m) 355.6 324.3 367.0 358.7 442.7

Business in Force

Number of Policies 86,193 85,249 87,711 86,313 88,667

Sums Insured ($m) 2,449.3 2,419.7 2,409.3 2,423.4 2,563.8

Distribution of Sums Insured for Policies in Force (%)

Whole of Life 4.7 4.6 4.3 4.1 3.4

Endowment 45.0 46.3 49.2 50.6 52.2

Temporary 14.4 14.6 13.5 12.9 12.8

Others 35.9 35.9 33.1 32.5 31.6

Gross Premium Income ($m) 83.7 86.6 87.1 96.2 112.9

Benefit Payment ($m)

Total 55.8 59.5 56.6 63.3 67.2

Death 6.0 6.7 8.2 9.3 6.9

Maturity 30.6 32.2 29.0 33.1 41.4

Surrender 18.9 20.4 18.9 20.2 18.7

Sickness and Accidents 0.3 0.2 0.5 0.7 0.2

Forfeiture Rate (No. of policies) (%) 65.7 59.2 53.0 66.4 47.0

Surrender Rate (No. of policies) (%) 5.3 5.2 5.0 4.4 4.6

Investment Income ($m) 31.6 36.1 40.0 50.8 47.7


Fiji: Key Insurance Indicators

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General Insurance 2008 2009 2010 2011 2012

Premium Income ($m)

Gross 117.9 119.5 120.8 125.0 145.6

Net 92.9 88.4 89.8 96.9 103.0

Reinsurance 25.0 31.1 30.9 28.1 42.6

Net Earned Premium Income 91.1 87.0 93.6 90.7 92.2

Retention Ratio (%) 78.8 73.9 74.3 77.5 70.7

Claims ($m)

Gross Claims Paid 45.6 74.9 88.2 54.2 78.9

Net Claims Incurred 45.5 56.8 42.0 45.2 74.6

Distribution of Gross Premiums (%)

Fire 26.4 26.0 27.7 29.7 33.6

Motor Vehicle 20.7 21.2 21.1 20.7 20.2

Marine Hull/Cargo 2.5 2.9 2.5 2.4 2.1

Householders/Burglary 8.3 8.2 7.9 7.3 6.8

Motor CTP 9.8 9.3 9.3 8.9 6.2

Liability* 2.8 2.7 3.1 3.1 3.0

Workers Compensation 5.3 5.1 5.0 4.5 4.6

Medical/Term Life 20.0 20.8 19.8 20.1 20.3

Others 4.2 3.8 3.6 3.3 3.2

Net Claims Ratio (%)

Fire 36.2 114.5 61.2 20.8 195.7

Motor Vehicle 66.5 66.9 51.5 60.8 63.8

Marine Hull/Cargo 70.8 194.8 (94.3) 45.4 42.6

Householders/Burglary 50.0 47.6 27.5 30.2 (r) 85.9

Motor CTP 38.4 15.3 15.3 53.4 57.0

Workmen’s Compensation 26.2 20.2 25.7 31.7 53.9

Medical 58.2 67.0 78.6 64.1 57.2

Term Life 53.8 56.4 53.3 75.7 49.4

Total Business 49.9 65.3 44.8 49.9 80.9

Net Underwriting Results (%)

Expense Ratio 17.5 18.9 17.3 20.7 22.2

Operating Results ($m)

Underwriting Gain/Loss 29.7 13.7 35.5 26.7 (2.8)

Investment Income 6.9 10.2 10.4 11.2 9.7

Operating Profit/Loss 18.1 9.0 22.8 16.8 (6.1)

Key: (r) - revised * Personal Accident, Professional Indemnity and Public Liability


Fiji: Key Insurance Indicators

Reserve Bank of Fiji

PostalPrivate Mail Bag, Suva, Fiji

Telephone (679) 331 3611

Facsimile (679) 330 2094

Email [email protected]

Website www.rbf.gov.fj

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