Insurers’ half-year reporting under IFRS 17 and IFRS 9

Global Corporate Reporting Institute | IFRS Today | Insurance

Highlights

Continuing our ongoing analysis of insurers’ reporting on implementing the new accounting standards – IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments – we have now analysed the half-year reports of 64 insurers for the six months ended 30 June 2023. We now share our key observations on:

the IFRS 17 disclosures included in the half-year reports; and
the impacts of IFRS 17 on key performance indicators (KPIs).

Bob Owel

Associate Partner

KPMG International

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What are our key observations?

We found the following in our analysis.

There is significant variation in the IFRS 17 disclosures included by insurers in their half-year reports. The level of aggregation of the disclosures also varied.
There are significant differences in the yield curves applied to discount insurance liabilities. The detail provided on how discount rates are determined also varied widely.
The contractual service margin (CSM) has been integrated into many life insurers’ KPIs, including the metrics for new business, profitability and company value. Non-life insurers have largely continued with existing KPIs.

What else did we look at?

These include an update to our previous analysis on:

insurers’ IFRS 17 and IFRS 9 accounting policies and significant judgements; and
the impact to opening equity from the adoption of IFRS 17 and IFRS 9.

What’s next?

Read our analysis of insurers’ half-year reports under IFRS 17 and IFRS 9.

Visit and bookmark our Real-time IFRS 17 page for more information and look out for the next issue in our series, looking at the first full-year financial statements prepared under IFRS 17 and IFRS 9.