Disclosure Reinsurance Income

All topics related to IFRS Standards.
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lvb
Posts: 5
Joined: 13 Jun 2022, 16:26

Disclosure Reinsurance Income

Post by lvb »

Should an insurer separately disclose reinsurance income in the P&L as a revenue, so that the reader sees net premium received and reinsurance income as components of revenue or should the insurer net off the reinsurance income with commission expense under acquisition costs (=cost of sales) ?
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Disclosure Reinsurance Income

Post by Leo »

If you take the P&L by AXA, it seems that they disclose the gross amount of reinsurance (page 292, footnote a)

and commissions were disclosed in note 25 "Acquisition costs", what do you think ?

https://www-axa-com.cdn.axa-contento-11 ... ssible.pdf
lvb
Posts: 5
Joined: 13 Jun 2022, 16:26

Re: Disclosure Reinsurance Income

Post by lvb »

It looks like AXA keeps reinsurance commission completely separate under 23.
Leo
Posts: 908
Joined: 05 Apr 2020, 22:31

Re: Disclosure Reinsurance Income

Post by Leo »

Isn't note 23 disclose the outward reinsurance, which from my understanding, is insurance risks transferred to third parties ?
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lvb
Posts: 5
Joined: 13 Jun 2022, 16:26

Re: Disclosure Reinsurance Income

Post by lvb »

Yes, outward. I meant outward in my question where insurers receive reinsurance commission from the reinsurer.
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