Reserve Bank of Fiji Insurance Annual Report 2008rbf.gov.fj/docs/2008 Insurance Annual...
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Reserve Bank of Fiji Insurance Annual Report 2008
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Our ObjectivesTo administer the Insurance Act (1998) efficiently and effectively;
To ensure that the insurance legislation 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.
(Note: All values in this Report are in Fiji $ unless otherwise specified)
Reserve Bank of Fiji Insurance Annual Report 2008
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Governor
30 June 2009
Commodore Josaia Voreqe BainimaramaMinister for FinanceMinistry of FinanceRo Lalabalavu HouseVictoria ParadeSUVA
Dear Minister
Insurance Annual Report 2008
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 2008.
Yours sincerely
…………………........……........Sada S Reddy
Governor
Attch.
Private Mail Bag, Suva, Fiji Tel: (679) 331 3611 Fax: (679) 330 1688 Email: [email protected] Website: www.rbf.gov.fj
RESERVE BANK OF FIJI
Letter to the Minister
Reserve Bank of Fiji Insurance Annual Report 2008
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Governor’s Foreword
Though 2006 and 2007 were relatively “disaster-free” years for the insurance industry worldwide, mother nature struck in 2008. A large number of tropi-cal cyclones and a major earthquake in China made 2008 one of the most dev-astating years on record.
In May, the severe floods in Myan-mar caused by tropical cyclone Nargis claimed close to 140,000 lives. This was followed by the earthquake in Sichuan, China, measuring 7.9 on the Richter scale, which killed over 87,000 people and left more than 10 million home-less.
The US Gulf took a pounding in August and September from Hurricanes Gustav and the severest was Ike, reminding us of the significant impacts of such ca-tastrophes on our daily lives and busi-nesses.
Globallly there were fatalities of more than 220,000 as a result of natural ca-tastrophes in 2008. Overall losses come to around US$200 billion and insured losses rose to US$45 billion, exceeding 2007’s figure by 50 percent. Swiss Re has estimated that 2008 was the second costliest year in insurance history, after 2005, with catastrophe losses alone ex-ceeding US$50 billion, and the fourth worst since 1970 in terms of human ca-sualties.
Not only were catastrophe losses severe, the investment losses triggered by the subprime mortgage crisis further re-sulted in the deterioration of capital of insurers and reinsurers in 2008. An AIG bankruptcy would have been the worst financial collapse in history if it had been allowed.
Despite a very challenging year on the in-ternational scene, the Fiji insurance indus-try continued to be sound and well capita-lised. The Fiji economy had its own chal-lenges to deal with in 2008 and the local insurance industry proved to be financially strong in the face of these domestic chal-lenges. The industry recorded a solvency surplus of $78.4 million, though this is a significant reduction from 2007. The li-abilities of the industry remain at compa-rable levels as they were in 2007, however the industry assets recorded a significant decline due to the life insurance sector’s investment portfolio experiencing a down-ward revaluation.
The combined growth in gross premium in 2008 of 4.6 percent, for both the life and general insurance sectors in Fiji proved the persistency of local insurers to provide in-surance coverage at affordable cost. Policy payments for life insurance declined due to the decrease in the number of termi-nated policies. This was also the case for general insurers with the decline in net claims paid.
Overall operating results for the Fiji insur-ance industry though still positive, noted a significant drop in 2008. The results have been attributed to reduced invest-ment returns and high asset depreciation recorded by the life insurance sector, and an increase in claims incurred and under-writing expenses by the general insurance sector.
The Reserve Bank of Fiji’s supervision ef-fort was boosted in 2008 with the re-acti-vating of the Insurance Taskforce. Consul-tations with the Taskforce on relevant is-sues to the industry have been successful and productive at both ends. Prudential consultations with the individual licensed
insurers also continue, both at the technical level of supervision, and at the Governor’s Annual Meetings. The Reserve Bank continues to develop and refine its risk-based supervision frame-work, and will maintain the effort to engage the industry in consultation on new and revised prudential policies and guidelines.
The outlook for the insurance industry suggests yet another challenging year. Premium rates are expected to increase as the pressure of significant losses in the international markets flow through to our local market. The impact of the international financial crisis continues to be felt in markets around the world and though Fiji has thus far, been insu-lated, the economic conditions in the domestic market will continue to chal-lenge underwriters and brokers to make appropriate underwriting decisions.
The Reserve Bank is grateful for the continued cooperation of all stakehold-ers in the insurance industry in its su-pervisory work, and reiterates that the active contributions of all stakehold-ers will continue to make the industry strong and sound.
Sada S. ReddyGOVERNOR
Reserve Bank of Fiji Insurance Annual Report 2008
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International Economic Developments
According to the International Monetary Fund (IMF) world growth fell to 3.2 per-cent in 2008 compared to a 5.2 percent growth in 2007. The slowdown was fu-elled by the global financial crisis which saw major economies around the globe falling into recession. (refer to Graph 01)
The global financial crisis began in mid-2007 in the United States of America (US) and deepened through the first half of 2008 before worsening in September. The failure of important financial institutions affected interbank and credit markets around the globe and triggered a global liquidity shortage.
While the crisis emanated in the devel-oped countries it quickly spread around the globe due to financial globalisation and trade links. The World Trade Organi-sation estimates that global trade growth in volume terms slowed to 2.0 percent in 2008 compared to a 6.0 percent growth in 2007.
A wide range of policy actions have been put in place by Governments and central banks around the world to help ease the impact of the global financial meltdown. Governments introduced various measures to support credit flows such as recapital-ising banks and lifting deposit insurance
limits while central banks started easing monetary policy over the year by lowering their benchmark interest rates in an effort to ease the liquidity crisis and provide a boost to consumption. Governments, par-ticularly in advanced economies have also provided a major boost through various fiscal policy measures.
The US economy is estimated to have grown by 1.1 percent in 2008, compared to a 2.0 percent growth in 2007. The slowdown in the economy was due to the global financial crisis which froze credit markets and lowered confidence and ex-ports. The Japanese economy is estimat-ed to have contracted by 0.6 percent in 2008 after the global financial crisis re-duced demand for its exports. The Euro zone grew moderately by 0.9 percent in 2008 compared to a 2.7 percent growth in 2007. The slowdown was led by the credit crunch and reduced industrial pro-duction. The New Zealand economy grew by a marginal 0.3 percent in 2008 while the Australian economy is estimated to have grown by 2.1 percent compared to 4.0 percent in 2007. This is due to the fall in consumption and business investment.
Economic Developmentsin Fiji
The Fiji economy is estimated to have grown by a marginal 0.2 percent in 2008, following a significant contraction of
Economic Overview
GRAPH 02 Fiji’s GDP Growth
GRAPH 01 World GDP Growth Rates
Sour ce: IMF World Economic Outlook (April 2009).
%
0
1
2
3
4
5
6
20
00
2001
20
02
20
03
20
04
20
05
20
06
20
07
20
08
Yea
rs
Traders work on the floor of the New York Stock Exchange after the close September 29, 2008 in New York City. In afternoon trading The Dow Jones industrial average plunged over 700 points.
Source: Fiji Islands Bureau of Statistics and Macroeconomic Committee.
%
-1.6
1.9
3.2
0.9
5.5
0.6
3.4
-6.6-6
-4
-2
0
2
4
6
2000
2002
2004
2006
2008
8
-8
2001
2003
2005
2007
0.2
Reserve Bank of Fiji Insurance Annual Report 2008
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6.6 percent in 2007. (refer to Graph 02) Growth was supported by the wholesale & retail trade and hotels & restaurants; transport, storage & communication sec-tors. This reflected the 8.3 percent an-nual increase in tourism arrivals of around 584,796 in 2008.
The mining & quarrying sector was also estimated to have contributed to 2008 growth after an absence of mining activ-ity in 2007. Gold production was around 22,000 ounces of gold in 2008. This level is still lower than that recorded by the in-dustry prior to 2007.
Other sectors that had also supported eco-nomic growth in 2008 were the finance, insurance, real estate & business services and building & construction.
Consumption activity was weak in 2008. In 2008, net Value Added Tax (VAT) collec-tions, a partial indicator of consumption activity fell by 2.9 percent when compared with 2007.
Investment in 2007 was estimated at 15.0 percent of GDP. For 2008, a similar level is also estimated. Looking at the partial indicators in 2008, on an annual basis imports of investment goods grew by 27.2 percent and lending for investment purposes grew by 14.4 percent. The total
value of work put-in-place by the building and construction sector totalled $254.0 million in 2008, an annual increase of 10.3 percent.
The underlying fiscal deficit for 2007 stood at $96.2 million, or 1.8 percent of GDP, lower than the 3.4 percent of GDP registered for 2006. For 2008, Govern-ment’s underlying deficit is estimated at $92.0 million, or 1.5 percent of GDP, lower than the 2.0 percent of GDP announced in the 2008 National Budget.
This is attributed to the Government’s con-solidated effort in restraining spending. For 2009, the Government is targeting a net deficit of $192.8 million equivalent to 3.0 percent of GDP. The proposed deficit is expected to provide sufficient resources to boost investment levels, drive economic recovery and also safeguard against global economic shocks.
Broad money supply (M2) fell by 6.9 per-cent in December compared to a growth of 10.4 percent a year earlier. The turn-around in M2 was underpinned by a sub-stantial contraction in demand deposits. In 2008, demand deposits contracted by 25.6 percent.
Commercial banks’ credit growth picked up gradually in 2008. In December, com-
mercial banks’ credit expanded by 11.6 percent, compared to 2.1 percent in 2007. The outturn was attributed to higher lending to the wholesale, retail, hotels & restaurants; transport, communication & storage; real estate and the private indi-viduals sectors. Similarly, domestic credit rose by 4.8 percent in 2008, up from 3.2 percent a year ago. This was underpinned by a substantial expansion in private sec-tor credit. In December 2008, private sec-tor credit grew by 11.2 percent compared to 2.8 percent registered in December 2007.
Interest rates generally fell in 2008 com-pared to the previous year. The overhang of domestic liquidity in 2008 eased upward pressure on interest rates. In December 2008, the commercial banks’ weighted av-erage outstanding and new lending rates fell by 74 and 124 basis points to 7.72 and 8.45 percent respectively. Similarly, the existing time deposit rate fell by 145 basis points to 3.00 percent while the new time deposit rate rose by 75 basis points to 4.53 percent. However, the sav-ings deposit rate remained unchanged at 0.64 percent in 2008 when compared with 2007.
In 2008, the trade deficit (excluding air-craft) widened by 24.0 percent (to $2.1 billion) compared to 2007, when it nar-
Reserve Bank of Fiji Insurance Annual Report 2008
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rowed by 12.1 percent. The larger deficit is driven by higher imports which more-than-offset increases in export earnings.
Imports (excluding aircraft) grew by 23.0 percent in 2008, while exports (excluding aircraft) rose by 21.6 percent. Domestic exports rose by 18.6 percent compared to a 0.7 percent decline in 2007.
Conditions in the labour market continued to weaken in 2008. This is substantiated by the falling number of taxpayer regis-trations which had been declining even before the income tax threshold was in-creased to $15,000 in June. In 2008, a total of around 7,500 new taxpayers were registered, an annual decline of around 15.5 percent. Sectors which recorded lower registrations include the mining & quarrying; electricity & water; agriculture, forestry & fishing; transport, storage & communications and the community, so-cial & personal services.
On the other hand, the Job Advertise-ments Survey, another partial indicator of employment, recorded an annual growth of 11.0 percent. However, this was likely to fill existing vacant jobs as workers are switching jobs, emigrating and also due to natural attrition and not for newly cre-ated posts.
Consumer prices were hovering between 6.0- 7.0 percent through the third quar-ter of 2008. In September 2008, inflation reached a 20-year high peak of 9.8 per-cent. However, given the plummeting in-ternational commodity prices since August, domestic prices eased ending the year at a growth of 6.6 percent, lower than the projection of 7.5 percent. While the major contributors to inflation (imported food, transport and heating & lighting charges) noted lower prices, locally produced veg-etables & rootcrops were also relatively cheaper than the corresponding period in 2007. The trimmed mean, an underlying measure of inflation was 2.8 percent.
Monetary policy formulation continued to be challenging in 2008. This was mainly driven by the widening trade deficit that consequently exerted further pressure on the balance of payments and inflation which rose significantly, owing to higher oil and food prices. In addition, the global financial crisis deteriorated further, im-pacting the major economies and forcing a number of downgrades to global growth. The concerns of a further deterioration in the balance of payments and rising infla-tion were central considerations in mon-etary policy decisions throughout the year.The credit ceiling, introduced in December 2006, remained in place in 2008 to contain
credit growth at comfortable levels without
curtailing investment. Special approvals
continued to be granted for investment-
related projects.
As foreign reserves levels improved, certain ex-
change control policies were relaxed in 2008.
To encourage private sector investment, the
Bank announced the relaxation of limits on
local borrowing by non-resident controlled
companies and individuals. Furthermore, to
mitigate inflationary pressures, importers of
some essential food items were allowed to
enter into forward foreign exchange contracts
to hedge against their risks. Moreover, con-
sistent with the Government’s policies to rec-
ognise former Fiji residents with permanent
resident visas under the exchange control
guidelines, the Bank amended the definition
of former Fiji residents. Consequently, former
Fiji residents received the right to acquire
and transfer shares and source funds locally
without prior approval of the Reserve Bank.
In addition to this, the approval limits del-
egated to foreign exchange dealers for import
prepayments was raised to $1.0 million. The
Bank also increased the delegated limits for
certain categories of transactions that previ-
ously required Reserve Bank approval. One
of the main relaxation measures was the in-
crease in travel allowances and the increase in credit and debit cards limits.
Reserve Bank of Fiji Insurance Annual Report 2008
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The international insurance market remained resilient in 2008. Financial services and insurance companies will face enormous challenges in 2009 as they manage through the economic downturn and respond to shifts in market and consumer and regulator expectations.
The global reinsurance and insurance in-dustry remained resilient in 2008, despite a multitude of challenges posed by the deepening global economic crisis and sig-nificant property catastrophe losses.
The economic crisis resulting from the US subprime mortgage market collapse, trig-gered the investment losses of insurers and reinsurers in 2008. These investment losses were well above the underwriting losses which were driven by 5 years of price-cutting, higher than average catas-trophe losses, and increasing reserves for directors and officers liability (D&O) and errors and omissions liability claims1.
The investment losses coupled with catas-trophe losses, also resulted in deteriora-tion of the reinsurers and insurers capi-tal requirements. The decline in capital has been significantly worse for insurers than reinsurers. Global insurers capital declined substantially ranging from 25 to 30 percent whilst reinsurers capital ap-proximately declined by 10 percent. The impact on capital from catastrophe losses such as hurricanes Ike and Gustav was small compared to realised and unrealised investment losses2.
In the US property/casualty market, net written premium income declined by 1.4 percent compared to the decline of 0.6 percent in 2007. The reduction in premi-um growth in two years has been largely due to a weak US economy which had a large impact on commercial insurers due to rising unemployment. The income after tax for the US property/casualty industry dropped as catastrophe losses, the reces-sion and the crisis in the financial system affected underwriting and investment re-sults. Profits fell to $2.4 billion compared to $62.5 billion in 2007, a $60.1 billion decrease3.
The life insurance industry in the United Kingdom also experienced a challenging year as a result of declining equity markets combined with the write downs on bonds. The non-life industry also remained under pressure in 2008, despite some positive rates movements in certain sectors. Insur-ers in UK were not able to benefit from investment earnings due to the effect of the collapse of Lehman Brothers and sub prime asset write downs.
Asia’s insurance companies avoided ma-jor liquidity problems stemming from the global financial crisis, however, invest-
ment income decreased as a result of a fall in interest rates. The non life insurance markets of the Asia Pacific region were vi-brant and highly competitive in lines such as motor, fire and marine4.
Movements in Premium Rates
In January 2008, the average premium rate for the US property/casualty market was 15 percent down compared with a 16 percent decline in December 2007. As the year progressed, the average rate of decrease lessened and stood at 9 percent as at December 2008 indicating that the property/casualty market began to stabi-lise at year end. (refer to Graph 03)
The commercial property insurance rates generally flattened in 2008, a shift away from the soft market conditions of the prior two years. The commercial property rates were down by 10 percent in the fourth quarter of 2008 compared to a 16 percent decline in the corresponding pe-riod.
Employment Practices Liability Insur-ance (EPLI) rates continued to soften as the year progressed but at a slower pace. The increase in corporate layoffs result-
International Insurance Market
1 www.marketscout.com2 Aon Benfield – Reinsurance Market outlook3 Insurance Information Institute – 2008 Year End Results4 A. M Best research – Asia Pacific Life & Non-Life Review & Preview
Reserve Bank of Fiji Insurance Annual Report 2008
8
ing from the weak economy is expected to raise the likelihood of EPLI claims thus adversely affect rates.
D&O insurance generally remained com-petitive in 2008. The continuing lawsuits stemming from the sub prime mortgage crisis has generated claims against direc-tors’ and officers’ insurance policies. As a result, insurers’ losses are expected to increase on top of several years of slow growth in premiums and downward pres-sure on rates. This could in turn lead to an increase in rates as insurers face increased payouts. In line with the US property/casualty mar-ket, the London and Lloyd’s international property market showed signs of hardening in the fourth quarter of 2008. In response to higher claims and the global economic environment, a number of insurers have raised their premiums to pass escalating costs and maintain profitability. General and product liability classes of insurance remained stable in 2008 with the excep-tion of energy.
The UK market, in 2008 has seen an in-crease in the volume of small and medium sized Australian and New Zealand business on offer as rates in the domestic market of these countries started to edge up5.
With regard to the Australian market, pre-mium rates in commercial classes contin-ued to fall with long-tail rates down by an average of 7 percent compared to a 10 percent reduction in 2007. Short-tail rates however, increased by 1 percent compared to a 7 percent fall in 2007. Premium rates in the personal lines increased in 2008 and are expected to continue to rise. Rates in personal lines increased by 3 percent on average in 2008, compared to constant rates during 20076.
Reinsurance7
Global reinsurers remained resilient amid the financial crisis generally due to two excellent operating years preceding 2008.
Significant increases in capital after Hur-ricane Katrina in 2006 and improved loss reserves have enabled the reinsurance in-dustry to withstand the large investment and catastrophe losses in 2008. Invest-ment returns for most of the reinsurers
were negative due to the effects of the credit crisis despite the majority of assets being invested in high quality, fixed-in-come securities.
Reinsurers’ capital fell by around 14 per-cent in the year 2008 compared to in-creases noted in the year 2006 and 2007. Approximately 90 percent of the decrease in reinsurer capital is due to the credit and liquidity crisis with the balance flow-ing from catastrophe losses. The impact of the credit crisis combined with catastro-phe loss has also contributed to firming of the reinsurance market. However this firm-ing of the reinsurance market was mainly caused by asset related issues rather than significant ceded losses.
Reinsurers in 2008 sustained more than $10 billion in ceded catastrophe losses and due to the industry profits in 2006 and 2007, reinsurers have maintained the capital necessary to underwrite risk.
Total Losses8
The year 2008 was one of the costliest ca-tastrophe years recording economic losses of US$269 billion, being the highest total loss since 2005. These high losses re-sulted from 137 natural catastrophes and 174 man-made disasters which claimed the lives of 240,460 people worldwide. Of the total economic losses, approximately 20 percent was covered by insurance re-sulting in total insured losses of US$52.5 billion.
Although the number of natural catastro-phes was lower than the man-made di-sasters, natural catastrophe losses made up approximately 85.1 percent (US$44.7 billion) of the total insured losses with man-made disasters accounting for the remainder of US$7.8 billion.
Storms proved to be the costliest natural catastrophe as it alone triggered losses of US$39.3 billion. The US property market was worst hit in regard to insured prop-erty losses as hurricanes Gustav and Ike resulted in damages of US$4 billion and US$20 billion respectively. Hurricane Ike is ranked as the third most expensive hur-ricane of the US history with hurricane Andrew (US$22.9 billion) ranked second and hurricane Katrina (US$43.6 billion) ranked first.
Graph 03 Average Property/Casualty Rates Increase (% change from
previous year)
Graph 04 Insured Catastrophe Losses
Source: Swiss Re Sigma.
Earthquake/tsunam Weather related Man-made disasters
1970
1975
1980
1985
1990
1995
2000
2005
140
120
110
50
40
30
20
10
0
Yea
rs
US$ bn
5 Aon – Commercial Insurance Broker – December Quarter 20086 Deloitte – J P Morgan Media Release7 Aon Benfield and A. M Best Special Report8 Sigma Natural catastrophes and man-made disasters in 2008
%
Feb Apr Jun Aug Oct
5
0
-5
-10
-15
-20
Source: Marketscouts.
2006 2007� 2008
Dec
List of Major Losses in 2008According to Loss Categories
446212
277
Other 3
4517416
156
44311
3,184141,91387,829
321,750
10124
496454
1,598166686204
2,014240,460
2,05939,288
422
5001,575
76385
7585,255
548-
476-
77552,504
Source:Swiss Re Sigma No.2/2009
Reserve Bank of Fiji Insurance Annual Report 2008
9
Source: Swiss Re Sigma.
Graph 06 Number of Events 1970 - 2008
The European market, on the other hand, recorded slightly lower losses from the pre-vious years due to lower storm and flood damages. Nonetheless, the winter storm Emma which struck central Europe and storm depression Hilal caused losses aggregating US$2.3 billion. Other natural hazards which crossed the billion dollar mark were ice and snow storms which struck China in early 2008 leading to losses of US$1.3 billion. Insured losses from man-made disasters were fuelled primarily by large scale indus-trial fires, explosions and losses in the ener-gy sectors generating losses of US$4 billion. A fire at Universal Studios in Los Angeles led to record property damages of over US$500 million and was named the single costliest man-made event of 2008.
American International Group (AIG)9
Many companies have been affected by the recent economic turmoil. The downturn has had a profound effect on American Insur-ance Corporation (AIG). AIG is the largest global insurer which nearly went bankrupt as a result of its exposure to credit default swaps written for asset-backed securities and collateralised debt obligations.
On 16 September 2008, AIG’s share price fell over 95 percent. The US Government then loaned AIG $85 billion to facilitate an or-derly unwinding of its positions in exchange for a 79.9 percent equity stake. In October 2008, AIG borrowed an additional $38 bil-lion through a second secured asset credit facility created by the Federal Reserve Bank of New York. Since 16 September 2008, the US Government has bailed out AIG three times with the total sum of US$180 billion to keep the insurer in business.
The failure of AIG would have posed a “sys-temic risk” to the global financial system, as AIG companies are present in more than 140 countries and jurisdictions. Systemic risk afflicts all life insurance and investment firms around the world.
Outlook
Financial services and insurance companies face enormous challenges in 2009 as they manage through the economic downturn and
respond to shifts in market and consumer and regulator expectations.
European InsuranceMarket Outlook10
• Lifeinsurersareexpectingtohavelowerearnings in 2009 as a result of deferred policy acquisition write-offs and/or re-serve increases related to product guaran-tees;
• Forgeneralinsurers,commercialinsurancewill be impacted by depressed property prices as a result of recession and slowing of European economies;
• Profitisexpectedtoreduceduetofurtherwrite downs resulting in decrease in in-vestment income;
• Health insurance presents acceleratedgrowth opportunities in Europe for both life and non life insurance.
US Insurance MarketOutlook11
• Lifeinsurersincreasedlossesintheirin-vestment portfolio and lower income from the variable annuity business will contin-ue to affect earnings.
• Manylifeinsurershavesubstantialexpo-sure to commercial-real-estate-backed se-curities, which will result in further losses during 2009.
• Significant catastrophe losses of 2008,coupled with decline in the investment income and sizeable investment losses re-sulting from the ongoing turmoil in credit and equity markets will continue to affect earnings in 2009.
• Theonlypositivetrendisslightimprove-ment in the insurance pricing after contin-ued deterioration during the last couple of years.
Reinsurance Market Outlook12
• Globalreinsurancepricesareexpectedtobe firm for the year 2009 as a result of US hurricanes and earthquake exposures driving the capital requirements for most reinsurers; and
• Impactof credit crisiswouldalsoaffect investment portfolios of reinsurers thus having a negative impact on earnings.
Graph 07 Number of Victims 1970 - 2008
9 IFSL Research – Insurance Update 2008
10 2009 Insurance Outlook - Europe11 US Insurance Industry Outlook12 Reinsurance Market Outlook – Aon Benfield 2009
Man-made disasters
Natural catastrophes
1970
1975
1980
1985
1990
1995
2000
2005
300
250
200
150
100
50
0
Yea
rs
2008
Graph 05 Global Premium Growth 1985-2007
25
20
15
10
5
0
-5
1985
1990
1995
2000
2005
Yea
rs
2007
TotalLife General
Source: Swiss Re Sigma.
%Real growth rates
Source: Swiss Re Sigma.
1,000,000
100,000
10,000
1,000
Man-made disasters
Natural catastrophes
1970
1975
1980
1985
1990
1995
2000
2005
2008
Yea
rs
Reserve Bank of Fiji Insurance Annual Report 2008
10
The Fiji Insurance Industry remained stable in 2008 amid the deepening of the global financial crisis. The economic slow down on the domestic front had a more visible impact on the industry as lapses and forfeitures continued to remain significant together with a noted reduction in the number of general insurance policies issued. Domestic insurers however, continued to be susceptible as Fiji is yet to face the full impact of the international financial crisis.
Licensed insurers in Fiji continued to re-main sound amid the deepening of the international financial crisis in 2008. Overall, the industry is strong and well capitalised.
The finance and insurance sectors were noted to have contributed to the marginal growth of the Fiji economy in 2008. In-surance companies’ investments, while not too diversified, contributed to the stable financial condition of the industry in 2008.
All insurance companies comfortably met the statutory solvency requirement in 2008. However, the increase in prevail-ing interest rates towards the end of 2008 significantly impacted the asset books of insurers that have invested heavily in government securities. The resulting con-solidated solvency level recorded by the life sector showed the impact of this.
Going forward with the continued outlook for a weak domestic economy in 2009, li-censed insurers will continue to be pru-
dent in their underwriting and monitor cautiously the impact of global events on reinsurance costs worldwide and in their own arrangements. With no domestic insurer involved directly in credit guar-antees or having parents making invest-ments in failed international institutions, the insurance industry in Fiji is expected to have a stable if somewhat subdued year in 2009.
Overview of IndustryPerformance
Both the life and general sectors recorded a growth in gross premium, despite the weakened economy in 2008. Total com-bined gross premium income for the life and general insurance sectors recorded growth of 4.6 percent to reach $201.6 million in 2008. This compared to a marginal decline of 1.2 percent noted in 2007. The general insurance sector domi-nated the industry trend in terms of gross premium growth, registering a growth of 4.6 percent in 2008.
Graph 08 Insurance Industry Premium and Claims
Domestic Insurance Market
120
100
80
60
40
20
0
2008
2003
2004
2005
2006
2007
Source: Insurance Companies.
General Sector Gross Premium
Life Sector Insurane Premium
General Sector Net Claims Paid
Life Sector Policy Payments
$m
Yea
rs
Reserve Bank of Fiji Insurance Annual Report 2008
11
The increase in gross premium income has been attributed to a combination of increased premium rates as well as an improvement in new business in some classes.
As a percentage of GDP the life insur-ance sector’s gross premium income was equivalent to 1.4 percent and the general insurance sector at 2.0 percent. Similar levels were recorded in 2007.
Net policy payments for the life insur-ance industry reduced in 2008 to $55.6 million as a result of the decline in the number of terminated policies. For the general insurance sector, net claims paid declined to $39.8 million due to the absence of major domestic catastrophic events.
In contrast to a significant growth of 11.2 percent in 2007, consolidated as-sets of the industry noted a marginal decrease of 2.6 percent to $804.2 mil-lion. The assets of the general insurance sector continued to register an increase consistent with the trend of the last four years. The growth however, has been at a slowing rate. General insurer’s assets rose by 3.2 percent compared to 6.9 per-cent in 2007.
Life insurers’ assets were significantly impacted by the revaluation of their holdings in government securities due to the high interest rates that prevailed towards the end of 2008. As a result, the life sector’s investments declined by a significant $21.7 million.
On the other hand, a marginal growth was recorded in the general insurer assets and this was attributed to their increased hold-ings of term deposits by $24.8 million.
On the liabilities side life companies’ liabili-ties noted a marginal increase due mainly to the increase in the balance of revenue account. The liabilities of the general insur-ers showed a moderate decline in 2008 by 1.2 percent. Underwriting provisions form the bulk of the liabilities of general insur-ers and though they reduced marginally in 2008, provisioning levels were assessed to be adequate.
Owners’ funds for the life sector were im-pacted by the significant reduction in re-tained earnings and asset revaluation re-serves of life insurers in 2008, while the general insurance sector continued to enjoy another good year of returns to owners at 11.8 percent.
Overall operating results were a mirror of the movements in assets with the life sec-tor registering an after tax surplus of $15.7 million, a significant drop from the $45.8 million recorded in 2007. The increased net premiums recorded were off-set by reduced investments returns and high asset depre-ciation.
2008 saw a consistent performance from the general insurance sector which again regis-tered a positive performance of $29.7 mil-lion in underwriting surplus. This however has declined from the 2007 level of $33.7 million.
Graph 09 Insurance Industry Assets & Liabilities
Brokers General Life
49%
42%
9%
Chart 01 Insurance Industry After Tax Profit for 2008
Source: Insurance Companies.
Source: Insurance Companies.
800700600
500
400300
200100
0
$m
2008
2002
2003
2004
2005
2006
2007
Industry Assets Industry Liabilities
900
Reserve Bank of Fiji Insurance Annual Report 2008
12
Prior to the Insurance Act 1998, the administrative and supervisory function of the insurance industry rested with the Commissioner of Insurance Office whose appointment was determined by the Public Service Commission as per the Insurance Act of 1976. During the period 1981 to 1998, the Commissioner’s Office came under the jurisdiction of the Reserve Bank of Fiji until the function of the Office was officially transferred to the Reserve Bank in 1999, further complementing the banking supervisory and regulatory arm of the Bank.
The Insurance Act (1998)
The insurance industry is governed by the primary legislative framework that is set out under the Insurance Act 1998 (“the Act”) and its accompanying Regulations.
As such, the Reserve Bank is empowered under the Act, to formulate and develop standards that direct the conduct of insur-ers, brokers and agents.
In support of the administrative func-tions charged to the Reserve Bank under the Insurance Act and Regulations, the Bank issues prudential policies, conducts both offsite and onsite supervision and holds prudential consultations with the insurance industry. These form the ba-sis of conducting the Reserve Bank role of maintaining a sound financial system while at the same time, protecting the in-terests of policyholders.
Insurance Market Structure
The Fiji insurance market is made up 2 life insurance companies, 8 general insurance companies, 4 insurance brokers and 378 insurance agents. The Reserve Bank ap-proved the acquisition of two insurance brokers in early 2008, reducing the total number of licensed brokers in 2008 from 5 to 4 (refer Table 01).
Life insurance companies issue life poli-cies, including business relating to the investment, administration and manage-ment of the assets of a statutory fund.
General insurance companies conduct in-surance business of any class or classes not being life insurance business.
Insurance brokers may be persons or enti-ties who buy insurance products on behalf of a person wishing to be insured and who are paid by the insured person or insur-ance company by way of commission or fee.
Supervision
Table 01: Insurance Market Participants
Company Country of
Incorpo- Ownership
ration
Life InsurersColonial Fiji Life Limited Fiji AustraliaLife InsuranceCorporation of India India IndiaGeneral InsurersColonial Health Care(Fiji) Limited Fiji AustraliaDominion InsuranceCompany Limited Fiji FijiFAI Insurances (Fiji)Limited Fiji AustraliaFiji Care InsuranceCompany Limited Fiji Australia/FijiNew India AssuranceCompany Limited India IndiaSun InsuranceCompany Limited Fiji FijiQBE Insurance(Fiji) Limited Fiji AustraliaTower Insurance(Fiji) Limited Fiji New Zealand
Aon (Fiji) Limited Fiji AustraliaMarsh Limited Fiji New Zealand/FijiUnity Insurance Brokers(Fiji) Limited Fiji FijiInsurance Holdings
d Fiji Fiji/New ZealandFiji Limite
Brokers
Source: Reserve Bank of Fiji
Reserve Bank of Fiji Insurance Annual Report 2008
13
Insurance agents are persons or compa-nies who are paid a commission by insur-ers to sell their products.
The oversight of these players in the in-surance industry is carried out by way of a three pronged approach:• Licensingorde-licensing• Supervision• Regulation
All three approaches is austerely applied to the life and general insurers and brokers, while the conduct of insurance agents are the sole responsibility of the insurer that the agent represents, as stipulated under the Insurance Act. The Act specifies the insurer, whom the agent represents, as being responsible for the conduct of the agent, including all liabilities incurred by the agent.
Market Players
(a) Licensed Insurers
In 2008, 10 insurance company licenses were renewed. Out of the 10, 2 were life insurance companies while the remaining 8 were general insurers. There were no new licences approved during the year.
FijiCare Insurance Limited and Colonial Health (Fiji) Limited, as general insur-ance companies continued to be engaged, in medical and term life insurance while the remaining 6 wrote other classes in the general insurance category.
Under a special arrangement approved by the Reserve Bank, FAI Insurances (Fiji) Limited continued to be wound down. The scheme was approved in April of 2001 when QBE Insurance Fiji Limited success-
fully acquired 100 percent of the compa-ny’s shares. QBE Insurance (Fiji) Limited has since been directly involved in the winding down process.
In the beginning of the year, the Reserve Bank received an application by Insurance Holding Fiji Limited to acquire the broking businesses of Conolly Insurance Brokers Limited. This was approved after carrying out an assessment of the application.
During the year, the Reserve Bank also approved the transfer of QBE Insurance Group’s shares in QBE Insurance (Fiji) Limited to QBE Holdings (AAP) Proprietary Ltd.
(b) Company Under Official Manage-ment
The operations of the Insurance Trust of Fiji continued to be wound down. Formally known as the British American Assurance Company, the company was put under the official management of the Reserve Bank as provided for under Section 81 of the Insurance Act.
Under the Act, the Reserve Bank may, with the consent of the Minister of Finance, as-sume control of, or appoint a person to assume control of a licensed person. To date, the majority of the policies have been settled upon maturity or surrenders while only a small number of policies re-main active.
(c) Licensed Insurance Brokers
For the year in review, there were no new licences approved, however the Reserve Bank renewed the licences of the 5 insur-
ance brokers that were granted approval to operate in Fiji in 2007.
These licenses are valid for a period of 12 months only, and are subject to renewal pending satisfactory statutory compli-ance and evidence of adequate coverage in their respective Professional Indemnity and Fidelity Guarantee policies.
All brokers’ licences were, in this regard, assessed at the end of 2008 to be in com-pliance with the requirements of the In-surance Act 1998.
(d) Licensed Insurance Agents
For 2008, the Reserve Bank issued a total of 449 licences to 378 agents. This com-pares against 471 licences to 385 agents that were approved in 2007. Out of the 449 licences granted, 424 were individual agent licences while 25 were corporate li-cences.
From the 449 licences granted, 304 were for life, 92 for general and 53 for health insurance classes.
Licensing/De-licensing
Under the Insurance Act, all participants in the insurance industry are required to be licensed by the Reserve Bank.
Licensed applications are assessed against a set of comprehensive prerequisites which are guided by international bench-marks and sound practices.
An applicant is granted a licence only af-ter it has satisfactorily met all the require-ments of the Act. These licenses are valid for a period of one year and are subject to renewal based on meeting the require-ments of the Act.
The revocation of a licence usually occurs on the withdrawal or merger of an exist-ing institution, or under extreme circum-stances where an institution is not able to meet its obligations to policyholders/customers. Contravention of directives, regulations and legislations administered by the Reserve Bank are also grounds for de-licensing.
Reserve Bank of Fiji Insurance Annual Report 2008
14
Supervision
The core of the Reserve Bank’s work in the administration of the Insurance Act cen-tres around supervision. This is performed at two levels; offsite monitoring and on-site examinations of all licensed insurers and brokers.
Offsite supervision involves undertaking an assessment of the licensed institution with reference to its quarterly financial statements, annual audited returns and other prudential statistics provided by the company. The Reserve Bank, may also, where appropriate, request for specific information to enable it to complete its assessment.
Onsite examination, on the other hand, involves visits to the insurance companies whereby the institution’s operations, poli-cies and procedures are examined for com-pliance with the Reserve Bank’s prudential policies and prescribed regulations.
Regulation
The development of supervisory policies for the insurance industry is complement-ed by the issuance of regulations or by-laws to the Insurance Act 1998. Together, the Insurance Act 1998 and regulations provide the legislative framework that govern the industry.
Under Section 169(i) of the Insurance Act and with the written approval of the Minister, the Reserve Bank issued the In-surance Regulations 1998, which covers a number of areas relating to license fees, prescribed deposit requirements for insur-ers and brokers, investments and other relevant areas.
Industry Consultation
The Reserve Bank engages in ongoing dia-logue with the insurance industry through the Insurance Task Force which compris-eses members of the Insurance Council of Fiji (ICOF), the Licensed Insurance Brokers Association of Fiji (LIBAF) and Reserve Bank of Fiji. During the year, the Reserve Bank met with industry stakeholders to discuss matters on policy as well as on issues affecting the industry. Arising from the above, two sub-committees of the Taskforce were formed to deal specifically on policy matters and insurance policy-holder concerns respectively.
In addition, the Reserve Bank maintains industry consultation by meeting with each insurance company, broker and their respective auditors at least twice a year to discuss issues emanating mostly from offsite monitoring. Issues arising from onsite examinations are also addressed in these meetings to ensure compliance with onsite recommendations and other direc-
tives. The meetings are formally referred to as tri-lateral meetings and are held prior to and after the annual audit of the insurance company or broker.
The Governor of the Reserve Bank of Fiji also meets with industry stakeholders, individually for insurance companies and collectively for insurance brokers, to dis-cuss issues pertaining to the insurance industry.
Policy Development
Pivotal to the role of the Reserve Bank as administrator, supervisor and regulator of the insurance industry, is the development and issuance of suitable policy statements that serve to support the administrative functions delegated to the Reserve Bank under the Insurance Act and Regulations.
These policy statements are intended to clarifiy requirements of the Insurance Act 1998, and also enable the Reserve Bank to enforce requirements which may not be included in the Act or readily understood by the industry.
The policies are available on the Reserve Bank of Fiji website and are developed specifically for the prudential supervision of the industry based on the requirements of the Insurance Act.
Reserve Bank of Fiji Insurance Annual Report 2008
15
The policies aim to outline the minimum guidelines the players in the insurance in-dustry are expected to uphold or conform with, while at the same time, being ac-commodative to the domestic realities of the industry. These policies are also reflec-tive of international sound practices and core principles set by the International Association of Insurance Supervisors (IAIS), the Financial Action Taskforce and the Organisation for Economic Coopera-tion and Development.
a) Compliance with the Insurance Act
The bulk of supervision work is carried out through offsite supervision. This entails ensuring licencees comply with relevant sections of the Insurance Act that are ap-plicable to the licensed entity.
The following sections of the Insurance Act were examined as a minimum, to monitor compliance of the insurers and brokers:• Section20(1)&(2)– requirementto
maintain a deposit of prescribed na-ture whose market value is not less than the surplus of assets over liabili-ties;
• Section31–requirementtomaintainthe minimum capital and solvency margins;
• Section39(2)–submissionofreinsur-ance arrangements to the Reserve Bank by insurers;
• Section60(1) - submissionof annualreturns to the Reserve Bank by life and general insurers;
• Section 60(2) – submission of quar-terly returns to the Reserve Bank by life and general insurers;
• Section62– requirement for insurersto submit actuarial valuation of liabili-ties;
• Section66(1) - submissionof annualreturns to the Reserve Bank by insur-ance brokers;
• Section66(2)-submissionofquarterlyreturns to the Reserve Bank by insur-ance brokers.
(i) Term Deposits
Under Section 20(1) & (2) of the Insurance Act, insurance companies are required to maintain a deposit whose market value is not less than the surplus of assets over
liabilities or Net Adjustable Assets. In-surance brokers, on the other hand, are required to maintain a deposit or guaran-tee which is not less than the deductible or excess amount of their professional in-demnity and fidelity guarantee insurance policies.
For the year 2008, the Reserve Bank moni-tored the compliance of this requirement and, where necessary, followed up with the insurance companies and brokers con-cerned. All insurance companies and bro-kers held the required deposits with the deposit certificates being retained in the safe custody of the Reserve Bank.
These deposits are intended to provide, to some extent, protection to policyhold-ers by setting aside some portion of an insurer’s or broker’s assets for unforeseen circumstances.
(ii) Margin of solvency
Both life and general insurance compa-nies are required to maintain a margin of solvency at all times while conducting insurance business in Fiji. This is required under Section 31 of the Insurance Act and its determination differs between life and general insurers.
For life insurers, the companies are re-quired to maintain:• asharecapital,paidupcapitalofnot
less than $1.0 million; or• a surplus of assets over liabilities of
$1.0 million or the sum of 5.0 percent of the amount of net liabilities under life policies up to $100.0 million plus 2.5 percent of the amount of net li-abilities under life policies that exceed $100.0 million, whichever is the great-er.
General insurers are required to maintain the greater of the following:• surplus of assets over liabilities of
$1.0 million;• 20.0 percent of net premium income
derived in the last twelve months; or• 15.0percentofnetclaimsoutstanding
provision. In determining an insurer’s solvency po-sition, the Reserve Bank considers the
admissibility of assets and liabilities re-ported in the balance sheet as per the re-quirements provided under the Insurance Act and relevant policy statements.
2008 presented an interesting year for the insurance industry against the backdrop of a slowly improving interest return en-vironment domestically and a somewhat deteriorating international front which had begun to show signs of distress in the financial system towards the end of the year.
For 2008, the total industry surplus de-clined to $78.4 million from $102.9 mil-lion in 2007. (refer to Table 02)
The decline was mostly attributed to the life sector which recorded a notable de-cline in its solvency surplus over the year whilst the general sector continued to post positive and improved solvency sur-pluses.
The life sector’s solvency surplus declined due to the fall in asset values over the year which attributed to the decline in major investments as a result of market valuation required under the Insurance Act. Government securities were recorded at $231.0 million as at 31 December 2007. However, with the increase in interest and bond rates in December 2008, this de-clined to $206.1 million. Equity invest-ments and debentures collectively fell by $19.6 million whilst the decline in cash on hand by $9.5 million was attributed to a dividend payment during the year.
Table 02: SolvencySurplus ($m)
As at 31 December
2007 General 68.4 18.7 49.7Life 68.4 15.2 53.2Total 136.8 33.9 102.9
2006 General 53.6 19.4 34.2Life 46.0 14.9 30.3Total 99.7 34.3 64.5
2005 General 45.6 18.0 27.5Life 51.2 15.2 36.0Total 96.7 33.2 63.5
2004 General 36.8 16.7 20.1Life 52.2 14.8 37.4Total 89.0 31.5 57.5
2008 General 75.7 19.4 56.3Life 38.7 16.6 22.1Total 114.4 36.0 78.4
AdmissibleAssets
MRSM * SS**
* MRSM - Minimum Required Solvency Margin** SS - Solvency Surplus
Source: Insurance Companies.
Reserve Bank of Fiji Insurance Annual Report 2008
16
Source: Insurance Companies.
Shareholders’ Funds
Paid-up Capital 22.7 22.2 22.2 27.1
Retainedprofit/loss 92.4 70.3 62.0 48.0
Other reserves 38.9 26.6 29.4 33.3
Total 154.0 119.1 113.6 108.4
2007 2006 2005 2004
23.9
86.5
16.3
126.7
2008
In terms of the major balance sheet items, the consolidated assets of the life sector dropped by $29.3 million while liabilities remained at 2007 comparable levels.
The general sector, on the other hand, continued to record a healthy solvency surplus, improving over the year to $56.3 million from $49.7 million. All general in-surers, save for 3, recorded an increase in solvency. On an individual basis, a ma-jority of the general insurers’ assets and liabilities increased resulting in an over-all increase in the sector’s assets to $248 million, while liabilities declined margin-ally by $1.8 million from the previous year ($159.9 million).
The improvement in solvency surplus for general insurers is attributed to an in-crease in adjusted net assets, which on a consolidated basis stood at $75.7 million compared to $68.4 million in 2007. As in the previous year, the aggregate solvency surplus was dominated by a few insurers while the remaining general insurers main-tained satisfactory buffers above their re-spective required solvency margins.
The Reserve Bank continues to vigilantly monitor the solvency status of all insur-ance companies and is alert for early warning signs that may be a cause for fi-nancial difficulty.
(iii) Shareholders’ Funds
The consolidated shareholders’ funds for the insurance industry declined over the year to $126.7 million from $154.0 mil-lion in 2007. The largest contributor to the decline was the life sector where the accumulative decline seen from the sec-tor’s retained profits and other reserves fell by $15.3 million and $21.4 million respectively.
The decline in the retained profit was due to a dividend payment of $20 million dur-ing the year while the notable decline in reserves was attributed to the negative asset revaluation reserves recorded by one of the life insurance company. The general sector, contributed $89.8 mil-lion towards the consolidated insurance industry’s shareholders’ funds. As a com-
parison to the previous year, the general sector noted a positive 11.8 percent im-provement or the equivalent of $9.5 mil-lion over the year. The growth was mainly driven by retained profits, which increased by $9.4 million, therefore accounting for the improvement noted in the general sec-tor’s shareholders funds.
(iv) Reinsurance Arrangements
Reinsurance are arrangements that enable insurers to transfer or share risk with an-other insurance or reinsurance company for a fee. It is a process whereby insurers take out insurance with another insurer (reinsurer) to protect themselves against the risks they accept.
Section 39(2) of the Insurance Act requires the Reserve Bank to examine the reinsur-ance arrangements of insurance compa-nies. Under the Act, insurance companies are required to have in place adequate reinsurance arrangements to cover the risk exposure within individual insurance classes written as well as the aggregate risk for the overall portfolio. These ar-rangements are required to be provided to the Reserve Bank soon after the com-mencement of the period of cover.
In this regard, the Reserve Bank in 2008, assessed 7 reinsurance arrangements.
Table 03 Shareholders’ Funds of Fiji Licensed Insurers as at December ($m)
Reserve Bank of Fiji Insurance Annual Report 2008
17
(v) Reporting Requirements for Insur-ers and Brokers The submission of returns for both insurers and brokers are stipulated under Section 60 and 66 of the Insurance Act, whereby both insurers and brokers are mandated to provide their returns on a quarterly and annual basis to the Reserve Bank.
These companies are required to provide both the prescribed annual audited and unaudited quarterly statutory returns. The annual returns are to be submitted within three months from the end of the year for both insurers and brokers while the quar-terly returns are submitted within four and six weeks at the end of each quarter for brokers and insurers respectively.
For the year 2008, most of the licensed insurers and brokers complied with these provisions while two insurance companies and three brokers applied for extensions under Section 60(3) and 66(3) of the In-surance Act 1998.
These returns provide the offsite supervi-sory tool for the Reserved Bank to prepare Financial Condition Reports on a quarterly and annual basis with the ultimate view to determine both the solvency and financial viability positions of the licensed insurers
and brokers. In addition, the statutory returns are analysed against prudential benchmarks and best practice indicators.
During the year, 14 Annual Financial Con-dition Reports and 56 Quarterly Condition Reports were prepared.
(vi) Actuarial Assessment
Section 62 of the Insurance Act requires life insurers to provide an actuarial report of its liabilities to the Reserve Bank on an annual basis. In 2008, the Reserve Bank continued to engage the services of its ac-tuarial consultant who, under the Terms of Reference prepared by the Reserve Bank, assisted in the extensive review of actu-arial assessments provided by life insurers. In addition, Financial Condition Reports prepared by the RBF examiners were also reviewed and confirmed. Where necessary, meetings were arranged between the in-surer and the Reserve Bank to discuss is-sues arising from the offsite examination of the institutions’ reports. This will be be ongoing in 2009.
For 2008, the Reserve Bank was satisfied with the overall financial condition and risk management practices of insurers and brokers licensed under the Insurance Act 1998.
Onsite Examination
The onsite examination of an institution conforms with the general powers con-ferred to the Reserve Bank under Section 3 of the Insurance Act. These onsite ex-aminations are carried out periodically to assess the level of compliance with regard to statutory obligations as well as super-visory policies issued by the Reserve Bank and set policies of the institutions. The inspection would also involve assessing the role of the audit and risk management functions and preparing a report for the insurance company concerned, with ap-propriate recommendations for improve-ment.
Overall, an onsite examination gener-ally involves assessing the inherent risks within a licensed institution, and the ef-fectiveness of the risk management over-sight functions provided by the Board and senior management in managing these risks.
Onsite Examination atInsurer’s Premises
Over the years, the Reserve Bank has ad-opted a more comprehensive onsite man-agement process with the intention of embedding a regulatory compliance and
Reserve Bank of Fiji Insurance Annual Report 2008
18
risk management culture into the opera-tions of an insurer. By embracing this no-tion, insurers will have in place strategies to better manage risks enabling them to protect the interests of the policyholders and ensuring the perpetuity of their busi-ness operations.
Before conducting an onsite examination, an advice letter informing of the proposed examination is sent to the insurance com-pany concerned, at least 3 months ahead of the intended date of visit. The onsite advice letter will also request for certain information to allow the onsite team to carry out a thorough assessment to bet-ter understand the institution and its key significant processes prior to the review. Obtaining the requested previsit material well before the commencement of the visit will minimise the effect of the examina-tion on the institution’s operations as well as the possibility of prolonging the examination.
The second phase involves the examina-tion of the institution at its premises. The approach is interactive and involves a mixture of interviews, presentations and file reviews. A typical onsite examination will cover key significant activities such as underwriting, claims management, re-insurance, technical provisioning and re-serving, investment and other functions that may have been identified prior to the examination.
An onsite examination is not an audit inspection as it involves a larger scope which covers the operational, insurance and financial risk aspects of an insurer’s operations. During the interactive pro-cess, the onsite team would take the opportunity to assess the board, senior management and other key personnel for corporate governance practices, job com-patibility with a particular individual and management’s overall relationship with the supervisor.
In 2008, the Reserve Bank conducted and completed the onsite examinations of 2 general insurance companies.
(a) Revised Offshore Placement Policy
Consultation on the revised offshore policy commenced in 2008. This policy aims to outline the minimum requirements of the Reserve Bank for insurers, brokers and ap-plicants who place their business directly with offshore insurance companies. Sug-gestions from the industry have also been incorporated in this review and the policy is expected to be finalised in 2009. (b) Risk Management Policy
Insurance companies are faced with sever-al risks that can have detrimental effects on their operations. The Risk Management Policy will require insurance companies to identify, assess, monitor and control their risks so that they are financially viable to meet their liabilities when they fall due. Development work on this policy commenced in 2008. It is the intention to conduct industry consultation on this policy in 2009.
(c) Policy on the Role of Actuary
Actuaries play a vital role in the operation of insurance companies. This policy will specify the Reserve Bank’s requirements in the appointment of an actuary. It will also detail their responsibilities in accor-dance with the Insurance Act 1998 and in-ternational sound practices. Consultation on this policy is expected to commence in 2009.
Offshore Placement ofInsurance
The number of applicants seeking insur-ance cover overseas increased in 2008 due to the unavailability of cover locally and cheaper premium rates overseas.
Total applications received by the Reserve Bank in 2008 increased by 33 percent to 647 worth $24.8 million. The value of off-shore placements increased by 7.8 percent compared to the previous year. (refer to Table 05)
Applications under the “Others” category continued to dominate the offshore place-ment applications received by the Reserve Bank in 2008. The increase in this cat-
Compliance with Policy Requirements
In carrying out the Reserve Bank’s role of
formulating standards governing the con-
duct of insurance business, the Reserve
Bank has issued the following supervision
policy statements:
Policy 1� Role of External Auditors in the�� Supervision of Licensed Insurance�� Companies
Policy 2� Offshore Insurance Placement of� � Insurance Business
Policy 3A� Solvency Requirements for General �� Insurance Companies
Policy 3B� Solvency Requirements for Life �� Insurers Companies
Policy 4� Guidelines on Corporate Governance
Policy 5� Assets Investment Management �� Policy
Policy 6� Reinsurance Management Strategy
Policy 7� Fit and Proper Requirements
Table 04 Policies for Insurance Companies and Brokers Licensed to Conduct Insurance Business In Fiji
Source: Reserve Bank of Fiji
2008 saw the implementation of the fit
and proper requirements for licensed in-
surers and brokers. This policy outlines
the minimum requirements for Insurance
Companies and Insurance Brokers to en-
sure that persons holding key positions in
these institutions are fit and proper.
The policy defines responsible persons for
locally and foreign incorporated Insurers
and Brokers. For locally incorporated In-
surers and Brokers, responsible persons in-
clude the Board of Directors, Alternate Di-
rectors, Senior Management and its proxy,
whilst responsible persons in foreign in-
corporated Insurers and Brokers comprise
Senior Management. Fit and Proper status
for responsible persons, as a minimum, is
assessed against the three criteria of good
character, competence and capability and
financial soundness.
Policy Development
In 2009, there are intentions to develop or finalise the following policies:
Reserve Bank of Fiji Insurance Annual Report 2008
19
egory was due to a significant increase in the number of travel policies accounting for 126 of the 247 that were approved. This is also a notable increase compared to the 55 applications approved in 2007. The remaining classes under the same category also experienced incremental changes.
Other Supervisory Activities
(a) Reserve Bank Directives
• Fronting – The Reserve Bank contin-ued to remind insurance companies on the issue of excessively ceding insur-ance risk offshore. The Reserve Bank maintains that insurers have been li-censed to underwrite risks and front-ing is prohibited.
(b) Advice on the Insurance Act Where required, the Reserve Bank provided legal interpretation of the Insurance Act and other legislations to external stake-holders.
The Reserve Bank also responded to an independent consultancy report prepared on the Fiji Insurance Industry by the Con-sumer Council of Fiji. Some of the issues raised from the report are currently being addressed by the Reserve Bank and the In-surance Task Force.
(c) Information
As per Section 164 of the Insurance Act, the Reserve Bank is required to keep re-cords of insurance companies, brokers and agents for public viewing. Such records are made available at a prescribed fee.
The Reserve Bank also prepared and sub-
mitted the 2007 Insurance Annual Report
to the Minister for Finance on 30 June
2008. Under Section 165 of the Insurance
Act, the Reserve Bank is required to pre-
pare and submit a report on the adminis-
tration of the Act and other matters aris-
ing during the preceding year.
(d) Complaints
During the year, the RBF received 3 com-
plaints from policyholders. All 3 com-
plaints related to the medical class. Two
of the 3 complaints related to premiums
paid to the insurance companies for poli-
cies. These complaints were eventually re-
solved between the parties satisfactorily.
The third complaint related to the assess-
ment of a policyholder’s claim application.
It was noted the timing of delay was due
to the insufficient provision of supporting
documents, which delayed the policyhold-
er’s medical evacuation overseas.
(e) Annual Governor’s Meeting
During the year, the Governor of the Re-
serve Bank met with industry stakehold-
ers. The objective of these meetings is to
facilitate discussions on matters affecting
the insurance industry and enable the in-
Table 05 Offshore Placement Summary ($m)
Risk
Term Life 22 0.9 21 0.6 20 0.7Medical 4 0.1 3 0.1 3 0.0Aviation 18 2.5 21 8.9 19 3.0ProfessionalIndemnity 78 1.2 65 0.8 68 1.6Comprehen-sive Liability 74 1.8 69 2.2 57 1.8MD & BI* 48 12.1 43 11.5 48 12.7Marine Hull 70 1.0 34 1.1 33 0.8Others 172 3.4 164 4.5 108 3.9Total 486 23.0 420 29.7 356 24.5
Source: Insurance Companies
.
2007 2006 2005
No. Amt. No. Amt. No. Amt.No. Amt.
21 1.03 0.08
32 3.2
89 1.5
97 1.560 12.198 1.2
247 4.2647 24.8
2008
*Material Damage and Business Interruption
Material Damage and Business Interrup-tion continued to account for the highest premium paid at $12.1 million. The other classes whose value of offshore place-ments increased included Term Life ($1.0 million), Aviation ($3.2 million), Profes-sional Indemnity ($1.5 million), Marine Hull ($1.2 million) and Others ($4.2 mil-lion). The remaining categories expe-rienced slight decreases over the same period.
Reserve Bank of Fiji Insurance Annual Report 2008
20
dustry to interact directly with the Reserve Bank Governor on issues of concern.
The Governor met with insurance compa-nies on an individual basis whereas the meeting with brokers was conducted col-lectively.
Issues discussed in these meetings are followed up in the normal course of super-vision and actions taken where necessary.
Strengthening of theSupervision Role
The Reserve Bank continued to work to-wards strengthening its supervisory role by ensuring that staff received the necessary skills and knowledge to enable them to carry out their responsibilities under the Insurance Act. An area that the Bank also focused on was risk assessments, where both offsite and onsite examinations were intensified to identifying risks inherent to insurance operations including strategic, operational and financial risks.
The scope of these examinations has also widened to include corporate governance and management issues, which have led to the development of a governance policy and a detailed assessment of key oversight management functions during offsite and onsite examinations.
The intensity and thoroughness of these examinations are meant to gain an under-standing of the intrinsic nature of insur-ance operations and allow the Reserve Bank to identify areas of concern and deal with these accordingly.
Staff Development
The Reserve Bank continued to invest in staff education and training during the year with both areas becoming an integral part of the Bank’s supervision and policy development plans.
For 2008, supervisory staff attended several identified overseas supervision courses and also pursued insurance cor-
respondence courses with the Australian and New Zealand Insurance Institute and Finance (ANZIIF).
Through the Pacific Governance Support Program (PGSP), the Australian Prudential Regulatory Authority (APRA) continued to provide assistance and advice in various capacities on the supervision of insurance companies.
The Reserve Bank further benefited from the secondment of 1 of its senior staff to APRA in the area of insurance and banking supervision for a period of 3 months under an internship program.
During the latter part of the year 3 staff of the Reserve Bank participated in a work-shop on the Regulatory Management of Internal Capital Models designed for su-pervisors in the area of banking and insur-ance, sponsored by the Asia-Pacific Eco-nomic Cooperation (APEC) Study Centre.
Reserve Bank of Fiji Insurance Annual Report 2008
21
Year Gross Net RetentionPremium Premium Ratio
$m % $m % %Change Change
2007 112.7 -4.1 88.7 -3.3 78.7
2006
1
117.5 7.2 91.7 9.4 78.0
2005 109.6 6.6 83.8 8.4 76.5
2004 102.8 11.3 77.3 11.5 75.2
2008 117.9 4.6 92.9 4.7 78.8
Source: Insurance Companies.
OVERALL PERFORMANCE
The general insurance sector continued to register a positive growth with gross pre-mium increasing by 4.6 percent to reach $117.9 million, despite the slow down in the economy in 2008.
This is an improvement on the negative growth of 4.1 percent recorded in 2007, but is still lower than the growth in gross premium income recorded in 2006 (7.2 percent) and 2005 (6.6 percent).
Fire continued to dominate the general insurance portfolio as the major class of general insurance business accounting for 26.4 percent of total gross premiums, above the levels recorded in the last four years. The continued growth in the fire business has been attributed to the in-creased rates for property insurance flow-ing from increased reinsurance/catastro-phe premiums. (refer to Table 07)
Motor vehicle came in as the second high-est earner of gross premiums accounting for 20.8 percent or $24.5 million of total gross premiums. This is always a competi-tive portfolio being a major class for some general insurers. The increase in 2008 was recorded at 4.3 percent compared to a 9.3 percent decline in 2007.
The medical class which accounted for 12.6 percent of the gross premium pool at $14.8 million, recorded a slight reduction from $15.1 million in 2007, due to tighter underwriting standards by insurers and the stabilization of premium rates.
During the year, the number of general insurance policies issued to individuals reduced by 2.2 percent to 132,517. A ma-jor decline was noted in the motor vehicle class and others by 21.7 percent and 29.5 percent repectively. However, group poli-cies issued, increased by 34.8 percent to 1,011, and were mainly from the motor vehicle class.
Reinsurance Cessions
Out of the total of $117.9 million re-ceived as gross premiums, 21.2 percent was ceded to reinsurers ($24.9 million) in 2008, almost identical to the proportion for 2007.
Of the amount ceded, 97.5 percent ($24.3 million) went to overseas reinsurers with approximately 71.7 percent ($17.9 mil-lion) in the overseas non-proportionate treaty.
In 2008, fire and householders were the most reinsured classes with cessions in
Operating results remained favourable for the general insurance sector in 2008, despite a re-duction in investment returns and underwriting results recorded. Overall, all general classes remained profitable, however, some recorded a decline in profitability.
General Insurance
Table 06 Premium Growth
Graph 10 Retention Ratio by General Class
Source: Insurance Companies.
100
80
60
40
20
0
20
01
20
02
20
03
20
04
20
05
20
06
20
07
Fire
%
Motor
Marine
Personal
Liability
Others
20
08
Years
Reserve Bank of Fiji Insurance Annual Report 2008
22
fire totalling $15.6 million (50.2 percent of gross premiums) and householders at $2.9 million (34.5 percent of gross premi-ums). These property classes are the most susceptible to damage from natural catas-trophes and traditionally have been heav-ily reinsured. The high proportion ceded in these classes in 2008, partly reflected the nature of risks covered, in particular catastrophes and the increased rates im-posed by overseas reinsurers.
Cession ratios for all other classes were below 20 percent in 2008.
Net Premiums
Since the level of reinsurance cessions did not rise much despite the increase in gross premiums in 2008, the net premiums rose by the same percentage as gross premiums by 4.7 percent to $92.9 million.
The amount of net premiums has increased by 20.2 percent over the last five years.
The motor vehicle class continued to dominate the net premium pool due to the high retention levels of primary covers, with a portfolio of $22.8 million or 24.5 percent of total net premiums. Fire and the medical class followed at 16.7 percent and 15.8 percent respectively.
The remaining classes were below 10 per-cent of total net premiums.
Similar to 2007, the widest margin be-tween gross premium income and net pre-mium income is still skewed towards fire at $15.6 million, being reinsurance costs, while burglary maintained the narrowest margin at $0.01 million.
CLAIMS
Gross claims in 2008 was recorded at $45.6 million compared to $50.1 million in 2007. The lower amount recorded has been attributed to a notable absence of major catastrophic events during the year. This is despite the total number of report-ed cases including those outstanding from previous years increasing from 48,265 to 61,285. The situation is indicative of the small monetary value of the claims re-ceived from policyholders in 2008.
The claims received continued to be con-centrated in the medical class accounting for 88.3 percent of the claims registered or $8.3 million of the total gross claims
in the general insurance sector. Claims re-lating to fire and motor vehicle classes, however, still dominate the total sum paid out as claims at $7.0 million or (15.4 percent) and $13.4 million (29.3 percent) respectively.
Reinsurance recoveries provided some temporary relief to local general insurers during the year, but this reduced to $5.8 million from $7.5 million in 2007. The fire class accounted for the most reinsurance recoveries at $3.6 million (62.1 percent) of total reinsurance recoveries while term life accounted for $1.3 million (22.4 per-cent).
The overall net loss ratio (net claims in-curred as a percentage of net earned premiums) slightly deteriorated over the year to 49.9 percent for the general insur-ance sector. Except for motor vehicle, ma-rine hull, workers compensation, medical and others which deteriorated, all other classes of business recorded varying de-grees of improvement in their respective net loss ratios.
A notable improvement was noted in the fire class over the year, for which claims ratio improved from 45.1 percent in 2007 to 36.2 percent in 2008.
At year end 2008, the total outstand-ing claims stood at 3,581 cases of which 1,998 were related to the year under re-view, while the remaining related to previ-ous years.
OPERATING RESULTS
The general insurance sector continued to achieve strong operating results in 2008 with an underwriting surplus of $29.7 mil-lion, despite registering a 11.9 percent decline in 2007 at $33.7 million. A major contributor to the decline in underwriting surplus was the rise in claims incurred (up by 7.3 percent to $45.5 million) and un-derwriting expenses (up by 6.0 percent to $15.9 million). (refer to Graph 11)
Overall, all general classes remained prof-itable although some classes recorded negative growth.
The underwriting expense ratio (under-writing expenses to net earned pre-miums) was reported at 17.5 percent in 2008, slightly above the level recorded in 2007 at 16.5 percent.
Table 09 Distribution of Net Premiums
Table 07 Distribution of Gross Premiums
Table 08 Distribution of Net Loss Ratios (%)
2007 45.1 40.8 85.2 55.8 31.8 55.3 46.62006 17.8 62.0 40.0 54.2 43.4 24.9 46.72005 29.8 57.5 25.6 63.5 40.2 34.0 49.72004 66.8 59.1 15.5 56.3 38.8 25.1 52.5
2008 36.2 66.5 66.6 25.5 -24.5 62.2 49.9
Source: Insurance Companies.
*Personal - Householders, Medical, Term Life, Burglary, & Pers. Acc.**Liability - Motor CTP, Professional Indemnity, Public Liability & Workers
Compensation.
Year Fire Motor Marine *Personal **Liability Others Total
*Personal - Householders, Medical, Term Life, Burglary, & Pers. Acc.** Liability - Motor CTP, Professional Indemnity, Public Liability
& Workers Compensation.
Year Fire Motor Marine Pers.* Liab.** Others Total
$m
2007 14.3 21.6 2.9 28.6 17.1 4.4 88.72006 14.1 23.8 2.8 28.6 17.6 4.7 91.72005 12.2 23.2 2.9 23.3 16.9 5.4 83.92004 12.4 21.2 2.5 22.0 15.2 4.0 77.3
% change
2007 1.5 (9.2) (0.5) (0.5) (2.9) (7.4) (3.3)2006 15.8 2.4 (4.2) 23.1 4.0 (11.7) 9.32005 (1.6) 9.6 17.5 5.8 11.5 35.42004 29.8 13.6 2.3 (0.8) 9.8 49.0
% share
2007 16.1 24.3 3.2 32.1 19.3 5.0 100.02006 15.4 25.9 3.1 31.2 19.2 5.2 100.02005 14.5 27.7. 3.5 27.7 20.2 6.4 100.02004 16.0 27.4 3.2 28.5 19.7 5.1 100.0
Source: Insurance Companies.
2008 15.5 22.8 2.6 29.3 18.3 4.4 92.9
8.611.6
2008 8.4 5.6 (7.1) 2.8 7.0 - 4.7
2008 16.7 4.7 100.019.731.52.824.5
*Personal - Householders, Medical, Term Life, Burglary, & Pers. Acc.** Liability - Motor CTP, Professional Indemnity, Public Liability
& Workers Compensation.
Year Fire Motor Marine Pers.* Liab.** Others Total
$m
2007 28.3 23.5 3.3
33.0 19.6 5.0
112.72006 27.5 25.9 3.4
34.4 20.6 5.7
117.5
2005 25.4 25.4 4.1
29.0 19.3 6.4
109.62004 24.7 23.1 4.0
28.8 17.1 5.0
102.8
2008 31.1
24.5 2.9
34.2 20.2 5.0
117.9
% Change
2007 2.9
(9.3) (3.3) (4.1) (4.9) (12.3) (4.1)2006 8.4 1.9 (17.4) 18.6 6.8
(10.2) 7.32005 2.8 10.0 3.3 0.6 1 2.6
27.0 6.62004 11.3 14.9 2.6
4.3 11.8 60.8 11.4% Share
2007 25.1 20.9 2.9 29.3 17.4 4.4 100
2006 23.4 22.0 2.9 29.3 17.5 4.9 100
2005 23.2 23.2 3.8 26.5 17.6 5.8 100
2004 24.0 22.5 3.9 28.0 16.7 4.9 100
Source: Insurance Companies.
2008 9.9 4.3 (12.1) 3.6 3.1 0.0 4.6
2008 26.4 20.8 2.5 29.0 17.1 4.2 100
Reserve Bank of Fiji Insurance Annual Report 2008
23
Consequently, the resulting combined ra-tio (the net loss ratio plus the expenses ratio) for the general insurance sector stood at 67.4 percent (2007: 63.1 per-cent). Based on the ratio, the general in-surance industry is best said to be earn-ing $0.33 as pre-tax profit from every dollar of premium earned.
Total non-underwriting income recorded a 38.9 percent decline to $6.9 million over the year. Interest received although down over the year, continued to account for the bulk of non-underwriting income at 78.3 percent ($5.4 million).
The decline in interest income is gener-ally reflective of the changes in interest rates during the year. The average rate of return on total assets of $247.9 mil-lion stood at 2.8 percent compared to 4.7 percent in 2007.
The consolidated pre-tax profit for the general insurance sector at the end of the year stood at $25.7 million compared to $34.4 million, recording a 25.5 per-cent reduction, over the year. Taxation expense also declined over the year to $7.6 million from $10.6 million in 2007. This resulted in the net profit after tax of $18.1 million, a 23.9 percent reduction from $23.8 million in 2007.
BALANCE SHEET
Assets
In 2008, the asset distribution pattern for the general insurance sector remained largely unchanged with bank deposits and cash on hand being the major asset categories accounting for 62.3 percent of total assets.
Total assets grew at a marginal rate of 3.2 percent to reach $247.9 million, in line with the growth of the general pre-mium base. In comparison to 2007, to-tal assets grew by 6.9 percent to $240.3 million.
The growth in the balance sheet was mainly driven by the increase in bank de-posits by 24.1 percent to $127.8 million. The bulk of the assets continued to be in investments, accounting for 65.1 percent of the general insurance industry assets and bank deposits continued to be the largest holding at 51.6 percent.
Based on the industry’s consolidated cash and deposit holdings of $154.4 million (2007: $140.7 million), there is more than sufficient cash to cover the total industry’s consolidated outstanding claims of $72.7 million. Liabilities
A moderate decline was noted in total liabilities over the year to $158.1 million (2007: $159.9 million).
The major liability, outstanding claims provisions (including claims incurred but not reported) was recorded at $72.7 mil-lion and accounted for 46.0 percent of total liabilities. This was $65.2 million in 2007 and accounted for 40.8 percent of total liabilities.
Unearned premium provision (UPP) comprised the bulk of the balance of li-abilities at $51.4 million (32.5 percent of total liabilities). UPP as a percentage of net premium income stood at 55.3 percent which was above the prudential benchmark of 40.0 percent. Such a level of provisions was indicative of adequate unearned premium provisioning for the general insurance industry.
Other provisions and other liabilities re-corded decreases over the year to $13.5 million (2007: $23.9 million) and $18.6 million (2007: $19.0 million) respective-ly. Bulk of the decline in other provisions was attributed to dividends, which de-creased by $7.1 million to $5.3 million in 2008.
Other liabilities were spread among a di-versity of creditors, the major categories being amounts due to reinsurers at $7.5 million, to related persons at $5.6 million and sundry creditors of $3.1 million.
Owners’ Funds
Consolidated shareholders funds record-ed another double digit growth of 11.8 percent ($9.5 million) to $89.8 million in 2008 from $80.3 million.
The growth has been attributed to the increase in retained earnings, which in-creased by 18.2 percent to $61.0 million from $51.6 million in 2007.
Graph 11 Operating and Underwriting Results
Graph 12 Distribution of Assets for General Insurance Companies
Graph 13 Distribution of Liabilities for General Insurance Companies
Source: Insurance Companies.
240
$m
200
160
120
80
40
0
2001
2002
Term Deposits Amt Due from Reinsurers
Outstanding Premiums Shares
Govt Securities Fixed Assets
Other Assets
2003
2004
2005
2006
2007
2008
280
Yea
rs
Source: Insurance Companies.
$m
Outstanding Claims Provision Unearned Premium Provision
Other Liabilities Other Provision
160
140
120
100
80
60
40
20
0
2001
2002
2003
2004
2005
2006
2007
2008
Yea
rs
2001
2002
2003
2004
2005
2006
2007
2008
35
30
2520
1510
5
0
40
Net Profit
Operating and U
nder
writing Result
s
Investment and Others
$m
Yea
rs
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
24
Graph14: Fire
Graph15: Motor CTP
Graph16: Marine
Graph17: Motor Vehicle
Graph 18: Medical
Graph19: Total
%
908070605040302010
0
2001
2002
2003
2004
2005
2006
2007
2008
Yea
rs
%
908070605040302010
0
2001
2002
2003
2004
2005
2006
2007
2008
Yea
rs
%
140
120
100
80
60
40
20
0
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
Yea
rs
%
908070605040302010
0
2001
2002
2003
2004
2005
2006
2007
2008
Yea
rs
%
908070605040302010
0
2001
2002
2003
2004
2005
2006
2007
2008
Yea
rs
Net Loss Ratios13: Fiji General Insurance Busines Classes
Source: Insurance Companies.
%
80
70
60
50
40
30
20
10
0
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
Yea
rs
13Net Loss Ratio is claims incurred as a percentage of net earned premiums
Reserve Bank of Fiji Insurance Annual Report 2008
25
PREMIUMS
Gross premiums recorded during 2008 rose by 4.5 percent to $83.7 million compared to an increase of 4.4 percent recorded in 2007. After reinsurance of $1.2 million, net premium income was $82.5 million, a growth of 4.8 percent over the year. (2007: $78.7 million)
Premium growth occurred mainly in endowment policies and other life products evident by the high premiums received for these products. Savings type life insurance products (i.e endowment) are the largest source of premiums and recorded a slight growth in gross premiums over the year to $68.2 million. There was also significant premium growth in ‘other class’14 which increased by 73.9 percent to $8.3 million (2007: $4.8 million). These accounted for 81.5 percent and 10.0 percent respectively of total gross premiums received by the industry in 2008.
Whole of life and term life products accounted for the remaining 8.5 percent
Growth in the life sector moderated amidst persistent challenging investment conditions. Demand for life insurance particularly in investment linked products continued to draw strong interest from consumers. Operating results remained favorable for the life insurers despite a relatively weak economic environment.
Life Insurance
of gross premiums received during the year.
PERFORMANCE OF LIFE BUSINESS
New Business
In 2008, new life policies issued continued the downward trend from 2004. The number of new life policies issued fell by 7.1 percent to 12,017 due to the decline in participating policies.( refer to Table 10)
Non participating policies, however, recorded a significant increase with 407 issued in 2008 compared to 25 in 2007. This has been attributed to the increase in term life policies, while the reduction in endowment and whole of life policies on the other hand contributed to the decline in participating policies. Participating policies entitle policy owners to a share in surpluses that may be distributed by the insurer, whereas non participating policies do not entitle the owners to such benefits.
Chart 2 Composition of Gross Premiums (2008 - $83.7 million)
14 “Other Class” majority includes single premium policy.
Term
Other (individual) Whole of Life
Endowment
81%
3%
10%
6%
Source: Insurance Companies.
Whole of Life - Policy is taken out for the whole of a person’s life with the sum insured payable on death.
Endowment - a savings or investment product with the death cover attached to give it the flavour of ‘life’ insurance. The sum insured is payable at the expiry of a given term (typically 10, 15, 20 or 25 years) or on death of the life insured, should it occur before the policy term expires.
Term - provides life cover for a particular period. (usually more than one year for life insurers). If no claim is made during the period of the policy, i.e. the insured does not die, there is no value.
Reserve Bank of Fiji Insurance Annual Report 2008
26
Sums insured for new life policies also recorded a slight decline of 2.5 percent to $355.6 million from $364.9 million in 2007. All ordinary life insurance policies sums insured, except for whole of life, contributed to the decline. (refer to Table 11)
Total premiums written for new policies issued also continued a downward trend. Premiums written on new life business marginally fell by 3.1 percent to $15.7 million while premiums relating to endowment policies declined by 3.9 percent in 2008 to $14.7 million (2007: $15.3 million). On the other hand, premiums written for whole of life and term life policies rose by 50.0 percent and 16.7 percent respectively. (refer to Table 12)
Endowment policies continued to comprise the bulk of new policies issued and new business premiums at 95.9 percent and 93.6 percent respectively. Sums insured for new life business also slightly declined over the year to 52.3 percent (2007: 53.1 percent). Term life and whole life policies accounted for 46.4 percent and 1.3 percent of new business total sums insured respectively.
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. The policy also pays out in the event of death during the policy duration. It is this feature that accounts for the dominance of endowment policies.
Terminations
A total of 15,386 policies were terminated in 2008 with participating policies accounting for the majority at 98.9 percent. This has declined from the 18,222 policies terminated in 2007. Accordingly, the sum insured terminated for the year also fell by 11.9 percent to $459.5 million. (2007: $521.8 million). (refer to Table 13)
The value of annual premiums relating to the terminated policies declined to $16.2 million from $18.5 million in 2007. The value of premiums terminated through
forfeitures accounted for 62.9 percent of the total premiums terminated in the year. Overall, majority of the policies terminated in 2008 were through surrenders and forfeitures which accounted for 83.3 percent of the total termination and transfers.
Surrenders and Forfeitures
Total policies terminated through surrenders and forfeitures declined to 12,814 from 15,709 in 2007. This, however, was still high in comparison to normal exits of policies through death and maturity. This was mostly due to the economic conditions prevailing in 2008, resulting in policyholders being unable to continue paying premiums.
Policies surrendered in 2008 declined by 14.0 percent to 4,625. (2007: 5,376). The overall surrender rate (surrendered policies/ policies in force at commencement of year) was 5.3 percent compared to 5.9 percent in 2007.
Total number of policies forfeited also declined to 8,189 from 10,333 in 2007. The forfeiture rate (policies forfeited/average of new policies written in the current year and the preceding year) accordingly declined to 65.7 percent. (2007: 76.8 percent) Business in Force
The trend over the last five years has shown the dominance of participating policies, albeit declining gradually over the years, as opposed to non participating policies.
Total life insurers’ policies in force at the end of 2008 dropped to 86,193 from 87,822 in 2007. The total sum insured and the related annual premiums, however, increased over the year by 0.5 percent and 3.7 percent to $1,568.9 million and $79.4 million respectively. (refer to Table 15)
The growth in annual premiums for business in force was due to the increase in the endowment category by 4.3 percent to $72.6 million in 2008. Whole of life insurance, however, slightly reduced to
Table 11 Distribution of New Sums Insured of Life Insurers
Table 10 New Business of Life Insurers
Table 12 Distribution of New Business Premiums of Life Insurers
Year Ordinary Life Insurances Total
Whole of Endow- TermLife ment Life
$m
2007 0.2 15.3 0.6 16.22006 0.4 14.9 1.3 16.62005 0.6 14.6 1.5 16.72004 0.7 14.3 1.7 16.6
2008 0.3 14.7 0.7 15.7
% Change
2007 -50.0 2.7 -53.8 -2.42006 -33.3 2.1 -13.3 -0.62005 -14.3 2.1 -11.8 0.62004 -43.5 22.2 60.4 21.6
2008 50.0 -3.9 16.7 -3.1
% Share
2007 1.2 94.4 3.7 100.02006 2.4 89.8 7.8 100.02005 3.6 87.4 9.0 100.02004 3.9 85.7 10.3 100.0
2008 1.9 93.6 4.5 100.0
Source: Insurance Companies.
Year Ordinary Life Insurances Total
Whole of Endow- TermLife ment Life
$m
2007 3.5 193.8 167.6 364.92006 7.6 194.7 176.6 378.92005 10.8 200.3 213.5 424.62004 12.8 189.8 226.3 428.9
2008 4.5 186.0 165.1 355.6
2007 -53.9 -0.5 -5.1 -3.72006 -29.6 -2.8 -17.3 -10.82005 -15.6 5.5 -5.7 -1.02004 -48.5 19.0 40.1 24.0
2008 -28.6 -4.0 -1.5 -2.5
2007 1.0 53.1 45.9 1002006 2.0 51.4 46.6 1002005 -2.5 47.2 50.3 1002004 3.0 44.3 52.8 100
2008 1.3 52.3 46.4 100
Source: Insurance Companies.
% Change
% Share
Year No. ofPolicies
SumInsured
($m)
Premium
Partic. NonPartic.
Partic. NonPartic.
$million
2007 12,905 25 197.3 167.6 16.22006 13,845 130 202.3 176.6 16.62005 14,833 261 211.5 213.1 16.72004 14,955 471 202.9 226.0 16.6
2008 11,620 407 190.5 165.1 15.7
% Change
2007 -6.8 -80.8 -4.9 -5.1 -2.42006 -6.7 -50.2 -4.3 -17.1 -0.62005 -0.8 -44.6 4.2 -5.7 0.62004 6.5 108.4 9.4 40.7 21.6
2008 -10.0 1528.0 1-3.4 .5 -3.1
Source: Insurance Companies.
Reserve Bank of Fiji Insurance Annual Report 2008
27
Table 14 Terminations of AnnualPremiums of Life Insurers
$4.6 million over the year whilst term life remained stable at $2.2 million. The dominance of endowment insurance is noted with the increasing trend in the past five years of the value of the annual premiums.
Policy Payments
Gross policy payments declined over the year to $55.8 million. (2007: $59.8 million). (refer to Table 18)
Payment for matured policies continued to be the largest benefit payment at $30.6 million (2007: $28.0 million) and accounted for 54.8 percent of the total gross policy payments. The Bulk (93.5 percent) of the benefit payments were for endowment policies.
With the decline in the number of policies surrendered in 2008, the benefit payment through surrenders also declined over the year by 20.6 percent to $18.9 million. Benefits payments for death and others also recorded a slight reduction over the year.
INCOME AND OUTGOING
Income
Total income for the life insurance sector registered a decline in growth over the year to $96.6 million. (2007: $131.9 million) This resulted from the large
decline in investment income and the high asset depreciation recorded in 2008. Asset depreciation reduced total income by $18.5 million in 2008.
Investment income also recorded a large fall over the year by $7.4 million to $31.6 million. (2007: $39.0 million) The lower returns from investment were due to the decline in interest income, dividends and other income which fell by $5.9 million, $0.6 million and $1.6 million respectively over the year. Interest income accounted for the majority of investment income at 80.4 percent or $25.4 million.
Net insurance premiums continued to increase, from $78.7 million in 2007 to $82.5 million, although new life insurance business recorded a decline over the year.
Outgoing
Total outgoing for the life sector improved by 7.0 percent over the year to $79.9 million. (2007: $85.9 million). All outgoings categories (net policy payments, net commission incurred, operating expenses) recorded declines over the year and contributed to the reduction in total expenditure. Net policy payments recorded the highest decline of $5.1 million. This was expected given the decline in terminated policies during the year. Net policy payments continued to be the major expenditure item at $55.6 million and accounted for 69.6 percent of total outgoings.
Table 15 Life Business In Force
$m
2007 10.9 27.1 161.9 303.0 19.0 521.82006 11.7 23.4 124.8 281.4 23.0 464.32005 11.1 24.5 130.2 369.9 28.6 564.32004 13.2 20.5 138.6 317.2 23.0 512.6
2008 8.6 28.6 126.1 272.7 23.5 459.6
2007 -6.8 15.8 29.6 7.7 -17.4 12.42006 5.4 -4.5 -4.1 -23.9 -19.6 -17.72005 -15.9 19.5 -6.1 14.2 24.3 10.12004 6.1 8.9 7.2 -7.2 31.1 -1.4
2008 21.1 5.5 -22.1 -10.0 23.7 -11.9
2007 2.1 5.2 31.0 58.1 3.6 100.02006 2.5 5.0 26.9 60.6 5.0 100.02005 2.0 4.3 23.1 65.6 5.0 100.02004 2.6 4.0 27.0 61.9 4.5 100.0
2008 1.9 6.2 27.4 59.3 5.1 100.0
Source: Insurance Companies.
Year Death Maturity Surrender Forteiture Other Total
% Change
% Share
Table 13 Terminations of SumInsured of Life Insurers
YearNumber of
PoliciesSum
Insured($m)
Premium
Partic. NonPartic.
Partic. NonPartic.
($m)
2007 86,610 1,212 1,200.4 360.2 76.6
2006 89,555 1,278 1,200.0 388.8 74.7
2005 89,617 1,362 1,179.0 412.9 79.0
2004 91,666 1,307 1,163.5 431.0 77.3
2008 84,717 1,476 1,215.6 353.3 79.4
% Change
2007 -3.3 -5.2 0.0 -7.4 2.5
2006 -0.1 -6.2 1.8 -5.8 -5.4
2005 8.6 7.1 1.3 -4.2 2.2
2004 4.2 13.3 5.7 -24.3 15.5
2008 -2.2 21.8 1.3 -1.9 3.7
Source: Insurance Companies.
$m
2007 0.4 1.4 5.0 11.4 0.3 18.52006 0.4 1.6 3.7 11.2 7.5 24.42005 0.4 1.1 3.4 11.6 2.4 18.92004 0.4 0.9 3.3 9.5 0.9 15
2008 0.3 1.3 4.1 10.2 0.3 16.2
% Change
2007 0.0 -12.5 35.1 1.8 -96.0 -24.22006 0.0 45.5 8.8 -3.4 212.5 29.12005 0.0 22.2 3.0 22.1 167.0 26.02004 1.5 29.7 11.1 -10.4 17.4 -2.8
2008 -25.0 -7.1 -18.0 -10.5 0.0 -12.4
% Share
2007 2.2 7.6 27.0 61.6 1.6 1002006 1.6 6.6 15.2 45.9 30.6 1002005 2.1 5.8 18.0 61.4 12.7 1002004 2.8 5.8 22.0 63.5 5.9 100
2008 1.9 8.0 25.3 62.9 1.9 100
Source: Insurance Companies.
Year Death Maturity Surrender Forteiture Other Total
Reserve Bank of Fiji Insurance Annual Report 2008
28
Net commission incurred continued to decline since 2006 to a total of $7.0 million. This indicated that insurers are opting to sell insurance policies directly as opposed to employing agents.
OVERALL RESULTS
The life sector registered an after tax surplus of $15.7 million, plummeting from the $45.8 million recorded in 2007. This has been attributed to the lower investment returns and high asset depreciation recorded, which more than off-set the growth in net insurance premiums and the improvement in total outgoings.
Bonuses paid in 2008 totalled $2.6 million from $2.1 million in 2007. There was also a $20 million dividend payout during the year.
BALANCE SHEET
Assets
2008 saw a contraction in the balance sheet of life insurers, particularly its combined assets. Total assets declined by $29.3 million over the year to $556.3 million.
Both major categories (investments
and loans) declined over the year and
contributed to the fall in total assets.
Current assets also declined over the
year. The reduction in total investments
Table 16 Distribution of SumsInsured for Life Business in Force
was due mainly to government securities
and equity investments which declined
by $24.9 million and $15.6 million
respectively. The reduction in cash on
hand by $9.6 million contributed to the
decline in current assets.
The asset distribution pattern remained
largely unchanged from 2007. Investments
in government securities accounted for
37.0 percent of total assets at $206.1
million, followed by loans which at
$94.1 million (16.9 percent), equity
investments with related and non related
persons at $60.2 million (10.8 percent).
Total investments amounted to $417.5
million and accounted for 75.1 percent of
total assets.
Liabilities
Life insurer’s liabilities are required under
the Insurance Act 1998 to be valued
annually by an actuary to determine the
net statutory liability which represents
the estimated total liabilities of insurers
to the insureds. Total liabilities increased
marginally over the year to $519.4 million.
(2007: $511.9 million). The balance of
revenue account continued to dominate
the liabilities of life insurers at $490.3
million. Of this, the net statutory liability
valued as at 31 December 2008 was
$466.7 million.
Owner’s Funds
Shareholder’s accounts were impacted
by the movement in asset and liabilities
during the year. A dividend payment and
the depreciation of asset values resulted
in a large decline in retained profits from
$40.8 million in 2007 to $25.5 million.
Asset revaluation reserve also contributed
to the decline with a negative balance of
$9.2 million.
Year Ordinary Life Insurances Total
Whole of Endow- TermLife ment Life
$m
2007 119.7 1,080.7 360.1 1,560.42006 128.1 1,071.6 388.7 1,588.42005 137.3 1,039.1 415.5 1,591.92004 147.2 1,013.6 433.7 1,594.4
2008 113.9 1,101.7 353.3 1,568.9
% Change
2007 -6.6 0.8 -7.4 -1.82006 -6.7 3.1 -6.5 -0.22005 -6.7 2.5 -4.2 -0.22004 -0.6 2.2 -6.4 -1.1
2008 -4.8 1.9 -1.9 0.5
% Share
2007 7.7 69.3 23.1 100.02006 8.1 67.5 24.5 100.02005 8.6 65.3 26.1 100.02004 9.2 63.6 27.2 100.0
2008 7.3 70.2 22.5 100.0
Source: Insurance Companies.
Year Ordinary Life Insurances Total
Whole of Endow- TermLife ment Life
$m
2007 4.8 69.6 2.2 76.62006 5.3 67.2 2.2 74.72005 5.8 67.6 5.6 79.02004 6.5 65.5 5.3 77.3
2008 4.6 72.6 2.2 79.4
% Change
2007 -9.4 3.6 0.1 2.52006 -8.6 -0.6 -60.7 -5.42005 -10.8 3.2 5.7 2.22004 -2.4 17.4 19.8 15.5
2008 -4.2 4.3 0.0 3.7
% Share
2007 6.3 90.9 2.8 100.02006 7.1 90.0 2.9 100.02005 7.3 85.6 7.1 100.02004 8.4 84.8 6.8 100.0
2008 5.8 91.4 2.8 100.0
Source: Insurance Companies.
Table 17 Distribution Annual Premiums for Life Business in Force
Year Maturity Death Surrender Others Total
2007 28.0 7.7 23.8 0.3 59.82006 23.7 8.3 17.6 0.2 49.82005 23.5 8.1 16.6 0.2 48.42004 21.1 8.7 15.4 0.3 45.5
2008 30.6 6.0 18.9 0.2 55.8
Source: Insurance Companies.
Table 18 Gross Policy Payments ($m)
Graph 20 Distribution of Assets for Life Insurance Companies
Source: Insurance Companies.
$m
700
600
500400300200
100-
Loans
Government Securities
2008
2004
2005
2006
2007
Outstanding Premiums Other Investments
Fixed Assets Other Assets
Yea
rs
Reserve Bank of Fiji Insurance Annual Report 2008
29
PREMIUMS
In 2008, total premiums transacted by the insurance broking industry declined slightly to $90.0 million (2007: $90.3 mil-lion). The decline in premiums was largely due to the miscellaneous class which reg-istered a decline of 7.2 percent to $10.3 million (2007: $11.1 million).
The life and medical class also recorded a premium decline of 4.4 percent to $12.9
million while the liability class fell by 4.0 percent to $9.6 million.
Total premiums placed for the fire and property class registered a growth of 2.9 percent to $43.2 million while transport and marine grew by 2.2 percent to $14.0 million. The growth in these two classes has, however, slowed compared to growths experienced in 2006 and 2007.
The composition of premiums placed re-mained unchanged over the years. Fire and property continued to dominate the market share in terms of total premiums placed in 2008 accounting for 48.0 per-cent (2007: 46.5 percent), followed by transport and marine (15.6 percent), life and medical (14.3 percent), miscella-neous (11.4 percent) and liability (10.7 percent).
INSURANCE BROKING ACCOUNT
The total amount outstanding in the insur-ance broking account at year end 2008 was $2.4 million, an increase of 4.3 percent from $2.3 million in 2007. The increase
The insurance broking industry continued its downward trend in terms of premiums transacted in 2008 and this has been attributed to some extent to the general slow down in the economy during the year. A lower reported net profit coupled with dividend payouts resulted in lower retained earnings reported in 2008.
Insurance Brokers
Table 19 Total Premiums Transacted
Chart 03 Distribution of Premiums Transacted by Brokers
in the balance of the broking account was largely due to the increase in total monies received during the year.
Total premium monies received increased by 4.6 percent to $95.1 million (2007: $90.9 million). The increase in premiums handled was a result of increases in pre-miums placed with both licensed insurers and unlicensed insurers.
Fire and Property Liability
Transport and Marine Life and Medical
Miscellaneous
48%
16%
11%
11%
14%
Source: Insurance Companies.
$m
2007 42.0 13.7 10.0 13.5 11.1 90.32006 39.1 13.3 11.7 14.7 17.9 96.72005 35.8 11.5 10.6 15.5 15.5 88.92004 39.4 11.6 10.0 13.2 16.1 90.3
2008 43.2 14.0 9.6 12.9 10.3 90.0
2007 7.4 3.0 -14.5 -8.2 -38.0 -6.62006 9.2 15.7 10.4 -5.2 15.5 8.82005 -9.1 -0.9 6.0 17.4 -3.7 -1.62004 -0.5 -0.9 30.8 2.9 13.7 5.1
2008 2.9 2.2 -4.0 -4.4 -7.2 -0.3
2007 46.5 15.2 11.1 15.0 12.3 100.02006 40.4 13.8 12.1 15.2 18.5 100.02005 40.3 12.9 11.9 17.4 17.4 100.02004 43.7 12.9 11 14.7 17.8 100.0
2008 48.0 15.6 10.7 14.3 11.4 100.0
*Liability - Motor-CTP, Professional Indemnity, Public Liability &Workers Compensation
**Miscellaneous - Others, CIT & Burglary, Personal Accident
Source: Insurance Brokers.
YearFire
& Pro-perty
Trans-port &Marine
*Liability Life &Medical aneous
Total
% Change
% Share
Reserve Bank of Fiji Insurance Annual Report 2008
30
Of the total monies received, premiums placed with licensed insurers accounted for 80.0 percent (2007: 81.0 percent) while 19.7 percent were placed with un-licensed insurers. The general insurance business accounted for 99.3 percent of total monies received by the brokers while life insurance business accounted for 0.7 percent.
Table 20 Insurance Broking Account of Brokers ($m)
Graph 21 Insurance Broking Account for Insurance Brokers
Payments made to brokers for commission and charges amounted to $12.8 million (2007: $11.9 million), an increase of 7.6 percent over the year. As a percentage of total monies withdrawn, payments to self were recorded at the same level as in 2007 of 13.5 percent.
Table 21 Operating Results of Brokers ($m)
Graph 23 Distribution of Assets for Insurance Brokers
Brokerage earned by the broking industry remained at $12.3 million over the year. Other income which consists of interest income and commissions recorded a de-cline of $0.3 million.
Brokerage earned as commission contin-ued to dominate total revenue and ac-counted for 96.9 percent of the total rev-enue earned in 2008.
A slight improvement in total expenses for the broking industry which improved to $8.0 million in 2008 (2007: $8.2 mil-
Table 22 Payment to Brokers as a Per-centage of Total Monies Withdrawn
Total premium monies withdrawn by the broking industry in 2008, increased by 6.0 percent to $94.9 million (2007: $89.5 mil-lion). The increase in monies withdrawn has been attributed to a rise in payments made to licensed insurers and to brokers for commission and charges.
Of the total monies withdrawn, payments to licensed insurers accounted for 67.3 percent (2007: 64.8 percent) while pay-ments to unlicensed insurers accounted for 18.5 percent.
OPERATING RESULTS
Total revenue for the insurance broking industry declined by 3.1 percent to $12.8 million (2007: $13.1 million)
lion). Total expenses were dominated by other expenses and salaries & wages categories which accounted for 58.1 per-cent and 29.8 percent of total expenses respectively.
The industry after tax profit was recorded at $3.2 million, a reduction of 5.9 percent over the year (2007: $3.4 million).
The efficiency ratio (total expenses to total revenue) for the broking industry amounted to 63.0 percent in 2008 (2007: 63.1 percent). The efficiency ratio sug-gested that for every dollar of revenue generated, $0.63 was for payment of ex-penses.
BALANCE SHEET
Assets
Total assets of the broking insurance in-dustry increased by 8.0 percent to $32.3 million in 2008 (2007: $29.9). The in-crease in assets was due to the increase noted in investments in bank deposits while minimal changes were noted in all other categories.
Outstanding premiums continued to domi-nate the total assets of the broking indus-try accounting for 60.6 percent of total assets in 2008. Bank deposits accounted for 13.2 percent while cash on hand and insurance broking account both accounted for 7.5 percent of total assets.
Source: Insurance Brokers.
$m
Outstanding Premium Fixed Assets
Insurance Broking Acc Other Investments
40
30
20
10
0
2002
2003
2004
2005
2006
2007
2008
Other Assets
Yea
rs
Year B/f Total Total BalanceLast Year Monies Monies Year End
Received Withdrawn
2007 0.9 90.9 89.5 2.32006 1.9 97.6 98.5 0.92005 3.5 94.5 94.2 3.82004 4.2 90.5 91.2 3.5
2008 2.1 95.1 94.9 2.4
% Change
2007 -52.6 -6.9 -9.1 155.62006 -45.7 3.3 4.6 -76.32005 -16.7 4.4 3.3 8.62004 -14.3 -1.3 -1.3 -16.7
2008 133.3 4.6 6.0 4.3
Source: Insurance Brokers.
Source: Insurance Brokers.
$m
100
80
60
40
20
0
2008
2002
2003
2004
2005
2006
2007
Premium Monies Received
Premium Monies Paid
Yea
rs
Source: Insurance Brokers.
$m %
15
10
5
0
2008
2002
2003
2004
2005
2006
2007
15
10
5
0
Payments to Self% of Total Monies Withdrawn
Yea
rs
Source: Insurance Brokers.
Year Brokerage Other Total OperatingEarned Income Expenses Profit/
Losses
2007 12.3 0.8 8.2 3.42006 12.8 0.6 7.2 4.12005 12.6 0.3 6.9 4.12004 12.3 0.3 6.5 4.1
2008 12.3 0.5 8.0 3.2
2007 -3.9 33.3 13.9 -17.12006 1.6 100.0 4.3 0.02005 2.4 0.0 6.1 0.02004 10.8 -40.0 8.1 9.9
2008 0.0 -37.5 -2.4 -5.9% Change
Reserve Bank of Fiji Insurance Annual Report 2008
31
Graph 24 Distribution of Liabilities for Insurance Brokers
Liabilities
Total liabilities also increased by 21.5 percent to $26.6 million in 2008 (2007: $21.9 million). The increase was mainly due to an increase in provisions for divi-dends by $3.0 million and amounts due to insurers by $0.8 million.
Amounts due to insurers amounted to $19.3 million and continued to dominate the total liabilities of insurance broking industry at 72.6 percent. This was fol-lowed by provisions for dividends at 11.3 percent.
Owner’s Funds
The insurance broking sector recorded a 27.8 percent reduction in total owners funds to $5.7 million, compared to $7.9 million in 2007. The fall was due to a reduction in retained earnings, falling by 30.6 percent to $5.0 million in 2008.
Retained profits of insurance brokers de-creased due to dividend payments by some brokers. In 2008, $2.1 million was paid out as dividend by the insurance brokers.
Source: Insurance Brokers.
$m
Amount Due to Insurers Other Liabilities
Amount Due to Related Persons Provisions CurrentLiabilities
40
30
20
10
0
2002
2003
2004
2005
2006
2007
2008
Yea
rs
Reserve Bank of Fiji Insurance Annual Report 2008
32
MONTHS EVENT
January 1 staff attended the IAIS Solvency and Actuarial Issues Sub-Committee meeting and Regional Information session, Bank Negara, Malaysia.February 1 RBF staff attached with the Australian Prudential Regulatory Authority (APRA) for three months.June 2 RBF staff attended the New Supervisor’s Workshop on Examination Reports and Data Analysis (organised and funded by Pacific Financial Technical Assistance Centre (PFTAC)) in Rarotonga, Cook Islands.October 3 staff attended training on Managing Regulatory Change for Internal Capital Models funded by the APEC Centre, Melbourne, Australia.Ongoing 10 Staff continued/completed correspondence studies with Australian and New Zealand Institute of Insurance and Finance (ANZIIF) in 2008.
STAFF TRAINING EVENTS
15 Dead and missing 16 Property and business interruption, excluding liability and life insurance losses 17 Not available Source: Swiss Re. Sigma No 2/2009
LOCAL EVENTS
Months Event
January Tropical Cyclone Gene hit Fiji. February Merging of two licensed insurance brokers.March One major fire in Suva.May RBF Trilateral Post Audit and Actuarial Meetings with insurance companies June Insurance Annual Report 2007 submitted to Minister of Finance and National Planning.July Onsite examination of one general insurance company.August One major bus fire in Sigatoka claiming 12 lives.September Onsite examination of one general insurance company. RBF received technical assistance from APRA as part of their Pacific Governance Support Program for 2008. One major bus fire in Sigatoka. There were no major fatalities. October Annual Governor’s meeting with Insurance Companies and Licensed Insurance Brokers Association of Fiji (LIBAF). One major personal accident in Suva. November Continuation of Annual Governors meeting with Insurance Companies and Licensed Insurance Brokers Association of Fiji (LIBAF).December The 2007 Insurance Annual Report was tabled in Cabinet. Renewal of insurance agents, brokers and insurers licenses for 2009. RBF Trilateral pre-audit meetings with insurance companies.
Months Country Event Victim15 Insured Losses (US$m)16
January China Snow storms, freezing rain across the country 130 1,300 US Winter storms, heavy rain, snow; floods, mudslides 12 745 Australia Floods caused by heavy rain - 550 US Gas explosion at steel plant - na17
February Germany, Austria, Winter storm Emma, winds up to 15 1,321 Czech Rep et al 150 km/h; floods US Tornadoes, winter storms, floods 56 95March US Thunderstorms, tornadoes, hail 2 560April US Storms, hail, heavy rain, floods - 800 US Thunderstorms, hail - 470 May US Tornadoes, storms, winds up to 320 km/h, heavy rain, hail 7 1,325 US Thunderstorms, winds up to 137 km/h, hail - 1,100 Germany, Belgium, Storm Hilal, thunderstorms, 4 973 UK, France et al hail; floods, landslides US Tornadoes, winds up to 280 km/h, hail 22 585June US Storms over Midwest, hail, rain; floods 16 725 US Fire at Universal Studios - na Australia Explosion and fire at gas processing plant - na July US, Mexico, Gulf of Hurricane Dolly, winds up to 160 km/h, 5 525 Mexico heavy rain; floodsAugust US, Caribbean, Gulf Hurricane Gustav, winds up to 240 km/h; 135 4,000 of Mexico, Haiti et al offshore damages, floodsSeptember US, Caribbean, Gulf Hurricane Ike, winds up to 195 km/h; of Mexico, Haiti et al offshore damages, floods 136 20,000November US Three urban forest fires, Santa Ana winds up to 130 km/h - 500
CALENDAR OF EVENTS
INTERNATIONAL EVENTS
Reserve Bank of Fiji Insurance Annual Report 2008
33
Appendices
Statistical Tables
- General Insurance
- Life Insurance
- Insurance Brokers
Lists of Agents Licensed as at 31 December 2008
Fiji: Key Economic and Financial Indicators
Fiji: Key Insurance Indicators
Reserve Bank of Fiji Insurance Annual Report 2008
34
Table One (i)-(xiv) – Underwriting Account
Table Two – Profit and Loss Account
Table Three – Balance Sheet
Table Four – Statement of Premiums
Table Five – Statement of Claims and Commissions
Table Six – Statement of Reinsurance Arrangements
Table Seven – Statement of Claims Run-off by Accident Year
Table Eight – Statement of Gross Aggregate Exposures
General Insurance
Reserve Bank of Fiji Insurance Annual Report 2008
35
Table 1: UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
CONSOLIDATED 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 117,890.3 112,700.2 117,538.0 109,639.0 102,806.7
less
Reinsurance outwards 24,961.3 23,978.5 25,842.8 25,792.4 25,506.3
NET PREMIUM INCOME 92,929.0 88,721.8 91,695.3 83,846.6 77,300.4
add
Retained unearned premiums - opening 45,324.8 47,710.9 43,172.7* 39,591.2 35,305.2
less
Retained unearned premiums - closing 47,139.5 45,324.8 47,710.9 43,171.1* 39,591.2
NET EARNED PREMIUMS 91,114.3 91,107.9 87,157.0 80,266.6 73,014.5
PART B - CLAIMS
Net claims paid 39,848.8 42,555.8 39,948.2 34,419.0 34,126.4
add
Net claims outstanding - closing 60,638.5 55,023.8 55,131.5 54,334.7 48,813.5*
less
Net claims outstanding - opening 55,023.8 55,131.5 54,334.7 48,889.2* 44,593.8
NET CLAIMS INCURRED 45,463.5 42,448.0 40,745.1 39,864.5 38,346.2
PART C - UNDERWRITING EXPENSES
Commission expense 10,844.8 9,483.8 10,374.5 10,937.8 9,160.2
Acquisition expense 5,082.8 5,520.2 5,609.6 4,857.9 4,876.4
TOTAL EXPENSES 15,927.7 15,004.0 15,984.1 15,795.8 14,036.6
UNDERWRITING SURPLUS / (DEFICIT) 29,723.2 33,655.9 30,427.9 24,606.3 20,631.8
NET LOSS RATIO (%) 49.9 46.6 46.7 49.7 52.5
EXPENSE RATIO (%) 17.5 16.5 18.3 19.7 19.2
*Does not correspond due to adjustments by few insurance companies. Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
36
Table 1(i) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
FIRE 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 31,141.6 28,340.6 27,504.1 25,366.0 24,728.9
less
Reinsurance outwards 15,626.3 14,073.4 13,409.3 13,190.5 12,279.3
NET PREMIUM INCOME 15,515.3 14,267.2 14,094.8 12,175.4 12,449.6
add
Retained unearned premiums - opening 11,515.6 11,170.5 10,049.7 8,881.8 7,750.1
less
Retained unearned premiums - closing 12,327.9 11,515.6 11,170.5 10,049.7 8,881.8
NET EARNED PREMIUMS 14,703.0 13,922.0 12,974.0 11,007.5 11,318.0
PART B - CLAIMS
Net claims paid 3,452.5 5,551.6 5,738.4 2,692.8 5,028.0
add
Net claims outstanding - closing 9,107.8 7,232.4• 6,509.6 9,939.9 9,281.1*
less
Net claims outstanding - opening 7,232.4 6,509.6 9,939.9 9,356.8* 6,752.6
NET CLAIMS INCURRED 5,327.9 6,274.5 2,308.0 3,275.9 7,556.5
PART C - UNDERWRITING EXPENSES
Commission expense 3,182.6 2,069.7 2,036.3 1,954.5 1,487.5
Acquisition expense 1,024.6 1,065.8 976.5 743.3 1,017.6
TOTAL EXPENSES 4,207.2 3,135.5 3,012.8 2,697.8 2,505.1
UNDERWRITING SURPLUS / (DEFICIT) 5,167.9 4,512.1 7,653.1 5,033.7 1,256.4
NET LOSS RATIO (%) 36.2 45.1 17.8 29.8 66.8
EXPENSE RATIO (%) 28.6 22.5 23.2 24.5 22.1
*Does not correspond due to an adjustment by one insurance company •Revised 2007 figure due to an adjustment by an insurance company
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
37
Source: Insurance Companies
Table 1(ii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
HOUSEHOLDERS 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 8,402.2 7,152.8 6,939.0 6,080.3 5,332.8
less
Reinsurance outwards 2,917.5 2,284.4 2,520.2 1,723.4 1,992.3
NET PREMIUM INCOME 5,484.7 4,868.4 4,418.8 4,357.0 3,340.5
add
Retained unearned premiums - opening 3,086.2 2,940.0 2,462.8 2,095.3 1,875.1
less
Retained unearned premiums - closing 3,749.1 3,086.2 2,940.0 2,462.8 2,095.3
NET EARNED PREMIUMS 4,821.8 4,722.2 3,941.6 3,989.4 3,120.4
PART B - CLAIMS
Net claims paid 1,427.4 2,667.1 986.3 1,308.6 1,070.2
add
Net claims outstanding - closing 1,424.3 839.6* 1,251.6 906.2 1,066.3
less
Net claims outstanding - opening 841.1* 1,251.6 906.2 1,066.3 1,176.6
NET CLAIMS INCURRED 2,010.6 2,255.2 1,331.7 1,148.4 959.9
PART C - UNDERWRITING EXPENSES
Commission expense 895.8 847.1 746.6 662.4 579.9
Acquisition expense 144.6 142.2 67.9 148.4 175.1
TOTAL EXPENSES 1,040.4 989.3 814.4 810.8 754.9
UNDERWRITING SURPLUS / (DEFICIT) 1,770.8 1,477.7 1,795.5 2,030.1 1,405.5
NET LOSS RATIO (%) 41.7 47.8 33.8 28.8 30.8
EXPENSE RATIO (%) 21.6 20.9 20.7 20.3 24.2 *Does not correspond due to an adjustment by an insurance company
Reserve Bank of Fiji Insurance Annual Report 2008
38
Table 1 (iii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
MOTOR VEHICLE 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 24,451.4 23,483.2 25,905.6 25,547.9 23,116.5
less
Reinsurance outwards 1,671.6 1,912.5 2,115.4 2,322.3 1,929.2
NET PREMIUM INCOME 22,779.9 21,570.6 23,790.2 23,225.6 21,187.3
add
Retained unearned premiums - opening 11,022.7 12,743.1 11,862.2 10,574.8 9,216.1
less
Retained unearned premiums - closing 11,486.8 11,022.7 12,743.1 11,862.2 10,574.8
NET EARNED PREMIUMS 22,315.8 23,291.0 22,909.3 21,938.1 19,828.6
PART B - CLAIMS
Net claims paid 13,337.8 12,026.7 13,638.4 11,936.7 10,889.4
add
Net claims outstanding - closing 7,698.2 6,200.1• 8,693.1 8,124.7 7,436.5
less
Net claims outstanding - opening 6,200.1 8,693.1 8,124.7 7,436.5 6,601.4
NET CLAIMS INCURRED 14,835.9 9,533.7 14,206.9 12,624.8 11,724.5
PART C - UNDERWRITING EXPENSES
Commission expense 1,992.8 1,928.1 2,002.1 2,203.2 1,857.1
Acquisition expense 1,068.3 1,048.8 1,340.7 1,231.9 1,155.4
TOTAL EXPENSES 3,061.2 2,976.9 3,342.8 3,435.1 3,012.3
UNDERWRITING SURPLUS / (DEFICIT) 4,418.7 10,780.4 5,359.7 5,878.3 5,091.8
NET LOSS RATIO (%) 66.5 40.9 62.0 57.5 59.1
EXPENSE RATIO (%) 13.7 12.8 14.6 15.7 15.2 • Revised 2007 figure due to an adjustment by an insurance company Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
39
Table 1(iv) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
MARINE HULL 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 1,205.3 1,363.4 1,518.2 2,025.1 2,008.6
less
Reinsurance outwards 184.4 292.2 314.1 627.6 879.9
NET PREMIUM INCOME 1,020.9 1,071.3 1,204.1 1,397.5 1,128.7
add
Retained unearned premiums - opening 624.9 669.2 780.4 748.6 679.3
less
Retained unearned premiums - closing 442.9 624.9 669.2 780.4 748.6
NET EARNED PREMIUMS 1,202.9 1,115.6 1,315.3 1,365.7 1,059.5
PART B - CLAIMS
Net claims paid 1,095.4 467.8 693.1 207.0 625.5
add
Net claims outstanding - closing 1,620.9 1,267.1 1,046.1 1,036.1 758.0
less
Net claims outstanding - opening 1,267.1 1,046.1 1,036.1 758.0 1,179.9
NET CLAIMS INCURRED 1,449.3 688.7 703.1 485.1 203.6
PART C - UNDERWRITING EXPENSES
Commission expense 118.8 11.0 92.0 82.6 29.5
Acquisition expense 52.1 63.3 67.9 94.3 90.2
TOTAL EXPENSES 170.8 74.3 159.8 176.9 119.8
UNDERWRITING SURPLUS / (DEFICIT) (417.2) 352.6 452.4 703.6 736.1
NET LOSS RATIO (%) 120.5 61.7 53.5 35.5 19.2
EXPENSE RATIO (%) 14.2 6.7 12.2 13.0 11.3
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
40
Table 1(v) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
MARINE CARGO 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 1,712.5 1,917.7 1,893.7 2,025.3 2,013.0
less
Reinsurance outwards 122.3 133.0 283.3 561.5 639.0
NET PREMIUM INCOME 1,590.2 1,784.6 1,610.4 1,463.8 1,374.0
add
Retained unearned premiums - opening 546.9 524.4 476.8 485.7 437.0
less
Retained unearned premiums - closing 670.8 546.9 524.4 476.8 485.7
NET EARNED PREMIUMS 1,466.3 1,762.2 1,562.7 1,472.7 1,325.3
PART B - CLAIMS
Net claims paid 682.9 1,029.0 467.1 220.6 318.9
add
Net claims outstanding - closing 953.2 1,196.2 461.6 481.4 461.0
less
Net claims outstanding - opening 1,196.2 461.6 481.4 461.0 613.2
NET CLAIMS INCURRED 439.9 1,763.6 447.4 241.0 166.7
PART C - UNDERWRITING EXPENSES
Commission expense 104.9 (8.4) 96.3 44.3 5.8
Acquisition expense 92.7 92.3 81.1 72.0 99.7
TOTAL EXPENSES 197.6 83.9 177.3 116.3 105.6
UNDERWRITING SURPLUS / (DEFICIT) 828.8 (85.4) 938.0 1,115.4 1,053.1
NET LOSS RATIO (%) 30.0 100.1 28.6 16.4 12.6
EXPENSE RATIO (%) 13.5 4.8 11.3 7.9 8.0
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
41
Table 1(vi) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
BURGLARY 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 1,386.2 1,499.6 1,509.1 1,478.3 1,427.0
less
Reinsurance outwards 1.1 6.6 24.0 45.3 66.4
NET PREMIUM INCOME 1,385.1 1,493.0 1,485.1 1,433.0 1,360.6
add
Retained unearned premiums - opening 725.4 736.7 700.8 659.1 625.9
less
Retained unearned premiums - closing 701.0 725.4 736.7 700.8 659.1
NET EARNED PREMIUMS 1,409.5 1,504.3 1,449.3 1,391.2 1,327.4
PART B - CLAIMS
Net claims paid 1,213.7 985.3 1,275.5 872.4 804.4
add
Net claims outstanding - closing 850.6 966.5 625.8 1,021.0 605.2
less
Net claims outstanding - opening 966.5 625.8 1,021.0 605.2 616.9
NET CLAIMS INCURRED 1,097.8 1,326.0 880.3 1,288.2 792.7
PART C - UNDERWRITING EXPENSES
Commission expense 127.5 134.3 136.1 145.3 153.5
Acquisition expense 68.1 68.5 75.0 66.1 77.4
TOTAL EXPENSES 195.6 202.8 211.1 211.3 230.9
UNDERWRITING SURPLUS / (DEFICIT) 116.1 (24.5) 357.9 (108.3) 303.8
NET LOSS RATIO (%) 77.9 88.1 60.7 92.6 59.7
EXPENSE RATIO (%) 13.9 13.5 14.6 15.2 17.4
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
42
Table 1(vii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
MOTOR CTP 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 11,453.5 10,571.0 10,455.3 9,079.0 8,152.5
less
Reinsurance outwards 1,212.2 1,770.9 1,906.2 1,382.0 992.1
NET PREMIUM INCOME 10,241.3 8,800.1 8,549.1 7,697.0 7,160.4
add
Retained unearned premiums - opening 5,583.5 5,545.0 3,787.0 3,239.4 3,067.3
less
Retained unearned premiums - closing 5,885.7 5,583.5 5,545.0 3,787.0 3,239.4
NET EARNED PREMIUMS 9,939.1 8,761.7 6,791.1 7,149.5 6,988.3
PART B - CLAIMS
Net claims paid 3,240.4 3,444.9 3,161.6 2,115.6 2,157.9
add
Net claims outstanding - closing 17,257.4 16,669.3• 16,485.6 14,774.2 12,796.5
less
Net claims outstanding - opening 16,669.3 16,485.6 14,774.2 12,796.5 11,996.9
NET CLAIMS INCURRED 3,828.4 3,628.7 4,873.1 4,093.3 2,957.4
PART C - UNDERWRITING EXPENSES
Commission expense 492.8 411.7 553.2 1,035.1 696.2
Acquisition expense 99.8 85.0 93.0 68.5 73.3
TOTAL EXPENSES 592.6 496.7 646.2 1,103.6 769.5
UNDERWRITING SURPLUS / (DEFICIT) 5,518.1 4,636.3 1,271.7 1,952.5 3,261.3
NET LOSS RATIO (%) 38.5 41.4 71.8 57.3 42.3
EXPENSE RATIO (%) 6.0 5.7 9.5 15.4 11.0 •Revised 2007 figure due to an adjustment by an insurance company Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
43
Table 1(viii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
PERSONAL ACCIDENT 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 862.2 816.9 817.8 1,322.4 1,299.3
less
Reinsurance outwards 28.0 51.4 92.6 108.7 68.2
NET PREMIUM INCOME 834.2 765.5 725.2 1,213.7 1,231.1
add
Retained unearned premiums - opening 330.3 378.3 414.2 365.5 396.3
less
Retained unearned premiums - closing 330.2 330.3 378.3 414.2 365.5
NET EARNED PREMIUMS 834.2 813.5 761.2 1,164.9 1,262.0
PART B - CLAIMS
Net claims paid 24.9 1,002.0 111.7 405.7 515.4
add
Net claims outstanding - closing 347.7 159.5• 688.3 353.1 220.5
less
Net claims outstanding - opening 159.5 688.3 353.1 220.5 309.4
NET CLAIMS INCURRED 213.0 473.2 446.9 538.4 426.5
PART C - UNDERWRITING EXPENSES
Commission expense 111.9 114.8 110.8 175.3 169.0
Acquisition expense 80.6 45.4 37.5 52.2 65.9
TOTAL EXPENSES 192.5 160.2 148.4 227.6 234.9
UNDERWRITING SURPLUS / (DEFICIT) 428.7 180.1 165.9 399.0 600.6
NET LOSS RATIO (%) 25.5 58.2 58.7 46.2 33.8
EXPENSE RATIO (%) 23.1 19.7 19.5 19.5 18.6
•Revised 2007 figure due to an adjustment by an insurance company Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
44
Source: Insurance Companies
Table 1(ix) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
PROFESSIONAL INDEMNITY 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 488.9 636.7 908.9 815.6 785.7
less
Reinsurance outwards 57.4 90.0 257.5 148.7 160.4
NET PREMIUM INCOME 431.4 546.8 651.4 666.9 625.3
add
Retained unearned premiums - opening 275.2 398.7 413.1 381.1 272.9
less
Retained unearned premiums - closing 166.1 275.2 398.7 413.1 381.1
NET EARNED PREMIUMS 540.5 670.3 665.8 634.9 517.1
PART B - CLAIMS
Net claims paid 1.6 69.6 9.0 132.5 1.2
add
Net claims outstanding - closing 44.3 34.4* 84.6 104.4 164.8
less
Net claims outstanding - opening 32.9* 84.6 104.4 164.8 457.0
NET CLAIMS INCURRED 13.0 19.5 (10.8) 72.1 (291.0)
PART C - UNDERWRITING EXPENSES
Commission expense 59.1 85.1 119.3 113.9 109.3
Acquisition expense 35.3 26.8 29.5 23.7 28.6
TOTAL EXPENSES 94.4 111.9 148.8 137.6 137.8
UNDERWRITING SURPLUS / (DEFICIT) 433.1 538.9 527.9 425.2 670.3
NET LOSS RATIO (%) 2.4 2.9 (1.6) 11.4 (56.3)
EXPENSE RATIO (%) 17.5 16.7 22.3 21.7 26.7
*Does not correspond due to an adjustment by an insurance company
Reserve Bank of Fiji Insurance Annual Report 2008
45
Table 1(x) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
PUBLIC LIABILITY 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 1,991.4 2,046.9 2,056.9 2,221.8 2,146.5
less
Reinsurance outwards 307.9 260.8 371.4 332.6 381.1
NET PREMIUM INCOME 1,683.5 1,786.1 1,685.5 1,889.1 1,765.4
add
Retained unearned premiums - opening 989.3 1,012.1 1,096.2 940.0 796.0
less
Retained unearned premiums - closing 931.5 989.3 1,012.1 1,096.2 940.0
NET EARNED PREMIUMS 1,741.3 1,809.0 1,769.5 1,733.0 1,621.4
PART B - CLAIMS
Net claims paid 214.5 252.6 239.9 197.2 487.1
add
Net claims outstanding - closing 2,333.7 2,974.0 2,836.9 2,235.6 2,758.1*
less
Net claims outstanding - opening 2,974.0 2,836.9 2,235.6 2,746.1* 2,616.7
NET CLAIMS INCURRED (425.7) 389.7 841.3 (313.3) 628.5
PART C - UNDERWRITING EXPENSES
Commission expense 214.5 221.9 208.7 258.6 237.6
Acquisition expense 87.4 91.2 88.8 91.3 94.7
TOTAL EXPENSES 302.0 313.2 297.5 349.9 332.4
UNDERWRITING SURPLUS / (DEFICIT) 1,865.0 1,106.1 630.8 1,696.4 660.5
NET LOSS RATIO (%) (24.4) 21.5 47.5 (18.1) 38.8
EXPENSE RATIO (%) 17.3 17.3 16.8 20.2 20.5
*Does not correspond due to an adjustment by one insurance company Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
46
Table 1(xi) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
WORKERS COMPENSATION 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 6,294.1 6,312.4 7,166.4 7,154.9 6,033.4
less
Reinsurance outwards 346.6 323.2 441.9 467.1 394.3
NET PREMIUM INCOME 5,947.4 5,989.2 6,724.5 6,687.8 5,639.1
add
Retained unearned premiums - opening 2,998.8 3,381.2 3,299.6 2,892.7 2,420.2
less
Retained unearned premiums - closing 2,806.2 2,998.8 3,381.2 3,299.6 2,892.7
NET EARNED PREMIUMS 6,140.0 6,371.6 6,642.9 6,281.0 5,166.6
PART B - CLAIMS
Net claims paid 1,582.8 1,721.6 1,857.7 2,075.0 1,665.8
add
Net claims outstanding - closing 8,469.2 8,479.9 8,665.0 9,338.0 8,914.9
less
Net claims outstanding - opening 8,479.9 8,665.0 9,338.0 8,914.9 8,325.2
NET CLAIMS INCURRED 1,572.1 1,536.5 1,184.6 2,498.1 2,255.5
PART C - UNDERWRITING EXPENSES
Commission expense 509.2 515.9 599.5 647.2 522.1
Acquisition expense 327.2 316.3 339.6 289.4 275.0
TOTAL EXPENSES 836.3 832.2 939.2 936.5 797.1
UNDERWRITING SURPLUS / (DEFICIT) 3,731.5 4,002.8 4,519.1 2,846.4 2,114.0
NET LOSS RATIO (%) 25.6 24.1 17.8 39.8 43.7
EXPENSE RATIO (%) 13.6 13.1 14.1 14.9 15.4
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
47
Table 1(xii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
MEDICAL 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 14,764.1 15,097.2 16,259.3 11,093.4 11,852.4
less
Reinsurance outwards 127.6 125.6 138.3 714.3 668.9
NET PREMIUM INCOME 14,636.5 14,971.6 16,121.0 10,379.1 11,183.5
add
Retained unearned premiums - opening 4,055.9 4,098.8 3,437.0 4,049.1 5,130.1
less
Retained unearned premiums - closing 3,568.0 4,055.9 4,098.8 3,437.0 4,049.1
NET EARNED PREMIUMS 15,124.5 15,014.5 15,459.2 10,991.3 12,264.5
PART B - CLAIMS
Net claims paid 8,279.8 7,683.7 6,934.0 8,251.7 8,195.6
add
Net claims outstanding - closing 4,559.7 3,996.8• 4,397.3 2,818.0 2,066.0
less
Net claims outstanding - opening 3,996.8 4,397.3 2,818.0 2,066.0 1,573.2
NET CLAIMS INCURRED 8,842.6 7,283.3 8,513.4 9,003.7 8,688.4
PART C - UNDERWRITING EXPENSES
Commission expense 1,489.7 1,616.0 1,951.9 1,704.2 1,783.8
Acquisition expense 1,272.9 1,655.8 1,548.7 1,099.0 1,051.6
TOTAL EXPENSES 2,762.7 3,271.7 3,500.6 2,803.2 2,835.3
UNDERWRITING SURPLUS / (DEFICIT) 3,519.2 4,459.5 3,445.1 (815.5) 740.8
NET LOSS RATIO (%) 58.5 48.5 55.1 81.9 70.8
EXPENSE RATIO (%) 18.3 21.8 22.6 25.5 23.1 •Revised 2007 figure due to an adjustment by an insurance company
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
48
Table 1(xiii) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
TERM LIFE 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 8,738.4 8,413.8 8,867.9 9,005.2 8,889.6
less
Reinsurance outwards 1,749.6 2,038.6 2,981.9 3,120.1 4,006.2
NET PREMIUM INCOME 6,988.8 6,375.2 5,886.0 5,885.1 4,883.3
add
Retained unearned premiums - opening 1,336.1 1,473.9 1,558.6* 2,330.5 1,357.6
less
Retained unearned premiums - closing 1,817.5 1,336.1 1,473.9 1,557.1* 2,330.5
NET EARNED PREMIUMS 6,507.5 6,513.0 5,970.7 6,658.5 3,910.4
PART B - CLAIMS
Net claims paid 3,373.3 3,977.9 3,614.2 2,824.0 1,523.5
add
Net claims outstanding - closing 2,504.1 2,336.7 1,723.8 1,549.2 990.2
less
Net claims outstanding - opening 2,336.7 1,723.8 1,549.2 990.2 1,064.8
NET CLAIMS INCURRED 3,540.7 4,590.7 3,788.8 3,383.0 1,448.8
PART C - UNDERWRITING EXPENSES
Commission expense 935.9 935.8 995.8 1,102.3 884.0
Acquisition expense 498.6 589.9 636.6 633.8 460.1
TOTAL EXPENSES 1,434.5 1,525.7 1,632.5 1,736.1 1,344.1
UNDERWRITING SURPLUS / (DEFICIT) 1,532.3 396.5 549.4 1,539.4 1,117.5
NET LOSS RATIO (%) 54.4 70.5 63.5 50.8 37.1
EXPENSE RATIO (%) 22.0 23.4 27.3 26.1 34.4
*Does not correspond due to adjustments by one insurance company. Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
49
Table 1(xiv) UNDERWRITING OPERATIONS FOR THE GENERAL INSURANCE INDUSTRY
($’000)
OTHER 2008 2007 2006 2005 2004
PART A - PREMIUMS
Gross premium income 4,998.4 5,048.1 5,736.0 6,424.0 5,020.4
less
Reinsurance outwards 608.7 615.9 986.8 1,048.3 1,048.9
NET PREMIUM INCOME 4,389.7 4,432.2 4,749.2 5,375.6 3,971.5
add
Retained unearned premiums - opening 2,234.1 2,639.1 2,834.3 1,947.5 1,281.2
less
Retained unearned premiums - closing 2,255.7 2,234.1 2,639.1 2,834.3 1,947.5
NET EARNED PREMIUMS 4,368.1 4,837.3 4,944.4 4,488.9 3,305.2
PART B - CLAIMS
Net claims paid 1,921.7 1,675.8 1,221.3 1,179.4 843.7
add
Net claims outstanding - closing 3,467.6 2,671.2• 1,662.2 1,653.0 1,294.4*
less
Net claims outstanding - opening 2,671.2 1,662.2 1,653.0 1,306.4* 1,309.9
NET CLAIMS INCURRED 2,718.1 2,684.8 1,230.5 1,525.9 828.3
PART C - UNDERWRITING EXPENSES
Commission expense 609.4 600.9 725.8 809.0 644.9
Acquisition expense 230.5 228.8 226.8 243.8 211.7
TOTAL EXPENSES 839.9 829.7 952.6 1,052.8 856.6
UNDERWRITING SURPLUS / (DEFICIT) 810.0 1,322.8 2,761.4 1,910.1 1,620.3
NET LOSS RATIO (%) 62.2 55.5 24.9 34.0 25.1
EXPENSE RATIO (%) 19.2 17.2 19.3 23.5 25.9 *Does not correspond due an adjustment by one insurance company
•Revised 2007 figure due to an adjustment by an insurance company
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
50
Table 2 PROFIT & LOSS STATEMENT FOR FIJI GENERAL INSURANCE INDUSTRY
($’000)
2008 2007 2006 2005 2004
PART A - PROFIT AND LOSS ACCOUNT
Non-underwriting income 6,290.0 10,705.7 6,877.5 5,432.5 3,888.4
Other non-underwriting income 570.0 639.9 760.0 1,022.5 1,552.5
Total non-underwriting income 6,860.0 11,345.5 7,637.5 6,454.9 5,440.8
Underwriting surplus / (deficit) 29,723.2 33,655.9 30,427.9 24,606.3 20,631.8
Expenses not included in Return 6A 10,933.4 10,347.3 10,157.6 9,507.9 7,840.1
Abnormal / extraordinary items 13.4 (226.5) (207.1) (219.0) (771.1)
PRE-TAX PROFIT (LOSS) 25,663.2 34,427.8 27,700.8 21,334.4 17,461.4
Taxation expense 7,591.6 10,590.9 9,096.0 6,464.4 4,834.7
PROFIT (LOSS) AFTER TAXATION 18,071.6 23,836.8 18,604.7 14,870.0 12,626.8
PART B - APPROPRIATION ACCOUNT
Unappropriated profit (loss) brought
forward from last period 51,623.6 40,885.9• 37,188.7
• 32,511.9* 19,782.7
add
Profit (loss) after taxation for the current period 18,071.6 23,836.8 18,604.7 14,870.0 12,626.8
Other transfers in (attach details) 8,691.5 13,099.2 15,424.2 11,821.2 715.4
UNAPPROPRIATED PROFIT/(LOSS)
CARRIED FORWARD 61,003.7 51,623.6 40,369.2• 35,560.7
• 31,694.1*
•Does not correspond due to IFRS impact on insurance companies
*Does not correspond due to an adjustment by one insurance company Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
51
Table 3 CONSOLIDATED BALANCE SHEET OF FIJI GENERAL INSURANCE INDUSTRY
($’000)
CURRENT ASSETS 2008 2007 2006 2005 2004
Cash on hand 26,641.1 37,690.4 11,855.3 11,076.9 11,100.2
Outstanding premiums 21,150.7 19,312.2 18,072.9 15,548.2 14,832.4
Amounts due from reinsurers 13,978.3 12,345.3 15,713.9 29,539.7 26,224.1
Deferred reinsurance expense 2,699.2 4,505.8 2,093.8 3,393.5 4,457.6
Deferred acquisition expense 4,431.2 3,538.1 3,959.1 4,093.8 3,832.0
Prepayments 1,016.5 608.4 44.9 98.4 69.8
Sundry debtors 2,257.5 2,066.5 10,161.7 1,493.7 957.5
Other current assets 1,535.0 1,800.8 1,225.3 1,534.9 1,409.1
Total 73,709.4 81,867.5 63,126.9 66,779.2 62,882.6
LOANS
Loans to directors and persons prescribed
in section 32(1)(a): 0.0 0.0 0.0 1.1 15.4
Loans to related persons 4,131.9 2,837.0 1,790.0 2,368.8 6,752.8
Unsecured employee loans 71.9 49.3 74.1 85.4 94.1
Other loans 5,134.9 7,073.9 5,848.8 6,799.9 3,715.2
Total 9,338.7 9,960.2 7,712.9 9,255.2 10,577.6
INVESTMENTS
Land and buildings 5,045.7 5,363.1 4,737.3 4,281.1 2,763.9
Government securities 9,971.2 8,241.0 12,093.2 14,627.3 12,246.0
Bank deposits 127,824.6 103,002.8 109,707.5 95,476.4 77,898.3
Debentures 0.0 0.0 169.9 220.9 200.0
Shares 12,761.3 13,056.8 12,681.1 13,191.4 12,468.0
Other Investments 5,883.6 15,267.4 10,306.5 7,991.1 5,149.9
Total 161,486.4 144,931.1 149,695.5 135,788.4 110,726.1
FIXED ASSETS
Motor vehicles 657.9 637.2 769.9 696.5 704.6
Furniture and fittings 439.7 505.1 263.8 296.4 379.3
Computer hardware 442.2 431.2 401.5 484.7 284.5
Computer software 4.0 148.6 270.7 178.3 80.7
Other Fixed Assets 647.1 639.9 618.2 538.9 505.5
Total 2,190.8 2,362.0 2,324.1 2,194.8 1,954.5
INTANGIBLE ASSETS
Future income tax benefit 1,071.0 1,087.8 1,829.7 916.6 683.4
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 1,087.8 1,829.7 916.6 683.4
OTHER ASSETS
Other amounts due from related persons 13.6 0.0 0.0 0.0 17.8
Other 75.3 74.7 93.3 82.4 78.4
Total 89.0 74.7 93.3 82.4 96.2
TOTAL ASSETS 247,885.4 240,283.5 224,782.3 215,016.6 186,920.3
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
52
Table 3 (cont’d) CONSOLIDATED BALANCE SHEET OF FIJI GENERAL INSURANCE INDUSTRY
($’000) LIABILITIES 2008 2007 2006 2005 2004
UNDERWRITING PROVISIONS
Unearned premium provision 51,419.4 50,039.5 49,875.2 46,951.2 44,173.9
Outstanding claims provision 72,738.4 65,246.6 68,245.3 75,211.3 62,036.1
CAE provision 1,787.3 1,700.8 1,398.6 1,403.2 1,255.2
Other 0.0 0.0 0.0 0.0 0.0
Total 125,945.1 116,986.9 119,519.1 123,565.7 107,465.2
OTHER PROVISIONS
Taxation 4,064.4 6,918.1 7,614.9 4,914.8 3,373.0
Dividends 5,307.3 12,444.3 8,500.0 8,000.0 500.0
Stamp duty 815.1 687.9 334.7 329.8 441.6
Fire service levy 457.4 221.6 249.5 217.4 286.7
Employee entitlements 444.8 380.3 426.1 572.1 363.6
Doubtful debts 1,446.8 2,160.4 1,836.2 808.0 808.0
Other 985.9 1,178.6 718.1 558.2 387.3
Total 13,521.6 23,991.3 19,679.5 15,400.2 6,160.0
BORROWINGS
Borrowings from related persons 0.0 0.0 0.0 269.6 3,767.8
Other borrowings 0.0 0.0 52.4 0.0 0.0
Total 0.0 0.0 52.4 269.6 3,767.8
OTHER LIABILITIES
Amounts due:
- to insurers 0.0 0.0 (270.1) 100.7 38.2
- to reinsurers 7,450.4 4,777.5 5,668.8 10,880.4 9,699.5
- to related persons 5,555.4 7,363.7 6,522.7 3,555.3 3,519.4
- to agents and brokers 1,199.6 724.8 1,200.0 939.4 1,574.9
Sundry creditors 3,085.5 4,190.8 2,791.7 2,089.0 1,075.9
Other 1,323.4 1,910.5 986.0 466.5 981.6
Total 18,614.4 18,967.2 16,899.2 18,031.3 16,889.5
TOTAL LIABILITIES 158,081.1 159,945.4 156,150.1 157,266.8 134,282.6
NET ASSETS 89,804.2 80,338.0 68,632.1 57,749.8 52,637.7
OWNERS’ FUNDS
Paid-up capital 14,807.8 13,580.4 13,080.4 13,080.4 13,055.4
Retained profits 61,003.7 51,623.6 40,369.2 35,560.7 31,694.1
Balance of head office account 8,140.4 7,775.0 7,438.4 1,112.4 877.6
Asset revaluation reserve 4,675.7 6,244.4 6,629.5 6,881.6 6,583.8
General reserve 0.0 243.3 243.3 243.3 201.6
Other 1,176.7 871.4 871.4 871.4 225.2
TOTAL OWNERS’ FUNDS 89,804.2 80,338.0 68,632.1 57,749.8 52,637.7
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
53
Tabl
e 4
CON
SOLI
DATE
D ST
ATEM
ENT
OF P
REM
IUM
S FO
R GE
NER
AL C
0MPA
NIE
S AS
AT
31 D
ECEM
BER
2008
(IN
SIDE
FIJ
I)
($’0
00)
PART
ICU
LARS
FI
RE
HOU
SE-
MOT
OR
MAR
INE
MAR
INE
BURG
LARY
M
OTOR
-
PERS
ONAL
PR
OF.
PUBL
IC
WOR
KERS
M
EDIC
AL
TERM
OT
HER
TO
TAL
HOL
DERS
VE
HIC
LE
HU
LL
CARG
O
CTP
ACCI
DEN
T IN
DEM
NIT
Y LI
ABIL
ITY
COM
P.
LI
FE
Tota
l pre
miu
ms
(incl
udin
g un
clos
ed
busi
ness
and
third
par
ty c
olle
ctio
ns)
less
ret
urne
d pr
emiu
ms:
- D
irect
bus
ines
s 35
,589
.0
10,4
44.2
24
,689
.2
1,26
9.5
1,
731.
5
1,39
9.1
11
,680
.0
862.
2
488.
4
1,99
1.4
6,
294.
1
14,7
64.1
8,
738.
4
5,25
3.5
12
5,19
4.7
- 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
Third
par
ty c
olle
ctio
ns
4,44
7.4
2,
042.
0
237.
8
64.3
18
.9
12.8
22
6.5
0.
0
(0.4
) 0.
0
0.0
0.
0
0.0
25
5.1
7,
304.
4
GROS
S PR
EMIU
M IN
COM
E
31,1
41.6
8,
402.
2
24,4
51.4
1,
205.
3
1,71
2.5
1,
386.
2
11,4
53.5
86
2.2
48
8.9
1,
991.
4
6,29
4.1
14
,764
.1
8,73
8.4
4,
998.
4
117,
890.
3
Trea
ty r
eins
uran
ce o
utw
ards
:
(a)
Loc
al
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
622.
6
0.0
62
2.6
(b)
Ove
rsea
s P
ropo
rtio
nate
3,
405.
8
535.
5
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
8.
0
0.0
0.
0
1,12
7.0
35
.1
5,11
1.4
(c)
Ove
rsea
s N
on-P
ropo
rtio
nate
10
,320
.8
2,38
2.3
1,
647.
9
147.
5
97.8
1.
1
1,21
2.2
28
.0
57.4
27
3.7
34
6.6
12
7.6
0.
0
250.
8
16,8
93.7
Su
b-to
tal (
trea
ty)
13
,726
.7
2,91
7.8
1,
647.
9
147.
5
97.8
1.
1
1,21
2.2
28
.0
57.4
28
1.7
34
6.6
12
7.6
1,
749.
6
285.
9
22,6
27.7
Facu
ltativ
e re
insu
ranc
e ou
twar
ds:
(a)
Loc
al
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
(b)
Ove
rsea
s P
ropo
rtio
nate
92
7.9
(0
.2)
0.4
36
.9
24.6
0.
0
0.0
0.
0
0.0
26
.2
0.0
0.
0
0.0
32
2.8
1,
338.
5
(c)
Ove
rsea
s N
on-P
ropo
rtio
nate
97
1.8
0.
0
23.3
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
995.
1
Su
b-to
tal (
facu
ltativ
e)
1,89
9.7
(0
.2)
23.7
36
.9
24.6
0.
0
0.0
0.
0
0.0
26
.2
0.0
0.
0
0.0
32
2.8
2,
333.
6
TOTA
L RE
INSU
RAN
CE
15,6
26.3
2,
917.
5
1,67
1.6
18
4.4
12
2.3
1.
1
1,21
2.2
28
.0
57.4
30
7.9
34
6.6
12
7.6
1,
749.
6
608.
7
24,9
61.3
NET
PRE
MIU
M IN
COM
E
15,5
15.3
5,
484.
7
22,7
79.9
1,
020.
9
1,59
0.2
1,
385.
1
10,2
41.3
83
4.2
43
1.4
1,
683.
5
5,94
7.4
14
,636
.5
6,98
8.8
4,
389.
7
92,9
29.0
Ret
aine
d U
near
ned
Pre
miu
m P
rovi
sion
:
-
UP
P a
t beg
inni
ng o
f yea
r 11
,515
.6
3,08
6.2
11
,022
.7
624.
9
546.
9
725.
4
5,58
3.5
33
0.3
27
5.2
98
9.3
2,
998.
8
4,05
5.9
1,
336.
1
2,23
4.1
45
,324
.8
-
UP
P a
t end
of y
ear
12,3
27.9
3,
749.
1
11,4
86.8
44
2.9
67
0.8
70
1.0
5,
885.
7
330.
2
166.
1
931.
5
2,80
6.2
3,
568.
0
1,81
7.5
2,
255.
7
47,1
39.5
NET
EAR
NED
PRE
MIU
MS
14
,703
.0
4,82
1.8
22
,315
.8
1,20
2.9
1,
466.
3
1,40
9.5
9,
939.
1
834.
2
540.
5
1,74
1.3
6,
140.
0
15,1
24.5
6,
507.
5
4,36
8.1
91
,114
.3
No.
indi
vidu
al p
olic
ies
issu
ed /
rene
wed
4,
790
16,0
96
13,4
28
189
939
1,30
2 84
,723
75
4 63
2,
078
1,82
2 2,
774
710
2,84
9 1
32,5
17
No.
gro
up p
olic
ies
issu
ed /
rene
wed
0
0 30
7 0
0 0
0 45
0
0 0
464
194
1 1
,011
No.
per
sons
cov
ered
by
grou
p po
licie
s 0
0 1,
058
0 0
0 0
1,48
5 0
0 0
30,5
28
24,1
21
0 5
7,19
2
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
54
Tabl
e 5
CON
SOLI
DATE
D ST
ATEM
ENT
OF C
LAIM
S AN
D CO
MM
ISSI
ONS
FOR
GEN
ERAL
COM
PAN
IES
AS A
T 31
DEC
EMBE
R 20
08 (
INSI
DE F
IJI)
($’0
00)
PART
ICU
LARS
FI
RE
HOU
SE-
MOT
OR
MAR
INE
MAR
INE
BURG
LARY
M
OTOR
-
PERS
ONAL
PR
OF.
PUBL
IC
WOR
KERS
M
EDIC
AL
TERM
OT
HER
TO
TAL
HOL
DERS
VE
HIC
LE
HU
LL
CARG
O
CTP
ACCI
DEN
T IN
DEM
NIT
Y LI
ABIL
ITY
COM
P.
LI
FE
PART
A -
CLA
IMS
GROS
S CL
AIM
S PA
ID
-
Dire
ct b
usin
ess
7,04
3.8
1,
527.
6
13,3
72.5
1,
851.
3
683.
0
1,21
3.7
3,
240.
4
24.9
1.
6
217.
7
1,58
2.8
8,
279.
8
4,67
8.3
1,
921.
7
45,6
39.1
-
Inw
ards
rei
nsur
ance
bus
ines
s 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 7,
043.
8
1,52
7.6
13
,372
.5
1,85
1.3
68
3.0
1,
213.
7
3,24
0.4
24
.9
1.6
21
7.7
1,
582.
8
8,27
9.8
4,
678.
3
1,92
1.7
45
,639
.1
REI
NSU
RAN
CE R
ECOV
ERIE
S
-
Loca
l rei
nsur
ers
13
9.8
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
1,01
1.7
0.
0
1,15
1.5
-
Ove
rsea
s pr
opor
tiona
l
1,11
3.4
10
0.2
34
.8
47.6
0.
0
0.0
0.
0
0.0
0.
0
3.1
0.
0
0.0
29
3.3
0.
0
1,59
2.4
-
Ove
rsea
s no
n-pr
opor
tiona
l 2,
338.
1
0.0
0.
0
708.
4
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
3,04
6.4
Sub-
tota
l
3,
591.
2
100.
2
34.8
75
5.9
0.
0
0.0
0.
0
0.0
0.
0
3.1
0.
0
0.0
1,
305.
0
0.0
5,
790.
3
NET
CLA
IMS
PAID
3,45
2.5
1,
427.
4
13,3
37.8
1,
095.
4
682.
9
1,21
3.7
3,
240.
4
24.9
1.
6
214.
5
1,58
2.8
8,
279.
8
3,37
3.3
1,
921.
7
39,8
48.8
Net
cla
ims
outs
tand
ing
- cl
osin
g 9,
107.
8
1,42
4.3
7,
698.
2
1,62
0.9
95
3.2
85
0.6
17
,257
.4
347.
7
44.3
2,
333.
7
8,46
9.2
4,
559.
7
2,50
4.1
3,
467.
6
60,6
38.5
Net
cla
ims
outs
tand
ing
- op
enin
g 7,
232.
4
841.
1
6,20
0.1
1,
267.
1
1,19
6.2
96
6.5
16
,669
.3
159.
5
32.9
2,
974.
0
8,47
9.9
3,
996.
8
2,33
6.7
2,
671.
2
55,0
23.8
NET
CLA
IMS
INCU
RRED
5,32
7.9
2,
010.
6
14,8
35.9
1,
449.
3
439.
9
1,09
7.8
3,
828.
4
213.
0
13.0
(4
25.7
) 1,
572.
1
8,84
2.6
3,
540.
7
2,71
8.1
45
,463
.5
PART
B -
UN
DERW
RITI
NG
EXPE
NSE
S
Com
mis
sion
exp
ense
;
brok
er
2,92
5.5
33
3.7
92
9.5
10
0.6
86
.6
83.6
36
.4
63.1
54
.9
163.
9
386.
8
1,11
7.6
29
3.9
42
5.8
7,
001.
8
agen
ts
257.
1
562.
1
1,06
3.3
18
.2
18.2
43
.9
456.
4
48.8
4.
2
50.6
12
2.4
37
2.1
64
2.0
18
3.6
3,
843.
0
Acq
uisi
tion
expe
nse
1,02
4.6
14
4.6
1,
068.
3
52.1
92
.7
68.1
99
.8
80.6
35
.3
87.4
32
7.2
1,
272.
9
498.
6
230.
5
5,08
2.8
UN
DERW
RITI
NG
EXPE
NSE
4,
207.
2
1,04
0.3
3,
061.
2
170.
8
197.
6
195.
6
592.
6
192.
5
94.4
30
2.0
83
6.2
2,
762.
7
1,43
4.5
83
9.9
15
,927
.7
PART
C -
UN
DERW
RITI
NG
5,16
7.9
1,
770.
9
4,41
8.7
(4
17.2
) 82
8.8
11
6.1
5,
518.
1
428.
7
433.
1
1,86
5.0
3,
731.
6
3,51
9.2
1,
532.
3
810.
0
29,7
23.1
RESU
LT
PART
D -
UN
DERW
RITI
NG
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
RATI
OS
Loss
rat
io
36.2
41
.7
66.5
12
0.5
30
.0
77.9
38
.5
25.5
2.
4
(24.
4)
25.6
58
.5
54.4
62
.2
49.9
Expe
nse
ratio
28
.6
21.6
13
.7
14.2
13
.5
13.9
6.
0
23.1
17
.5
17.3
13
.6
18.3
22
.0
19.2
17
.5
Com
bine
d ra
tio
64.8
63
.3
80.2
13
4.7
43
.6
91.8
44
.5
48.6
19
.9
(7.2
) 39
.2
76.7
76
.5
81.5
67
.4
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
55
Tabl
e 6
CON
SOLI
DATE
D ST
ATEM
ENT
OF R
EIN
SURA
NCE
ARR
ANGE
MEN
TS F
OR G
ENER
AL C
OMPA
NIE
S AS
AT
31 D
ECEM
BER
2008
($’0
00)
PART
ICU
LARS
FIRE
H
OUSE
- M
OTOR
M
ARIN
E M
ARIN
E BU
RGLA
RY
MOT
OR -
PE
RSON
AL
PROF
. PU
BLIC
W
ORKE
RS
MED
ICAL
TE
RM
OTH
ER
TOTA
L
H
OLDE
RS
VEH
ICLE
H
ULL
CA
RGO
CT
P AC
CIDE
NT
INDE
MN
ITY
LIAB
ILIT
Y CO
MP.
LIFE
PART
A -
RETE
NTIO
NS
HIGH
EST
RISK
RET
ENTI
ON (N
ET)
- B
ase
rete
ntio
n
2,07
3.1
2,
073.
1
1,99
5.9
89
7.6
89
7.6
96
5.9
2,
095.
9
715.
9
400.
0
1,29
5.9
2,
045.
9
250.
0
350.
0
800.
0
16,8
56.8
- A
dditi
onal
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 (HR
R)
[su
m 1
:2]
2,
073.
1
2,07
3.1
1,
995.
9
897.
6
897.
6
965.
9
2,09
5.9
71
5.9
40
0.0
1,
295.
9
2,04
5.9
25
0.0
35
0.0
80
0.0
16
,856
.8
MAX
IMUM
EVE
NT R
ETEN
TION
(NET
)
- B
ase
rete
ntio
n
3,65
6.8
3,
656.
8
2,14
5.9
1,
397.
6
1,39
7.6
96
5.9
2,
095.
9
715.
9
400.
0
1,29
5.9
2,
045.
9
250.
0
350.
0
1,20
0.0
21
,574
.1
- A
dditi
onal
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)
[s
um 4
:5]
3,
656.
8
3,65
6.8
2,
145.
9
1,39
7.6
1,
397.
6
965.
9
2,09
5.9
71
5.9
40
0.0
1,
295.
9
2,04
5.9
25
0.0
35
0.0
1,
200.
0
21,5
74.1
PART
B -
LIM
ITS
Max
imum
acc
epta
nce
/
unde
rwrit
ing
limit
99
,282
.1
58,7
82.1
5,
583.
7
2,49
5.1
9,
441.
8
3,49
5.1
50
,000
.0
4,51
6.8
27
,000
.0
89,4
18.4
37
9,18
3.6
75
0.0
1,
100.
0
135,
350.
0
866,
398.
6
Max
imum
aut
omat
ic p
er
risk
capa
city
99,2
82.1
58
,782
.1
5,58
3.7
2,
495.
1
9,44
1.8
3,
495.
1
50,0
00.0
4,
516.
8
27,0
00.0
89
,418
.4
379,
183.
6
250.
0
750.
0
135,
350.
0
865,
548.
6
PART
C -
COV
ER
Max
imum
cat
astr
ophe
cove
r ar
rang
ed
1,
814,
410.
7
1,81
4,41
0.7
10
0,41
8.4
6,
718.
4
22,9
18.4
54
,183
.6
50,0
00.0
12
1,68
3.6
0.
0
21,8
36.7
37
4,18
3.6
0.
0
2,00
0.0
1,
017,
500.
0
5,40
0,26
3.9
MP
L us
ed (
if an
y)
1.
0
1.0
1.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
3.
0
Num
ber
of r
eins
tatm
ents
3.0
3.
0
3.0
0.
0
3.0
0.
0
0.0
1.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
13.0
Acc
umul
ated
loss
(st
op lo
ss)
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
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
56
Tabl
e 7
CON
SOLI
DATE
D ST
ATEM
ENT
OF C
LAIM
S RU
N-O
FF B
Y AC
CIDE
NT
YEAR
FOR
GEN
ERAL
COM
PAN
IES
AS A
T 31
DEC
EMBE
R 20
08
($’0
00)
PART
ICU
LARS
FI
RE
HOU
SE-
MOT
OR
MAR
INE
MAR
INE
BURG
LARY
M
OTOR
-
PERS
ONAL
PR
OF.
PUBL
IC
WOR
KERS
M
EDIC
AL
TERM
OT
HER
TO
TAL
($ o
r N
o. v
alue
as
appr
opri
ate)
HOL
DERS
VE
HIC
LE
HU
LL
CARG
O
CTP
ACCI
DEN
T IN
DEM
NIT
Y LI
ABIL
ITY
COM
P.
LI
FE
No
of c
laim
s re
port
ed th
is fi
nanc
ial y
ear
whe
re th
e ev
ent g
ivin
g ris
e to
the
clai
m o
ccur
red:
(a)
this
yea
r
257
26
7
4,25
6
25
108
24
5
48
15
6
69
286
47
,630
16
9
530
53
,911
(b)
in th
e ye
ar p
rior
to (
a)
31
18
278
3
24
15
27
1
5
25
72
6,
470
52
12
3
7,14
4
(c)
in th
e ye
ar tw
o ye
ars
prio
r to
(a)
4
2
11
1
0
2
31
0
1
1
35
16
7
19
13
0
(d)
in a
ny y
ear
earli
er th
an (
c)
0
0
8
0
0
2
40
0
0
3
25
13
7
2
100
TOTA
L N
O OF
CLA
IMS
REPO
RTED
29
2
287
4,
553
29
13
2
264
14
6
16
12
98
418
54
,129
23
5
674
61
,285
Gro
ss c
laim
pay
men
ts th
is fi
nanc
ial y
ear
whe
re th
e ev
ent g
ivin
g ris
e to
the
clai
m
occu
rred
($)
:
(a)
this
yea
r 4,
040.
8
1,27
1.4
10
,146
.3
1,41
0.9
47
1.1
90
2.5
14
4.5
13
.8
0.0
69
.1
272.
8
6,47
3.4
2,
531.
6
1,00
6.6
28
,754
.8
(
b) in
the
year
prio
r to
(a)
1,
856.
8
234.
0
2,72
2.3
33
2.6
15
2.9
28
8.1
38
2.7
11
.1
0.0
67
.0
404.
5
1,71
3.5
1,
673.
0
662.
6
10,5
00.9
(c)
in th
e ye
ar tw
o ye
ars
prio
r to
(a)
94
5.5
2.
3
166.
2
7.6
55
.7
0.5
74
1.0
0.
0
0.0
33
.4
316.
7
90.7
28
2.2
17
2.0
2,
813.
8
(d)
in a
ny y
ear
earli
er th
an (
c)
200.
6
20.0
33
7.7
10
0.3
3.
4
22.6
1,
972.
2
0.0
1.
6
48.2
59
3.0
(2
.1)
191.
5
80.5
3,
569.
6
TOTA
L GR
OSS
CLAI
MS
PAYM
ENTS
7,
043.
8
1,52
7.6
13
,372
.5
1,85
1.3
68
3.0
1,
213.
7
3,24
0.4
24
.9
1.6
21
7.7
1,
587.
1
8,27
5.5
4,
678.
3
1,92
1.7
45
,639
.1
No
of c
laim
s ou
tsta
ndin
g at
end
of
finan
cial
yea
r w
here
the
even
t giv
ing
rise
to th
e cl
aim
occ
urre
d:
(
a) th
is y
ear
84
60
771
11
49
68
43
5 2
32
195
398
27
253
1,99
8
(b)
in th
e ye
ar p
rior
to (
a)
29
4 12
5 5
20
18
58
2 0
24
193
85
12
123
698
(
c) in
the
year
two
year
s pr
ior
to (
a)
29
1 48
6
4 1
57
0 1
22
135
16
5 13
33
8
(d)
in a
ny y
ear
earli
er th
an (
c)
23
9 97
7
4 7
146
0 2
31
195
3 4
19
547
TOTA
L N
O OF
OU
TSTA
NDI
NG
CLAI
MS
165
74
1,04
1 29
77
94
30
4 7
5 10
9 71
8 50
2 48
40
8 3,
581
Gro
ss e
xpec
ted
futu
re p
aym
ents
on
outs
tand
ing
repo
rted
cla
ims
whe
re
the
even
t giv
ing
rise
to th
e cl
aim
oc
curr
ed (
$):
(
a) th
is y
ear
8,48
5.0
94
3.9
4,
303.
5
537.
8
227.
0
469.
5
1,30
7.3
44
.6
5.1
28
9.5
88
9.6
1,
950.
2
779.
5
1,39
2.6
21
,625
.2
(
b) in
the
year
prio
r to
(a)
43
6.1
22
.2
580.
5
114.
1
223.
4
117.
6
2,34
9.2
12
.1
0.0
30
9.5
1,
272.
2
545.
3
218.
8
940.
3
7,14
1.2
(
c) in
the
year
two
year
s pr
ior
to (
a)
782.
3
10.0
48
5.9
2,
698.
9
96.3
1.
5
2,66
1.6
0.
0
10.0
36
3.7
93
8.2
96
.2
115.
5
338.
0
8,59
8.1
(
d) in
any
yea
r ea
rlier
than
(c)
8,
482.
6
90.8
1,
200.
3
432.
7
46.1
12
5.1
6,
220.
7
0.0
27
.2
812.
4
3,33
0.2
31
.0
229.
1
367.
3
21,3
95.7
G
ross
pro
visi
on fo
r IB
NR
cla
ims
(all
acci
dent
yea
rs)
799.
0
316.
8
1,12
5.7
13
8.4
40
9.6
11
8.5
5,
525.
5
111.
0
10.0
58
1.6
1,
986.
5
1,89
6.2
1,
493.
0
629.
2
15,1
41.0
TOTA
L GR
OSS
O/S
PROV
ISIO
N
18,9
85.1
1,
383.
7
7,69
5.9
3,
922.
1
1,00
2.3
83
2.1
18
,064
.3
167.
7
52.3
2,
356.
8
8,41
6.6
4,
519.
0
2,83
5.8
3,
667.
5
73,9
01.2
Rei
nsur
ance
rec
over
ies
expe
cted
on
repo
rted
out
stan
ding
cla
ims
whe
re th
e ev
ent g
ivin
g ris
e to
the
cla
im o
ccur
red
($):
(a)
this
yea
r 4,
755.
4
1.6
11
2.0
10
4.8
0.
0
0.0
0.
0
0.0
0.
0
6.7
0.
0
0.0
17
9.2
54
.3
5,21
4.1
(
b) in
the
year
prio
r to
(a)
36
.5
0.8
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.0
37
.3
(
c) in
the
year
two
year
s pr
ior
to (
a)
58.3
3.
5
0.0
2,
141.
6
1.6
0.
0
34.5
0.
0
8.0
0.
0
0.0
0.
0
0.0
0.
0
2,24
7.4
(
d) in
any
yea
r ea
rlier
than
(c)
5,
354.
9
0.7
0.
0
111.
4
6.0
0.
0
905.
4
0.0
0.
0
0.0
0.
0
0.0
0.
0
0.6
6,
379.
0 Es
timat
ed r
eins
uran
ce r
ecov
erie
s on
IB
NR
cla
ims
1.1
3.
1
8.3
0.
0
4.0
0.
0
14.4
1.
0
0.0
77
.9
17.9
0.
0
235.
3
6.8
36
9.7
TOTA
L RE
INSU
RAN
CE R
ECOV
ERIE
S ON
O/S
10
,206
.3
9.6
12
0.3
2,
357.
7
11.6
0.
0
954.
3
1.0
8.
0
84.6
17
.9
0.0
41
4.6
61
.7
14,2
47.6
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
57
Tabl
e 8
CON
SOLI
DATE
D ST
ATEM
ENT
OF G
ROSS
AGG
REGA
TE E
XPOS
URE
S FO
R GE
NER
AL C
OMPA
NIE
S AS
AT
31 D
ECEM
BER
2008
($’0
00)
PART
ICU
LARS
FI
RE
HOU
SE-
MOT
OR
MAR
INE
MAR
INE
BURG
LARY
M
OTOR
- PE
RSON
AL
PROF
. PU
BLIC
W
ORKE
RS
MED
ICAL
TE
RM
OTH
ER
TOTA
L
HOL
DERS
VE
HIC
LE
HU
LL
CARG
O
CTP
ACCI
DEN
T IN
DEM
NIT
Y LI
ABIL
ITY
COM
P.
LI
FE
GROS
S AG
GREG
ATE
EXPO
SURE
S
INSI
DE F
IJI
-
Wes
tern
Div
isio
n 3,
486,
172.
2 63
7,93
9.7
190,
650.
6 63
,071
.1
39,1
16.4
7,
375.
1 0.
0 40
,806
.0
0.0
185,
495.
0 50
,275
.4
0.0
0.0
302,
546.
2 5,
003,
447.
7
- C
entr
al D
ivis
ion
3,96
1,36
7.6
1,27
9,69
2.1
356,
769.
7 49
,779
.6
171,
565.
0 9,
926.
9 0.
0 11
,987
.6
1,00
0.0
182,
251.
3 10
9,76
6.2
10.0
0.
0 13
8,23
2.9
6,27
2,34
9.0
- N
othe
rn D
ivis
ion
489,
009.
4 39
,132
.1
18,1
46.6
4,
345.
8 1,
501.
8 66
0.0
0.0
3,55
5.0
0.0
1,59
0.0
104,
276.
1 0.
0 0.
0 80
8.0
663,
024.
8
- Ea
ster
n D
ivis
ion
228,
186.
1 66
,609
.8
94,9
13.9
3,
047.
2 7,
734.
3 0.
0 0.
0 0.
0 0.
0 7,
350.
0 1,
153.
9 0.
0 99
9,88
3.7
286,
885.
0 1,
695,
763.
8
Sub-
tota
l - In
side
Fiji
8,
164,
735.
2 2,
023,
373.
8 66
0,48
0.8
120,
243.
7 21
9,91
7.6
17,9
62.1
0.
0 56
,348
.6
1,00
0.0
376,
686.
3 26
5,47
1.5
10.0
99
9,88
3.7
728,
472.
1 13
,634
,585
.2
OU
TSID
E FI
JI
23,6
42.3
44
.0
0.0
0.0
226.
8 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 26
,760
.1
27,2
43.0
77
,916
.2
TOTA
L 8,
188,
377.
4 2,
023,
417.
8 66
0,48
0.8
120,
243.
7 22
0,14
4.4
17,9
62.1
0.
0 56
,348
.6
1,00
0.0
376,
686.
3 26
5,47
1.5
10.0
1,
026,
643.
7 75
5,71
5.1
13,7
12,5
01.4
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
58
Table Nine – Statement of Revenue and Distribution
Table Ten – Statement of Revenue and Distribution for Statutory Funds
Table Eleven – Balance Sheet
Table Twelve – Statement of Premiums and Commissions
Table Thirteen – Statement of Policy Payments
Table Fourteen – Statement of Business Profile
Table Fifteen – Summary and Valuation of Policies
Table Sixteen – Valuation of Balance Sheet
Life Insurance
Reserve Bank of Fiji Insurance Annual Report 2008
59
Tabl
e 9
CON
SOLI
DATE
D ST
ATEM
ENT
OF R
EVEN
UE
& D
ISTR
IBU
TION
FOR
LIF
E CO
MPA
NIE
S
($’0
00)
PART
ICUL
ARS
ALL
STAT
UTO
RY F
UN
DS
OWN
ERS’
FU
NDS
TO
TAL
2008
20
07
2006
20
05
2004
20
08
2007
20
06
2005
20
04
2008
20
07
2006
20
05
2004
PAR
T A
- RE
VENU
E
Net
Insu
ranc
e P
rem
ium
s 82
,465
.1
78,6
51.6
75
,170
.4
73,0
23.9
69
,063
.7
0.0
0.
0
0.0
0.
0
0.0
82
,465
.1
78,6
51.6
75
,170
.4
73,0
23.9
69
,063
.7
Net
Con
side
ratio
n fo
r A
nnui
ties
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
Inve
stm
ent I
ncom
e:
-
Inte
rest
23
,709
.2
28,6
56.3
26
,312
.2
30,8
41.7
24
,954
.9
1,71
1.0
2,
676.
7
2,17
4.7
2,
459.
8
1,32
1.7
25
,420
.2
31,3
33.0
28
,486
.9
33,3
01.5
26
,276
.6
- R
ent
3,67
5.2
3,
158.
5
3,70
1.0
3,
841.
9
3,33
7.7
61
9.2
48
2.4
49
2.7
44
2.2
25
8.7
4,
294.
4
3,64
0.9
4,
193.
7
4,28
4.1
3,
596.
4
-
Div
iden
ds
1,68
4.7
2,
210.
7
1,41
2.1
81
1.6
72
0.3
24
5.8
25
7.7
13
1.6
58
.1
51.0
1,
930.
5
2,46
8.4
1,
543.
7
869.
7
771.
3
-
Oth
er
0.0
1,
365.
2
0.0
0.
0
1,37
0.9
0.
0
234.
8
0.0
0.
0
120.
2
0.0
1,
600.
0
0.0
0.
0
1,49
1.0
Gai
n (lo
ss)
on D
ispo
sal o
f Ass
ets
84.3
88
.9
(6.8
) 1,
637.
7
3.5
0.
0
0.0
0.
0
774.
0
0.0
84
.3
88.9
(6
.8)
2,41
1.7
3.
5 A
sset
Val
ue A
ppre
ciat
ion
(Dep
reci
atio
n)
(16,
816.
0)
10,4
31.9
(1
6,04
5.2)
(4
,912
.4)
(13.
9)
(1,6
64.3
) 3,
052.
6
(3,0
98.6
) (5
88.4
) 1,
219.
5
(18,
480.
3)
13,4
84.5
(1
9,14
3.8)
(5
,500
.8)
1,20
5.6
Oth
er In
com
e
731.
6
530.
4
228.
7
346.
0
(13.
9)
123.
1
78.7
29
.7
40.1
78
4.2
85
4.7
60
9.1
25
8.4
38
6.1
77
0.3
Tota
l Inc
ome
95,5
34.0
12
5,09
3.5
90
,772
.2
105,
590.
4
99,4
23.2
1,
035.
0
6,78
2.8
(2
69.8
) 3,
185.
8
3,75
5.3
96
,568
.9
131,
876.
3
90,5
02.5
10
8,77
6.2
10
3,17
8.5
N
et P
olic
y P
aym
ents
55
,581
.4
60,6
37.2
49
,987
.5
48,4
26.9
45
,590
.3
0.0
0.
0
0.0
0.
0
0.0
55
,581
.4
60,6
37.2
49
,987
.5
48,4
26.9
45
,590
.3N
et C
omm
issi
ons
Incu
rred
6,
950.
7
7,20
9.2
7,
590.
5
7,44
9.3
6,
768.
6
0.0
0.
0
0.0
0.
0
0.0
6,
950.
7
7,20
9.2
7,
590.
5
7,44
9.3
6,
768.
6O
pera
ting
Expe
nses
16
,890
.2
17,6
67.5
16
,506
.4
17,0
85.3
15
,291
.9
440.
4
433.
7
429.
5
458.
2
569.
6
17,3
30.6
18
,101
.1
16,9
35.9
17
,543
.5
15,8
61.6
In
crea
se (
Dec
reas
e) in
Pol
icy
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
L
iabi
litie
s 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
To
tal O
utgo
ing
79,4
22.4
85
,513
.9
74,0
84.4
72
,961
.5
67,6
50.8
44
0.4
43
3.7
42
9.5
45
8.2
56
9.6
79
,862
.7
85,9
47.5
74
,513
.7
73,4
19.6
68
,220
.4
PRE-
TAX
REVE
NU
E SU
RPLU
S / (
DEFI
CIT)
16
,111
.6
39,5
79.6
16
,687
.9
32,6
28.9
31
,772
.4
594.
6
6,34
9.1
(6
99.3
) 2,
727.
6
3,18
5.7
16
,706
.2
45,9
28.9
15
,988
.7
35,3
56.6
34
,958
.1
Taxa
tion
expe
nse
249.
3
(567
.8)
(1,6
47.4
) 1,
122.
9
1,29
6.5
79
4.2
73
2.5
27
2.2
74
9.0
37
7.7
1,
043.
6
164.
7
(1,3
75.2
) 1,
871.
9
1,67
4.2
AFTE
R-TA
X RE
VEN
UE
SURP
LUS
/ (DE
FICI
T)
15,8
62.3
40
,147
.4
18,3
35.3
31
,506
.0
30,4
75.9
(1
99.6
) 5,
616.
6
(971
.5)
1,97
8.6
2,
808.
0
15,6
62.7
45
,764
.1
17,3
64.0
33
,484
.7
33,2
83.9
PA
RT B
- D
ISTR
IBU
TION
Bal
ance
of R
even
ue A
ccou
nt a
t the
begi
nnin
g of
the
year
48
2,22
1.4
44
9,65
5.1
43
7,38
8.7
40
7,09
0.7
38
1,63
0.8
60
,996
.0
50,1
31.3
46
,604
.0
41,4
37.1
34
,570
.1
543,
217.
4
499,
786.
4
483,
992.
7
448,
527.
9
416,
200.
9 R
even
ue S
urpl
us /
(Defi
cit)
for
this
per
iod
15,8
62.3
40
,147
.4
18,3
35.3
31
,506
.0
30,4
75.9
(1
99.6
) 5,
616.
6
(971
.5)
1,97
8.6
2,
808.
0
15,6
62.7
45
,764
.0
17,3
63.9
33
,484
.6
33,2
83.8
Oth
er T
rans
fers
in
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
BALA
NCE
OF
REVE
NU
E AC
COU
NT
49
8,08
3.7
48
9,80
2.5
45
5,72
4.0
43
8,59
6.7
41
2,10
6.6
60
,796
.4
55,7
47.9
45
,632
.5
43,4
15.8
37
,378
.1
558,
880.
1
545,
550.
4
501,
356.
6
482,
012.
5
449,
484.
7 BE
FORE
DIS
TRIB
UTI
ONS
B
onus
es P
rovi
ded
For
or P
aid
2,63
0.6
2,
082.
0
1,28
2.1
1,
223.
1
718.
1
0.0
0.
0
0.0
0.
0
0.0
2,
630.
6
2,08
2.0
1,
282.
1
1,22
3.1
71
8.1
Tran
sfer
to O
wne
rs’ F
und
4,87
4.0
5,
248.
1
4,49
8.7
8,
648.
8
4,05
9.0
(4
,874
.0)
(5,2
48.1
) (4
,498
.7)
(8,6
48.8
) (4
,059
.0)
0.0
0.
0
0.0
0.
0
0.0
Tran
sfer
s to
Res
erve
s 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 D
ivid
ends
Pro
vide
d Fo
r or
Pai
d 0.
0
0.0
0.
0
0.0
0.
0
20,0
00.0
0.
0
0.0
5,
000.
0
0.0
20
,000
.0
0.0
0.
0
5,00
0.0
0.
0 O
ther
Tra
nsfe
rs O
ut (
atta
ch d
etai
ls)
315.
0
251.
0
288.
1
(8,6
63.9
) 23
8.8
0.
0
0.0
0.
0
460.
6
0.0
31
5.0
25
1.0
28
8.1
(8
,203
.3)
238.
8
BA
LAN
CE O
F RE
VEN
UE
ACCO
UN
T AT
TH
E EN
D OF
TH
E YE
AR
490,
264.
1
482,
221.
4
449,
655.
1
437,
388.
7
407,
090.
7
45,6
70.4
60
,996
.0
50,1
31.3
46
,604
.0
41,4
37.1
53
5,93
4.6
54
3,21
7.4
49
9,78
6.5
48
3,99
2.8
44
8,52
8.0
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
60
Tabl
e 10
CO
NSO
LIDA
TED
STAT
EMEN
T OF
REV
ENU
E AN
D DI
STRI
BUTI
ON F
OR S
TATU
TORY
FU
NDS
OF
LIFE
COM
PAN
IES
($
’000
)
PA
RTIC
ULA
RS
PART
ICIP
ATIN
G N
ON-P
ARTI
CIPA
TIN
G TO
TAL
20
08
2007
20
06
2005
20
04
2008
20
07
2006
20
05
2004
20
08
2007
20
06
2005
20
04
A.
REV
ENU
E
Net
Insu
ranc
e P
rem
ium
s 77
,950
.5
73,2
65.1
68
,594
.4
66,2
88.4
62
,501
.7
4,51
4.6
5,
386.
6
6,57
6.0
6,
735.
4
6,56
1.9
82
,465
.1
78,6
51.6
75
,170
.4
73,0
23.9
69
,063
.7
Net
Con
side
ratio
n fo
r A
nnui
ties
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
Inve
stm
ent I
ncom
e
- In
tere
st
23,4
56.2
28
,126
.4
25,7
85.4
29
,995
.9
24,0
69.9
25
3.0
52
9.9
52
6.8
84
5.9
88
5.0
23
,709
.2
28,6
56.3
26
,312
.2
30,8
41.7
24
,954
.9
- R
ent
3,60
4.3
3,
069.
4
3,59
1.7
3,
702.
4
3,16
2.1
70
.8
89.1
10
9.3
13
9.5
17
5.6
3,
675.
2
3,15
8.5
3,
701.
0
3,84
1.9
3,
337.
7
-
Div
iden
ds
1,59
0.1
1,
934.
7
1,13
4.0
40
3.7
49
4.2
94
.6
276.
0
278.
1
407.
9
226.
1
1,68
4.7
2,
210.
7
1,41
2.1
81
1.6
72
0.3
- O
ther
0.
0
1,32
5.4
0.
0
0.0
1,
041.
0
0.0
39
.8
0.0
0.
0
329.
9
0.0
1,
365.
2
0.0
0.
0
1,37
0.9
Gai
n (lo
ss)
on D
ispo
sal o
f Ass
ets
84.3
88
.9
(6.8
) 1,
161.
3
3.5
0.
0
0.0
0.
0
476.
5
0.0
84
.3
88.9
(6
.8)
1,63
7.7
3.
5 A
sset
Val
ue A
ppre
ciat
ion
/ (D
epre
ciat
ion)
(1
5,93
6.0)
10
,162
.4
(15,
546.
5)
(4,7
50.4
) 0.
0
(880
.0)
269.
5
(498
.7)
(162
.0)
(13.
9)
(16,
816.
0)
10,4
31.9
(1
6,04
5.2)
(4
,912
.4)
(13.
9)O
ther
Inco
me
714.
8
511.
4
229.
2
360.
6
(3.9
) 16
.8
19.0
(0
.5)
(14.
6)
(10.
0)
731.
6
530.
4
228.
7
346.
0
(13.
9)
To
tal I
ncom
e 91
,464
.1
118,
483.
7
83,7
81.3
97
,161
.9
91,2
68.5
4,
069.
8
6,60
9.8
6,
990.
9
8,42
8.5
8,
154.
6
95,5
34.0
12
5,09
3.5
90
,772
.2
105,
590.
4
99,4
23.2
N
et P
olic
y P
aym
ents
54
,032
.9
57,7
94.1
47
,475
.5
46,0
99.0
42
,667
.2
1,54
8.5
2,
843.
1
2,51
2.0
2,
327.
9
2,92
3.1
55
,581
.4
60,6
37.2
49
,987
.5
48,4
26.9
45
,590
.3
Net
Com
mis
sion
s In
curr
ed
6,70
7.7
6,
944.
8
7,23
9.3
7,
087.
4
6,46
1.4
24
3.0
26
4.4
35
1.2
36
2.0
30
7.2
6,
950.
7
7,20
9.2
7,
590.
5
7,44
9.3
6,
768.
6O
pera
ting
Expe
nses
14
,812
.7
15,6
84.8
14
,105
.2
15,0
62.9
12
,986
.7
2,07
7.5
1,
982.
6
2,40
1.3
2,
022.
4
2,30
5.2
16
,890
.2
17,6
67.5
16
,506
.4
17,0
85.3
15
,291
.9
Incr
ease
/ (D
ecre
ase)
in P
olic
y 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 Li
abili
ties
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
Tota
l Out
goin
g 75
,553
.4
80,4
23.7
68
,819
.9
68,2
49.2
62
,115
.3
3,86
9.0
5,
090.
2
5,26
4.5
4,
712.
3
5,53
5.5
79
,422
.4
85,5
13.9
74
,084
.4
72,9
61.5
67
,650
.8
PR
E-TA
X RE
VEN
UE
SURP
LUS
/ (DE
FICI
T)
15,9
10.7
38
,060
.0
14,9
61.5
28
,912
.7
29,1
53.2
20
0.9
1,
519.
6
1,72
6.4
3,
716.
2
2,61
9.1
16
,111
.6
39,5
79.6
16
,687
.9
32,6
28.9
31
,772
.4
Ta
xatio
n (5
4.5)
(8
15.2
) (1
,819
.1)
1,05
6.5
1,
000.
5
303.
8
247.
4
171.
7
66.5
29
6.0
24
9.3
(5
67.8
) (1
,647
.4)
1,12
2.9
1,
296.
5
AF
TER-
TAX
REVE
NU
E SU
RPLU
S / (
DEFI
CIT)
15
,965
.2
38,8
75.2
16
,780
.6
27,8
56.2
28
,152
.7
(102
.9)
1,27
2.2
1,
554.
8
3,64
9.8
2,
323.
2
15,8
62.3
40
,147
.5
18,3
35.4
31
,506
.1
30,4
76.0
B. D
ISTR
IBU
TION
Bal
ance
of R
even
ue A
ccou
nt a
t the
begi
nnin
g of
the
year
47
1,95
4.5
43
8,38
7.2
42
5,97
8.3
39
1,88
9.8
36
7,19
2.3
10
,266
.9
11,2
67.9
11
,410
.3
15,2
00.9
14
,438
.4
482,
221.
4
449,
655.
1
437,
388.
7
407,
090.
7
381,
630.
8R
even
ue S
urpl
us /
(Defi
cit)
for
this
per
iod
15,9
65.2
38
,875
.2
16,7
80.6
27
,856
.2
28,1
52.7
(1
02.9
) 1,
272.
2
1,55
4.8
3,
649.
8
2,32
3.2
15
,862
.3
40,1
47.4
18
,335
.3
31,5
06.0
30
,475
.9
Oth
er T
rans
fers
in
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
BA
LAN
CE O
F RE
VEN
UE
ACCO
UN
T
487,
919.
7
477,
262.
4
442,
758.
9
419,
746.
1
395,
345.
0
10,1
63.9
12
,540
.1
12,9
65.1
18
,850
.7
16,7
61.6
49
8,08
3.7
48
9,80
2.5
45
5,72
4.0
43
8,59
6.7
41
2,10
6.6
BEFO
RE D
ISTR
IBU
TION
S
B
onus
es P
rovi
ded
For
or P
aid
2,63
0.6
2,
082.
0
1,28
2.1
1,
223.
1
718.
1
0.0
0.
0
0.0
0.
0
0.0
2,
630.
6
2,08
2.0
1,
282.
1
1,22
3.1
71
8.1
Tran
sfer
to O
wne
rs’ F
und
2,82
1.8
2,
974.
8
2,80
1.6
2,
742.
2
2,49
8.4
2,
052.
3
2,27
3.3
1,
697.
2
5,90
6.6
1,
560.
7
4,87
4.0
5,
248.
1
4,49
8.7
8,
648.
8
4,05
9.0
Tran
sfer
s to
Res
erve
s 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 D
ivid
ends
Pro
vide
d Fo
r or
Pai
d 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 O
ther
Tra
nsfe
rs O
ut
315.
0
251.
0
288.
1
(8,3
92.2
) 23
8.8
0.
0
0.0
0.
0
(271
.7)
0.0
31
5.0
25
1.0
28
8.1
(8
,663
.9)
238.
8
BALA
NCE
OF
REVE
NU
E AC
COU
NT
AT T
HE
482,
152.
4
471,
954.
5
438,
387.
2
424,
172.
9
391,
889.
8
8,11
1.7
10
,266
.9
11,2
67.9
13
,215
.8
15,2
00.9
49
0,26
4.1
48
2,22
1.4
44
9,65
5.1
43
7,38
8.7
40
7,09
0.7
END
OF T
HE
YEAR
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
61
Table 11 ASSETS AND LIABILITIES OF THE FIJI LIFE INSURANCE INDUSTRY ($’000)
ASSETS 2008 2007 2006 2005 2004
Current Assets Cash on hand 5,856.5 15,475.7 4,038.8 36,495.1 2,370.3 Outstanding Premiums 15,634.2 14,635.8 15,968.0 14,947.9 14,080.8 Amounts due from reinsurers 59.8 90.2 398.7 76.0 415.1 Deferred reinsurance expense 0.0 275.3 348.8 406.0 373.1Deferred acquisition expense 0.0 0.0 0.0 0.0 0.0 Prepayments 730.2 418.7 380.7 343.3 349.6 Sundry debtors 5,628.1 5,964.7 5,254.7 5,259.6 4,838.8 Other Current Assets 134.3 91.7 1,321.5 (17.9) 28.2
Total 28,043.1 36,952.2 27,711.4 57,510.0 22,455.9 Loans Loans to directors and other persons 0.0 0.0 0.0 0.0 0.0 Loans to related persons 0.0 0.0 0.0 0.0 0.0 Unsecured employee loan 0.0 12.1 17.9 125.9 208.4 Other Loans 94,149.6 97,077.2 101,276.3 96,699.8 91,190.4 Total 94,149.6 97,089.3 101,294.2 96,825.7 91,398.8 Investments Land & Buildings 58,445.8 57,743.5 62,164.9 61,563.3 58,255.5 Government securities 206,055.6 230,919.7 185,845.1 206,467.5 222,219.5 Bank deposits 46,589.0 40,186.1 48,684.9 3,336.2 4,275.3 Debentures 30,540.1 34,535.9 22,832.3 18,736.6 22,706.7 Shares 60,180.2 75,775.6 59,690.7 60,542.4 50,221.5 Other Investments 15,682.9 0.0 0.0 0.0 0.0
Total 417,493.7 439,160.7 379,217.7 350,645.9 357,678.4 Fixed Assets Furniture & Fittings 4,709.7 2,522.1 1,763.5 2,277.2 2,485.3Motor vehicles 1,342.5 804.1 962.8 966.9 1,010.5 Computer Hardware & Software 817.6 649.6 496.6 620.3 567.6 Other Fixed Assets 58.3 69.4 74.5 0.0 0.0
Total 6,928.1 4,045.3 3,297.5 3,864.5 4,063.4
Intangible Assets Intangible Assets 0.0 0.0 0.0 0.0 0.0 Total 0.0 0.0 0.0 0.0 0.0 Other Assets Other 9,667.1 8,341.2 6,165.2 4,488.6 5,740.8 Total 9,667.1 8,341.2 6,165.2 4,488.6 5,740.8 TOTAL ASSETS 556,281.7 585,588.8 517,686.0 513,334.7 481,337.3
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
62
Table 11 (cont’d) ASSETS AND LIABILITIES OF THE FIJI LIFE INSURANCE INDUSTRY ($’000)
LIABILITIES 2008 2007 2006 2005 2004
Balance of revenue account at year end 490,264.1 482,221.4 449,655.1 437,388.7 407,090.7 Claims admitted but not paid 5,878.4 5,912.8 5,350.6 6,634.7 6,508.7 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 496,142.5 488,134.2 455,005.7 444,023.4 413,599.4
Other Provisions Taxation 1,003.7 957.9 865.0 3,260.6 2,309.6 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 1,316.9 1,080.2 951.9 868.5 Doubtful debts 3,866.4 3,040.2 2,834.7 3,563.3 4,102.1 Other 0.0 0.0 0.0 0.0 0.0 Total 7,013.7 5,315.0 4,779.9 7,775.8 7,280.2 Borrowings Borrowings from related persons 0.0 0.0 0.0 0.0 0.0 Other borrowings 9,422.8 11,106.1 0.0 0.0 0.0 Total 9,422.8 11,106.1 0.0 0.0 0.0 Other Liabilities Amounts due: - to insurers 0.0 0.0 0.0 0.0 0.0 - to reinsurers 95.9 147.1 332.5 130.0 50.8 - to related persons (32.0) 192.1 65.3 36.4 49.4 - to agents and brokers 0.0 0.3 (0.1) (1.8) (1.1)Sundry creditors 6,767.9 6,643.2 7,029.5 5,535.6 4,558.5 Other 26.1 409.1 0.0 0.0 0.0 Total 6,857.9 7,391.7 7,427.3 5,700.2 4,657.6 TOTAL LIABILITIES 519,437.0 511,947.0 467,212.9 457,499.4 425,537.3 NET ASSETS 36,844.6 73,641.7 50,473.1 55,835.2 55,800.0 OWNERS’ FUNDS Paid-up capital 9,091.1 9,091.1 9,091.1 9,091.1 14,091.1 Retained profits 25,485.7 40,811.3 29,946.5 26,419.2 16,252.4 Balance of head office account 371.5 362.3 341.9 332.3 311.5 Asset revaluation reserve (9,197.4) 12,283.3 0.0 8,899.0 14,051.4 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 73,641.7 50,473.1 55,835.2 55,800.0
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
63
Table 12 CONSOLIDATED STATEMENTS OF PREMIUMS AND COMMISSIONS FOR LIFE COMPANIES AS AT 31 DECEMBER 2008 ($’000)
PARTICULARS ORDINARY LIFE (INDIVIDUAL) INDUSTRIAL LIFE GROUP LIFE OTHER OTHER TOTAL
WHOLE OF LIFE ENDOWMENT TERM (TERM) (INDIVIDUAL) (GROUP)
PART A - PREMIUMS
Direct Insurance Premiums:
- new 339.2 7,374.3 537.8 0.0 5.2 6,561.8 0.0 14,818.3
- renewal 4,239.3 60,794.7 1,567.0 0.0 31.2 1,705.2 0.0 68,337.4
Sub total - Direct 4,578.5 68,169.0 2,104.8 0.0 36.4 8,267.1 0.0 83,155.7
Reinsurance Premiums Inwards 0.0 0.0 480.8 0.0 0.0 70.6 0.0 551.4
GROSS INSURANCE PREMIUMS 4,578.5 68,169.0 2,585.6 0.0 36.4 8,337.7 0.0 83,707.2
Reinsurance Premiums Ceded:
- treaty local 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- treaty overseas 570.2 512.4 53.4 0.0 0.0 106.1 0.0 1,242.1
- facultative local 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- facultative overseas 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sub total - Cessions 570.2 512.4 53.4 0.0 0.0 106.1 0.0 1,242.1
NET INSURANCE PREMIUMS 4,008.3 67,656.6 2,532.2 0.0 36.4 8,231.6 0.0 82,465.1
Gross Consideration for Annuities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Reinsurance Outwards 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NET CONSIDERATION FOR ANNUITIES 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
PART B - COMMISSIONS
Paid or Payable:
(i) Direct business
- new 154.3 1,640.8 62.2 0.0 0.0 186.2 0.0 2,043.4
- renewal 162.0 4,625.7 58.7 0.0 0.0 60.9 0.0 4,907.3
(ii) Reinsurance business 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sub total - Paid or Payable 316.3 6,266.4 120.9 0.0 0.0 247.1 0.0 6,950.7
Received or Receivable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
NET COMMISSIONS INCURRED 316.3 6,266.4 120.9 0.0 0.0 247.1 0.0 6,950.7
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
64
Table 13 CONSOLIDATED STATEMENT OF POLICY PAYMENTS FOR LIFE COMPANIES AS AT 31 DECEMBER 2008
($’000)
PARTICULARS ORDINARY LIFE (INDIVIDUAL) INDUSTRIAL LIFE GROUP LIFE OTHER OTHER TOTAL
WHOLE OF LIFE ENDOWMENT TERM (TERM) (INDIVIDUAL) (GROUP)
POLICY PAYMENTS
Gross Policy Payments
- maturities 0.0 30,626.4 (0.1) 0.0 0.0 0.0 0.0 30,626.4
- death 1,390.0 3,794.5 699.4 0.0 100.0 59.4 0.0 6,043.3
- annuities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- surrenders 1,143.2 17,639.2 86.7 0.0 0.0 0.0 0.0 18,869.1
- accident & health 0.0 45.0 0.0 0.0 0.0 147.7 0.0 192.7
- other 0.0 56.8 0.0 0.0 0.0 0.0 0.0 56.8
Total 2,533.2 52,162.0 786.0 0.0 100.0 207.1 0.0 55,788.3
Reinsurance Claims Payments 0.0 0.0 929.6 0.0 0.0 0.0 0.0 929.6
Total Policy Payments 2,533.2 52,162.0 1,715.6 0.0 100.0 207.1 0.0 56,717.9
Reinsurance Recoveries 57.3 705.0 251.8 0.0 0.0 122.5 0.0 1,136.5
NET POLICY PAYMENTS 2,476.0 51,457.0 1,463.9 0.0 100.0 84.6 0.0 55,581.4
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
65
Table 14 CONSOLIDATED STATEMENT OF BUSINESS PROFILE FOR LIFE COMPANIES AS AT 31 DECEMBER 2008 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 74 0 4,492.1 0.0 287.1 - Endowment insurances 11,536 0 186,007.3 0.0 14,714.1 - Term insurances 0 407 0.0 165,076.0 674.0 Sub total - ordinary life 11,610 407 190,499.4 165,076.0 15,675.1 Industrial Life Insurances 0 0 0.0 0.0 0.0 Annuities 0 0 0.0 0.0 0.0 Total 11,610 407 190,499.4 165,076.0 15,675.1 TERMINATIONS AND TRANSFERS Policies other than annuities - Death 319 6 3,881.1 4,714.6 289.0 - Maturity 1,896 0 14,658.9 13,965.6 1,319.4 - Expiry of term 0 16 0.0 5,566.4 31.6 - Surrender 4,607 18 49,911.9 76,219.9 4,085.3 - Forfeiture 8,067 122 132,514.9 140,175.6 10,172.9 - Net transfers 0 0 0.0 0.0 0.0 - Others 332 3 9,370.9 8,590.5 349.0 Sub total - policies other than annuities 15,221 165 210,337.6 249,232.7 16,247.1 Annuities 0 0 0.0 0.0 0.0 Total 15,221 165 210,337.6 249,232.7 16,247.1 BUSINESS IN FORCE AT END OF YEAR 1. LIFE BUSINESS IN FORCE Ordinary Life Insurances - Whole of Life insurances 3,367 3 113,949.1 1.1 4,595.1 - Endowment insurances 81,350 18 1,101,642.4 14.5 72,568.5 - Term insurances 0 1,455 0.0 353,254.3 2,188.6 Sub total - ordinary life 84,717 1,476 1,215,591.5 353,269.9 79,352.2 Industrial Life Insurances 0 0 0.0 0.0 0.0 Annuities 0 0 0.0 0.0 0.0 Total 84,717 1,476 1,215,591.5 353,269.9 79,352.2 2. OTHER BUSINESS IN FORCE Accident 0 0 0.0 880,418.6 2,066.2 Other 0 0 0.0 0.0 0.0 Sub total - other business 0 0 0.0 880,418.6 2,066.2 Total 84,717 1,476 1,215,591.5 1,233,688.5 81,418.4 GROUP BUSINESS NO. OF NO. OF SUMS PREMIUMS POLICIES LIVES INSURED ($’000) ($’000) NEW BUSINESS: Life (Term) Insurances 1 36 0.0 900.0 5.9 Accident Insurances 0 0 0.0 0.0 0.0 Others 0 0 0.0 0.0 0.0 Total 1 36 0.0 900.0 5.9 BUSINESS IN FORCE: Life (Term) Insurances 1 167 0.0 4,950.0 53.2 Accident Insurances 0 0 0.0 0.0 0.0 Others 0 0 0.0 0.0 0.0 Total 1 167 0.0 4,950.0 53.2 TOTAL GROUP BUSINESS 2 203 0.0 5,850.0 59.1
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
66
Table 15 CONSOLIDATED SUMMARY AND VALUATION OF POLICIES FOR LIFE COMPANIES AS AT 31 DECEMBER 2008
PARTICULARS OF POLICIES FOR VALUATION ($’000) VALUATION BASIS
TYPE OF INSURANCE NO. OF SUM OFFICE NET YEARLY SUM NET YEARLY NET
POLICIES INSURED BONUSES YRLY PREM. PREMIUMS INSURED BONUSES PREMIUMS LIABILITY
ORDINARY INSURANCE G.P.1 With Immediate Participation in Profits For: Whole Term of Life Insurance 3,470 119,861.1 44,979.6 4,834.6 2,824.2 48,455.4 23,089.8 26,746.8 44,798.4 Endowment Insurance 44,124 659,074.2 143,713.6 43,341.0 25,674.5 366,814.6 92,640.7 206,586.8 252,868.5 Others 27,636 342,863.4 62,140.9 21,193.1 19,615.2 203,179.2 104,291.4 198,931.9 108,538.7 Extra Premium 0 0.0 0.0 690.3 0.0 690.3 0.0 0.0 690.3 Adjustment 0 0.0 0.0 0.0 0.0 13,864.5 0.0 0.0 13,864.5 Total Insurances 75,230 1,121,798.7 250,834.2 70,059.0 48,113.8 633,004.1 220,021.9 432,265.5 420,760.5 Deduct Reinsurances 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Net Insurances 75,230 1,121,798.7 250,834.2 70,059.0 48,113.8 633,004.1 220,021.9 432,265.5 420,760.5 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 Deduct Reinsurances 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 75,230 1,121,798.7 250,834.2 70,059.0 48,113.8 633,004.1 220,021.9 432,265.5 420,760.5 PARTICULARS OF POLICIES FOR VALUATION VALUATION BASIS TYPE OF INSURANCE NO. OF SUM OFFICE NET YEARLY SUM NET YEARLY NET POLICIES INSURED BONUSES YRLY PREM. PREMIUMS INSURED BONUSES PREMIUMS LIABILITY G.P.3 Without Participation in Profits For: Whole Term of Life Insurance 272 740.0 706.4 0.0 0.0 395.3 331.8 0.0 727.1 Endowment Insurance 293 1,230.3 941.0 0.0 0.0 936.4 679.3 0.0 1,615.7 Others 13,326 476,889.8 10,509.7 6,736.9 5,060.3 76,596.0 9,972.8 52,633.1 33,935.7 Extra Premium 0 0.0 0.0 113.8 0.0 113.8 0.0 0.0 113.8 Adjustment 0 0.0 0.0 0.0 0.0 3,436.3 0.0 0.0 3,436.3 Total Insurances 13,891 478,860.2 12,157.1 6,850.8 5,060.3 81,477.9 10,983.9 52,633.1 39,828.6 Deduct Reinsurances 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Net Insurances Without Profits 13,891 478,860.2 12,157.1 6,850.8 5,060.3 81,477.9 10,983.9 52,633.1 39,828.6 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 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 Endowments 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Deduct Reinsurances 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 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 Deduct Reinsurances 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 0 909,339.1 0.0 1,993.8 0.0 418.8 0.0 0.0 418.8 Extra premiums 0 0.0 0.0 109.5 0.0 109.5 0.0 0.0 109.5 Total Accidents 0 909,339 0.0 2,103.3 0.0 528.3 0.0 0.0 528.3 Total Net Ordinary Insurances 89,121 2,509,998.0 262,991.3 79,013.1 53,174.1 715,010.3 231,005.8 484,898.7 461,117.4
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
67
Tabl
e 16
CO
NSO
LIDA
TED
VALU
ATIO
N B
ALAN
CE S
HEE
T FO
R LI
FE C
OMPA
NIE
S
($’0
00)
PART
ICU
LARS
PA
RTIC
IPAT
ING
NON
-PAR
TICI
PATI
NG
Tota
l
2008
20
07
2006
20
05
2004
20
08
2007
20
06
2005
20
04
2008
20
07
2006
20
05
2004
NET
LIA
BILI
TIES
U
NDE
R PO
LICI
ES
(i) O
n Re
gist
ers
in F
iji
427,
379.
5
429,
569.
1
365,
574.
6
387,
624.
0
369,
378.
1
39,3
00.6
31
,563
.9
29,4
32.5
30
,897
.6
23,4
89.0
46
6,68
0.0
46
1,13
3.0
39
5,00
7.0
41
8,52
1.6
39
2,86
7.1
(ii) O
ther
(spe
cify
) 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
TOTA
L NE
T LI
ABIL
ITIE
S 42
7,37
9.5
42
9,56
9.1
36
5,57
4.6
38
7,62
4.0
36
9,37
8.1
39
,300
.6
31,5
63.9
29
,432
.5
30,8
97.6
23
,489
.0
466,
680.
0
461,
133.
0
395,
007.
0
418,
521.
6
392,
867.
1
Incr
ease
(dec
reas
e) in
po
licy l
iabi
litie
s 10
,028
.2
25,8
44.2
18
,400
.3
12,6
34.6
5,
484.
4
2,58
1.9
3,
691.
7
4,00
9.2
6,
123.
5
8,73
9.2
12
,610
.2
29,5
35.9
22
,409
.5
18,7
58.1
14
,223
.6
BALA
NCE
OF
STAT
UTOR
Y FU
ND
437,
407.
7
455,
413.
3
383,
974.
9
400,
258.
6
374,
862.
5
41,8
82.5
35
,255
.6
33,4
41.7
37
,021
.1
32,2
28.2
47
9,29
0.2
49
0,77
7.9
41
7,52
5.6
43
7,38
8.7
40
7,09
0.7
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
68
Table Seventeen – Profit and Loss Statement
Table Eighteen – Balance Sheet
Table Nineteen – Insurance Broking Account
Table Twenty – Statement of Premiums
Insurance Brokers
Reserve Bank of Fiji Insurance Annual Report 2008
69
Table 17 CONSOLIDATED PROFIT AND LOSS STATEMENT FOR BROKERS ($’000)
PARTICULARS 2008 2007 2006 2005 2004 REVENUE
Brokerage Earned:
- as Commission 11,516.2 12,236.2 12,803.6 12,579.5 12,260.0 - as Fees 747.9 101.3 90.3 65.4 39.6 - in Any Other Form 0.0 0.0 0.0 0.0 0.0
Total Brokerage 12,264.1 12,337.4 12,893.9 12,644.9 12,299.6
Interest Income Earned 212.7 268.4 202.1 67.2 48.3Other Investment Income 0.0 0.0 0.0 0.0 0.0Consultancy Fees or Commissions 0.0 10.9 0.0 0.0 0.0Other Revenue 244.0 462.3 388.8 253.6 230.3 0.0 0.0 0.0 0.0 Total Revenue for the Year 12,720.8 13,079.0 13,484.7 12,965.8 12,578.2 EXPENSES
Salaries and Wages 2,371.7 2,675.6 2,430.6 2,526.8 2,248.8Directors’ Fees 78.2 55.0 84.8 45.2 50.0PI and Fidelity Guarantee Insurance 62.4 127.5 139.3 89.4 127.7Rent 555.9 562.8 526.7 447.8 333.7Travel 146.1 199.7 245.1 223.3 209.8Audit fees 60.1 53.4 78.7 65.8 55.5Training 61.2 91.6 80.7 81.4 39.7Other Expenses 4,620.4 4,482.6 3,624.1 3,459.8 3,456.4 Total Expenses for the Year 7,956.2 8,248.1 7,209.9 6,939.5 6,521.6 Abnormal/extraordinary items 0.0 0.0 0.0 0.0 0.0 PROFIT / (LOSS) BEFORE TAX 4,764.7 4,830.8 6,274.8 6,026.2 6,056.6 Taxation Expense 1,606.1 1,431.3 2,148.0 1,910.9 1,985.9 NET PROFIT / (LOSS) FOR THE YEAR 3,158.5 3,399.6 4,126.8 4,115.4 4,070.7
DISTRIBUTION
RETAINED PROFIT / (LOSS) brought forward from last period 7,211.5* 7,139.0• 6,061.6• 6,272.1 4,001.3 DIVIDEND/CAPITAL WITHDRAWALS (paid or proposed) 5,400.0 3,300.0 2,900.0 4,300.0 1,800.0 OTHER TRANSFERS 51.7 0.0 0.0 0.0 0.0 α α α RETAINED PROFIT / (LOSS) carried forward to next period 5,021.8 7,238.5* 7,288.4• 6,087.5• 6,272.1 *Exclusion of one broker •Inclusion of another broker and IFRS Implementation Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
70
Table 18 CONSOLIDATED BALANCE SHEET OF BROKERS ($’000) ASSETS 2008 2007 2006 2005 2004 CURRENT ASSETS Cash on Hand 2,412.1 1,939.5 2,157.4 3,100.6 3,524.4Insurance Broking Account 2,412.8 2,339.3 945.6 3,754.8 3,471.2Outstanding Premiums: - - 30 days and under 11,127.4 12,047.5 11,153.1 6,478.2 10,975.5 - over 30 days but less than 3 months 5,647.1 6,035.1 3,384.4 4,338.1 3,213.4 - over 3 months 2,784.4 1,802.3 1,586.0 1,789.1 1,249.5Prepayments 145.7 108.5 204.9 90.1 112.5Sundry Debtors 1,157.7 1,135.7 946.0 1,288.6 650.7Other 4.2 8.5 11.7 0.0 0.0 Total 25,691.4 25,416.4 20,389.1 20,839.6 23,197.2 LOANS Loans: - Secured 0.0 0.0 0.0 0.0 0.0 - Unsecured 0.0 0.0 0.0 0.0 0.0Loans to Related Persons: 0.0 - 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 0.0Government Securities 0.0 0.0 0.0 0.0 0.0Bank Deposits 4,272.1 2,028.1 2,876.8 21.5 21.2Debentures with: 0.0 - Related persons 0.0 0.0 0.0 0.0 0.0 - Non Related persons 0.0 0.0 0.0 0.0 0.0Shares in: 0.0 - 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 2,028.1 2,876.8 21.5 21.2 FIXED ASSETS Motor Vehicles 327.1 397.1 359.4 358.5 474.3Furniture and Fittings 970.3 1,148.6 1,214.3 1,286.3 378.6Computer Hardware 97.3 74.5 109.8 106.4 169.4Computer Software 0.7 1.8 3.0 5.9 15.8Other 163.7 185.3 193.2 169.1 5.2 Total 1,559.0 1,807.2 1,879.7 1,926.3 1,043.3 OTHER ASSETS Amounts Due from Related Persons 76.1 20.0 483.2 544.9 479.9Other Amounts Due 0.0 0.0 0.0 0.0 0.0Future Income Tax Benefit 140.1 185.6 139.6 178.7 292.0Goodwill 538.0 400.0 500.0 600.0 700.0Establishment Costs 2.0 2.0 1.5 1.0 0.5 Total 756.1 607.6 1,124.3 1,324.6 1,472.4
TOTAL ASSETS 32,278.7 29,859.4 26,269.9 24,111.9 25,734.1
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
71
Table 18 (cont’d) CONSOLIDATED BALANCE SHEET OF BROKERS
($’000)
LIABILITIES 2008 2007 2006 2005 2004
Borrowings:
- Borrowings from Related Persons 284.8 147.9 0.0 11.8 38.1
- Other Borrowings 52.1 0.0 0.0 0.0 0.0
Overdraft 9.8 9.1 9.4 8.6 9.0
Other 0.0 6.9 23.0 86.7 129.2
Total 346.7 164.0 32.4 107.2 176.3
PROVISIONS
Taxation 1,139.5 824.8 1,366.4 907.4 1,125.2
Dividends / Proprietor Withdrawals 3,000.0 13.2 0.2 1,500.0 0.0
Doubtful Debts 72.4 29.4 11.5 38.9 4.6
Other 305.5 365.1 292.8 474.8 435.1
Total 4,517.4 1,232.5 1,670.9 2,921.2 1,564.9
OTHER LIABILITIES
Amounts Due:
- to Insurers 19,260.0 18,444.4 14,702.9 11,963.4 15,418.0
- to Reinsurers 0.0 0.0 0.0 0.0 0.0
- to Related Persons 1,223.1 976.6 817.9 798.4 941.2
Sundry Creditors 284.3 253.8 351.5 906.7 429.2
Other 994.8 872.7 878.7 838.2 473.0
Total 21,762.2 20,547.5 16,751.0 14,506.8 17,261.4
TOTAL LIABILITIES 26,626.3 21,944.0 18,454.3 17,535.1 19,002.6
NET ASSETS 5,652.4 7,915.4 7,815.8 6,576.8 6,731.5
OWNERS’ FUNDS
Paid-up Capital 172.0 182.0 82.0 72.0 42.0
Retained Profits 5,021.8 7,238.5 7,288.4 6,087.4 6,272.1
Balance of Head Office Account 0.0 -9.0 27.9 0.0 0.0
Other 458.6 503.9 417.5 417.5 417.4
TOTAL OWNERS’ FUNDS 5,652.4 7,915.4 7,815.8 6,576.8 6,731.5
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
72
Tabl
e 19
CO
NSO
LIDA
TED
INSU
RAN
CE B
ROKI
NG
ACCO
UN
T OF
BRO
KERS
($’0
00)
PART
ICU
LARS
GE
NER
AL IN
SURA
NCE
BU
SIN
ESS
LIFE
INSU
RAN
CE B
USI
NES
S TO
TAL
INSU
RAN
CE B
USI
NES
S
2008
20
07
2006
20
05
2004
20
08
2007
20
06
2005
20
04
2008
20
07
2006
20
05
2004
BROU
GHT
FORW
ARD
FROM
LA
ST Y
EAR
2,1
41.0
9
43.3
*
1,8
97.2
*
3,3
09.8
4,
122.
5 2
.2
2.2
*
1.1
*
161
.5
115
.4
2,1
43.3
9
45.6
*
1,8
98.3
*
3,4
71.2
4,
237.
9
MON
EY R
ECEI
VED
DURI
NG
THE
YEAR
Prem
ium
s fro
m o
r on
beha
lf of
insu
reds
or in
tend
ing
insu
reds
for
or o
n ac
coun
t of
licen
sed
insu
rers
7
5,55
5.7
7
3,50
0.7
7
2,48
9.2
6
5,83
1.8
66
,245
.7
521
.1
112
.7
176
.7
226
.8
267.
2 7
6,07
6.8
7
3,61
3.4
7
2,66
5.9
6
6,05
8.7
66
,512
.9
Prem
ium
s fro
m o
r on
beha
lf of
insu
reds
or in
tend
ing
insu
reds
fo
r or o
n ac
coun
t of
un
licen
sed
insu
rers
1
8,51
8.7
1
6,74
9.6
2
4,61
8.7
2
8,14
0.1
23
,157
.9
179
.6
181
.3
35.
2
104
.9
258.
1 1
8,69
8.3
1
6,93
0.9
2
4,65
3.8
2
8,24
4.9
23
,415
.9
Clai
ms
mon
eys
from
or
on
beha
lf of
licen
sed
insu
rers
for
or o
n ac
coun
t of
insu
reds
0
9
8.6
6
6.6
1
13.4
16
9.4
0 0.
0
0.0
0.
0
0.0
0
98.
6
66.
6
113
.4
169.
4
Clai
ms
mon
eys
from
or
on
beha
lf of
unlic
ense
d in
sure
rs fo
ror
on
acco
unt o
f:
-in
sure
ds
0 7
8.2
8
6.3
5
9.5
33
6.9
0 0.
0
0.0
0.
0
0.0
0
78.
2
86.
3
59.
5
336.
9
-Inte
rest
1
24.3
1
39.8
9
6.4
3
7.5
30
.3
0 0.
0
0.0
0.
0
0.0
1
24.3
1
39.8
9
6.4
3
7.5
30
.3
-Oth
er
220
.4
0.6
8
.6
2.2
11
.0
0 0.
0
0.0
0.
0
0.0
2
20.4
0
.6
8.6
2
.2
11.0
Tota
l 94
,419
.1
90,5
67.5
97
,365
.9
94,1
84.5
89
,951
.2
700.
7 29
4.0
211.
9 33
1.7
525.
3 95
,119
.8
90,8
61.6
97
,577
.7
94,5
16.1
90
,476
.5
MON
EYS
WIT
HDR
AWN
DU
RIN
G TH
E YE
AR
Fo
r pay
men
ts to
or o
n be
half
of li
cens
ed in
sure
rs
63,4
52.8
57
,864
.7
63,0
55.2
56
,808
.4
56,7
02.3
45
4.3
112.
7 17
6.7
199.
1 23
2.3
63,9
07.0
57
,977
.4
63,2
31.9
57
,007
.5
56,9
34.6
Fo
r pay
men
ts to
or o
n be
half
of u
nlic
ense
d in
sure
rs
17,4
39.5
18
,544
.5
21,5
39.5
24
,524
.0
20,8
71.6
11
1.8
181.
3 34
.0
92.9
16
0.8
17,5
51.3
18
,725
.8
21,5
73.5
24
,616
.9
21,0
32.4
Fo
r pay
men
ts to
or o
n be
half
of a
n in
sure
d
or in
tend
ing
insu
red
569.
5 91
0.4
567.
8 78
6.1
1,43
7.3
0.0
0.0
0.0
0.0
0.0
569.
5 91
0.4
567.
8 78
6.1
1,43
7.3
Fo
r pay
men
ts to
sel
f 12
,778
.8
11,8
54.2
13
,003
.8
11,6
01.3
11
,560
.4
0.0
0.0
0.0
0.0
86.1
12
,778
.8
11,8
54.2
13
,003
.8
11,6
01.3
11
,646
.5
For r
epay
men
ts o
f m
oney
s pa
id in
to th
e
acco
unt i
n er
ror
43.5
0.
0 5.
5 22
0.9
192.
3 0.
0 0.
0 0.
0 0.
0 0.
0 43
.5
0.0
5.5
220.
9 19
2.3
Pa
ymen
ts a
ppro
ved
by th
e Re
serv
e Ba
nk u
nder
se
ctio
n 65
(4)
0.0
0.0
147.
9 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0.
0 0
0.0
147.
9 0.
0 0.
0
Tota
l 94
,284
.2
89,1
73.8
98
,319
.8
93,9
40.6
90
,763
.8
566.
1 29
4.0
210.
7 29
2.1
479.
2 94
,850
.3
89,4
67.8
98
,530
.5
94,2
32.6
91
,243
.0
BALA
NCE
OF A
CCOU
NT
2,27
6.0
2,33
7.1
943.
3 3,
553.
7 3,
309.
9 13
6.8
2.2
2.2
201.
1 16
1.5
2,41
2.8
2,33
9.3
945.
6 3,
754.
7 3,
471.
3AT
YEA
R EN
D
*Adj
ustm
ent b
y a
n In
sura
nce
brok
er
Sour
ce: I
nsur
ance
Com
pani
es
Reserve Bank of Fiji Insurance Annual Report 2008
73
Table 20 CONSOLIDATED STATEMENT OF PREMIUMS ($’000)
PARTICULARS 2008 2007 2006 2005 2004
PREMIUMS HANDLED DURING YEAR
GENERAL INSURANCE BUSINESS
Fire 40,954.0 39,999.3 37,192.1 33,960.6 37,544.9
Householders 2,293.7 2,045.2 1,895.1 1,789.1 1,852.8
Motor vehicle 10,198.0 9,855.6 9,618.4 8,011.0 8,279.4
Marine Hull 2,555.7 2,389.9 2,151.8 2,191.6 1,865.2
Marine Cargo 1,219.7 1,460.0 1,595.3 1,336.2 1,504.4
CIT & Burglary 602.2 512.1 569.5 570.7 525.5
Motor - CTP 0.0 0.0 214.9 97.0 159.9
Personal Accident 764.1 637.9 920.9 709.5 1,340.8
Professional Indemnity 1,706.2 1,803.1 2,085.7 2,088.1 1,794.8
Public Liability 3,002.6 2,682.7 3,357.8 3,210.3 2,875.9
Workers Compensation 4,884.4 5,461.9 6,011.7 5,120.0 5,088.9
Medical 9,287.9 9,814.8 10,668.0 11,378.5 9,172.5
Term Life 3,610.1 3,685.6 4,016.6 4,146.9 4,065.6
Other 8,966.5 9,983.9 16,369.2 14,257.5 14,184.6
Total 90,045.1 90,332.0 96,667.0 88,867.0 90,255.2
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 0.0
Other 0.0 0.0 0.0 0.0 0.0
Total 0.0 0.0 0.0 0.0 0.0
TOTAL PREMIUMS HANDLED 90,045.1 90,332.0 96,667.0 88,867.0 90,255.2
Brokerage received or receivable on premium handled 12,264.1 12,337.4 12,893.9 12,644.9 12,299.6
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
74
Insurance Agents
List of Insurance Agents
Licensed as at 31 December 2008
Reserve Bank of Fiji Insurance Annual Report 2008
75
N0. AGENT NAME LIC. NO*.
1 Abdul Ifraan 2136
2 Abishek Singh 2183
3 Air Fiji Ltd 1406
4 Air New Zealand Ltd 2072
5 Air Pacific Ltd 2002
6 Aisake Emmanuel 922
7 Akuila Curu 1623
8 Akuila Vakuruivalu 960
9 Alan Tuinasoni 2143
10 Alan Veeran 1911
11 Alanieta Verevou 2177
12 Alesi Radalau 2166
13 Alice Heffernan 1525
14 Alisi Qutei 2152
15 Aloysius Prasad 1048
16 Ambika Nand 1447
17 Amrul Rishiram 1053
18 Anandilal Amin & Associates 589
19 Anasofaia Bari 2049
20 Andrew Adams 978
21 ANZ Banking Group 1480
22 Apisai Natinavou 1627
23 Apisai Samuta 1408
24 Apisalome Loganimasi 1740
25 Areesh Chand 1912
26 Arishma Kumar 2010
27 Arveen Anand 2064
28 Asco Motors 1589
29 Asena Tuvukona 2061
30 Ashok Kumar 1874
31 Ashwin Bahadur 2175
32 Ashwin Prasad 1968
33 Asilika Lalakohai 2167
34 Ateca Vucunivavalagi 1933
35 Atish Lal 2100
36 Atunaisa Davuiqalita 1400
37 Atunaisa Nailatica 1551
38 Autoworld Trading (Fiji) Ltd 2073
39 Avinesh Ram 2077
40 Avinesh Singh 1913
41 Betanaqori Ciwasagavulu 1610
42 Bimal Jagrup 2219
43 Bipin Patel 952
44 Bishwa Nathan 1477
45 Bruce Emberson 1031
46 Chandar Deo 1051
47 Chandar Shah 1393
48 Chengaiya Naidu 2132
49 Colonial National Bank 1693
50 Colonial National Bank 1692
N0. AGENT NAME LIC. NO*.
51 Colonial National Bank 1951
52 Cyril Fong 1238
53 Daniel Taufaga 1247
54 Darrel Rajcharan 1701
55 Debra Gucake 2217
56 Desmond Kumar 2093
57 Dharam Singh 1028
58 Dharmendra Prasad 1822
59 Dhirendra Maharaj 2088
60 Dhirendra Prasad 2042
61 Dhurup Chand 930
62 Dineshwar Lal 1960
63 Dip Chand 2107
64 Dorine Charan 1950
65 Dorothy Ah Yuk 1476
66 Edward Ram 1722
67 Elesi Vonotabua 2227
68 Ema Tabuya 2206
69 Emele Nayacalevu 1829
70 Emosi Seduadua 1654
71 Epeli Tarai 2210
72 Fabian Corrie 920
73 Fazleen Ali 2098
74 Fereti Fesaitu 2208
75 Fiji Development Bank 1944
76 Filipe Cokanasiga 1803
77 Finance Pacific Corporation Ltd 2089
78 Francis Waqasaqa 2140
79 Frank Vatubai 1660
80 Girja Prasad 1171
81 Gopal Naidu 1417
82 Gyanendra Shandil 1981
83 Hafiz Din 1758
84 Hari Sharma 1293
85 Harry Berwick 1234
86 Harry Chute 1752
87 Hema Kumar 1868
88 Hemant Kumar 1588
89 Hemant Kumar 651
90 Home Finance Company Ltd 1599
91 Ifereimi Tikoivatukoula 1768
92 Inoke Rokobui 1413
93 Ioane Koroveibau 1492
94 Iowana Ravea 2060
95 Ishwari Prasad 2174
96 Isikeli Tawailasa 873
97 Jacob Chute 2142
98 Jagdish Sharma 1030
99 Jai Maharaj ** 2148
100 Jainand Maharaj 1498
Reserve Bank of Fiji Insurance Annual Report 2008
76
N0. AGENT NAME LIC. NO*.
101 James Krishna 1409
102 James Zinck 2220
103 Janendra Kumar 1276
104 Janendra Prasad 1285
105 Jang Bahadur 1112
106 Jed Peterson 540
107 Jenny Fiu 2182
108 Jeremaia Dakui 1495
109 Jifa Tupua 1268
110 Jiten Singh 1908
111 Jitendra Kissun 2137
112 Jiutaisa K. Wiliame 2191
113 Joan Bulamaisolomone 1813
114 Joeli Pulu 2131
115 Joeli Qio 2070
116 Joeli Rabo 929
117 Joeli Taliai 1412
118 John Alexender 2214
119 John Elder 1073
120 Joji Rokosuka 1390
121 Jona Saukilagi 2145
122 Jope Buinimasi 1628
123 Jope Tuivanuavou 1705
124 Jope Vugakoto 2113
125 Josaia Tawake 1884
126 Josefa Navusolo 983
127 Josefa Tamani 1321
128 Josese Tokalau 1885
129 Joseva Turagavakacava 2135
130 Jovilisi Nakarawa 1711
131 Kaiafa Ledua 2082
132 Kala Singh 2074
133 Kalpana Sharma 1345
134 Kamla Prasad 1147
135 Kamlesh Lata 2022
136 Karam Chand 1671
137 Karmesh Kumar 1176
138 Karun Gandhi 1106
139 Karuna Sharma 2090
140 Kasanita Kuruyawa 2196
141 Kelevi Nagone 2212
142 Kiniviliame Waqairawai 1568
143 Kishorbhai Patel 1415
144 Krishna Dutt 1052
145 Krishna f/n Kali 1142
146 Krishna Naidu 1983
147 Laijia Momo 1849
148 Laisiasa Kevu 1852
149 Lalin Prasad 2029
150 Lavenia Tavola 2016
N0. AGENT NAME LIC. NO*.
151 Litia Luvunakoro 1606
152 Litia Tipou 2185
153 Litiana Maramaniaisokula 2165
154 Livai Tagicakibau 2146
155 Livia Uluiviti 1902
156 Lorima Baba 2032
157 Losalini Marama 2181
158 Lui Talesalusalu 1842
159 Lusia Koroiqacia 2200
160 Macquaire Travel Ltd 1997
161 Maharaj Insurance Services 2009
162 Mahendra Deepak 1919
163 Mahendra Sharma 1154
164 Mahesh Kumar 2163
165 Maikali Dimuri 1608
166 Makipani Goneleve 2215
167 Makuaro Itintau 2168
168 Manoj Jeet 1597
169 Maraia Naituku 2012
170 Mareta Tavola 2108
171 Mariana Ranadi 2205
172 Marika Gata 1178
173 Mark Acraman 2180
174 Mary A Koi 2203
175 Maureen Laveki 2204
176 Melania Fesaitu 2207
177 Melania Tibika 2197
178 Merchant Finance Ltd 2162
179 Merewairita Butani 2104
180 Mesake Biumaiwai 1231
181 Michael Chand 2003
182 Michael Reuben 1906
183 Mikaele Radrodro 1434
184 Mikaele Tabalala 1934
185 Mikito N Tabailagi 2213
186 Miliakere Senivau 2209
187 Milika Likutabua 2228
188 Mirima Vueta 2193
189 Mirza Ahemad 1946
190 Misiviliame Nakavou 2184
191 Mohammed Aiyub 1440
192 Mohammed Ifran 1922
193 Mohammed Maqbool 1990
194 Mohammed Rafik 1158
195 Mohammed Rizwan 2123
196 Mohammed Sheik 2023
197 Mosese Ravutu 1815
198 Mosese Uluinaceva 2130
199 Mubarak Mohammed 2176
200 Nadi Plumbing Works Ltd 2036
Reserve Bank of Fiji Insurance Annual Report 2008
77
N0. AGENT NAME LIC. NO*.
201 Nand Lal 1646
202 Narayan Murti 1670
203 Naresh Prasad 2038
204 Natasha Simadri 2170
205 Naveen Chand 2216
206 Naveen N Chand 1502
207 Nikolau Vulaca 1347
208 Nimilote Bogonisoko 2222
209 Niranjans Autoport 1453
210 Noa Moce 1961
211 Odhauji Raniga 934
212 Oliver Brown 921
213 Pacific Agencies 1844
214 Palas Auto Services Ltd 2026
215 Palu Whippy 2158
216 Paras Sukul 1733
217 Parvin Kaur 2134
218 Paul Tang 2156
219 Paul Vakatoto 1789
220 Paul Yee 1931
221 Pauliasi Masitabua 1927
222 Paulo Tatu 2187
223 Peniasi Vanacerewele 2155
224 Penisoni Khan 1848
225 Peter Sharma 1894
226 Pio Tikoisuva 2218
227 Pita Tamanikaisawa 2178
228 Pita Vuloaloa 2094
229 Pradeep Kumar 1776
230 Prakash Singh 1666
231 Pratap Singh 1019
232 Praveen Sharma 1700
233 Pravin Kaur 2134
234 Pravir Rattan 2201
235 Prem Chand 2050
236 Prem Naidu 2172
237 Pushpa Kumar 2024
238 Rahool Sharma 1267
239 Rajan Murti 1709
240 Rajay K Nand 2186
241 Rajendra Prasad 2086
242 Rajesh R Singh 1467
243 Rajesh Singh 1928
244 Rajneel Singh 2164
245 Rajnesh Prasad 2053
246 Rakesh Nair 2161
247 Rakesh Narayan 1872
248 Ramesh Kumar 933
249 Ranjanna Sharma 2226
250 Ravendra Prabhu 1624
N0. AGENT NAME LIC. NO*.
251 Ravikash Maharaj 2035
252 Ravin Chand 1503
253 Ravindra Deo 2151
254 Ravindra Mohan 1622
255 Ravinesh Prakash 2097
256 Raymond Stoddart 1723
257 Renuka Chandra 2122
258 Rick Croker 1930
259 Rishi Ram 1054
260 Rita Singh 1995
261 Ritesh Maharaj 1515
262 Ritesh Nand 2085
263 Ritesh Nand 2189
264 Robert Johansen 2194
265 Rohini Narayan 839
266 Rohit N Chand 2171
267 Rohitesh Sumer 2210
268 Romita Singh 2192
269 Ron Gounder 1454
270 Ronald Ritesh Lal 2190
271 Rosalia Donuvakayanuyanu 2224
272 Roselyn Roy 2081
273 S K Davey Ltd 1294
274 Sachin Lakhan 1563
275 Saiasi Maisema 1391
276 Sailosi Baleisolomoni 1683
277 Saimoni Kaloukigau 1726
278 Sainiana Nakovi 2051
279 Sainivalati Laukau 2007
280 Saiyad Ali 2157
281 Saiyad Harun 1479
282 Sajnil Prasad 2127
283 Sale Sorovaki 1786
284 Salesi Temo 1449
285 Salome Lewatabua 1982
286 Salote Bitarau 2202
287 Samarasam Pillay 1645
288 Sambhu Datt 1056
289 Samuel Veeran 1159
290 Samuela Katamaiwai 1734
291 Samuela Vodo 1777
292 Samuela Waqanisau 1791
293 Sandhir Kumar 1854
294 Sanjay Kumar 1923
295 Sanjesh Prasad 2179
296 Sarojni Devi 1896
297 Sarwan Sharma 1778
298 Satendra Nath 1123
299 Satendra Sharma 1070
300 Satish Kumar 1262
Reserve Bank of Fiji Insurance Annual Report 2008
78
N0. AGENT NAME LIC. NO*.
301 Satya Nand 2169
302 Senimelia Serusaivou 1529
303 Sepesa Moce 2013
304 Seru Makutu 2075
305 Serupepeli Ratuvukivuki 2124
306 Shalesh Prasad 1360
307 Sham Narayan 836
308 Shamma Roy 2141
309 Shaneel Prasad 1992
310 Sharma’s Insurance Services 2015
311 Shayam Narayan 916
312 Shiu Narayan 1131
313 Shivlesh Prasad 1888
314 Shri Reddy 1156
315 Simione Kuruvoli 1853
316 Sinta Naidu 1344
317 Sofaia Tupou 1792
318 Stephen Conrad 1153
319 Stephen Wong 522
320 Subramani 1135
321 Sujita Prasad 2017
322 Sulueti Vunibola 1932
323 Sunia Radovu 2040
324 Sunil Kumar 1232
325 Sunita Reddy 1502
326 Surujmati Nand 1794
327 Susan Rusia 2199
328 Susana Tagilala 2223
329 Sushita Sharma 2139
330 Susie Emberson 2133
331 Susie Kumar 2021
332 Swastika Gounder 2091
333 Taitusi Cakau 2112
334 Tarsen Singh 2046
335 Tashvinandran Murthi 2055
336 Teinaieta Taake 2067
337 Tevita Baleinamaka 1550
338 Timoci Namuaira 1471
339 Timoci Osborne 2118
340 Timoci Tamanisokula 1422
341 Tomasi Baleilomaloma 1567
342 Tomasi Lovo 2195
343 Torika Ranadi 1979
344 Tukana Temo 1841
345 Uatesoni Seruvatu 2101
346 Ujagar Singh 1369
347 Usman Ali 2004
348 Vani Vuibau 1014
349 Varinava Tikoduadua 1828
350 Venina Qiolevu 2221
N0. AGENT NAME LIC. NO*.
351 Venkat Naidu 1036
352 Vidya Rattan 1157
353 Vignas Rao 1637
354 Vijay Kumar 1425
355 Vijay Nair 1138
356 Vijay Sharma 1540
357 Vijay Singh 1958
358 Vijendra Prasad 626
359 Vika Ali 1632
360 Vika Tuiketei 2128
361 Vikash Reddy 1320
362 Viliame Cegumalua 2225
363 Viliame Civoniceva 2198
364 Viliame Masilidi 1038
365 Viliame Tabualevu 1953
366 Vilitati Qumivutia 1045
367 Vimlesh Kumar 2188
368 Vinesh Kumar 2109
369 Viniana Ratuvou 1469
370 Vinod Chand 1699
371 Vinod Kumar 1207
372 Vishwa Nand 1544
373 Vueti Maraiwai 1465
374 Wally David 1354
375 Warden Krishna 1184
376 Watisoni Waqacece 2092
377 Westpac Banking Corp 1890
378 Wili Veivutuni 1545
*Licence number
**Licence withdrawn during the course of the year
Reserve Bank of Fiji Insurance Annual Report 2008
79
FIJI: KEY ECONOMIC AND FINANCIAL INDICATORS
2008 2007 2006 2005 2004
I. GROSS DOMESTIC PRODUCT
GDP at Market Price ($m) 5,895.9(e) 5,435.9(p) 5,483.3(r) 5,010.0 4,726.8
Per Capita GDP at Current Factor Cost ($m) 5,898.3(e) 5,462.7(p) 5,602.8(r) 5,030.2 4,777.6
Constant Price GDP Growth Rate (%) 0.2(e) -6.6(p) 3.4(r) 0.6(r) 5.5(r)
II. LABOUR MARKET
Labour Force 329,755(e) 326,988(r) 324,607(r) 321,336(r) 318,628(r)
Wage and Salary Earners (mid-year) 130,200(e) 128,800(r) 126,000(r) 123,900(r) 121,900
III. INFLATION (year-on-year % change)
All Items 6.6 4.3 3.1 2.7 3.3
IV. GOVERNMENT FINANCE ($ Million)
Total Revenue and Grants 1,435.9(r) 1,288.2 1,401.3 1,221.9 1,176.2
Total Expenditure (excluding loan repayments) 1,527.9(r) 1,384.4 1,558.5 1,391.0 1322.5
V. EXTERNAL TRADE ($ Million)
Current Account Balance -1253.6 (e) - 941.3 (e) - 1238.1 - 670.3 - 641.9
Capital & Financial Account Balance 373.9 (e) 237.6 (e) 941.3 402.9 242.7
Current Account Balance as a percentage of GDP -21.0 (e) - 17.3 (e) - 22.6 - 13.4 - 13.6
VI. FOREIGN EXCHANGE RESERVES
Foreign Reserves ($ Million) 558.7 804.6 515.4 549.1 786.2
VII. MONEY AND CREDIT (year-on-year % change)
Narrow Money - 19.67 43.47 - 4.57 17.59 13.11
Currency in Circulation 8.40 - 1.32 5.04 11.01 11.57
Quasi-Money 5.58 - 9.79 42.01 12.76 8.07
Domestic Credit 1 4.85 3.16 23.59 26.59 12.53
VIII. INTEREST RATES (% p.a.)
Lending Rate 7.72 8.46 7.90 6.63 7.03
Savings Deposit Rate 0.64 0.64 0.84 0.40 0.36
Time Deposit Rate 3.00 4.45 9.05 2.03 1.77
91-day RBF Note Rate 2 n.i. 4.25 4.25 2.25 1.75
Minimum Lending Rate 6.32 9.25 5.25 2.75 2.25
IX. EXCHANGE RATES (mid rates, F$1 equals: end of period)
United States dollar 0.5669 0.6447 0.6009 0.5731 0.6079
Real Effective Exchange Rate (January 1999 = 100) 107.45 104.34 102.29 100.31 100.43
Sources: Fiji Islands Bureau of Statistics, Reserve Bank of Fiji, Ministry of Finance and National Planning, Commercial Banks
Notes:
1 Credit to the private sector is adjusted for NBF Asset Management Bank’s non-performing loans and advances.
2 In 2006, the rate is for October. In 2007, the rate is for June. There were no issues of 91-day RBF notes in December for both years.
Key:
(e) estimate n.i - no issue (p) provisional (r) revised
Reserve Bank of Fiji Insurance Annual Report 2008
80
FIJI: KEY INSURANCE INDICATORS
2008 2007 2006 2005 2004
MARKET STRUCTURE
No. of registered insurers 10 10 10 10 10
Life 2 2 2 2 2
General 8 8 8 8 8
Brokers 4 5 5 4 4
Re-insurers (not insured but locally incorporated) 0 0 0 0 0
No. of licenses issued to insurance agents
Life 304 308 271 260 205
General 145 163 161 130 123
Gross premium
Total ($m) 201.6 192.7 194.1 183.8 173.3
Life ($m) 83.7 80.0 76.6 74.2 70.5
General ($m) 117.9 112.7 117.5 109.6 102.8
Total (% of GDP) 3.4 3.5 3.9(e) 3.9 3.8
Life (% of GDP @ market price) 1.4 1.5 1.5(e) 1.6 1.5
General (% of GDP @ market price) 2.0 2.1 2.3(e) 2.3 2.2
Assets
Total ($m) 804.2 825.9 742.5 728.3 668.2
Life ($m) 556.3 585.6 517.7 513.3 481.3
General ($m) 247.9 240.3 224.8 215.0 186.9
Total Assets (% of per capita GDP) 13.5 14.6 15.0 15.4 14.5
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
81
FIJI: KEY INSURANCE INDICATORS
LIFE INSURANCE 2008 2007 2006 2005 2004
New Business
Number of Policies 12,017 12,930 13,975 15,094 15,426
Sums Insured ($m) 355.6 360.0 378.9 424.6 428.9
Business in Force
Number of Policies 86,193 87,822 90,833 90,979 92,973
Sums Insured ($m) 2,449.3 2,470.0 2,522.7 2,532.4 2,534.0
Distribution of Sums Insured for Policies in Force (%)
Whole of Life 4.7 4.8 5.1 5.4 5.8
Endowment 45.0 43.8 42.5 41.0 40.0
Temporary 14.4 14.6 15.4 16.4 17.1
Others 35.9 36.8 37.0 37.2 37.1
Gross Premium Income ($m) 83.7 80.0 76.6 74.2 70.5
Benefit Payment ($m)
Total 55.8 59.8 49.8 48.4 45.5
Death 6.0 7.7 8.3 8.1 8.7
Maturity 30.6 28.0 23.7 23.5 21.1
Surrender 18.9 23.8 17.6 16.6 15.4
Sickness and Accidents 0.3 0.3 0.2 0.2 0.3
Forfeiture Rate (No. of policies) (%) 65.7 76.8 59.6 75.4 63.9
Surrender Rate (No. of policies) (%) 5.3 5.9 4.6 4.8 4.7
Investment Income ($m) 31.6 39.0 34.2 38.5 32.1
Source: Insurance Companies
Reserve Bank of Fiji Insurance Annual Report 2008
82
FIJI: KEY INSURANCE INDICATORS
GENERAL INSURANCE 2008 2007 2006 2005 2004
Premium Income ($m)
Gross 117.9 112.7 117.5 109.6 102.8
Net 92.9 88.7 91.7 83.8 77.3
Reinsurance 25.0 24.0 25.8 25.8 25.5
Net Earned Premium Income 91.1 91.1 87.2 80.3 73.0
Retention Ratio (%) 78.8 78.7 78.0 76.5 75.2
Claims ($m)
Gross Claims Paid 45.6 50.1 52.4 40.1 52.7
Net Claims Incurred 45.5 42.4 40.7 39.9 38.4
Distribution of Gross Premiums (%)
Fire 26.4 25.1 23.4 23.1 24.1
Motor Vehicle 20.7 20.8 22.0 23.3 22.5
Marine Hull/Cargo 2.5 2.9 2.9 3.7 3.9
Householders/Burglary 8.3 7.7 7.2 6.9 6.6
Motor CTP 9.8 9.4 8.9 8.3 7.9
Liability* 2.8 3.1 3.2 4.0 4.1
Workers Compensation 5.3 5.6 6.1 6.5 5.9
Medical/Term Life 20.0 20.9 21.4 18.3 20.2
Others 4.2 4.5 4.9 5.9 4.9
Net Claims Ratio (%)
Fire 36.2 45.1 17.8 29.8 66.8
Motor Vehicle 66.5 40.9 62.0 57.5 59.1
Marine Hull/Cargo 70.8 84.5 40.0 25.6 15.5
Householders/Burglary 50.0 57.5 41.0 45.3 39.4
Motor CTP 38.4 41.4 71.8 57.3 42.3
Workmen’s Compensation 26.2 24.1 17.8 39.8 43.7
Medical 58.2 48.6 55.1 81.9 70.8
Term Life 53.8 70.5 63.5 57.5 37.1
Total Business 49.9 46.6 46.7 49.7 52.5
Net Underwriting Results (%)
Expense Ratio 17.5 16.5 18.3 19.7 19.3
Operating Results ($m)
Underwriting Gain/Loss 29.7 33.7 30.4 24.6 20.6
Investment Income 6.9 11.3 7.6 6.5 5.4
Operating Profit/Loss 18.1 23.8 18.6 14.9 12.6
* Personal Accident, Professional Indemnity & Public Liability Source: Insurance Companies
Reserve Bank of Fiji
The great double –
hulled, ocean-going canoes(drua) of the ancient Fijians were remarkablecraft, capable of long voyages. The tagaga(pronounced “tanganga”) or masthead wascrucial for holding in place the sails, wovenfrom the leaves of the pandanus tree. It wasthe tagaga which enabled the navigators to
keep their drua sailing towards theirdestinations.
For the Reserve Bank of Fiji, a logo based onthe tagaga masthead, symbolises the Bank’srole in contributing towards a sure
and steadycourse for Fiji’s economy.