Insurance: Balance Sheet - J20

Released
27 September 2018 03:00 p.m.
Next release
20 December 2018 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Quarterly
Previous years: Quarterly:
Jun 2016 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018
Assets ($m)
Policyholder debt 1,911 2,092 2,089 2,087 1,791 2,190
Outwards reinsurance & other recovery assets 3,346 4,650 4,263 4,231 3,812 3,698
Deferred acquisition cost assets 486 516 517 531 475 496
Deferred & future tax on policy liabilities -2,003 -2,010 -2,041 -2,106 -2,089 -2,109
Other insurance assets 80 45 60 60 50 57
Total insurance assets 3,820 5,292 4,889 4,803 4,040 4,332
Cash and deposits 2,453 2,172 2,159 2,143 1,978 1,836
Short-term debt 1,349 1,876 1,515 1,503 1,789 1,702
Long-term debt 6,186 4,135 4,304 4,363 4,262 3,716
Equities 403 459 441 445 382 392
Unit trusts 4,887 5,897 6,008 6,042 5,997 6,821
Property 26 23 23 23 23 26
Other investment assets 285 190 116 187 182 141
Total investment assets 15,589 14,753 14,566 14,705 14,613 14,634
Goodwill & other intangible assets 568 504 483 479 472 467
Other assets 1,404 928 993 1,062 948 890
Total assets 21,381 21,477 20,931 21,050 20,073 20,324
Liabilities ($m)
Policy liabilities life 3,398 3,170 3,116 3,115 2,946 2,955
Policy unvested benefit liability life 930 951 967 991 983 1,004
Gross outstanding claims liability non-life 4,098 5,173 4,818 4,819 4,300 3,903
Gross unearned premium and unexpired risk liability non-life 2,736 2,914 3,009 3,067 2,825 3,071
Outwards reinsurance liabilities 1,207 900 792 774 716 1,038
Other insurance-related liabilities 400 311 305 322 310 339
Total insurance liabilities 12,770 13,419 13,007 13,089 12,080 12,310
Other liabilities 856 835 634 798 776 843
Total liabilities 13,625 14,255 13,641 13,887 12,855 13,153
Net assets ($m)
Net assets 7,756 7,222 7,290 7,164 7,218 7,171
Key ratios
Return on net assets (%) 13.2 8.7 7.9 12.1 13.3 13.5
Investment return (%) 8.0 4.3 3.6 8.6 6.8 6.9

The data: coverage, periodicity, and timeliness

Coverage characteristics

The Insurance Financial Performance statistics contains the revenue and expense of New Zealand’s insurance industry. Data is collected from the Quarterly Insurance Survey (QIS) which collects data from insurance companies with:

  • Gross annual premium $50+ million at financial year end

or

  • Total assets $500+ million at financial year end

but excluding reinsurers with no NZ primary insurance.

The standard QIS covers 28 out of 88 insurers and reinsurers accounting for just under 90% of assets and premiums of the regulated insurance industry as a whole.

The QIS excludes reinsurers with no New Zealand primary insurance. It also does not cover the Earthquake Commission and the Accident Compensation Corporation, as these organisations have their own enabling legislation and are not supervised by the Reserve Bank.

More information regarding the regulated insurance industry can be found in the Insurers section.

Periodicity

Quarterly

Timeliness

Data is released approximately three months after the reference quarter.

For the initial publication released on 27 February 2018 the quarters covered are June 2016 to September 2017.

Access by the public

Statistics release calendar

The Statistics Release Calendar provides a long-term plan of scheduled releases. It is updated and released on the first working day of the month.

View the Statistics Release Calendar.

Integrity

Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses

The Reserve Bank of New Zealand (RBNZ) is the prudential regulator and supervisor of all insurers undertaking insurance business in New Zealand (NZ), and is responsible for administering the Insurance (Prudential Supervision) Act 2010 (IPSA).

View the Insurance (Prudential Supervision) Act 2010 (IPSA)

In 2015 the Reserve Bank introduced regular data collections from New Zealand licensed insurers to support the Reserve Bank’s own prudential supervision under IPSA and monitoring of the financial sector as mandated by the Reserve Bank of New Zealand Act 1989.

Find out more about the regular data collections from New Zealand licensed insurers.

The Reserve Bank of New Zealand publishes only aggregated data. All information collected in the insurer data returns is subject to section 135 confidentiality provisions under IPSA.

Read the Reserve Bank of New Zealand Act 1989.

Provision of information about revisions and advance notice of major changes in methodology

New data, or revised data, is in bold font. This applies to the summary table only and not excel files. Revisions are generally published when a table is next due to be updated and released. Should revisions need to be made more promptly, a ‘special note’ is published.

Any major changes in methodology are posted on the website as a ‘special note’.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

An Excel template is completed and returned each quarter by QIS respondents. The template is accompanied by a file that specifies procedures and definitions for survey respondents.

See New Zealand Insurer Data Collections for more information.

Insurance Methods

Life

Aggregate for all insurers that reported using life insurance methods.

Non-life

Aggregate for all insurers that reported using general insurance methods.

General insurance methods

Insurance valuation methods that are consistent with Appendix D of NZ IFRS 4, or equivalents under other accounting standards. These are a mixture of past and future cash-flows but without including any future renewals. Information that is reported specifically for general insurance methods (and not life insurance methods).

Life insurance methods

Insurance valuation methods that are consistent with Appendix C of NZ IFRS 4, or equivalents under other accounting standards. These are either projection (long-term future cash-flows including any renewals), accumulation (past cash-flows), or a mixture. Information that is reported specifically for life insurance methods (and not general insurance methods).

Assets

Policyholder debt

Unpaid premiums and premiums yet to be forwarded to the insurer by agents or brokers.

Outwards reinsurance and other recovery assets

The reinsurance assets in respect of insurance liabilities plus other claim recoveries.

Deferred acquisition cost assets

Asset for capitalised (deferred) acquisition costs, grossed up for any write-down associated with unexpired risk liability. Excludes outwards reinsurance commission.

Deferred and future tax on policy liabilities

Assets for deferred and future tax associated with gross policy liabilities and policyholder unvested benefit liability, less outwards reinsurance of gross policy liabilities.  This may be negative in some circumstances. Applicable only if life insurance methods are used and tax components of policy liabilities are separately recorded in financial statements or alternative financial information.

Other insurance assets

Any other assets associated with insurance business that is not included elsewhere, and excluding negative liabilities.

Total insurance assets

The sum of policyholder debt, outwards reinsurance and other recovery assets, deferred acquisition cost assets, deferred and future tax on policy liabilities and other insurance assets.

Cash and deposits

Comprises cash at bank, transferable deposits directly useable for making payments, and fixed term deposits. Amounts are redeemable or withdrawable (with or without penalty) and are usually held with registered banks or other deposit taking institutions. Excludes loans and advances, debt securities and securities purchased under agreement to resell.

Short-term debt

Comprises negotiable instruments serving as evidence of debt with a residual term to maturiy of 1 year or less. Excludes loans and advances, securities purchased under agreements to resell and derivatives.

Long-term debt

Comprises negotiable instruments serving as evidence of debt with a residual term to maturiy of greater than 1 year. Excludes loans and advances, securities purchased under agreements to resell, and derivatives.

Equities

Comprises equity investments that are listed and not listed on an official stock exchange (such as NZX or ASX). Excludes investments in subsidaries and associates.

Unit trusts

Comprises investment in pooled investment vehicles that are and are not listed on an official stock exchange (such as NZX or ASX).

Property

Comprises land and buildings for the purpose of investment as well as owner-occupied property.

Other investment assets

Any other assets, not included in the categories above, that are expected to generate investment revenue. This includes derivatives for investment, other financial assets and other non-financial assets.

Total investment assets

The sum of cash and deposits, short-term debt, long-term debt, equities, unit trusts, property and other investment assets.

Residency investment assets

Assets that have been issued by a person, company or other entity that ordinarly domiciled or has a principal centre of economic interest in New Zealand.

Offshore investment assets

Assets that have been issued by a person, company or other entity that ordinarly domiciled or has a principal centre of economic interest in a country other than  New Zealand.

Goodwill and other intangible assets

The value of businesses previously purchased (goodwill) and any other intangible assets.

Other assets 

Any other assets not elsewhere classified.  This includes loans, derivatives not for investment, fixed, tax and related party assets. Excludes assets in relation to insurance business and investment assets.

Total assets

The sum of total insurance assets, total investment assets, goodwill and other intangible assets and other assets.

Liabilities

Policy liabilities

Comprises gross policy liabilities - insurance contracts and gross policy liabilities - investment contracts.

Gross policy liabilities – insurance contracts

Under life insurance methods, the liability for insurance contracts business, gross of outwards reinsurance. Excludes policyholder unvested benefits liability. May be gross or net of tax, consistent with the insurer’s financial statements or alternative financial information. The liability may be negative in some situations.

Gross policy liabilities – investment contracts

Under life insurance methods, the liability for investment contracts business, gross of outwards reinsurance. May be gross or net of tax, consistent with the insurer’s financial statements or alternative financial information.

Policyholder unvested benefit liability

The liability for undistributed past profits that are expected to be paid to policyholders through future bonuses.

Gross outstanding claims liability

The liability for claims that have occurred but are unpaid, gross of outwards reinsurance, under general insurance methods. Includes reported unpaid claims, incurred but not reported claims, incured but not enough reported claims and reopened claims. Inclusive of claims handling expenses and risk margins.

Gross unearned premium and unexpired risk liability

Comprises gross unearned premium liability and unexpired risk liability.

Gross unearned premium liability

The liability for the portion of premiums that relates to the period of cover that is in the future, gross of outwards reinsurance, under general insurance methods.

Unexpired risk liability

The liability for the failure of the liability adequacy test that is additional to gross unearned premiums liability i.e. the expected deficiency of premiums to meet claims and relevant expenses in respect of the period of cover that is the future.

Outwards reinsurance liabilites

The portions of gross policy liabilities and policyholder unvested benefit liability that is met from outwards reinsurance. This may be negative in some circumstances. Applicable only if life insurance methods are used for the corresponding liabilities.

Other insurance-related liabilities

The liabilities associated with insurance business that is not included elsewhere (such as premium refunds payable). Excludes liabilities that are not directly insurance-related and negative assets.

Total insurance liabilities

The sum of policy liabilities, policyholder unvested benefit liability, gross outstanding claims liability, gross unearned premium and unexpired risk liability, outwards reinsurance liabilities and other insurance-related liabilities.

Other liabilities

Comprises any liability not elsewhere classifed. Excludes liabilities in relation to insurance business.

Total liabilities

The sum of total insurance liabilities and other liabilities.

Net Assets

Net Assets

Total assets less total liabilities.

Capital Additions

New capital that has been raised during the financial year, other than through profit after tax or movement in reserves. This includes issue of new share equity, transfer from head office for an overseas insurer, and contributions to members’ funds for a mutual insurer.

Key Ratios

Profit after tax

Total revenue less total expenses, net of tax expense.

Total Investment Revenue

The sum of interest, dividends and rent, together with realised and unrealised gains and losses.

Return on net assets

The net profit after tax divided by the total estimated net assets at the start of the period. This is expressed as annual percentage rates.

Investment return

Total investment revenue divided by total investment assets.

Symbols and conventions for summary table

0 Zero or value rounded to zero
- Not applicable
.. Not available
bold Revised/new
italics Provisional
light red background Historical

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
  • You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.