12. Technical reserves
As at 31 December 2015
| (CZK’000) | Gross reserve | Inwards reinsurance | Portion covered by reinsurance | Net reserve |
|---|---|---|---|---|
| Unearned premium reserve | 1,559,066 | 15,511 | (684,786) | 889,791 |
| Life assurance reserve | 4,687,559 | — | — | 4,687,559 |
| Reserve for claims | 6,556,595 | 187,362 | (2,757,147) | 3,986,810 |
| Reserve for bonuses and discounts | 64,208 | 18,847 | — | 83,055 |
| Reserve for liabilities of Czech Bureau of Insurers | 220,320 | — | — | 220,320 |
| Total | 13,087,748 | 221,720 | (3,441,933) | 9,867,535 |
As at 31 December 2014
| (CZK’000) | Gross reserve | Inwards reinsurance | Portion covered by reinsurance | Net reserve |
|---|---|---|---|---|
| Unearned premium reserve | 1,476,268 | 16,871 | (639,989) | 853,150 |
| Life assurance reserve | 4,772,199 | — | — | 4,772,199 |
| Reserve for claims | 6,326,975 | 154,895 | (2,601,986) | 3,879,884 |
| Reserve for bonuses and discounts | 58,863 | 12,537 | — | 71,400 |
| Reserve for liabilities of Czech Bureau of Insurers | 253,099 | — | — | 253,099 |
| Total | 12,887,404 | 184,303 | (3,241,975) | 9,829,732 |
Inward and outward reinsurance parts of the technical reserves are disclosed in Note 17.
Reserve for claims
| (CZK’000) | 31 December 2015 | 31 December 2014 |
|---|---|---|
| Gross RBNS reserve | 5,110,251 | 4,855,081 |
| Gross IBNR reserve | 1,633,706 | 1,626,789 |
| Total reserve for claims | 6,743,957 | 6,481,870 |
Run off analysis
Estimate of ultimate claims costs as at 31 December 2015
| Claims incurred in 2015 (CZK’000) | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At the end of accounting period | 2,070,586 | 2,851,835 | 3,942,622 | 4,095,866 | 4,561,277 | 5,094,078 | 5,373,523 | 5,052,116 | 6,286,779 | 5,489,641 | 5,137,543 | 49,955,866 |
| One year later | 1,777,930 | 2,706,470 | 3,808,619 | 3,847,369 | 4,055,347 | 4,777,820 | 4,841,998 | 4,591,462 | 5,686,107 | 5,209,976 | — | 41,303,098 |
| Two years later | 1,759,445 | 2,594,736 | 3,609,241 | 3,629,426 | 3,830,103 | 4,670,936 | 4,675,219 | 4,463,863 | 5,463,296 | — | — | 34,696,265 |
| Three years later | 1,746,235 | 2,530,074 | 3,555,809 | 3,589,288 | 3,782,566 | 4,669,918 | 4,660,298 | 4,428,225 | — | — | — | 28,962,413 |
| Four years later | 1,746,745 | 2,532,975 | 3,523,394 | 3,526,441 | 3,698,690 | 4,570,701 | 4,622,518 | — | — | — | — | 24,221,464 |
| Five years later | 1,701,518 | 2,510,518 | 3,500,869 | 3,464,114 | 3,701,102 | 4,564,727 | — | — | — | — | — | 19,442,848 |
| Six years later | 1,671,074 | 2,484,989 | 3,475,559 | 3,442,967 | 3,711,794 | — | — | — | — | — | — | 14,786,383 |
| Seven years later | 1,652,576 | 2,451,375 | 3,455,387 | 3,402,616 | — | — | — | — | — | — | — | 10,961,954 |
| Eight years later | 1,630,544 | 2,455,462 | 3,422,289 | — | — | — | — | — | — | — | — | 7,508,295 |
| Nine years later | 1,628,942 | 2,438,278 | — | — | — | — | — | — | — | — | — | 4,067,220 |
| Ten years later | 1,614,604 | — | — | — | — | — | — | — | — | — | — | 1,614,604 |
| Current estimate of cumulative claims | 1,614,604 | 2,438,278 | 3,422,289 | 3,402,616 | 3,711,794 | 4,564,727 | 4,622,518 | 4,428,225 | 5,463,296 | 5,209,976 | 5,137,543 | 44,015,866 |
| Cumulative payments as at 31 December 2015 | 1,542,584 | 2,247,171 | 3,188,501 | 3,145,060 | 3,399,572 | 4,189,783 | 4,104,363 | 3,963,086 | 4,922,452 | 4,118,085 | 2,986,274 | 37,806,931 |
| Reserve as at 31 December 2015 | 72,020 | 191,107 | 233,788 | 257,556 | 312,222 | 374,944 | 518,155 | 465,139 | 540,844 | 1,091,891 | 2,151,269 | 6,208,935 |
| Reserve as at 31 December 2015 from prior years | — | — | — | — | — | — | — | — | — | — | — | 111,691 |
| Reserve for claims administration | — | — | — | — | — | — | — | — | — | — | — | 423,331 |
| Total reserve for claims | — | — | — | — | — | — | — | — | — | — | — | 6,743,957 |
Run off analysis
Estimate of ultimate claims costs as at 31 December 2014
| Claims incurred in 2014 (CZK’000) | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| At the end of accounting period | 1,810,489 | 2,070,586 | 2,851,835 | 3,942,622 | 4,095,866 | 4,561,277 | 5,094,078 | 5,373,523 | 5,052,116 | 6,286,779 | 5,489,641 | 46,628,812 |
| One year later | 1,533,430 | 1,777,930 | 2,706,470 | 3,808,619 | 3,847,369 | 4,055,347 | 4,777,820 | 4,841,998 | 4,591,462 | 5,686,107 | — | 37,626,552 |
| Two years later | 1,462,019 | 1,759,445 | 2,594,736 | 3,609,241 | 3,629,426 | 3,830,103 | 4,670,936 | 4,675,219 | 4,463,863 | — | — | 30,694,988 |
| Three years later | 1,422,573 | 1,746,235 | 2,530,074 | 3,555,809 | 3,589,288 | 3,782,566 | 4,669,918 | 4,660,298 | — | — | — | 25,956,761 |
| Four years later | 1,420,335 | 1,746,745 | 2,532,975 | 3,523,394 | 3,526,441 | 3,698,690 | 4,570,701 | — | — | — | — | 21,019,281 |
| Five years later | 1,417,066 | 1,701,518 | 2,510,518 | 3,500,869 | 3,464,114 | 3,701,102 | — | — | — | — | — | 16,295,187 |
| Six years later | 1,413,718 | 1,671,074 | 2,484,989 | 3,475,559 | 3,442,967 | — | — | — | — | — | — | 12,488,307 |
| Seven years later | 1,418,012 | 1,652,576 | 2,451,375 | 3,455,387 | — | — | — | — | — | — | — | 8,977,350 |
| Eight years later | 1,405,296 | 1,630,544 | 2,455,462 | — | — | — | — | — | — | — | — | 5,491,302 |
| Nine years later | 1,395,235 | 1,628,942 | — | — | — | — | — | — | — | — | — | 3,024,177 |
| Ten years later | 1,392,315 | — | — | — | — | — | — | — | — | — | — | 1,392,315 |
| Current estimate of cumulative claims | 1,392,315 | 1,628,942 | 2,455,462 | 3,455,387 | 3,442,967 | 3,701,102 | 4,570,701 | 4,660,298 | 4,463,863 | 5,686,107 | 5,489,641 | 40,946,785 |
| Cumulative payments as at 31 December 2014 | 1,337,072 | 1,538,114 | 2,244,383 | 3,162,027 | 3,131,579 | 3,391,676 | 4,172,704 | 4,078,228 | 3,911,807 | 4,730,459 | 3,263,185 | 34,961,234 |
| Reserve as at 31 December 2014 | 55,243 | 90,828 | 211,079 | 293,360 | 311,388 | 309,426 | 397,997 | 582,070 | 552,056 | 955,648 | 2,226,456 | 5,985,551 |
| Reserve as at 31 December 2014 from prior years | — | — | — | — | — | — | — | — | — | — | — | 89,970 |
| Reserve for claims administration | — | — | — | — | — | — | — | — | — | — | — | 406,349 |
| Total reserve for claims | — | — | — | — | — | — | — | — | — | — | — | 6,481,870 |
Movements on gross technical reserves can be analyzed as follows:
| (CZK’000) | 1 January 2015 | Additions | Use | 31 December 2015 |
|---|---|---|---|---|
| Unearned premium reserve | 1,493,139 | 81,438 | — | 1,574,577 |
| Life assurance reserve | 4,772,199 | — | (84,640) | 4,687,559 |
| Reserve for claims | 6,481,870 | 262,087 | — | 6,743,957 |
| Reserve for bonuses and discounts | 71,400 | 11,655 | — | 83,055 |
| Reserve for liabilities of Czech Bureau of Insurers | 253,099 | — | 32,779 | 220,320 |
| Total | 13,071,707 | 355,180 | (117,419) | 13,309,468 |
| (CZK’000) | 1 January 2014 | Additions | Use | 31 December 2014 |
|---|---|---|---|---|
| Unearned premium reserve | 1,400,196 | 92,943 | — | 1,493,139 |
| Life assurance reserve | 4,796,028 | — | (23,829) | 4,772,199 |
| Reserve for claims | 6,458,063 | 23,807 | — | 6,481,870 |
| Reserve for bonuses and discounts | 72,441 | — | (1,041) | 71,400 |
| Reserve for liabilities of Czech Bureau of Insurers | 270,400 | — | (17,301) | 253,099 |
| Total | 12,997,128 | 116,750 | (42,171) | 13,071,707 |