F.11. Insurance liabilities
| Direct insurance | Accepted reinsurance | Total |
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 | 31. 12. 2014 | 31. 12. 2013 | 31. 12. 2014 | 31. 12. 2013 |
| Non-life insurance liabilities | 23,177 | 22,346 | 845 | 811 | 24,022 | 23,157 |
| Provisions for unearned premium | 5,679 | 5,207 | 72 | 92 | 5,751 | 5,299 |
| Provisions for outstanding claims (RBNS and IBNR) | 17,232 | 16,892 | 753 | 695 | 17,985 | 17,587 |
| Other insurance liabilities | 266 | 247 | 20 | 24 | 286 | 271 |
| Life insurance liabilities | 53,375 | 60,391 | – | – | 53,375 | 60,391 |
| Provisions for unearned premium | 288 | 313 | – | – | 288 | 313 |
| Provisions for outstanding claims (RBNS and IBNR) | 1,810 | 1,829 | – | – | 1,810 | 1,829 |
| Mathematical provision | 43,842 | 47,296 | – | – | 43,842 | 47,296 |
| Unit-linked provision | 7,112 | 10,652 | – | – | 7,112 | 10,652 |
| Other insurance liabilities | 323 | 301 | – | – | 323 | 301 |
| Ageing provision | 323 | 301 | – | – | 323 | 301 |
| Total | 76,552 | 82,737 | 845 | 811 | 77,397 | 83,548 |
| Current portion | 21,661 | 22,325 | 392 | 400 | 22,053 | 22,725 |
| Non-current portion | 54,891 | 60,412 | 453 | 411 | 55,344 | 60,823 |
XLS
Of which relates to Transformed fund:
| Direct insurance | Accepted reinsurance | Total |
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 | 31. 12. 2014 | 31. 12. 2013 | 31. 12. 2014 | 31. 12. 2013 |
| Life insurance liabilities | 49 | 32 | – | – | 49 | 32 |
| Other insurance liabilities | 49 | 32 | – | – | 49 | 32 |
| Ageing provisions | 49 | 32 | – | – | 49 | 32 |
| Total | 49 | 32 | – | – | 49 | 32 |
| Current portion | – | – | – | – | – | – |
| Non-current portion | 49 | 32 | – | – | 49 | 32 |
XLS
F.11.1. Life insurance liabilities
| 2014 | | | |
| (CZK million) | Gross | Reinsurance | Net |
| Balance as at 1 January | 60,391 | (738) | 59,653 |
| Premium allocation | 13,948 | (1) | 13,947 |
| Release of liabilities due to benefits paid, surrenders and other terminations | (19,615) | – | (19,615) |
| Fees deducted from account balances | (2,597) | – | (2,597) |
| Unwinding of discount / accretion of interest | 1,278 | – | 1,278 |
| Changes in unit-prices | 16 | – | 16 |
| Change in IBNR and RBNS | (25) | 6 | (19) |
| Change in UPR | (21) | 3 | (18) |
| Balance as at end of reporting period | 53,375 | (730) | 52,645 |
XLS
| 2013 | | | |
| (CZK million) | Gross | Reinsurance | Net |
| Balance as at 1 January | 64,879 | (769) | 64,110 |
| Premium allocation | 11,548 | – | 11,548 |
| Release of liabilities due to benefits paid, surrenders and other terminations | (14,381) | – | (14,381) |
| Fees deducted from account balances | (2,261) | – | (2,261) |
| Unwinding of discount / accretion of interest | 1,426 | – | 1,426 |
| Changes in unit-prices | 454 | – | 454 |
| Change in IBNR and RBNS | – | 20 | 20 |
| Change in UPR | – | 1 | 1 |
| Changes in Group structure | (1,332) | 10 | (1,322) |
| Foreign currency translation | 58 | – | 58 |
| Balance as at end of reporting period | 60,391 | (738) | 59,653 |
XLS
Of which relates to Transformed fund:
| 2014 | | | |
| (CZK million) | Gross | Reinsurance | Net |
| Balance as at 1 January | 32 | – | 32 |
| Premium allocation | 17 | – | 17 |
| Balance as at end of reporting period | 49 | – | 49 |
XLS
| 2013 | | | |
| (CZK million) | Gross | Reinsurance | Net |
| Balance as at 1 January | 33 | – | 33 |
| Premium allocation | (1) | – | (1) |
| Balance as at end of reporting period | 32 | – | 32 |
XLS
Unit-linked provisions
| Gross direct amount |
| (CZK million) | 2014 | 2013 |
| Balance as at 1 January | 10,652 | 10,301 |
| Premiums and payments | (3,559) | (103) |
| Interests and bonuses credited to policyholders | 19 | 454 |
| Balance as at end of reporting period | 7,112 | 10,652 |
XLS
Insurance liabilities and financial liabilities related to policies of the life segment
| Net position |
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 |
| Insurance contracts | 49,396 | 56,401 |
| Insurance contracts without discretionary participation feature | 9,887 | 14,048 |
| Insurance contracts with discretionary participation feature | 39,509 | 42,353 |
| Investment contracts with discretionary participation feature | 2,101 | 2,092 |
| Total insurance liabilities | 51,497 | 58,493 |
| Investment contracts fair valued | – | 155 |
| Investment contracts at amortised cost | 80,685 | 72,620 |
| Total investment contracts | 80,685 | 72,775 |
XLS
Of which relates to Transformed fund
| Net position |
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 |
| Total insurance liabilities | – | – |
| Investment contracts fair valued | – | 148 |
| Investment contracts at amortised cost | 80,672 | 72,620 |
| Total investment contracts | 80,672 | 72,768 |
XLS
F.11.2. Non-life insurance liabilities
F.11.2.1. Provision for unearned premiums
The table below shows the roll-forward of the non-life provision for unearned premiums:
| Gross | Reinsurance | Net |
| (CZK million) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| Balance as at 1 January | 5,299 | 4,977 | (1,852) | (1,838) | 3,447 | 3,139 |
| Change of the period | 474 | 401 | (161) | (147) | 313 | 254 |
| Foreign currency translation | (22) | 68 | – | (2) | (22) | 66 |
| Business combinations | – | (46) | – | – | – | (46) |
| Portfolio transfer | – | – | 73 | – | 73 | – |
| Other changes | – | (101) | 182 | 135 | 182 | 34 |
| Balance as at end of reporting period | 5,751 | 5,299 | (1,758) | (1,852) | 3,993 | 3,447 |
XLS
F.11.2.2. Provisions for outstanding claims (RBNS and IBNR)
| Gross direct insurance |
| (CZK million) | 31. 12. 2014 | 31. 12. 2013 |
| Motor | 11,896 | 11,301 |
| Non Motor | 5,336 | 5,591 |
| Personal and commercial lines | 4,885 | 5,125 |
| Personal | 704 | 800 |
| Commercial/industrial | 4,181 | 4,325 |
| Accident/Health | 451 | 466 |
| Total | 17,232 | 16,892 |
XLS
The following table shows the roll-forward of provisions for outstanding claims (RBNS and IBNR):
| Gross | Reinsurance | Net |
| (CZK million) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| Balance as at 1 January | 17,587 | 17,116 | (7,667) | (7,087) | 9,920 | 10,029 |
| Change related to claims incurred in current year | 6,092 | 5,674 | (2,581) | (2,729) | 3,511 | 2,945 |
| Change related to claims incurred in previous years | (5,666) | (5,258) | 2,651 | 2,294 | (3,015) | (2,964) |
| Business combinations | – | (4) | – | – | – | (4) |
| Portfolio transfer | – | – | 140 | (122) | 140 | (122) |
| Foreign currency translation effects | (28) | 59 | 11 | (23) | (17) | 36 |
| Balance as at end of reporting period | 17,985 | 17,587 | (7,446) | (7,667) | 10,539 | 9,920 |
XLS
F.11.2.3. Development of policyholders claims (RBNS and IBNR)
The following table shows the cumulative claim payments and the ultimate cost of claims by underwriting year and the development thereof from 2005 to 2014. The ultimate cost includes paid losses, outstanding reserves on reported losses, estimated reserves for IBNR claims and claim handling costs. The amounts refer to direct business gross of reinsurance.
| (CZK million) | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Total |
| Cumulative claim payments at the end of underwriting year | 8,088 | 8,180 | 7,150 | 7,103 | 7,502 | 6,792 | 6,423 | 6,487 | 5,709 | 6,183 | 69,617 |
| one year later | 11,077 | 10,712 | 9,622 | 9,453 | 9,761 | 9,243 | 8,422 | 8,570 | 7,844 | – | – |
| two years later | 11,427 | 11,129 | 10,105 | 9,886 | 10,170 | 9,638 | 8,823 | 8,968 | – | – | – |
| three years later | 11,579 | 11,261 | 10,344 | 10,138 | 10,371 | 9,844 | 8,926 | – | – | – | – |
| four years later | 11,632 | 11,365 | 10,501 | 10,265 | 10,470 | 9,963 | – | – | – | – | – |
| five years later | 11,679 | 11,463 | 10,604 | 10,344 | 10,558 | – | – | – | – | – | – |
| six years later | 11,722 | 11,512 | 10,687 | 10,373 | – | – | – | – | – | – | – |
| seven years later | 11,750 | 11,620 | 10,701 | – | – | – | – | – | – | – | – |
| eight years later | 11,783 | 11,621 | – | – | – | – | – | – | – | – | – |
| nine years later | 11,804 | – | – | – | – | – | – | – | – | – | – |
| Estimate of ultimate cumulative claims costs: at the end of underwriting year | 13,992 | 13,859 | 12,543 | 11,920 | 12,175 | 11,902 | 11,267 | 11,198 | 10,875 | 11,970 | 121,701 |
| one year later | 13,462 | 13,205 | 12,540 | 11,871 | 12,028 | 11,672 | 10,673 | 11,087 | 10,390 | – | – |
| two years later | 13,083 | 13,110 | 12,215 | 11,512 | 11,908 | 11,595 | 10,553 | 10,814 | – | – | – |
| three years later | 12,794 | 12,899 | 11,979 | 11,421 | 11,730 | 11,317 | 10,262 | – | – | – | – |
| four years later | 12,578 | 12,553 | 11,657 | 11,175 | 11,503 | 10,823 | – | – | – | – | – |
| five years later | 12,409 | 12,373 | 11,421 | 10,987 | 11,279 | – | – | – | – | – | – |
| six years later | 12,278 | 12,292 | 11,267 | 10,853 | – | – | – | – | – | – | – |
| seven years later | 12,199 | 12,114 | 11,162 | – | – | – | – | – | – | – | – |
| eight years later | 12,131 | 12,068 | – | – | – | – | – | – | – | – | – |
| nine years later | 12,091 | – | – | – | – | | – | – | – | – | – |
| Estimate of cumulative claims | 12,091 | 12,068 | 11,162 | 10,853 | 11,279 | 10,823 | 10,262 | 10,814 | 10,390 | 11,970 | 111,712 |
| Cumulative payments | (11,804) | (11,621) | (10,701) | (10,373) | (10,558) | (9,963) | (8,926) | (8,968) | (7,844) | (6,183) | (96,941) |
| Provision not included in the claims development table | – | – | – | – | – | – | – | – | – | – | 3,214 |
| Catastrophic events | – | – | – | – | – | – | – | – | – | – | 951 |
| Accepted reinsurance | – | – | – | – | – | – | – | – | – | – | 754 |
| Provisions for outstanding claims not included in underwrting years | – | – | – | – | – | – | – | – | – | – | 1,509 |
| Amount recognised in the Statement of Financial Position | – | – | – | – | – | – | – | – | – | – | 17,985 |
XLS
Information in the table also includes claims handling costs. Provisions for outstanding claims which were not included in the analysis by accident year include provision for claims which occurred before 2005 of CZK 1,368 million and provisions related to minor non-life insurance products.
F.11.2.4. Other insurance liabilities
| Gross | Reinsurance | Net |
| (CZK million) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| Balance as at 1 January | 271 | 295 | (34) | (41) | 237 | 254 |
| Utilisation of provisions | (326) | (366) | 26 | 30 | (300) | (336) |
| Business combinations | – | (3) | – | – | – | (3) |
| Creation of provisions | 341 | 345 | (34) | (23) | 307 | 322 |
| Balance as at end of reporting period | 286 | 271 | (42) | (34) | 244 | 237 |
XLS
Creation and utilisation of provisions relates mainly to provision for non-discretionary bonuses.