First year’s application of IFRS 17 in the financial statements of European insurance companies

In this article we provide the results of European insurers’ first time application of IFRS 17 ‘Insurance Contracts’. We have selected a sample of 24 large European insurers and analysed the disclosure in their 2023 annual reports of this first application of significantly changed principles in the...

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Main Authors: Ralph ter Hoeven, Antonio Borelli, Pelle van Vlijmen
Format: Article
Language:English
Published: Pensoft 2024-11-01
Series:MAB
Online Access:https://mab-online.nl/article/139090/download/pdf/
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author Ralph ter Hoeven
Antonio Borelli
Pelle van Vlijmen
author_facet Ralph ter Hoeven
Antonio Borelli
Pelle van Vlijmen
author_sort Ralph ter Hoeven
collection DOAJ
description In this article we provide the results of European insurers’ first time application of IFRS 17 ‘Insurance Contracts’. We have selected a sample of 24 large European insurers and analysed the disclosure in their 2023 annual reports of this first application of significantly changed principles in the accounting for insurance contracts. At the date of transition most insurance companies reported a decrease in opening equity, although the reasons for the difference are hard to compare due to the various policies that IFRS 4 allowed and the different transition approaches used. We identified areas of improvement with regard to a further disaggregation of groups of portfolios, analyses of the changes related to the insurance liabilities and sensitivity analyses disclosures. The comparability between insurers in our sample is impeded by the use of options provided by IFRS 17 and by the EU. Half of the companies in our sample presented an (adjusted) operating result as alternative performance (profit) measure in which area explanations can be improved.
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spelling doaj-art-d230db34ab8d4cc682470c8a5d59be642025-08-20T02:07:02ZengPensoftMAB2543-16842024-11-0198640342210.5117/mab.98.139090139090First year’s application of IFRS 17 in the financial statements of European insurance companiesRalph ter Hoeven0Antonio Borelli1Pelle van Vlijmen2University of GroningenDeloitte Consultative Services NetherlandsDeloitte Consultative Services NetherlandsIn this article we provide the results of European insurers’ first time application of IFRS 17 ‘Insurance Contracts’. We have selected a sample of 24 large European insurers and analysed the disclosure in their 2023 annual reports of this first application of significantly changed principles in the accounting for insurance contracts. At the date of transition most insurance companies reported a decrease in opening equity, although the reasons for the difference are hard to compare due to the various policies that IFRS 4 allowed and the different transition approaches used. We identified areas of improvement with regard to a further disaggregation of groups of portfolios, analyses of the changes related to the insurance liabilities and sensitivity analyses disclosures. The comparability between insurers in our sample is impeded by the use of options provided by IFRS 17 and by the EU. Half of the companies in our sample presented an (adjusted) operating result as alternative performance (profit) measure in which area explanations can be improved.https://mab-online.nl/article/139090/download/pdf/
spellingShingle Ralph ter Hoeven
Antonio Borelli
Pelle van Vlijmen
First year’s application of IFRS 17 in the financial statements of European insurance companies
MAB
title First year’s application of IFRS 17 in the financial statements of European insurance companies
title_full First year’s application of IFRS 17 in the financial statements of European insurance companies
title_fullStr First year’s application of IFRS 17 in the financial statements of European insurance companies
title_full_unstemmed First year’s application of IFRS 17 in the financial statements of European insurance companies
title_short First year’s application of IFRS 17 in the financial statements of European insurance companies
title_sort first year s application of ifrs 17 in the financial statements of european insurance companies
url https://mab-online.nl/article/139090/download/pdf/
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AT antonioborelli firstyearsapplicationofifrs17inthefinancialstatementsofeuropeaninsurancecompanies
AT pellevanvlijmen firstyearsapplicationofifrs17inthefinancialstatementsofeuropeaninsurancecompanies