Page 69 - Suncorp_Review

Suncorp Group Limited Annual Report 2010/11 67

(b) Claims development table

The following table shows the development of the estimated undiscounted outstanding claims relative to the ultimate expected claims for the ten most recent accident years.

ACCIDENT YEAR

PRIOR $m

2002 $m

2003 $m

2004 $m

2005 $m

2006 $m

2007 $m

2008 $m

2009 $m

2010 $m

2011 $m

TOTAL $m

Consolidated

Estimate of ultimate claims cost:

At end of accident year 795 1,020 1,044 1,172 1,208 1,246 1,289 1,294 1,332 1,324 One year later 956 993 1,059 1,063 1,119 1,180 1,150 1,281 1,231 Two years later 935 931 924 938 1,038 1,073 1,114 1,172 Three years later 869 827 834 898 963 1,043 1,070 Four years later 853 721 764 847 909 993 Five years later 788 667 723 819 878 Six years later 780 643 727 813 Seven years later 772 649 697 Eight years later 811 672 Nine years later 797 Current estimate of

cumulative claims cost 797 672 697 813 878 993 1,070 1,172 1,231 1,324 Cumulative payments (738) (609) (616) (673) (684) (662) (537) (414) (211) (65) Outstanding claims

liabilities – undiscounted 731 59 63 81 140 194 331 533 758 1,020 1,259 5,169 Discount to present value (293) (8) (11) (14) (25) (30) (47) (69) (100) (148) (207) (952) Deferred premium – – – – – – – – – – 2 2 Outstanding claims –

long‑tail 438 51 52 67 115 164 284 464 658 872 1,054 4,219 Outstanding claims – short-tail 869 Claims handling expense 249 Risk margin 980 Total net outstanding claims liabilities 6,317 Reinsurance and other recoveries on outstanding claims liabilities 4,660 Total gross outstanding claims liabilities 10,977

The claims development table discloses amounts net of reinsurance and third party recoveries to give the most meaningful insight into the impact on proft or loss. Short-tail claims are disclosed separately as they are generally subject to less uncertainty since they are normally reported soon after the incident and are generally settled within 12 months following the reported incident.