Sunday, September 7, 2025
24.9 C
Lagos

Insurers’ Results Face Volatile Future under IFRS 17

Insurance companies’ results have the potential to become more volatile under the latest proposed International Financial Reporting Standards or IFRS 17 as it introduces several new concepts to the balance sheet and significantly alter earnings patterns, according to a new A.M. Best briefing.
The Best’s Briefing, “IFRS 17 – Enhanced Transparency Will Be Worth the Effort for Insurers,” notes that under current standards, insurers may use their jurisdictional accounting rules to report the value of the insurance contracts, which leads to difficulties in analyzing an insurer’s financial position by various stakeholders.

IFRS 17 represents efforts to increase insurance accounting consistency and transparency across international boundaries. Insurers at present may discount future cash flows from long-term insurance contracts with discount rates adopted at inception.

The IFRS 17 proposal aims to separate an insurer’s underwriting results from the financial results (i.e., non-underwriting, investment-related) that comprise investment income and other financial expenses not related to insurance operations, and would require periodic reassessments of the liabilities using up-to-date discount rates.

A.M. Best believes insurers with well-established asset-liability management strategies will be less affected than those who take on greater asset-liability management risk.

spot_img
spot_img

Hot this week

Nigeria, Brazil Central Banks Deepen Economic, Financial Co-operation

Nigeria’s Central Bank Governor, Olayemi Cardoso, has held talks...

Ecobank Nigeria to Host Second Edition of Design & Build, Showcasing Premier Innovators in Design, Construction

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

Expert: Fintech, Financial Inclusion Critical for Sustainable Growth of Nigerian Economy

A renowned economist, Dr. Biodun Adedipe, the Chief Consultant/CEO,...

Sterling Bank Marks One Year of Africa’s Groundbreaking Core Banking System

Number one Best Workplace in Banking in Nigeria and...

Topics

NDIC Management Visits Minister of State, Finance in Abuja

The Management of the NDIC led by the MD/CE...

PenCom Holds Retreat to Review Pension Reform Act 2014

The National Pension Commission (PenCom) organised a retreat on...

‘AMCON Amendment Bill on Debt Recovery Ready Soon’

R-L:Chairman of House of Representatives Committee on Banking and...

Vbank: Nigeria’s Digital Banking App of 2020 Still Going Strong

When VFD Microfinance Bank entered Nigeria's budding virtual banking...

Editors Decry Recurrent Expenditure in 2018 Budget

The Nigerian Guild of Editors has expressed concern over...

NIMC Trains Corps Members for Nationwide NIN Ward Enrolment

The National Identity Management Commission (NIMC), in partnership with...

ADB President, Adesina, Receives African Passport

The President of the African Development Bank Group (AfDB),...

Facebook Celebrates ‘Icons of Change in sub-Saharan Africa

Facebook has celebrated 40 young leaders, developers, entrepreneurs and...
spot_img

Related Articles

Popular Categories

spot_imgspot_img