RBS 2006 Annual Report Download - page 186
Download and view the complete annual report
Please find page 186 of the 2006 RBS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1
-
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
-
249
-
250
-
251
-
252
-
253
-
254
-
255
-
256
-
257
-
258
-
259
-
260
-
261
-
262
RBS Group • Annual Report and Accounts 2006 185
Financial statements
Reserving risk
Reserving risk relates to both premiums and claims. It is the risk that reserves are assessed incorrectly such that insufficient funds
have been retained to pay or handle claims as the amounts fall due. Claims development data provides information on the historical
pattern of reserving risk.
Accident year
2001 2002 2003 2004 2005 2006 Total
Insurance claims – gross £m £m £m £m £m £m £m
Estimate of ultimate claims costs:
At end of accident year 2,395 3,013 3,658 3,710 4,265 4,269 21,310
One year later (70) 91 (140) (186) (92) — (397)
Two years later 20 1 (106) (88) — — (173)
Three years later 12 (12) (55) — — — (55)
Four years later (40) (17) ————(57)
Five years later (1)—————(1)
Current estimate of cumulative claims 2,316 3,076 3,357 3,436 4,173 4,269 20,627
Cumulative payments to date (2,189) (2,805) (2,853) (2,707) (3,093) (1,962) (15,609)
127 271 504 729 1,080 2,307 5,018
Liability in respect of prior years 126
Claims handling costs 103
Gross general insurance claims liability 5,247
Accident year
2001 2002 2003 2004 2005 2006 Total
Insurance claims – net of reinsurance £m £m £m £m £m £m £m
Estimate of ultimate claims costs:
At end of accident year 2,011 2,584 3,215 3,514 4,168 4,215 19,707
One year later (61) 59 (106) (168) (67) — (343)
Two years later 22 (12) (103) (90) — — (183)
Three years later 13 (3) (53) — — — (43)
Four years later (41) (21) ————(62)
Five years later 1—————1
Current estimate of cumulative claims 1,945 2,607 2,953 3,256 4,101 4,215 19,077
Cumulative payments to date (1,841) (2,412) (2,520) (2,584) (3,021) (1,925) (14,303)
104 195 433 672 1,080 2,290 4,774
Liability in respect of prior years 79
Claims handling costs 103
Net general insurance claims liability 4,956