RBS 2011 Annual Report Download - page 383

RBS Group 2011 381
Insurance claims - gross Accident year
2002
£m
2003
£m
2004
£m
2005
£m
2006
£m
2007
£m
2008
£m
2009
£m
2010
£m
2011
£m
Total
£m
Estimate of ultimate claims costs:
At end of accident year 3,013 3,658 3,710 4,265 4,269 4,621 4,080 4,383 4,459 3,318 39,776
One year later 91 (140) (186) (92) (275) (71) 29 120 (66) (590)
Two years later 1 (106) (88) (147) (77) (5) 9 (39) (452)
Three years later (12) (55) (85) (60) (16) 14 31 (183)
Four years later (17) (47) (31) (55) 2 23 (125)
Five years later (19) (21) — 9 (23) (54)
Six years later (11) (32) 45 (3) (1)
Seven years later (14) 28 (14) —
Eight years later 14 (9) 5
Nine years later (29) (29)
Current estimate of cumulative
claims 3,017 3,276 3,351 3,917 3,880 4,582 4,149 4,464 4,393 3,318 38,347
Cumulative payments to date (2,992) (3,162) (3,168) (3,729) (3,582) (4,092) (3,494) (3,458) (3,096) (1,600) (32,373)
25 114 183 188 298 490 655 1,006 1,297 1,718 5,974
Liability in respect of earlier years 88
Claims handling costs 157
Gross general insurance claims liability 6,219
Insurance claims - net of reinsurance Accident year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
£m £m £m £m £m £m £m £m £m £m £m
Estimate of ultimate claims costs:
At end of accident year 2,584 3,215 3,514 4,168 4,215 4,572 4,034 4,360 4,435 3,218 38,315
One year later 59 (106) (168) (67) (261) (90) 24 99 (67) (577)
Two years later (12) (103) (90) (161) (87) (17) 9 (37) (498)
Three years later (3) (53) (81) (64) (23) 16 27 (181)
Four years later (21) (44) (46) (60) 10 (3) (164)
Five years later (24) (23) (19) 4 (42) (104)
Six years later (5) (34) 45 — 6
Seven years later (11) 20 5 14
Eight years later 10 6 16
Nine years later (35) (35)
Current estimate of cumulative
claims 2,542 2,878 3,160 3,820 3,812 4,478 4,094 4,422 4,368 3,218 36,792
Cumulative payments to date (2,536) (2,805) (3,008) (3,647) (3,530) (4,030) (3,466) (3,428) (3,078) (1,572) (31,100)
6 73 152 173 282 448 628 994 1,290 1,646 5,692
Liability in respect of earlier years 41
Claims handling costs 157
Net general insurance claims liability 5,890
Claims reserves
It is the Group’s policy to hold claims reserves (including reserves to cover claims which have been incurred but not reported (IBNR reserves)) for all
classes at a sufficient level to meet all liabilities as they fall due.
The Group’s focus is on high volume and relatively straightforward products, for example home and motor. This facilitates the generation of
comprehensive underwriting and claims data, which are used to price and monitor the risks accepted.