NBG » Topics » Insurance reserves

This excerpt taken from the NBG 20-F filed Jul 15, 2009.

Insurance reserves

        Insurance reserves for our life insurance operations (long-term contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for our property and casualty insurance operations (short-term contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events.

        Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions. Any additional future losses anticipated from the revision of assumptions and estimates are charged to the income statement.

        We continue to monitor potential for changes in loss estimates in order to ensure that our recorded reserves in each reporting period reflect current conditions. Our assumptions for insurance reserves are based on a subjective analysis and management judgment. Actual results may result in adjustments to reserves.

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        Insurance reserves increased from €1.9 billion in 2007 to €2.0 billion in 2008 due mainly to an increase in Gross Written Premiums. Further details on this subject are provided in Note 3, "Summary of Significant Accounting Policies", to the U.S. GAAP Financial Statements included elsewhere in this report.

This excerpt taken from the NBG 6-K filed Mar 31, 2009.

Insurance reserves

 

Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events.  Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions.  Any additional future losses anticipated from the revision of assumptions and estimations is charged to the income statement.

 

We continue to monitor potential for changes in loss estimates in order to ensure that our recorded reserves in each reporting period reflect current conditions.

 

This excerpt taken from the NBG 20-F filed May 27, 2008.

NOTE 25:    INSURANCE RESERVES

        Ethniki Hellenic General Insurance Company ("EH"), the insurance company of the Group has consistently made a provision for loss reserves by estimating the potential liability on a claim-by-claim basis. Activity in the liability for unpaid claims and claim adjustment expenses for the year ended December 31, comprises of:

 
  2006
  2007
 
 
  (EUR in thousands)

 
Property and casualty reserves          
  Reserve for unpaid claims and claim adjustment expenses as at January 1,   487,058   525,683  
Incurred claims and claim adjustment expenses:          
  Provision for insured events of the current year   205,264   180,245  
  Change in provision for insured events of prior years   23,057   34,438  
   
 
 
  Total incurred claims and claim adjustment expenses   228,321   214,683  
Payments          
  Claims and claim adjustment expenses attributable to insured events of the current year   (75,947 ) (100,789 )
  Claims and claim adjustment expenses attributable to insured events of prior years   (128,209 ) (114,171 )
   
 
 
  Total payments   (204,156 ) (214,960 )
  Changes in unearned premium reserves   14,460   8,734  
   
 
 
  Reserves for unpaid claims and claim adjustment expenses as at December 31,   525,683   534,140  
   
 
 

F-45


NATIONAL BANK OF GREECE S.A. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 25:    INSURANCE RESERVES (Continued)

 
 
  2006
  2007
 
 
  (EUR in thousands)

 
Life insurance reserves          
  Mathematical and other life insurance reserves at 1 January,   1,050,070   1,207,883  
  Increase in reserves   301,293   367,720  
  Paid claims and other movements   (143,480 ) (185,444 )
   
 
 
  Mathematical and other life insurance reserves at 31 December,   1,207,883   1,390,159  
   
 
 
  Total insurance reserves   1,733,566   1,924,299  
   
 
 
This excerpt taken from the NBG 6-K filed Mar 19, 2008.

Insurance reserves

 

Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events.  Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions.  Any additional future losses anticipated from the revision of assumptions and estimations is charged to the income statement.

 

We continue to monitor potential for changes in loss estimates in order to ensure that our recorded reserves in each reporting period reflect current conditions.

 

This excerpt taken from the NBG 20-F filed Jul 2, 2007.

Insurance reserves

Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events.

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Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions. Any additional future losses anticipated from the revision of assumptions and estimations is charged to income for the period.

During 2004 estimated losses on life insurance operations increased primarily due to higher hospitalization costs, which, due to intense market competition, could not be matched by an increase in premiums on life contracts with hospitalization riders. In response to these developments, we further increased insurance reserves in 2004. We continue to monitor potential for changes in loss estimates in order for our recorded reserves in each reporting period to reflect current conditions. While insurance reserves increased slightly in 2005, they increased significantly in 2006 due primarily to the significant growth in gross written premiums of the life business, reflecting the success of our new bancassurance life products and an increase of outstanding claims in the motor third party liability line of business following a thorough reassessment of all existing claim files. Further details on this subject are provided in “Key Factors Affecting Our Results of Operations—Insurance activities” in this Item 5 and Note 3, “Summary of Significant Accounting Policies” to the U.S. GAAP financial statements included elsewhere in this report.

This excerpt taken from the NBG 6-K filed Mar 22, 2007.

Insurance reserves

Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events. Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions. Any additional future losses anticipated from the revision of assumptions and estimations is charged to the income statement.

We continue to monitor potential for changes in loss estimates in order to ensure that our recorded reserves in each reporting period reflect current conditions.

This excerpt taken from the NBG 20-F filed Jul 14, 2006.

Insurance reserves

Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events.

Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions. Any additional future losses anticipated from the revision of assumptions and estimations is charged to income for the period.

During 2004 estimated losses on life insurance operations increased primarily due to higher hospitalization costs, which, due to intense market competition, could not be matched by an increase in premiums on life contracts with hospitalization riders. In response to these developments, we further increased insurance reserves in 2004. We continue to monitor potential for changes in loss estimates in order for our recorded reserves in each reporting period to reflect current conditions. During 2005, the reorganization of EH selling strategy resulted in profits before tax of  50.3 million. Further details on this subject are given in “

This excerpt taken from the NBG 6-K filed Mar 1, 2006.

Insurance reserves

 

Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events. Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions. Any additional future losses anticipated from the revision of assumptions and estimations is charged to the income statement.

 

We continue to monitor potential for changes in loss estimates in order to ensure that our recorded reserves in each reporting period reflect current conditions.

 

This excerpt taken from the NBG 20-F filed Jul 15, 2005.

Insurance reserves

        Insurance reserves for life insurance operations (long-duration contracts) are estimated using approved actuarial methods that include assumptions about future investment yields, mortality, expenses, options and guarantees, morbidity and terminations. Insurance reserves for property and casualty insurance operations (short-duration contracts) are determined using loss estimates, which rely on actuarial observations of loss experience for similar historic events.

        Assumptions and observations of loss experience are periodically adjusted, with the support of qualified actuaries, in order to reflect current conditions. Any additional future losses anticipated from the revision of assumptions and estimations is charged to income for the period.

        During 2004 estimated losses on life insurance operations increased primarily due to higher hospitalization costs, which, due to intense market competition, could not be matched by an increase in premiums on life contracts with hospitalization riders. In response to these developments, we further increased insurance reserves in 2004. We continue to monitor potential for changes in loss estimates in order for our recorded reserves in each reporting period to reflect current conditions. Further details on this subject are given in "Key Factors Affecting The Results of Operations—Insurance activities" in this Item 5 and Note 3, "Summary of Significant Accounting Policies" to the U.S. GAAP financial statements included elsewhere in this report.

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