ARC Ltd Integrated Annual Report 2023

NOTES TO F I NANC I AL STATEMENTS 11.1.3. Non-sovereign business (continues) 31 DECEMBER 2022 LIABILITIES FOR REMAINING COVERAGE LIABILITIES FOR INCURRED CLAIMS TOTAL Figures in USD EXCLUDING LOSS COMPONENT LOSS COMPONENT ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH FLOWS RISK ADJUSTMENT Insurance contract liabilities as at 1 January 2022 – – 109,337 7,515 116,852 Insurance contract assets as at 1 January 2022 (196,892) – – – (196,892) Net insurance contract (assets)/ liabilities as at 1 January 2022 (196,892) – 109,337 7,515 (80,040) Insurance revenue (158,258) – – – (158,258) Insurance service expenses 92,212 – 211,340 (1,785) 301,767 Incurred claims and other expenses – – 209,253 5,730 214,983 Amortisation of insurance acquisition cash flows 92,212 – – – 92,212 Changes that relate to past service – adjustments to the LIC – – 2,087 (7,515) (5,428) Total changes in the statement of comprehensive income (66,046) – 211,340 (1,785) 143,509 Cash flows 157,618 – (200,335) – (42,717) Premium received 215,332 – – – 215,332 Claims and other expenses paid – – (200,335) – (200,335) Insurance acquisition cash flows (57,714) – – – (57,714) Net insurance contract (assets)/ liabilities as at 31 December 2022 (105,320) – 120,342 5,730 20,752 Insurance contract liabilities as at 31 December 2022 – – 120,342 5,730 126,072 Insurance contract assets as at 31 December 2022 (105,320) – – – (105,320) Net insurance contract (assets)/ liabilities as at 31 December 2022 (105,320) – 120,342 5,730 20,752 117

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