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Insurance technical provisions and pension plans
 12 Months Ended
Dec. 31, 2017
Insurance technical provisions and pension plans [Abstract]  
Insurance technical provisions and pension plans

35.  Insurance technical provisions and pension plans

 

a)      Technical provisions by account

 

 

R$ thousand

Insurance (1)

Life and Pension (2)(3)

Total

On December 31

On December 31

On December 31

2017

2016

2017

2016

2017

2016

Current and long-term liabilities

 

 

 

 

 

 

Mathematical reserve for unvested benefits

1,051,507

912,764

207,818,859

184,594,055

208,870,366

185,506,819

Mathematical reserve for vested benefits

265,727

210,855

9,367,712

8,989,482

9,633,439

9,200,337

Reserve for claims incurred but not reported (IBNR)

3,159,967

2,770,507

1,030,107

1,264,115

4,190,074

4,034,622

Unearned premium reserve

4,068,716

4,265,155

567,369

574,544

4,636,085

4,839,699

Reserve for unsettled claims

4,291,432

4,645,468

1,588,489

1,682,147

5,879,921

6,327,615

Reserve for financial surplus

- 

- 

514,199

554,505

514,199

554,505

Other technical provisions

1,996,206

2,048,355

3,369,300

3,328,048

5,365,506

5,376,403

Total reserves

14,833,555

14,853,104

224,256,035

200,986,896

239,089,590

215,840,000

(1)  “Other technical provisions” - Insurance basically refers to the technical provisions of the “personal health” portfolio;

(2)  Includes personal insurance and pension plans; and

(3) “Other technical provisions” - Life and Pension Plan mainly includes the “Reserve for redemption and other amounts to be settled”, “Reserve for related expenses”.

b)   Technical provisions by product

 

 

R$ thousand

Insurance

Life and Pension (1)

Total

On December 31

On December 31

On December 31

2017

2016

2017

2016

2017

2016

Health

9,754,024

8,559,137

- 

- 

9,754,024

8,559,137

Auto / Liability Insurance

3,156,847

3,126,232

- 

- 

3,156,847

3,126,232

DPVAT (Personal Injury Caused by Automotive Vehicles)

506,161

471,288

3,100

2,944

509,261

474,232

Life

- 

- 

10,018,884

9,336,759

10,018,884

9,336,759

RE (Elementary branch)

1,416,523

2,696,447

- 

- 

1,416,523

2,696,447

Free Benefits Generating Plan - PGBL

- 

- 

35,087,618

32,605,459

35,087,618

32,605,459

Free Benefits Generating Life - VGBL

- 

- 

158,746,205

138,670,739

158,746,205

138,670,739

Tradicional plans

- 

- 

20,400,228

20,370,995

20,400,228

20,370,995

Total technical provisions

14,833,555

14,853,104

224,256,035

200,986,896

239,089,590

215,840,000

 

(1) Includes personal and pension insurance operations.

 

 

c)   Technical provisions by aggregated products

 

 

R$ thousand

On December 31

2017

2016

Insurance - Vehicle, Elementary Lines, Life and Health

24,855,539

24,192,807

Insurance - Life with Survival Coverage (VGBL)

158,746,205

138,670,739

Pensions - PGBL and Traditional Plans

47,623,322

45,557,528

Pensions - Risk Traditional Plans

7,864,524

7,418,926

Total

239,089,590

215,840,000

d)   Changes in the insurance and pension technical provisions

 

(i)            Insurance - Vehicle, General, Life, Health and Pension (Risk on Traditional Plans)

 

 

R$ thousand

Years ended December 31

2017

2016

At the beginning of the year

31,611,733

27,844,231

(-) DPVAT insurance

(473,579)

(333,699)

Subtotal at beginning of the year

31,138,154

27,510,532

Additions, net of reversals

28,542,623

28,700,765

Payment of claims, benefits and redemptions

(27,156,197)

(26,449,844)

Adjustment for inflation and interest

648,898

1,376,701

Partial spin-off of large risk portfolio

(961,513)

- 

Subtotal at end of the period

32,211,965

31,138,154

(+) DPVAT insurance

508,098

473,579

At the end of the year

32,720,063

31,611,733

 

(ii)           Insurance - Life with Survival Coverage (VGBL)

 

 

R$ thousand

Years ended December 31

2017

2016

At the beginning of the year

138,670,739

106,248,597

Receipt of premiums net of fees

28,577,437

35,824,651

Payment of benefits

(28,758)

(47,379)

Payment of redemptions

(18,985,242)

(16,674,828)

Adjustment for inflation and interest

13,468,401

14,660,738

Others

(2,956,372)

(1,341,040)

At the end of the year

158,746,205

138,670,739

 

(iii)          Pensions - PGBL and Traditional Plans

 

 

R$ thousand

Years ended December 31

2017

2016

At the beginning of the year

45,557,528

36,848,112

Receipt of premiums net of fees

3,446,148

7,412,759

Payment of benefits

(759,949)

(696,056)

Payment of redemptions

(2,962,505)

(2,438,351)

Adjustment for inflation and interest

3,656,452

4,808,394

Others

(1,314,352)

(377,330)

At the end of the year

47,623,322

45,557,528

e)   Guarantees for the technical provisions

 

 

R$ thousand

Insurance

Life and pension plans

Total

On December 31

On December 31

On December 31

2017

2016

2017

2016

2017

2016

Total technical provisions

14,833,555

14,853,104

224,256,035

200,986,896

239,089,590

215,840,000

(-) Deferred acquisition cost PPNG reducers

(138,780)

(237,104)

- 

- 

(138,780)

(237,104)

(-) Portion corresponding to contracted reinsurance

(153,137)

(947,159)

(14,123)

(41,191)

(167,260)

(988,350)

(-) Deposits retained at IRB and court deposits

- 

(16)

- 

- 

- 

(16)

(-) Receivables

(925,999)

(1,068,329)

- 

- 

(925,999)

(1,068,329)

(-) Unearned premium reserve - Health and dental insurance (1)

(1,268,243)

(1,182,152)

- 

- 

(1,268,243)

(1,182,152)

(-) Reserves from DPVAT agreements

(502,491)

(465,568)

- 

- 

(502,491)

(465,568)

To be insured

11,844,905

10,952,776

224,241,912

200,945,705

236,086,817

211,898,481

 

 

 

 

 

 

 

Investment fund quotas (VGBL and PGBL) (2)

- 

- 

190,639,798

168,337,785

190,639,798

168,337,785

Investment fund quotas (excluding VGBL and PGBL)

5,076,006

7,164,637

21,639,087

23,273,027

26,715,093

30,437,664

Government securities

9,011,657

5,882,012

18,608,194

14,187,009

27,619,851

20,069,021

Private securities

18,203

93,287

164,338

169,440

182,541

262,727

Shares

3,227

2,325

1,716,401

1,728,856

1,719,628

1,731,181

Total technical provision guarantees

14,109,093

13,142,261

232,767,818

207,696,117

246,876,911

220,838,378

(1) Deduction provided for in article 4 of Normative Resolution ANS no. 392/15; and

(2) The investment funds "VGBL" and "PGBL" were consolidated in the financial statements.

f)    Changes in deferred acquisition cost (insurance assets)

 

 

R$ thousand

Years ended December 31

2017

2016

At the beginning of the year

1,750,244

1,945,238

Additions

1,586,888

1,940,226

Reversals

(2,250,844)

(2,135,220)

Partial spin-off of large risk portfolio

(16,180)

- 

At the end of the year

1,070,108

1,750,244

 

g)   Changes in reinsurance assets

 

 

R$ thousand

Years ended December 31

2017

2016

At the beginning of the year

1,186,194

1,144,506

Additions

186,867

667,908

Reversals

(139,641)

(485,724)

Recovered insurance losses

(259,433)

(173,908)

Adjustment for inflation and interest

(411)

43,790

Other (1)

(754,362)

(10,378)

At the end of the year

219,214

1,186,194

(1)    Includes the transfer of part of the operation of the large risk portfolio (Note 43).

 

 

h)   Claim information

 

The purpose of the table below is to show the inherent insurance risk, comparing the insurance claims paid with their provisions. Starting from the year in which the claim was reported, the upper part of the table shows the changes in the provision over the years. The provision varies as more precise information concerning the frequency and severity of the claims is obtained. The lower part of the table shows the reconciliation of the amounts with the amounts presented in the financial statements.

Insurance, Vehicle/RCF and Elementary Lines - Claims, gross reinsurance(1)

 

 

R$ thousand

Year claims were notified

Up to 2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Total

Amount estimated for the claims:

 

 

 

 

 

 

 

 

 

 

 

 

·  In the year after notification

4,482,979

1,152,371

2,058,559

2,414,674

2,647,298

3,134,409

3,020,829

3,708,479

4,160,984

3,821,255

3,481,275

- 

·  One year after notification

4,679,108

1,108,270

2,037,365

2,394,609

2,626,356

3,035,716

2,848,361

3,456,642

4,028,967

3,640,897

- 

- 

·  Two years after notification

4,711,861

1,088,069

2,018,329

2,387,075

2,604,738

3,021,698

2,809,942

3,464,389

3,989,904

- 

- 

- 

·  Three years after notification

4,783,290

1,094,795

2,015,921

2,403,020

2,604,061

3,041,626

2,839,210

3,436,234

- 

- 

- 

- 

·  Four years after notification

4,845,834

1,102,364

2,046,000

2,418,649

2,600,194

3,071,989

2,813,496

- 

- 

- 

- 

- 

·  Five years after notification

4,902,275

1,102,595

2,044,644

2,428,252

2,625,442

2,888,296

- 

- 

- 

- 

- 

- 

·  Six years after notification

4,956,618

1,127,609

2,056,612

2,431,363

2,621,044

- 

- 

- 

- 

- 

- 

- 

·  Seven years after notification

4,982,993

1,140,708

2,072,169

2,419,614

- 

- 

- 

- 

- 

- 

- 

- 

·  Eight years after notification

5,028,742

1,158,436

2,057,911

- 

- 

- 

- 

- 

- 

- 

- 

- 

·  Nine years after notification

5,074,360

1,149,106

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

·  Ten years after notification

5,086,824

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Estimate of claims on the reporting date (2017)

5,086,824

1,149,106

2,057,911

2,419,614

2,621,044

2,888,296

2,813,496

3,436,234

3,989,904

3,640,897

3,481,275

33,584,601

Payments of claims

(5,064,293)

(1,022,199)

(2,042,673)

(2,390,739)

(2,586,371)

(2,835,738)

(2,753,035)

(3,355,681)

(3,879,707)

(3,491,476)

(2,766,457)

(32,188,369)

Outstanding Claims

22,531

126,907

15,238

28,875

34,673

52,558

60,461

80,553

110,197

149,421

714,818

1,396,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance, Vehicle/RCF and Elementary Lines - Claims, net reinsurance(1)

 

 

R$ thousand

Year claims were notified

Up to 2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Total

Amount estimated for net claims for reinsurance:

 

 

 

 

 

 

 

 

 

 

 

 

·  In the year after notification

4,049,408

859,651

1,791,249

2,260,194

2,440,426

2,804,706

2,815,311

3,523,133

3,805,260

3,661,006

3,443,486

- 

·  One year after notification

4,107,420

846,124

1,773,092

2,235,404

2,417,095

2,695,513

2,648,135

3,306,665

3,695,713

3,541,988

- 

- 

·  Two years after notification

4,157,532

835,214

1,766,152

2,232,926

2,401,407

2,696,091

2,622,005

3,317,745

3,671,224

- 

- 

- 

·  Three years after notification

4,225,589

844,636

1,769,942

2,251,003

2,418,057

2,705,326

2,658,925

3,323,339

- 

- 

- 

- 

·  Four years after notification

4,285,309

850,115

1,791,739

2,268,293

2,425,973

2,729,230

2,659,375

- 

- 

- 

- 

- 

·  Five years after notification

4,338,449

857,121

1,797,090

2,281,206

2,452,938

2,746,804

- 

- 

- 

- 

- 

- 

·  Six years after notification

4,390,840

868,958

1,810,770

2,291,650

2,459,251

- 

- 

- 

- 

- 

- 

- 

·  Seven years after notification

4,426,256

873,978

1,822,466

2,292,651

- 

- 

- 

- 

- 

- 

- 

- 

·  Eight years after notification

4,466,917

884,796

1,824,085

- 

- 

- 

- 

- 

- 

- 

- 

- 

·  Nine years after notification

4,510,383

890,132

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

·  Ten years after notification

4,527,764

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Estimate of claims on the reporting date (2017)

4,527,764

890,132

1,824,085

2,292,651

2,459,251

2,746,804

2,659,375

3,323,339

3,671,224

3,541,988

3,443,486

31,380,099

Payments of claims

(4,505,614)

(880,207)

(1,809,102)

(2,265,943)

(2,424,679)

(2,694,553)

(2,599,885)

(3,243,342)

(3,563,269)

(3,393,389)

(2,736,036)

(30,116,019)

Liquid outstanding claims for reinsurance

22,150

9,925

14,983

26,708

34,572

52,251

59,490

79,997

107,955

148,599

707,450

1,264,080

 

 

 

 

 

 

 

 

 

 

Life - Insurance claims, gross reinsurance(1)

 

R$ thousand

Year claims were notified

Up 2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Total

Amount estimated for net claims for reinsurance:

 

 

 

 

 

 

 

·  In the year after notification

1,987,288

987,998

1,062,753

1,185,750

1,403,227

1,448,969

1,509,781

1,536,697

1,653,008

1,741,563

1,771,294

- 

·  One year after notification

2,004,988

1,000,730

1,082,779

1,183,274

1,386,518

1,431,243

1,491,911

1,568,941

1,648,842

1,755,802

- 

- 

·  Two years after notification

2,038,732

1,020,530

1,105,401

1,195,472

1,393,915

1,447,741

1,525,941

1,570,227

1,644,051

- 

- 

- 

·  Three years after notification

2,075,972

1,018,008

1,100,970

1,185,871

1,406,376

1,450,511

1,514,898

1,495,266

- 

- 

- 

- 

·  Four years after notification

2,079,897

1,017,316

1,109,079

1,198,856

1,406,472

1,454,750

1,516,747

- 

- 

- 

- 

- 

·  Five years after notification

2,081,301

1,015,902

1,119,669

1,198,607

1,416,009

1,459,181

- 

- 

- 

- 

- 

- 

·  Six years after notification

2,086,778

1,017,807

1,118,181

1,197,508

1,417,352

- 

- 

- 

- 

- 

- 

- 

·  Seven years after notification

2,068,574

1,021,908

1,112,583

1,189,843

- 

- 

- 

- 

- 

- 

- 

- 

·  Eight years after notification

2,076,228

1,024,349

1,115,707

- 

- 

- 

- 

- 

- 

- 

- 

- 

·  Nine years after notification

2,094,047

1,020,756

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

·  Ten years after notification

2,140,849

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Estimate of claims on the reporting date (2017)

2,140,849

1,020,756

1,115,707

1,189,843

1,417,352

1,459,181

1,516,747

1,495,266

1,644,051

1,755,802

1,771,294

16,526,848

Payments of claims

(2,074,102)

(1,003,673)

(1,098,409)

(1,151,732)

(1,361,271)

(1,398,760)

(1,428,669)

(1,307,155)

(1,337,199)

(1,499,651)

(1,280,837)

(14,941,458)

Liquid outstanding claims for reinsurance

66,747

17,083

17,298

38,111

56,081

60,421

88,078

188,111

306,852

256,151

490,457

1,585,390

(1) The claims table does not include the products Health and Dental insurance - R$ 2,906,361 thousand, DPVAT insurance - R$ 86,592 thousand, Retrocession - R$ 21,722 thousand and salvage and reimbursement estimates - R$ (163,923) thousand.