vis.is
Consolidated
Financial Statements
2022
These financial statements are translated from the original which is in Icelandic. Should there be
discrepancies between the two versions, the Icelandic version will take priority over the translated version.
Table of Contents
Report and Endorsement of the Board of Directors and the CEO 2-10
Independent Auditor's Report 11-15
Statement of Profit or Loss and Other Comprehensive Income 16
Balance Sheet 17
Statement of Changes in Equity 18
Statement of Cash Flows 19
Notes 20-46
Vátryggingafélag
Íslands hf.
Consolidated Financial Statements
2022
Report and Endorsement of the Board of Directors and the CEO for 2022
The consolidated financial statements of Vátryggingafélag Íslands hf. ("the Company” or “VIS”) for the year 2022 consist of the annual financial
statements of the Company and its subsidiary, Líftryggingafélag Íslands hf., together referred to as “the Group”. The Company’s main operations
Reporting Standards (IFRS) as adopted by the EU and the additional requirements for companies listed on a regulated securities market.
2022 operations and financial position
According to the statement of financial position and other comprehensive income, the Group's profits after taxes for the year amounted to ISK 940
million, as compared to ISK 7,684 million in 2021.
According to the balance sheet, the Group’s assets at year-end amounted to ISK 56,722 million (2021: 59,063), liabilities were ISK 39,397 million
(2021: 38,610) and equity at year-end amounted to ISK 17,325 million (2021: 20,453).The Group’s solvency ratio without the planned dividend and
share repurchases is 1.69, but is 1.58 at year-end 2022 taking the planned dividend and share repurchases into account. In 2022, the average number
of full-time equivalent positions at the Company was 186. At the end of year, 58% of the employees were male and 42% female. Earned premiums in
2022 amounted to ISK 23,197 million, down 4.1% year-over-year.
Claims incurred, net of reinsurance, amounted to ISK 17,761 million, decreasing by 8.8% from the prior year. The combined ratio for the year was
99.2% versus 97.1% in the prior year.
Investments
The Company's investment income was positive by ISK 1,545 million, representing a 3.5% nominal return, despite extremely challenging market
conditions with the prices of both bonds and equities falling sharply during the year. Unlisted equities performed the best, delivering investment
income of ISK 1,501 million or a 24% return. Listed equities declined by 10.5% or about ISK 1,145 million. The Company's bond holdings delivered
a positive result of ISK 606 million, largely from unlisted bonds. This must be considered a good outcome considering the difficult conditions on the
bond market.
Share capital and allocation of profits
The Company’s share capital amounted to ISK 1,750 million at year-end (including treasury share of ISK 34.4 million), with each share having a
nominal value of ISK 1. All shares are in the same class and carry the same rights The Company is listed on Nasdaq Iceland. The volume of trading in
the Company's shares decreased by 22.9% last year and the number of trades was up 6.9%. The Company's shares traded at 20.4 at the beginning of
the year and 16.9 at year-end ─ representing a 17.2% decline over the year.
There were 871 shareholders at the beginning of the year and 937 at year-end.
Approximately 50% (Q3: 50%) of the shares are owned by pension funds, 10% (Q3: 13%) by domestic funds, 28% (Q3: 28%) by other legal entities,
5% (Q3: 6%) by individuals, 2% (Q3: 2%) by financial undertakings and 3% (Q3: 3%) by foreign entities. At year-end, the Company owned
33,250,000 treasury shares that were acquired through the repurchase of shares under the Company's share repurchase programs. Further details on
treasury shares are provided in note 22.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 2 Amounts are in thousands of ISK
The ten largest shareholders at year-end were:
Name of shareholder:
Share
Gildi-lífeyrissjóður 8,95%
Skel fjárfestingafélag hf. 8,91%
Sjávarsýn ehf. 7,53%
Frjálsi lífeyrissjóðurinn 7,30%
Lífeyrissjóður starfsmanna ríkisins A-deild 7,17%
Lífeyrissjóður verzlunarmanna 6,50%
Stapi lífeyrissjóður 4,31%
Birta lífeyrissjóður 3,69%
Brú Lífeyrissjóður sveitarfélaga 3,44%
IS EQUUS Hlutabréf 2,61%
Report and Endorsement of the Board of Directors and the CEO for 2022
Shareholders’ meetings and Articles of Association
The Company's Annual General Meeting was held on 17 March 2022. The meeting approved the 2021 annual financial statements and a proposal for
the disposal of the Company's profits. A Board of Directors, auditor and Nomination Committee were also elected at the meeting. The Company's
Remuneration Policy, which includes an incentive scheme for the Company's management and employees, was approved at the meeting, and the rules
of procedure of the Nomination Committee were amended. The meeting approved a 12-month authorisation for the Board of Directors to purchase
shares in the Company for the purpose of i) making a market in the Company, ii) instituting a formal repurchase program and/or iii) making an offer
to shareholders generally for the repurchase of their shares.
The Company's current Articles of Association were approved at the Company's Annual General Meeting on 17 March 2022. The Articles of
Association of the Company may only be amended at a valid shareholders’ meeting of the Company, provided that the notice of the meeting clearly
indicates that such amendment is proposed and outlines the main substance of the amendment.
Corporate governance
Good corporate governance provides the foundation for responsible management and well-conceived decision-making, while promoting reliable
relations between shareholders, the Board of Directors, management, employees and other stakeholders. In accordance with the Icelandic Annual
Accounts Act and Guidelines on Corporate Governance, the Company’s Board of Directors has prepared a Statement of Corporate Governance
which accompanies the annual financial statements and is published on the Company's website at vis.is.
The principal members of the Board of Directors of the Company are Stefán Héðinn Stefánsson, Chairman, Vilhjálmur Egilsson, Vice-Chairman,
Guðný Hansdóttir, Marta Guðrún Blöndal and Valdimar Svavarsson. Sveinn Friðrik Sveinsson and Ragnheiður Hrefna Magnúsdóttir serve as alternate
directors. The gender ratio on the Board of Directors is 60% male and 40% female. Further information on the compositions and activities of the
Board of Directors, management and sub-committees can be found in the accompanying Statement of Corporate Governance.
Risk management and internal control
Risk management is one of the key functions of an insurance company. The Company has adopted a risk management policy as required by law,
which is designed to meet the required standards for insurance companies' risk management. The policy is approved by the Board of Directors. The
policy addresses the organisation and implementation of risk management within the VIS and Lífís group, identification of risk factors, reporting and
information disclosure and the duty of employees to contribute to the success of the policy. The Company has also adopted a policy on own risk and
solvency assessment, ORSA. Its findings provide information to the Board and management on the Company’s risk profile and capital requirements,
based on given assumptions. The results thus need to be taken into account in all strategic decisions, such as in planning, treasury operations, and
development of new products. Further details on risk management are provided in note 29.
Performance link between shareholders and management
The current employee incentive scheme is designed to bring together the long-term interests of shareholders and employees. Its purpose is to improve
the Company's performance in achieving both its financial and strategic targets. The Company's incentive scheme complies with and is subject to the
requirements laid down in Act No. 2/1995 on Limited Liability Companies, Act No. 100/2016 on Insurance Activities, EU Regulation No. 2015/35,
see Regulation No. 55/2022, and any rules established on the basis thereof. The rules governing VIS's incentive scheme are aimed at ensuring that
incentives do not encourage excessive risk-taking, do not undermine the Company's long-term interests and those of policyholders or stability in the
insurance market, do not lead to conflicts of interest, are consistent with considerations of protection of the Company's customers, creditors and
shareholders, and are otherwise consistent with good practices in the insurance field and sound and healthy insurance operations.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 3 Amounts are in thousands of ISK
Report and Endorsement of the Board of Directors and the CEO for 2022
External environment
In the wake of the Russian invasion of Ukraine, inflation has been increasing all over the world, and the effects are felt in Iceland as well as elsewhere.
This inflation effect is the main factor that has impacted the group's operations.
Increased inflation and, in particular, increased inflation expectations affect the operations and finances of insurance companies. Other things being
equal, increased inflation expectations lead to negative adjustments of unsettled claims from prior periods and thus increase the current period's
losses ─ thereby in turn adversely impacting the claims and combined ratios. At the same time, the value of inflation-indexed bonds should increase
and be recognised as investment income, but this does not affect the claims and combined ratios.
Rising interest rates have an effect, in particular so-called EIOPA interest, which is used for discounting the loss reserve. An increase in interest rates
generally leads to a reduction in the loss reserve and is recognised as income under technical interest rate and exchange rate changes. On the other
hand, the value of investment assets should decrease, reducing investment income. Neither affects the combined ratio.
As a result of climate change, it is expected that weather extremes will increase and events such as floods and storms will become more frequent.
Although there were some weather-related claims last winter and again this autumn, it is not possible to assert a direct causal relationship with climate
change. VIS continues to monitor developments in these matters and has set ambitious goals to make a positive impact through the group's
operations.
IFRS 17 insurance contracts were issued in May 2017, replacing IFRS 4 for periods beginning on or after 1 January 2023. The implementation of
IFRS 17 will not change the assessment or classification of the group's insurance contracts. Further details of the effect of the implementation of
IFRS 17 can be found in note 32.
VIS establishes SIV Asset Management
The VIS Board of Directors has set a policy that marks a certain turning point in the Company's operations. The Board's goal is to make VIS an even
more attractive investment with a clear vision of growth, development and capital structure. Part of this effort is to make the Company more sales-
driven, strengthen relationships with customers and be at the forefront of implementing innovations in the insurance market. At the same time, VIS
aims to become an active participant in the development of financial services in Iceland with a focus on profitable growth, asset management and
various other opportunities that have presented themselves in the financial services market.
SIV Asset Management, which is majority owned by VIS, will begin operations in the near future and offer VIS investors and customers exciting
opportunities in the field of asset and fund management. This is part of the Board's strategy ─ and the first step in expanding the Company's
activities in the financial services market.
Agreement reached on the departure of the CEO
In January 2023, the decision was made to negotiate an agreement with Helgi Bjarnason on his departure as CEO of the Company after serving in
that position since 1 July 2017. It was the assessment of the Board that this turning point, which involves the establishment of a new strategy, was the
right time to begin a new chapter in the Company's history ─ and build on the good foundation already laid. The VIS Board of Directors would like
to express its gratitude to Helgi for his important contribution to the Company's development.
Guðný Helga Herbertsdóttir, Managing Director of Sales and Services, took over as CEO. Since joining VIS in 2016, Guðný Helga has played a
leading role in the development of the Company over the recent years.
Discussions on the merger of VIS and Fossar
In February 2023, it was announced that VIS and the shareholders of Fossar Investment Bank have decided to enter into negotiations on the
purchase by VIS of all shares in Fossar Investment Bank on the basis of a letter of intent to merge the two companies. The companies believe that
the proposed merger will put them in a stronger position to take advantage of growth opportunities in these exciting times in the financial services
market.
It is expected that the shareholders of Fossar Investment Bank will receive 260 million new shares in VIS for their holdings, amounting to 13.3% of
the share capital in VIS after the share capital increase has been effected. The purchase would be subject to various conditions, such as the result of
due diligence, the approval of regulatory bodies and the approval of VIS's shareholders' meeting.
The combined company would be a strong financial services company in an excellent position to take advantage of growth opportunities in the
market. It would possess the financial strength, quality of staff and infrastructure to provide outstanding services in the areas of insurance, lending,
brokerage, corporate advisory, asset management, fund management and specialized financial services.
By merging the two companies, strategic steps would be taken towards the future vision of VIS, which is to be an exciting option on the Icelandic
financial services market, as well as expanding and strengthening the Company's income sources.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 4 Amounts are in thousands of ISK
Global Goal 3:
Good health and well-being
Global Goal 5:
Non-Financial Disclosure
VIS places special emphasis on
gender equality with a gender
equality policy and code of ethics.
VIS is committed to having an
active equal pay policy and
maintaining equal pay certification.
Through strong prevention we
reduce losses and encourage a
better lifestyle.
Global Goal Target 3.6 is to
reduce traffic fatalities.
Responsible consumption and
production through the
implementation of sustainable
development.
Global Goal 8:
Decent work and economic
growth
Global Goal 12:
Responsible consumption and
production
We insure companies, their
operations and assets. In so doing,
we ensure good employment and
economic growth. Through our
cooperation with companies, we
reduce losses and improve
employee safety.
Global Goal Target 8.8 is to
promote a safe and secure working
environment for all workers. By
working together with our
customers, we promote a safe
working environment through
strong prevention efforts.
Gender equality
Business model
VIS is a service company that provides customers with insurance coverage that suits their needs and enhances their safety and security through robust
prevention efforts.
VIS is a leading Icelandic insurance company which enjoys a strong position in the market with a market share of about 33%. The role of VIS as an
insurance company is to be someone our customers can rely on through life's uncertainties. VIS insures companies, their activities and assets, thereby
contributing to good employment levels and economic growth. VIS wishes to help its customers choose the appropriate insurance coverage so that
they are better prepared for unexpected losses. Last year, VIS paid its customers ISK 16,8 billion (2021: 17,4 billion) in claims — with claims totalling
36,500 (2021: 34,000).
With sustainability as the guiding light, VIS strives to ensure that its customers are less likely to suffer losses. Instead of waiting for accidents to
happen, VIS wants to prevent them. The Company is thus a positive force for change that places priority on strong prevention.
VIS is a member of Festa, a centre for social responsibility, as well as IcelandSIF, an organisation that promotes responsible investment, and a
signatory of UN-PRI, the United Nations principles for responsible investment. VIS is also a signatory of the UN Global Impact, which guides our
implementation of responsible policies.
The Sustainability Policy sets out the Company's policy in areas that are relevant to the activities of insurance companies. The Board of Directors is
responsible for the Sustainability Policy. The CEO and senior management are responsible for the implementation of the policy and ensuring it is
followed in the Company's operations.
The Company's Sustainability Policy supports the United Nation's Global Goals. The Company particularly supports the following global goals:
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 5 Amounts are in thousands of ISK
Compliance Policy
Conflict of Interest Policy
Owner Policy
Policy on VIS investments
Sustainability Policy
Remuneration Policy
Policy on IT operations
Non-Financial Disclosure
Internal Control Policy
Policy on measures against money laundering and terrorist financing
Competition Policy
Privacy Policy
Equality and Equal Pay Policy
Transportation Policy
Prevention Policy
Information Policy
Occupational Safety Policy
Risk Management Policy
Policies of the Board of Directors Policies of senior management
Policy on Suitability, Competence and Diversity
Corporate Governance Policy
The Company's policies concerning non-financial information, sustainability and ESG (environmental, social and governance)
Due diligence process
VIS has defined actions to ensure that the Sustainability Policy and its goals are implemented. The actions taken during the operating year are
described in the chapters on environmental, social and governance factors.
More detailed non-financial information on the operations of VIS, covering environmental, social and governance factors, can be found in the
Annual Report. The summary is based on Nasdaq's ESG guidelines and climate impact calculations are performed by third parties in accordance
with the Greenhouse Gas Protocol methodology.
The selection of key metrics for environmental, social and governance factors (ESG) was based on a materiality assessment of the insurance sector
and an examination of leading foreign insurance companies with regard to ESG performance and how this could be adapted to VIS's operations.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 6 Amounts are in thousands of ISK
Main risks Key metrics Performance Goals
Non-Financial Disclosure
Analyse the carbon footprint of the
portfolio and investments according to
the PCAF methodology. Also consider
PCAF membership.
Estimate emissions due to claims.
Perform climate change risk
assessment for insured assets.
Target setting to reduce greenhouse
gas emissions and adapt to climate
change, consider SBTi certification
and create an action plan.
Continue to reduce greenhouse gas
emissions in accordance with the
action plan.
An action plan for how we intend to
reduce emissions by 2025 was drawn
up in 2021, and work has begun to
incorporate actions into the
Company's processes in 2022.
Greenhouse gas emissions decreased
by 16.1% year-on-year.
The biggest decrease came about due
to lower emissions of waste, which
decreased by 66% to 3.1 tCO2eq.
The biggest increase in emissions was
due to staff flights ─ with emissions
increasing by 68% to 31.2 tCO2eq.
Emissions due to staff travel increased
by 1.7% year-on-year.
Emissions intensity as a percentage of
revenue (all scopes) was 7.2 kg
CO2/ISKm ─ increasing by 3.6%.
For the second year in a row, the
remaining emissions from the
Company's operations are offset with
certified units from Natural Capital
Partners.
Emissions intensity.
Emissions intensity shows total GHG
emissions based on the main sample sizes in
the Company's operations.
Whether an environmental policy is
in place.
Materiality factor:
Climate policy.
Risk:
Failing to achieve the desired results in
mitigation and adaptation to climate
change.
VIS is aware of greenhouse gas emissions in
its operations. However, it is clear that in
insurance operations, emissions fall mainly
under Scope 3, i.e. emissions stemming from
the insurance and investment portfolio. VIS
does not specifically measure this, but closely
monitors the methodology used for such
calculations, e.g. by the Partnership for
Carbon Accounting Financials (PCAF ).
Inform customers about the
environmental benefits of Ökuvísir.
The use of Ökuvísir results in lower
emissions of greenhouse gases as well
as promoting safer traffic.
Ökuvísir won the Icelandic Web
Award for both the technical solution
of the year and the app of the year.
At the beginning of 2022, it was
observed that Ökuvísir had a very
good effect on the driving behaviour
of our customers ─ actually better
than expected. Therefore, the price
was further reduced for those who
drive well.
Whether the Company has a
sustainable product offering.
Materiality factor:
Responsible product offering.
Risk:
Not being competitive with green
products that are in demand.
Environmental
In 2015, VIS signed the Climate Declaration of Festa and the City of Reykjavik, which involves a commitment to reduce greenhouse gas emissions
through targeted measures. The purpose of the Declaration is to support the goals of the Paris Agreement to reduce emissions. VIS is committed to
keeping negative environmental impacts to a minimum. Climate issues can have both a direct and indirect effect on the Company's operations.
Therefore, it is important to know what the impact can be ─ and how to reduce it.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 7 Amounts are in thousands of ISK
Main risks Key metrics Performance Goals
Non-Financial Disclosure
Materiality factor:
Customer welfare.
Risk:
Reputational risk due to customer
dissatisfaction.
The number of incidents that
can affect customer welfare.
Customer satisfaction; NPS net
promoter score.
No reports received in 2022.
VIS introduced a new loyalty
program last year. VIS is thus the
first Icelandic insurance company
to reward customer loyalty in a
transparent manner.
The loyalty program is at the core
of our customer interaction.
Review EGS risks related to
customer welfare.
Our goal is to significantly increase
the satisfaction of our customers.
Therefore, the goal for the year is
for the NPS score to be +25 by
the end of the year.
Our goal is also that 40% of our
customers will have downloaded
the app by the end of 2023.
Materiality factor:
Human resources.
Risk:
Staff disunity and stagnation.
The gender pay gap.
Diversity at all levels, as per the
Company's policy on suitability,
competence and diversity.
Recruitment, employee
engagement and employee
turnover.
In 2021, an important milestone
was reached in that there was no
wage gap between the sexes ─ and
that success has been maintained.
The annual staff survey revealed
that no one had experienced sexual
harassment ─ which is in line with
the results of previous years.
Continued good results of
workplace analysis at VIS.
Employee engagement measured
at 4.24 which is excellent. Job
satisfaction measured at 4.48,
which means that VIS is among
the top 25% of companies in
Iceland.
Continued objective of having no
unexplained gender pay gap.
To reduce the unadjusted gender
wage gap, so that the average
gender wage is as equal as possible.
To continue to work purposefully
to ensure the competence and
professionalism of managers. In
this way, we create the best
possible working conditions in
order to attract top talent.
Identify opportunities to maintain
good employee job satisfaction and
continue to offer diverse training
and career development
opportunities.
Materiality factor:
Responsible marketing.
Risk:
Reputational risk e.g. due to
greenwashing.
The number of reports of
harmful or misleading
marketing.
Whether there is a defined
procedure around grants.
There were no formal reporta in
2022 ─ but one inquiry was
received from the Consumer
Agency which was answered and
the answer was accepted and no
further action was required.
The Innovation Fund's grant
policy adjusted to have a clearer
connection to the Global Goals.
Analyse EGS risks related to
responsible marketing.
Social
Emphasis is placed on VIS being a good workplace with a unique workplace culture. Opportunities are created for VIS staff to grow and prosper - in
life and work. We care about the wellbeing of the Company's employees and strive to show care in our work. It is important that VIS is a good and
family-friendly workplace.
Gender equality is also an important issue. Therefore, a great deal of emphasis is placed on equality ─ and utilizing the strengths of our staff,
regardless of gender. The purpose and objectives of the VIS equality policy are to promote gender equality in accordance with the Act on equal status
and equal rights of the sexes no. 150/2020 and that comparable wages are paid for the same or equally valuable jobs, so that a gender wage gap is not
measurable.
The VIS equality and equal pay policy clearly states that gender-based and sexual harassment, violence or bullying will not be tolerated. There is a clear
procedure in place for dealing with issues related to bullying and sexual harassment, and employees are clearly informed of the channels of
communication and the progress of such cases. It is considered to be the common responsibility of all employees to follow the Company's equality
and equal pay policy.
An Innovation Fund has been established to support prevention projects related to innovation and mental and physical health. Once a year, ISK 10
million is allocated to various prevention projects. In evaluating applications, innovation, prevention, digital approach and sustainability are
considered.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 8 Amounts are in thousands of ISK
Goals
Materiality factor:
Data protection and cyber security.
Risk:
Data breach and being vulnerable
to cybercrime.
Rating according to the Reitun
annual EGS assessment.
Perform loophole analysis based
on upcoming legislation (CSRD
and EU taxonomy).
Shareholder rights.
Response rate in regular
stakeholder survey.
Percentage of stakeholders who
are satisfied with VIS's
sustainability performance.
Promote a safe and secure
business data environment.
Ensure that the Company
complies with the Date
Protection Act and good
business practices.
We received a score of 78 out of
100 from Reitun for 2021, the best
among Icelandic insurance
companies.
VIS was recognized for good
governance while also being
named:
Exemplar of Corporate Governance.
Continued remote participation in
shareholders' meetings.
Preparation for stakeholder
analysis.
Achieve a score of 90 out of 100
from Reitun for 2022.
Perform loophole analysis based
on upcoming legislation (CSRD
and EU taxonomy) – determine
what is missing from the current
report.
Review necessary policies and
processes in accordance with
legislation (CSRD and EU
taxonomy).
Perform stakeholder analysis with a
good response rate.
The number of mitigation
measures and their status.
Results of supplier evaluation
and number of suppliers who
are committed to human rights.
Whether ESG factors are taken
into account in investment
decisions.
Supplier code of conduct defined
and supplier assessment prepared.
Development of active
involvement in investments (e.g.
through a conversation about ESG
with companies in which
investments are made).
The investment policy made
public.
Redo materiality analysis based on
double materiality and stakeholder
analysis.
Insert provisions in contracts
requiring suppliers to comply with
laws on labour, human rights and
environmental protection.
Incorporate EGS risk assessment
into existing risk management
processes.
Examine methods for
implementing EGS risk assessment
for new policyholders.
Prepare a green procurement
policy.
Implementation of ISO 27001,
which began in 2021, to be
completed in 2023.
Improvement plan defined and
implemented.
Achieve ISO 27001 certification.
Receive a good result from the
auditor (Deloitte) in relation to
compliance with recommendation
no. 1/2019.
Maintain good results in risk
assessment in the operation of
information systems.
Materiality factor:
Good corporate governance.
Risk:
Disagreement between
stakeholders and failure to comply
with the law.
Materiality factor:
Risk management.
Risk:
That risks are not identified and no
mitigation measures are
implemented. Lack of awareness of
risks in the value chain and in
investments.
Non-Financial Disclosure
Main risks Key metrics Performance
Governance
The Company's corporate governance revolves around clarifying the role and responsibilities of the Board of Directors and the management of the
Company. It is designed to help them achieve their goals. Good corporate governance provides the foundation for responsible management and well-
conceived decision-making, while promoting reliable relations between shareholders, the Board of Directors, management, employees and other
stakeholders.
All employees of the Company sign a Code of Ethics at the start of their employment and thereby confirm their intention to adhere to it. The
Company engages in honest and responsible business practices where any sort of bribes or corruption are neither practiced nor tolerated. The
Company attaches great importance to the Company's management system being thorough and comprehensive, where the roles and responsibilities
of the Company's managers and units are clearly defined, as well as the roles and powers of control units, including key functions such as risk
management and compliance. There is in place a policy on the Company's management system on which other policies and rules of the Company are
based.
In 2021, VIS became the first insurance company in Iceland to become a member of UN-PRI, the United Nations Principles for Responsible
Investment. The Company has significant influence though its asset portfolio. By taking sustainability factors into consideration in its investments, the
Company minimizes the risks associated with sustainability while at the same time encouraging other companies to improve their business practices.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 9 Amounts are in thousands of ISK
Statement of the Board of Directors and CEO
In our opinion and to the best of our knowledge, the consolidated annual financial statements of Vátryggingafélag Íslands hf. give a true and fair view
of the Group's operating results for the year 2022, and its assets, liabilities and financial position as at 31 December 2022. It is also our opinion that
the consolidated annual financial statements and the report and endorsement by the Board of Directors and the CEO give a true and fair view of the
development and performance of the Group's operations and its financial position at year-end and describe the principal risks facing the Group.
The Board of Directors and the CEO of Vátryggingafélag Íslands hf. have today reviewed the Company’s consolidated annual financial statements for
the year 2022 and confirm them with their signatures. The Board of Directors and the CEO recommend that the consolidated annual financial
statements be confirmed at the Company’s Annual General Meeting.
Reykjavik, 23 February 2023
On the Board of Directors
Stefán Héðinn Stefánsson Vilhjálmur Egilsson
Chairman of the Board Vice-Chairman of the Board
Marta Guðrún Valdimar Svavarsson
Blöndal
Guðný Hansdóttir
CEO
Guðný Helga Herbertsdóttir
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 10 Amounts are in thousands of ISK
Independent Auditor's Report
To the Board of Directors and the Shareholders of Vátryggingafélag Íslands hf.
Opinion
We have audited the accompanying consolidated financial statements of Vátryggingafélagið Íslands hf. and its subsidiaries (the group) for
the year 2022, excluding the board of directors report.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the group as at
December 31, 2022, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance
with International Financial Reporting Standards as adopted by the European Union (EU), and applicable articles in Icelandic law on
annual accounts.
Our opinion is consistent with our additional report to the Audit Committee and board of directors.
The consolidated financial statements comprise
- The board of directors and CEO report.
- The consolidated statement of comprehensive income for the year January 1, 2022 to December 31, 2022.
- The consolidated statement of financial position as at December 31, 2022.
- The consolidated statement of changes in equity for the year January 1, 2022 to December 31, 2022.
- The consolidated statement of cash flows for the year January 1, 2022 to December 31, 2022.
- Notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.
- The board of directors and CEO report and notes 33 and 34 is excluded from the audit, refer to section reporting on other information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are further
described in the auditor’s responsibilities for the audit of the consolidated financial statements section of our report.
Independence
We are independent of the group in accordance with Icelandic laws on auditors and auditing and the code of ethics that apply to auditors in
Iceland and relate to our audit of the group's consolidated financial statements. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the group and its subsidiaries are in
accordance with the applicable law and regulations in Iceland and that we have not provided non-audit services that are prohibited under
Article 5.1. of Regulation (EU) No. 537/2014. See further disclosure in note 9.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 11 Amounts are in thousands of ISK
Key Audit Matters Audit procedures
Independent Auditor's Report
Estimate of claims outstanding, including assumptions and
calculations on which it is based on:
Refer to note 26 "Technical provision".
Claims provision is the value of reported claims and actuarial plan
for claims incurred but not reported and amounts to ISK
22.002.304 thousand at the end of the year 2022 and represents
55,88% of total liabilities.
Claims provision is a material financial statement line item and
because of complexity and the magnitude of estimation in relation
to calculation of the claim reserve it is a key audit matter in our
audit. Technical provision at year-end is determined as best
estimiate in accordance with provisions of chapter XIV. in law on
insurance operations no. 100/2016. Claims provision is the sum of
best estimate of reported claims and claims incurred but not
reported at year end.
The main estimate in the technical provision is the claims incurred
but not reported Estimated value of technical provision is based on
the methods of Solvency II.
Other estimation in the claims provision is the assessment of claims
that have a long settlement period, as the initial estimate may differ
from the final settlement of claims.
The assessment of claims is dependent on the quality of the
underlying data. This includes a complex assessment of the future
development of events and a slight change in the assumptions can
significantly change the amount of claims.
PwC´s actuarial specialists assisted us in performing our audit
procedures and specially in regards of the calculations of the best
estimate of claims incurred but not reported.
Audit of claims outstanding estimates included, among others, the
following factors:
• Claims handling process and estimation process were understood
and evaluated.
• Control activities for the evaluation of outstanding claims are
tested.
• We tested with substantive testing open claims at year end and
paid claims during the year.
• We understood and evaluated management´s presumptions in
estimating the claims provision, including historical data about
settlement of claims to different business clases. Our evaluation
included, among other things, reviewing and assessing important
factors in the estimation of the claims outstanding.
• We tested reconciliations between systems which the claims
provision calculations are based on.
• PwC´s actuarial specialists performed independent calculation of
the claims outstanding.
• Related notes were reviewed.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 12 Amounts are in thousands of ISK
Key Audit Matters Audit procedures
Independent Auditor's Report
Reporting on other information, including the statement of the Board of Directors and CEO
The board of directors and Chief executive officer are responsible for other information. The other information comprises of statement of
the Board of Directors and CEO and notes 33 and 34, which we obtained prior to the date of this auditor’s report. Our opinion on the
consolidated financial statements does not cover the other information, including the statement of the Board of Directors and CEO.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. In addition, in light of the knowledge and understanding
of the entity and its environment obtained in the course of the audit, we are required to report if we have identified material misstatements
in other information that we obtained prior to the date of this auditor’s report. We have nothing to report in this respect.
With respect to The statement of the Baord of Directors and CEO we have, in accordance with article 104, of the Icelandic law on annual
accounts reviewed that to the best of our knowledge, the statement of the Board of Directors and CEO accompanying the consolidated
financial statements includes applicable information in accordance with Icelandic law on annual accounts if not presented elsewhere in the
consolidated financial statements.
Valuation of unlisted securities.
Refer to note 28 "Financial instruments".
Financial assets are the Group´s largest asset amounting to ISK
41.854.357 thousands or the equivalent of 73,8% of total assets at
year end 2022.
A significant part or about 62,2% of financial assets are listed on
the market and therefore their quoted market prices are known at
the end of the reporting period. Total investment income of
financial instruments are ISK 852.651 thousand.
The part of the financial assets at fair value throught profit or loss
requiring special attention in the audit are unlisted securities where
fair value is estimated using valuation techniques and is subject to
uncertainty. Therefore unlisted securities are a key matter in the
audit.
Valuation techniques can be the use of recent arm´s length market
transactions, reference to the current fair value of another
instrument that is substaintially comparable, discounted cash flow
techniques, option pricing models or any other valuation technique
that provides a reliable estimate of prices obtained in actual market
transacions. These securities are defined in level 2 and 3 according
to level of fair value in IFRS 13.
The value of unlisted securites amount to ISK 12.261.687
thousand of the equivalent of 21,6% of total assets at the year end
2022.
PwC´s valuation experts assisted us in auditing unlisted financial
assets at fair value through profit or loss.
Audit of unlisted financial assets at fair value through profit or loss
included, among other things, the following factors:
• We understood and evaluated the methodology and assumptions
for valuations and compared with common criteria for similar assets.
• We performed sampling procedures of securities and performed
and independent calculations on fair value.
• The data on which the calculation and assumptions were based on
in different valuations methods wete reviewed and assessed.
• We verified those cased where valuations was based on recent
transactions.
• Classifications of financial assets at fair value throught profit or
loss in fair value levels was reviewed.
• Control activities related to investment income and valuation of
financial instruments tested.
• Received confirmation of registration of investment income from
3rd party.
• Related notes were reviewed.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 13 Amounts are in thousands of ISK
Independent Auditor's Report
Responsibilities of the board of directors and the chief executive officer (frh.)
The board of directors and the chief executive officer are responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with International Financial Reporting Standards as adopted by the EU, and applicable articles in Icelandic law on
annual accounts, and for such internal control as determined necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the groups' ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the group's financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 14 Amounts are in thousands of ISK
Independent Auditor's Report
Report on other legal and regulatory requirements
Report on European single electronic format (ESEF Regulation)
As part of our audit of the consolidated financial statements of Vátryggingafélag Íslands hf. we performed procedures to be able to
issue an opinion on whether the consolidated financial statements of Vátryggingafélag Íslands hf. for the year 2022 with the file name
"213800QFQIHO7KG2P786-2022-12-31-en.zip" is prepared, in all material respects, in accordance with law no. 20/2021 Act on
securities issuer obligations to issue information and self-report relating to requirements under the European single electronic format
regulation EU no. 2019/815, which include requirements concerning preparation of the consolidated financial statements in
XHTML format and iXBRL markup.
The board of directors and Chief executive officer are responsible for preparing the consolidated financial statements in accordance
with law no. 20/2021. This responsibility includes preparing the consolidated financial statements in a XHTML format in accordance
to EU regulation no. 2019/815 on the European single electronic format (ESEF regulation).
Our responsibility is to obtain reasonable assurance, based on evidence that we have obtained, on whether the consolidated financial
statements are prepared in all material respects, in accordance with the ESEF Regulation, and to issue a report that includes our
opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the assessment of the
risks of material departures from the requirements set out in the ESEF regulation, whether due to fraud or error.
In our opinion, the consolidated financial statements of Vátryggingafélag Íslands hf. for the year 2022 with the file name
"213800QFQIHO7KG2P786-2022-12-31-en.zip" is prepared, in all material respects, in accordance with the European single
electronic format regulation EU no. 2019/815.
Appointment
We were first appointed as auditors at the company's annual general meeting on March 22, 2018. Our appointment has been renewed
annually at the company's annual general meeting representing a total period of uninterrupted engagement appointment of 5 years.
Reykjavík, February 23, 2023.
PricewaterhouseCoopers ehf.
Kristinn Kristinsson
certified public accountant
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 15 Amounts are in thousands of ISK
Notes
2022
2021
Premiums earned ...................................................................................................... 23.989.586 23.041.082
Premiums earned, reinsurers' share ....................................................................... (792.415 ) (739.826 )
Premiums earned, net of reinsurance 6 23.197.170 22.301.256
Interest income ......................................................................................................... 659.039 606.064
Foreign exchange difference .................................................................................. 32.934 (6.301 )
Fair value changes of financial assets .................................................................... 852.651 7.659.599
Investment income 7 1.544.624 8.259.362
Other income ............................................................................................................ 47.372 66.332
Total income 24.789.166 30.626.950
Claims incurred ......................................................................................................... (17.966.330 ) (17.252.408 )
Claims incurred, reinsurers' share .......................................................................... 205.603 922.312
Claims incurred, net of reinsurance 8 (17.760.727 ) (16.330.096 )
Technical interest rate and fx rate changes of technical provisions ................ 173.517 (49.804 )
Operating expenses .................................................................................................. 9 (5.637.658 ) (5.737.583 )
Interest expenses ...................................................................................................... (486.343 ) (334.686 )
Impairment of accounts receivables ..................................................................... 10 (23.949 ) (40.126 )
Total expenses (23.735.160 ) (22.492.294 )
Profit before income taxes 1.054.007 8.134.657
Income taxes ............................................................................................................. 11 (113.958 ) (450.864 )
Profit for the year 940.048 7.683.793
Basic and diluted earnings per share ..................................................................... 12 0,55 4,39
The notes on pages 20-46 are an integral part of the financial statements.
Statement of comprehensive income 2022
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 16 Amounts are in thousands of ISK
Statement of financial position as at 31 December 2022
Notes
31.12.2022
31.12.2021
Assets
13 346.180 474.298
14 1.414.824 1.460.707
15 615.906 699.536
16 41.854.357 44.679.379
17 1.154.453 1.774.154
18 7.090.340 6.516.721
19 1.137.811 1.207.380
20 727.202 697.599
21 2.380.526 1.552.903
Equity
22 1.715.600 1.750.000
Liabilities
24 3.320.195 3.032.821
11 116.389 64.728
25 663.802 742.477
26 31.654.913 30.286.409
17 1.154.453 1.774.154
27 2.487.066 2.709.447
The notes on pages 20-46 are an integral part of the financial statements.
Total equity and liabilities
investment risk is borne by the policyholders .....................................................
Accounts payables and other liabilites ..................................................................
Subordinated bonds .................................................................................................
Technical provision for life-insurance policies where
Total liabilities
Deferred income tax liability ..................................................................................
Technical provision ..................................................................................................
Lease liability .............................................................................................................
Statutory reserve .......................................................................................................
Retained earnings .....................................................................................................
Restricted reserves ...................................................................................................
Total equity group
Total equity
Minority interest .......................................................................................................
Operating assets .......................................................................................................
Goodwill and other intangible assets ....................................................................
Right-of-use asset .....................................................................................................
Accounts receivables ...............................................................................................
Reinsurance assets ....................................................................................................
Other receivables ......................................................................................................
Cash and cash equivalents ......................................................................................
Financial assets .........................................................................................................
Investments where investment risk is borne by life-insurance policyholders
Total assets
Share capital ..............................................................................................................
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 17 Amounts are in thousands of ISK
Statement of Changes in Equity for the year 2022
Share
Statutory
Other
Retained
Minority
Total
capital
reserve
reserves
earnings
interest
equity
Equity 1.1.2021 ..............................................................
Dividends paid, ISK 0.85 per share ........................... (1.596.693 ) (1.596.693 )
Own shares purchased ................................................. (144.462 ) (2.481.885 ) (2.626.347 )
Total comprehensive income for the year .................
Restricted reserve for securites ...................................
(3.915.981 )
Equity 31.12.2021 ......................................................... 1.750.000 625.620 9.371.188 8.705.832 0 20.452.640
Minority interest ............................................................ 45.960 45.960
Dividends paid, ISK 2 per share ................................. (3.500.000 ) (3.500.000 )
Own shares purchased ................................................. (34.400 ) (579.470 ) (613.870 )
Total comprehensive income for the year ................. 940.048 940.048
Restricted reserve for securites ................................... (2.699.405 ) 2.699.405 0
Equity 31.12.2022 ......................................................... 1.715.600 625.620 6.671.783 8.265.816 45.960 17.324.779
The notes on pages 20-46 are an integral part of the financial statements.
Consolidated financial statements of Vátryggingafélag Íslands hf.. 2022 18 Amounts are in thousands of ISK
Notes
2022
2021
Operating activities
(139.761 ) (265.077 )
(852.651 ) (7.659.599 )
(1.287 ) (3.676 )
(2.357.123 ) 217.092
(676.116 ) 78.885
Cash flows from opearating activities before interest and tax 5.003.258 4.187.058
(251.128 ) (197.522 )
(286.092 ) 0
Cash flows from operating activities 5.330.622 4.740.028
Investing activities
13 (31.925 ) (46.446 )
14 (248.866 ) (393.748 )
(265.960 ) (414.594 )
Financing activities
(613.870 ) (2.626.348 )
(3.500.000 ) (1.596.693 )
(142.395 ) (125.218 )
(4.256.264 ) (4.348.258 )
The notes on pages 20-46 are an integral part of the financial statements.
Purchase of operating assets ...............................................................................
Tax liability, change ...........................................................................................
Purchase of treasury shares .................................................................................
Dividends paid .......................................................................................................
Purchase of software ............................................................................................
Accounts payable and other liabilities, change ..............................................
Financial expenses paid ........................................................................................
Technical provision, change .............................................................................
Accounts receivable, change ............................................................................
Interest income received ......................................................................................
Cash and cash equivalents at year end ...............................................................
Capital payment of lease liability ........................................................................
Change in cash and cash equivalents .................................................................
Effect of movements in exchange rates on cash held ....................................
Cash and cash equivalents at the beginning of the year .................................
Sale of operating assets ........................................................................................
Income taxes paid .................................................................................................
Dividend received .................................................................................................
Statement of cash flows for the year 2022
Reinsurance assets, change ...............................................................................
Other assets, change ..........................................................................................
Profit for the year ..................................................................................................
Bonds and other receivables, change ..............................................................
Changes in operating assets and liabilities:
Financial assets, change .....................................................................................
Operating items not affecting cash flows:
Financial income and expenses .......................................................................
Sale of operating assets .....................................................................................
Fair value changes of financial assets .............................................................
Depreciation and amortisation .......................................................................
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 19 Amounts are in thousands of ISK
Notes
1.
2. Basis of preparation
3. Functional and presentation currency
4. Accounting estimates
5. Operating segments
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 20 Amounts are in thousands of ISK
Notes
5.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 21 Amounts are in thousands of ISK
Notes
5. Operating segments (contd.) Health and Total
6. Premiums earned, net of reinsurance
7.
8. Claims incurred, net of reinsurance
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 22 Amounts are in thousands of ISK
Notes
9. Operating expenses
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 23 Amounts are in thousands of ISK
Notes
9. Operating expenses (contd.)
10. Impairment of accounts receivables
11.
Income taxes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 24 Amounts are in thousands of ISK
Notes
12.
13.
14.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 25 Amounts are in thousands of ISK
Notes
15. Right-of-use asset
16. Investment securities
17.
18.
19. Reinsurance assets
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 26 Amounts are in thousands of ISK
Notes
20. Other receivables
21.
22.
23.
Solvency and solvency capital requirements
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 27 Amounts are in thousands of ISK
Notes
24.
25. Lease liability
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 28 Amounts are in thousands of ISK
Notes
25. Lease liability (contd.)
26. Technical provision
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 29 Amounts are in thousands of ISK
Notes
27. Accounts payable and other liabilities 2022 2021
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 30 Amounts are in thousands of ISK
Notes
28. Financial instruments
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 31 Amounts are in thousands of ISK
Notes
29. Risk Management
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 32 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 33 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 34 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 35 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 36 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 37 Amounts are in thousands of ISK
Notes
30.
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 38 Amounts are in thousands of ISK
Notes
31. Events after the reporting date
32. Significant accounting policies
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 39 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 40 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 41 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 42 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 43 Amounts are in thousands of ISK
Notes
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 44 Amounts are in thousands of ISK
Notes
33. Quarterly statement (unaudited)
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Premiums earned for the period .......................................................... 6.098.064 6.286.420 5.909.212 5.695.890 5.917.039
Premiums earned ................................................................................. 5.875.491 6.092.975 5.724.259 5.504.445 5.745.545
Financial income .................................................................................... 391.755 334.520 452.081 366.268 1.192.632
Other income .......................................................................................... 13.664 8.115 10.623 14.970 15.906
Total income ........................................................................................... 6.280.911 6.435.609 6.186.963 5.885.684 6.954.083
Claims incurred for the period ............................................................. (4.176.099) (4.965.707) (4.342.157) (4.482.367) (4.031.616)
Claims incurred .................................................................................... (4.174.555) (4.872.467) (4.270.995) (4.442.709) (3.903.910)
Technical interest rate and fx rate changes of tech.provisions ......... (48.921) (165.887) 150.737 237.588 (279.545)
Operating expenses ................................................................................
(1.409.394) (1.289.789) (1.432.033) (1.506.441) (1.695.546)
Impairment of accounts receivables and interest expenses .............. (88.825) (159.407) (129.970) (132.090) (91.688)
Profit (loss) before income taxes ......................................................... 559.215 (51.941) 504.702 42.032 983.394
Income taxes ...........................................................................................
(98.363) (17.692) (28.590) 30.686 (33.320)
Profit (loss) for the period .................................................................... 460.852 (69.633) 476.112 72.718 950.075
Claims ratio .......................................................................................... 68,5% 79,0% 73,5% 78,7% 68,1%
Net claims ratio .................................................................................... 71,1% 80,0% 74,6% 80,7% 67,9%
Operating cost ratio .............................................................................
21,5% 19,1% 22,6% 24,8% 26,6%
Reinsurers' cost ratio ........................................................................... 3,6% 1,6% 1,9% 2,6% 0,7%
Combined ratio .................................................................................... 93,6% 99,6% 98,0% 106,1% 95,5%
Consolidated financial statements of Vátryggingafélag Íslands hf. 2022 45 Amounts are in thousands of ISK
Notes
34. Claims provision development (unaudited)
Total amount
in million ISK.
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Samtals
Estimation of final claims cost
At the end of the claims year ...........................................
11.623 11.132 11.269 12.535 12.612 14.626 15.701 15.459 15.912 17.037
One year later ......................................................................
10.778 12.490 12.544 13.288 14.473 15.733 17.581 14.551 15.434
Two years later ....................................................................
11.058 12.541 13.025 13.721 14.829 17.390 18.242 14.989
Three years later
..............................................................
10.908 12.496 13.217 13.925 15.358 17.681 18.582
Four years later ...................................................................
10.882
12.580
13.140
13.906
15.760
17.702
Five years later ....................................................................
10.802 12.590 13.156 13.913 15.635
Six years later .......................................................................
10.748
12.401
13.333
14.001
Seven years later ..................................................................
10.702 12.459 13.228
Eight years later ..................................................................
10.825 12.453
Nine years later ...................................................................
10.783
Estimation of accumulated claims
at year end 2022 ..................................................................
10.783 12.453 13.228 14.001 15.635 17.702 18.582 14.989 15.434 17.037
Accumulated payments
At year end 2022 ................................................................
10.693 12.384 13.166 13.816 15.058 17.088
16.865
12.440
8.882 7.983
Claims provision at year end 2022 ..................................
89 69 63 185 577 614 1.716 2.549 6.552 9.054 21.467
Claims provision over 10 years ........................................
150
Technical provision for life-insurance ............................
384
Total claims provision 22.002
Technical provision, net of reinsurance
in million ISK.
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Estimation of accumulated claims
at year end 2022 ..................................................................
10.769 12.321 13.150 13.993 15.619 17.157
18.079 14.986 14.745 17.017
Accumulated payments
At year end 2022 ................................................................ 10.679 12.280 13.088 13.807 15.043 16.608 16.406 12.437 8.882 7.983
Claims provision at year end 2022 ..................................
90 42 62 186 577 548 1.673 2.549 5.862 9.034 20.622
Claims provision over 10 years ........................................
149
Technical provision for life-insurance ............................
281
Total claims provision 21.053
The table shows the Group's assessment of the final amount of claims for each claims year and how that assessment has developed between years.
Developments between years indicate the Group's ability to determine its liabilities under insurance contracts.
From the year 2014, claims provision is presented as the present value best estimate according to Act no. 100/2016.
The amounts of previous years are unchanged from previous financial statements.
It should be kept in mind that amounts are not recognized at constant prices and therefore price changes have some effect on developments between years.
In the lower table, Technical provision, net of reinsurance, the share of reinsurers has been deducted from the amounts shown in the upper table.
Samstæðuársreikningur Vátryggingafélags Íslands hf. 2022 46 Amounts are in thousands of ISK