IFRS 17

And I'll just give you one example.

The insurance industry had to transition to a new accounting standard called IFRS 17.

And that changed fundamentally the way insurance business is supposed to be done from, if you like, the life insurance perspective, for instance.

So today we don't have anything called premium anymore.

We have what we call insurance service result, insurance service revenue.

Now, this insurance service revenue is no more... a function of just the total premiums you write or the revenues you write, but it's made up of, if you like, the risk premiums, which says that go back to basics.

And so when we looked at this particular development, what we then did was to strategize to align our business with the DTEX of IFRS 17, way back from before 2023.

And so by 2023, we're IFRS 17 compliant and our business has aligned with the basis of IFRS 17.

Yes, it was a huge programme.

So we delivered a new ERP system, new processes, new organisational... design and IFRS 17.

So it was a huge program, did a lot again, took five years.

It was huge.

You need your own people to be part of that team, but you also need external experts who've done it before.

But yeah, a lot of it was tech, a lot of it was systems implementation.

But you've got a lot of technical accountants in there as well, because you're doing an IFRS 17 implementation as well.

And what was the sort of blend of internal, external? Because I'm a big proponent of that to people saying, don't just use everyone that's doing BAU and chuck them into a transformation program.

And then there's the other real interesting thought experiment going on right now.

2027 is the first soft market we go in with a large part of the capacity reporting under IFRS 17.

So in the old times, we said, let's write that piece of business the wind blows or doesn't blow, and we know the 31st of December, if you made a profit or not, is very different from writing 30% of your book, have to classify it as honor as contract and report the P&L loss on day one.

Yeah.

And I'll just give you one example.

The insurance industry had to transition to a new accounting standard called IFRS 17.

And that changed fundamentally the way insurance business is supposed to be done from, if you like, the life insurance perspective, for instance.

So today we don't have anything called premium anymore.

We have what we call insurance service result, insurance service revenue.

Now, this insurance service revenue is no more... a function of just the total premiums you write or the revenues you write, but it's made up of, if you like, the risk premiums, which says that go back to basics.

And so when we looked at this particular development, what we then did was to strategize to align our business with the DTEX of IFRS 17, way back from before 2023.

And so by 2023, we're IFRS 17 compliant and our business has aligned with the basis of IFRS 17.

And let me just for one second, let this old CFO speak in me.

If I just look, you know, at our metrics, at our IFRS 17 metrics, the loss component is marginal.

It's really like a very tiny number.

So you can see that business assisted profit making.