Financial Statements
Notes to the consolidated accounts
23. Reinsurance assets
| Year ended 31 December 2007 | Insurance contracts £m |
Investment contracts £m |
Total £m |
|---|---|---|---|
| At 1 January | 47 | 38 | 85 |
| Premiums (i) | 1,779 | 54 | 1,833 |
| Claims | (177) | - | (177) |
| Unwind of discount rate | 31 | - | 31 |
| Other movements | 238 | 5 | 243 |
| At 31 December | 1,918 | 97 | 2,015 |
- The main item included within Premiums is the reinsurer's share of liabilities of £1,722m (2006: £nil) arising from a reinsurance arrangement entered into in 2007. A related payable amount of £1,611m is included within loans and borrowings, please see note 33(vi) for detail.
No significant gain or loss arose on reinsurance contracts incepted in either 2006 or 2007.
| Year ended 31 December 2006 | Insurance contracts £m |
Investment contracts £m |
Total £m |
|---|---|---|---|
| At 1 January | 177 | 6 | 183 |
| Premiums | 37 | 30 | 67 |
| Claims | (20) | - | (20) |
| Unwind of discount rate | 3 | - | 3 |
| Other | (150) | 2 | (148) |
| At 31 December | 47 | 38 | 85 |
Included in the carrying totals above, £2,007m (2006: £105m) is expected to be recovered more than 12 months after the balance sheet date.
Amounts expected to be recovered more than 12 months after the balance sheet exceed the carrying value when the expectation is that premiums will exceed claims in the short term.
Reinsurance assets are valued using the same methods and bases as those used to value the underlying liabilities that are being reinsured.