Annual valuations of reserves as part of audits of IFRS and IAS financial statements

Numerous engagements for companies specialized in non-life insurance in Russia and the CIS

The actuarial team of KPMG carried out numerous valuations of reserves for companies (including major ones) specialized in non-life insurance in Russia and the CIS as part of audits of IFRS and IAS financial statements.

Scope of work performed under accomplished engagements

  • Checking the assessment of loss reserves (incurred but not reported reserves (IBNR), outstanding claims reserve (OCR)) and the reinsurer’s share therein; making our own assessments using both conventional (chain ladder method, Bornhuetter-Ferguson method, link ratio method, etc.) and more recent (separation technique, stochastic methods, etc.) methods to compare them with the company's assessments
  • Hindsight analysis of loss reserve adequacy (run-off analysis)
  • Independent insurer’s liability adequacy testing (LAT)
  • Checking the calculation of the loss adjustment expense reserve
  • Testing the sensitivity of actuarial reserves to varying assumptions