@Mwanahisa

Sorry,took sometime as I had to brush up on my updates but I got it.

Check up IFRS 4 Insurance Contracts see para. 37(a) ii - iv,

It generally deals with longterm insurance and it explains clearly that because the liability for this type of insurance are expected to be incurred in future example death,you are required to provide for such liability as at the balancesheet date.

Thats why if you look up my previous post,you will see that I stated that you need an actuarial valuation of the life business every year to determine if the shareholders of the company can transfer some amounts to dividends. In case the valuation has a deficit,then the shareholders are required to pay up the deficit,hence life business is generally very profitable but tricky .

To see the actual treatment,I would advise you to look up some Illustrative Financial statements on the Internet,the problem is you will struggle to get one for a composite insurer.

I don't know what Kenya-re did in the past,they must have mixed up their figures,IFRS supports my earlier assertion that surplus from longterm business does not belong to the shareholders and should not be included in the EPS.

I've noticed the youth in particular coming in to a workplace with a completely outsized notion of their own value and importance... just a thinly-veiled arrogance. May be the credit crunch induced recession is whats needed to remind us all about the value of hard work.... By Anonymous