Global: Disclosures suggest wide variation in IFRS17 impact on shareholders' equity
Source: Middle East Insurance Review | Jun 2023
The impact on shareholders’ equity of transition to the new IFRS17 accounting standard is considerably more pronounced for life insurers than their non-life counterparts, according to analysis from AM Best.
A new Best’s special report, Disclosures Suggest Wide Variation in IFRS17 Impact on Shareholders’ Equity, indicates that the range of outcomes for life insurers under IFRS17 is wide and biased to the downside, although a reduction is far from automatic. For non-life insurers, the impact is considerably narrower and biased to the upside, the report said.
For (re)insurers that report under international financial reporting standards, the transition to IFRS17 at the beginning of 2023 impacts large parts of their external financial reporting and metrics. In recent months, several (re)insurers accompanied their usual investor presentation with early estimates of a few major selected measures under the new standard. M