Other Assets and Liabilities
- 03:01
Understand how to forecasting the remaining assets and liabilities for life insurance businesses
Transcript
We are gonna forecast the other assets and liability balances for Generali. And, in terms of what that includes, you'll see that it includes Receivables, Other assets, Financial liabilities, Payables, and Other liabilities. And here are all the assumptions that we are gonna need for doing that. Now one thing you might notice is that most of these balances are forecast using a driver which uses the insurance provisions balance. The only exception to this is the Financial liabilities where we are given an actual amount to include in our balance sheet. So let's go down to our balance sheet now, and we can forecast those other assets and liability balances.
Now we'll start off with our Receivables, and we'll need to go up to find our assumption for that.
And we'll take the 2.9%, and we're gonna need to multiply that by our total insurance provisions. So we'll go down to the balance sheet, and we need to take the Life insurance provisions and the P&C insurance provisions. So that's our Receivables balance. We can now do exactly the same for our other assets.
So we'll take our 4% assumption, and again, multiply that by the total insurance provisions.
So that's our Life provisions and our P&C provisions. Great. So we've done the other assets now. We can move on down to the other liabilities. And that's starting with the financial liabilities where we're given an absolute amount to include in our assumptions.
And now, for the Payables, we can go up and find our assumption.
So we take that 2.4%, and again, multiply that by our total insurance provisions.
So that's our Life provisions and our P&C provisions. Now the final one is Other liabilities, and we'll calculate that in exactly the same way.
So we take our 4% assumption and multiply that by our total insurance provisions.
So now we've calculated all our other liability balances as well. And, in fact, if we zoom out from here, we can see that actually our balance sheet is nearly complete. We are just missing our equity and also our Cash and our various investments balances.