Table of Contents Table of Contents
Previous Page  33 / 56 Next Page
Information
Show Menu
Previous Page 33 / 56 Next Page
Page Background

2015

RCS GROUP CONSOLIDATED FINANCIAL STATEMENTS

31

31 December 2015

31 March 2015

R’000

R’000

6.

Other Receivables

Other receivables

3 117

12 266

Prepayments

8 508

5 772

11 625

18 038

7.

Amount Receivable from Insurer

The Group retails insurance products to customers. The principal risk that the insurance cells face is that the actual claims

and benefit payments, or the timing thereof, differ from expectations. This is influenced by the frequency of claims, severity

of claims, actual benefits paid and subsequent development of long-term claims. Therefore, the objective of the cells is to

ensure that sufficient reserves are available to cover these potential liabilities. The Group acts as intermediary between the

Cell Insurer and the RCS customers.

The risk structure per product is as follows:

Guardrisk Insurance Company Limited (RCS Cards Proprietary Limited Cell no. 160)

The RCS Group sells short-term income protection insurance on behalf of Guardrisk to its customers. The RCS Group bears

100% of the re-insurance risk for all products.

Guardrisk Life (RCS Cards Proprietary Limited Cell no. 78)

The RCS Group sells long-term insurance policies with death benefits on behalf of Guardrisk to its customers. The RCS Group

bears 100% of the re-insurance risk for all products.

The re-insurance asset consists of the following components:

Reconciliation of amount receivable from insurer

Balance at beginning of period

94 919

88 552

Increase based on the shareholders funds of the cell captive

83 930

104 705

Dividend received from the insurer

(83 999)

(98 338)

Balance at end of period

94 850

94 919

The balance at the end of the period comprises:

Cash and cash equivalents

120 446

134 762

Other receivables

14 769

13 375

Trade and other payables

(18 889)

(23 771)

Taxation payable

(21 476)

(29 447)

94 850

94 919

31 December 2015

31 March 2015

R’000

R’000

NotestotheConsolidatedFinancialStatements

(continued)

for the period ended 31 December 2015