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Note 3: Expenses

  2013 2012
  $'000 $'000
Note 3A. Employee Benefits    
Wages and salaries 142,847 145,302
Superannuation:    
Defined contribution plans 6,958 6,211
Defined benefit plans 19,958 18,265
Leave and other entitlements 13,302 23,468
Separation and redundancies 373 3,688
Payroll tax equivalent (competitive neutrality) 111 75
Other employee benefits 2,326 2,979
Total employee benefits 185,875 199,988
Note 3B. Supplier Goods and services    
Information technology and communication 25,761 35,702
Claim processing fees 14,444 14,728
Lease expenses 6,413 8,026
Consultants 9,512 5,046
Contractors 5,957 7,198
Tavel 5,038 7,222
Training and development 2,172 2,708
Postage and office requisition 3,818 5,121
Printing and publications 2,688 2,080
Other 3,329 6,108
Total goods and services 79,132 93,939
Goods and services are made up of:    
Provision of goods - external parties 18,250 34,520
Rendering of services - related entities 29,300 26,543
Rendering of services - external parties 31,582 32,876
Total goods and services 79,132 93,939
Other supplier expenses    
Operating lease rentals - external parties:    
Minimum lease payments 22,726 22,750
Workers compensation expenses 3,026 2,441
Total other supplier expenses 25,752 25,191
Total supplier expenses 104,884 119,130
Note 3C. Depreciation and Amortisation Depreciation:    
Leasehold improvements 5,883 5,890
Property, plant and equipment 8,057 6,847
Total depreciation 13,940 12,737
Amortisation:    
Intangibles - computer software 13,701 11,639
Total amortisation 13,701 11,639
Total depreciation and amortisation 27,641 24,376
Note 3D. Write-Down and Impairment of Assets Asset write-down and impairment from:    
Impairment on intangible assets 128 621
Total write-down and impairment of assets 128 621

Please refer to Note 7D for further disclosure on impairment of intangible assets.

Note 3E. Losses from Asset Sales Property, plant and equipment:  2013 2012
Carrying value of assets sold 64 91
Total losses from asset sales 64 91

Proceeds from sales of asset were nil (2012: Nil). Selling expenses were nil (2012: Nil).

  2013 2012
  $'000 $'000
Note 3F. Insurance Activities Underwriting revenue    
Premium received 35,474 31,796
Total premium revenue 35,474 31,796
Less: Reinsurance expense (6,526) (6,455)
Net premium revenue 28,948 25,341
Underwriting expenses    
Claims expense 26,634 22,051
Less: Reinsurance and other recoveries (1,619) (1,178)
Net claims expense 25,015 20,873
Fire brigade and emergency services contributions 3,159 2,069
Acquisition costs 493 490
Movement in unexpired risk liability1 - (1,816)
Total underwriting expenses 28,667 21,616
Other operating expenses2 5,743 6,103
Underwriting result (5,462) (2,378)
Investment revenue    
Investment income realised 1,601 2,137
Change in fair value (117) (208)
Total investment revenue 1,484 1,929
Insurance agency revenue    
Insurance agency commission 2,620 2,217
Total insurance agency revenue 2,620 2,217

1 See related disclosure on Liability Adequacy Test under Note 1.20.

2 The expenses are included in Notes 3A, 3B and 3C and are reproduced here solely for the purpose of presenting the underwriting result.

Net claims incurred table

  2013 2012
Current Prior   Current Prior  
year year Total Year Year Total
$'000 $'000 $'000 $'000 $'000 $'000
Gross incurred1 16,343 10,291 26,634 15,088 6,963 22,051
Less: Reinsurance and other recoveries (1,483) (136) (1,619) (38) (1,140) (1,178)
Net claims incurred 14,860 10,155 25,015 15,050 5,823 20,873

1Claims are not subject to discount.

Building insurance claims are typically resolved within one year. No claims development table is required under AASB 1023 General Insurance Contracts 17.7.1 (b) (iii) for lines of business typically resolved within one year.

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