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Note 1. Financial Performance

This section analyses the financial performance of DVA for 30 June 2018.

Note 1.1. Expense

  2018 2017
$'000 $'000
Note 1.1A: Employee Benefits    
Wages and salaries 145,555 144,608
Superannuation    
   Defined contribution plans 11,135 10,248
   Defined benefit plans 17,882 18,816
Leave and other entitlements 16,131 17,616
Separation and redundancies 5,192 2,865
Payroll tax equivalent (competitive neutrality) 67 49
Other employee benefits 2,809 2,012
Total employee benefits 198,771 196,214
  2018 2017
$'000 $'000
Note: Commitments are GST inclusive where relevant.
Note 1.1B: Suppliers    
Goods and services supplied or rendered    
Information technology and communication 25,184 38,443
Claim processing fees 10,075 10,255
Lease expenses 6,680 7,206
Consultants 42,015 15,727
Contractors 26,933 14,570
Shared service arrangement 27,649
Travel 8,132 5,365
Training and development 3,360 2,392
Postage and office requisition 4,520 5,644
Printing and publications 2,077 1,673
Record management 3,579 474
Other 1,495 1,415
Total goods and services supplied or rendered 161,699 103,164
     
Goods supplied 7,925 6,396
Services rendered 153,774 96,768
Total goods and services supplied or rendered 161,699 103,164
     
Other suppliers    
Operating lease rentals 20,224 21,020
Workers compensation expenses 3,987 4,727
Total other suppliers 24,211 25,747
Total suppliers 185,910 128,911
     
Leasing commitments    
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows    
   Within 1 year 21,090 22,941
   Between 1 to 5 years 51,470 45,372
   More than 5 years 32,571 21,522
Total operating lease commitments (gross) 105,131 89,835

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  2018 2017
$'000 $'000
1.  The expenses are included in Note 1.1A and Note 1.1B and are reproduced here solely for the purpose of presenting the underwriting result.
Note 1.1C: Insurance Activities    
Underwriting revenue    
Premium received 43,037 44,237
Total premium revenue 43,037 44,237
Less: Reinsurance expense (6,912) (6,945)
Net premium revenue 36,125 37,292
     
Underwriting expenses    
Claims expense 26,593 33,999
Less: Reinsurance and other recoveries (723) (1,767)
Net claims expense 25,870 32,232
Fire brigade and emergency services contributions 1,482 1,460
Acquisition costs 387 366
Total underwriting expenses 27,739 34,058
     
Other operating expenses1 34,058 7,224
Underwriting result 1,021 (3,990)
     
Investment revenue    
Interest – deposits 1,518 1,493
Total investment revenue 1,518 1,493
     
Insurance agency revenue    
Insurance agency commission 2,891 2,810
Total insurance agency revenue 2,891 2,810

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Net claims incurred table

    2018     2017  
Current
year
Prior
years
Total Current
year
Prior
years
Total
  $'000 $'000 $'000 $'000 $'000 $'000
1.  Claims 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.
Gross incurred1 21,608 4,985 26,593 30,080 3,919 33,999
Less: Reinsurance and other recoveries (215) (508) (723) (1,630) (137) (1,767)
Net claims incurred 21,393 4,477 25,870 28,450 3,782 32,232

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Note 1.2. Own-Source Income and Gains

  2018 2017
  $'000 $'000
Own-Source Revenue    
Note 1.2A: Rendering of Services    
Rendering of services 6,866 7,256
Total rendering of services 6,866 7,256

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  2018 2017
  $'000 $'000
   
Note 1.2B: Other Revenue    
Resources received free of charge — ANAO audit fee 728 731
Resources received free of charge — DHS 4,330
Total resources received free of charge 728 5,061

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