Skip to Content

Note 1. Financial Performance

This section analyses the financial performance of DVA for 30 June 2017.

Note 1.1. Expense

  2017 2016
$'000 $'000
Note 1.1A: Employee Benefits    
Wages and salaries 144,608 142,572
Superannuation    
   Defined contribution plans 10,248 9,101
   Defined benefit plans 18,816 18,099
Leave and other entitlements 17,616 23,079
Separation and redundancies 2,865 1,658
Payroll tax equivalent (competitive neutrality) 49 49
Other employee benefits 2,012 2,435
Total employee benefits 196,214 196,993
  2017 2016
$'000 $'000
Note 1.1B: Suppliers    
Goods and services supplied or rendered    
Information technology and communication 38,443 30,386
Claim processing fees 10,255 12,382
Lease expenses 7,206 7,993
Consultants 15,727 3,365
Contractors 14,570 12,171
Travel 5,365 4,744
Training and development 2,392 2,438
Postage and office requisition 5,644 4,120
Printing and publications 1,673 1,183
Other 1,889 1,315
Total goods and services supplied or rendered 103,164 80,097
     
Goods supplied 6,396 9,812
Services rendered 96,768 70,285
Total goods and services supplied or rendered 103,164 80,097
     
Other suppliers    
Operating lease rentals 21,020 25,706
Workers compensation expenses 4,727 3,850
Total other suppliers 25,747 29,556
Total suppliers 128,911 109,653
     
Leasing commitments    
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows    
   Within 1 year 22,941 21,403
   Between 1 to 5 years 45,372 43,700
   More than 5 years 21,522 6,282
Total operating lease commitments (gross) 89,835 71,384

Note: Commitments are GST inclusive where relevant.

 

Note 1.1C: Insurance Activities
  2017 2016
  $'000 $'000
Underwriting revenue    
Premium received 43,272 42,997
Total premium revenue 43,272 42,997
Less: Reinsurance expense (6,945) (7,427)
Net premium revenue 36,327 35,570
     
Underwriting expenses    
Claims expense 33,999 24,923
Less: Reinsurance and other recoveries (1,767) (212)
Net claims expense 32,232 24,711
Fire brigade and emergency services contributions 1,764 1,451
Acquisition costs 366 425
Total underwriting expenses 34,362 26,587
     
Other operating expenses1 7,224 6,336
Underwriting result (5,259) 2,647
     
Investment revenue    
Investment income realised - 140
Interest—deposits 1,493 1,218
Total investment revenue 1,493 1,358
     
Insurance agency revenue    
Insurance agency commission 2,810 2,846
Total insurance agency revenue 2,810 2,846

1The expenses are included in Note 1.1A and Note 1.1B and are reproduced here solely for the purpose of presenting the underwriting result.

Net claims incurred table
  2017 2016
Current year Prior
years
Total Current
year
Prior
years
Total
$'000 $'000 $'000 $'000 $'000 $'000
Net claims incurred 28,450 3,782 32,232 20,033 4,678 24,711
Gross incurred1 30,080 3,919 33,999 20,053 4,867 24,920
Less: Reinsurance and other recoveries (1,630) (137) (1,767) (20) (189) (209)

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.

1.2. Own-Source Income and Gains

Own-Source Revenue
  2017 2016
  $'000 $'000
     
Note 1.2A: Rendering of Services    
Rendering of services 7,256 8,759
Total rendering of services 7,256 8,759
Own-Source Revenue (cont)
  2017 2016
  $'000 $'000
   
Note 1.2B: Other Revenue    
Resources received free of charge—ANAO audit fee 731 798
Resources received free of charge—DHS ICT Shared Services 4,330 1,291
Total resources received free of charge 5,061 2,089
No votes yet