Impairment occurs
when there is objective evidence as a result of an event that occurred after initial
recognition of the reinsurance asset that the Group and Company may not receive all
outstanding amounts due under the terms of the contract and the event has a reliably
measurable impact on the amounts that the Group and Company will receive from the
reinsurer. The impairment loss is recorded in the income statement.
Gains or losses on buying reinsurance are recognised in profit or loss immediately at the
date of purchase and are not amortised.