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First up, ***Premiums Earned***. This is the amount of revenue recognized for the period from premiums received. Under the PAA, premiums are typically recognized as revenue over the period of the contract, similar to how it was done under the old rules (IFRS 4). This part is fairly straightforward: it's the money the insurance company gets from its customers, spread out over the policy period. It’s what the insurance company earns during that time. Next, we have ***Insurance Service Expenses***. This includes claims incurred and other expenses directly related to the insurance contracts, like acquisition costs and operating expenses. This section reflects the costs of providing the insurance coverage. Then there is the ***Insurance Service Result***. This is the difference between premiums earned and insurance service expenses, which tells you how profitable the insurance contracts were during the period. It’s essentially the profit (or loss) from the insurance business. Acquisition costs are the expenses incurred to obtain new insurance contracts. These include commissions paid to brokers, underwriting expenses, and other costs directly related to the acquisition of new business. These costs are recognized as expenses in the income statement.
* Swap: The bone becomes the subject.
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