G. DIVIDEND FRANKING AMOUNT
CONSOLIDATED
2015
2014
$m
$m
Franking account balance at reporting date at 30%
525
609
Franking credits to arise from payment of income tax payable
15
81
Franking credits to arise from receipt of dividends receivable
1
-
Franking credits available for future reporting periods
541
690
Franking account impact of dividends determined before issuance of financial report but not
recognised at reporting date
(167)
(261)
Franking credits available for subsequent financial periods based on a tax rate of 30%
374
429
After payment of the final dividend the franking balance of the Company has $292 million franking credits available for subsequent
financial periods and is capable of fully franking a further $681 million of distributions.
The balance of the franking account arises from:
franked income received or recognised as a receivable at the reporting date;
income tax paid, after adjusting for any franking credits which will arise from the payment of income tax provided for in the
financial statements; and
franking debits from the payment of dividends recognised as a liability at the reporting date.
In accordance with the tax consolidation legislation, the consolidated amounts include franking credits that would be available to the
Parent if distributable profits of non-wholly owned subsidiaries were paid as dividends.
All of the distributions paid in relation to the convertible preference shares and the interest payments in relation to the reset
exchangeable securities for the financial year were fully franked at 30% (2014-fully franked at 30%).
NOTE 10. CLAIMS
A. NET CLAIMS EXPENSE IN THE STATEMENT OF COMPREHENSIVE INCOME
Current year claims relate to claim events that occurred in the current financial year. Prior year claims relate to a reassessment of the
claim events that occurred in all previous financial periods.
CONSOLIDATED
2015
2014
Current year Prior years
Total
Current year
Prior years
Total
$m
$m
$m
$m
$m
$m
Gross claims - undiscounted
8,956
199
9,155
6,728
309
7,037
Discount
(205)
413
208
(199)
220
21
Gross claims - discounted
8,751
612
9,363
6,529
529
7,058
Reinsurance and other recoveries -
undiscounted
(1,651)
(734)
(2,385)
(1,074)
(806)
(1,880)
Discount
61
(98)
(37)
49
(26)
23
Reinsurance and other recoveries -
discounted
(1,590)
(832)
(2,422)
(1,025)
(832)
(1,857)
Net claims expense
7,161
(220)
6,941
5,504
(303)
5,201
B. OUTSTANDING CLAIMS LIABILITY RECOGNISED ON THE BALANCE SHEET
CONSOLIDATED
2015
2014
$m
$m
I. Composition of gross outstanding claims liability
Gross central estimate - undiscounted
11,283
10,696
Claims handling costs
453
449
Risk margin
2,574
2,799
14,310
13,944
Discount to present value
(1,623)
(1,938)
Gross outstanding claims liability - discounted
12,687
12,006
The outstanding claims liability includes $6,977 million (2014-$7,240 million) which is expected to be settled more than 12 months
from the reporting date.
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