IFRS 18 for Insurance Companies: When Investment Return Is Operating | Part 3 of 8

IFRS 18 does not replace IFRS 17 — but it changes the performance map through which an insurer’s results are presented and understood. In Part 3 of the IFRS 18 in Uganda series, we examine what IFRS 18 means specifically for insurance companies and why investment return cannot automatically be treated as merely an investing line. A central question is: Can an insurer’s insurance service result fall while its IFRS 18 operating profit rises — and if so, what is actually driving performance? In this practical discussion, we examine: • the interaction between IFRS 17 and IFRS 18 • insurance service result versus investment and finance performance • when investing in financial assets may be a main business activity • when investment returns may therefore fall within the operating category • insurance finance income and expenses • the interaction between profit or loss and OCI • reinsurance presentation considerations • how IFRS 18 can reshape the insurer’s statement of profit or loss • implications for IAS 7 cash-flow reporting • management-defined performance measures (MPMs) • systems, data and mapping requirements • preparing the 2026 comparative information • practical implementation considerations for CFOs and finance teams The video uses insurance-sector examples to show why implementation requires more than simply relabelling existing financial-statement lines. Finance teams need to understand the relationship between: insurance service → investment assets → finance effects → OCI → cash flows → management performance measures Although the series uses Uganda as its implementation context, the IFRS principles and practical issues discussed are relevant to insurers and finance professionals internationally. This is Part 3 of 8 in the IFRS 18 in Uganda implementation series. Presented by: CPA Rogers Nsubuga, ACCA, CPA(U) Nsuvia Institute of Finance A companion article, “For Insurers, Investment Return Is Not Merely an Investing Line,” forms the technical foundation for this episode. Subscribe for the next parts of the series and the upcoming 10 practical IFRS 18 questions for insurance companies. Educational content only. Actual accounting conclusions depend on the reporting entity’s facts, circumstances, accounting policies and the complete requirements of IFRS Accounting Standards. #IFRS18 #IFRS17 #Insurance #FinancialReporting #CFO