2007 - April

2.0
Notes to the consolidated financial statements at December 31 st 2007
Financial investments for insurance activities, which are
valued in accordance with IAS 32 and 39,
Trade receivables, which are broken down into receivables
from insurance operations and reinsurance accepted and
receivables from cession operations on reinsurance,
Operating liabilities, which are also broken down, with
liabilities from insurance operations and reinsurance
accepted and liabilities from cession operations on
reinsurance,
Underwriting provisions, which are booked gross under
liabilities, with the reinsured portion under assets: transferee
and retrocession share in underwriting provisions
and financial liabilities.
Financial liabilities are broken down in order to differentiate
between technical liabilities on investment policies and
financial debt.
1.5.2. Presentation of the income statement
The income statement is presented with a breakdown
for each type of entry, in line with CNC recommendation
2004-R.02 dated October 27 th , 2004 and factoring in the
specific aggregates for insurance companies:
Inderwriting expenses for insurance policies (cf. note 1.8);
The result for reinsurance “net income or expenses for
reinsurance cessions” (cf. note 1.9).
The figure for financial income net of charges and excluding
cost of debt corresponds to revenues and earnings from the
disposal of insurance company investments and operating
cash-flow from the brokerage activities.
It also includes the change in the fair value of financial
instruments recorded at their fair value and earnings. Since
it is directly linked to the APRIL GROUP’s financial model
and activities, both for the insurance business and for
brokerage activities, which generate a cash surplus, they are
incorporated into «income from ordinary activities”.
1.6. Revenues
Revenues comprise:
Acquisition commissions in payment of business
contributions,
Management commissions in payment of administrative
functions,
Development commissions based on underwriting portfolio
results,
Insurance premiums gross of reinsurance,
Acceptance premiums,
Services provided.
The principles for recording and recognizing revenues
are as follows:
For acquisition and management commissions: revenues
comprise the share in commissions relating to premiums
acquired over the period.
For development commissions: they are recorded in the
year of acquisition insofar as they can be reliably valued.
Otherwise, they are recorded upon collection.
For insurance premiums: revenues comprise premiums issued
and to be issued, acquired as on the date for the close of
accounts, net of cancellations and gross of reinsurance.
Premiums linked to investment policies without any
discretionary profit-sharing are not recognized under
revenues.
For services provided: revenues are taken into account as
of the service performance start date. Income is taken into
account as and when services are delivered.
At year-end, the commissions corresponding to the nonexecuted
fraction of policies represent pre-booked income..
1.7. Financial income net of charges and excluding cost
of debt
Financial income net of charges groups together all financial
income and expenses excluding the cost of debt:
Financial income from insurance company investments,
Revenues from cash and cash equivalent investments,
Financial expenses linked to such investments (including
external management costs),
Changes in the fair value of investments against earnings,
Capital gains and losses on disposals net of provisions and
write-backs for depreciation.
The cost of debt primarily corresponds to financial expenses
incurred on funds borrowed.
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