kontinuita - Komunálna Poisťovňa

NOTES TO
THE FINANCIAL
STATEMENTS
Financial assets are presented net of impairment, and movements in valuation allowances were as follows:
Year ended 31 December 2008 2007
Valuation allowances for receivables from policyholders
Opening balance 50,036 56,529
Set-up 16,943 2,061
Release -1,629 -8,554
Closing balance 65,350 50,036
Valuation allowances for receivables from brokers and intermediaries
Opening balance 6,442 3,261
Set-up 42,598 3,181
Release -295 –
Closing balance 48,745 6,442
Valuation allowances for other receivables
Opening balance 2,947 4,282
Set-up 744 708
Release -132 -2,043
Closing balance 3,559 2,947
4.3 Capital management
Through capital management, the Company secures
sufficient resources for its business activities, maximizes
the rate of return for shareholders, and secures
financial stability.
The objective of capital management is to keep a sufficient
level of capital resources in accordance with
legal regulations. The Slovak Insurance Industry Act
No. 8/2008 Coll., as amended, sets the minimum level
of share capital for performing activities in individual
insurance sectors.
According to the National Bank of Slovakia’s Regulation
of 5 February 2008, which stipulates the minimum
amount of the guarantee fund for local insurance companies
and branches of foreign insurance companies,
the minimum amount of the insurance company’s guarantee
fund is EUR 3.2 million for life insurance and
EUR 3.2 million for non-life insurance, according to the
offered non-life insurance sectors.
According to Article 4 of the Slovak Insurance Industry
Act, the share capital of a life insurance company must
be at least EUR 4 million, and for non-life insurance
sectors at least EUR 5 million.
In the capital management process, the Company also
takes into account external regulatory requirements
set by the National Bank of Slovakia. These arise from
requirements for solvency. By following these, the
Company is able to cover all liabilities arising from insurance
contracts from its own resources at any time.
The Company creates and constantly keeps the actual
solvency at least at the required solvency level. The actual
solvency level means the Company’s own resources,
consisting of its equity and intangible assets.
KONTINUITA ANNUAL REPORT 137