kontinuita - Komunálna Poisťovňa

NOTES TO
THE FINANCIAL
STATEMENTS
14. Liabilities from insurance contracts and reinsurance assets
Year ended 31 December 2008 2007
Gross
Long-term insurance contracts:
- with fixed and guaranteed terms 2,622,281 2,357,400
- without fixed and guaranteed terms 218,128 308,316
- investment contracts with a DPF 763,478 730,097
Long-term insurance contracts – gross 3,603,887 3,395,813
Reinsurer’s share
Long-term insurance contracts:
- with fixed and guaranteed terms 21,122 26,798
- without fixed and guaranteed terms 281 646
- investment contracts with a DPF 87 115
Total reinsurer’s share in liabilities from insurance contracts 21,490 27,559
Net
Long-term insurance contracts:
- with fixed and guaranteed terms 2,601,159 2,330,602
- without fixed and guaranteed terms 217,847 307,670
- investment contracts with a DPF 763,391 729,982
Total liabilities from insurance contracts – net 3,582,397 3,368,254
14.1 Long-term life insurance contracts – assumptions,
changes in assumptions, and sensitivity analysis
(i) Process the Company uses to make assumptions
For long-term insurance contracts, estimates of assumptions
are made in two phases. When creating
products, the Company makes assumptions regarding
future mortality, voluntary policy terminations, investment
returns, and initial and administrative expenses.
These assumptions are then used to calculate
liabilities during the entire term of the insurance contract.
In addition, they are adjusted for a certain degree
of prudence.
Subsequently, assumptions are reviewed at each balance
sheet date to assess whether technical reserves
are adequate when considering the current estimates.
Initial assumptions are not altered if the technical reserves
are considered adequate. If they are not, assumptions
are modified to reflect the current
estimates, and these new assumptions are also adjusted
for a certain degree of prudence. Positive changes
in assumptions are not taken into account.
Basic assumptions the Company makes in connection
with liabilities arising from insurance contracts which
are analysed in this part are as follows:
Mortality
An appropriate base table of standard mortality is chosen,
depending on the type of contract. The Company
reassesses its experience from recent years and uses
statistical methods to adjust the rates reflected in the
mortality table to a best estimate of mortality for that
year. Based on the trends identified, an allowance is
KONTINUITA ANNUAL REPORT 153