Výročná správa 2009 - Komunálna Poisťovňa

(All amount are in thousands of Euros, unless stated otherwise)2.10 Share capitalOrdinary shares are classified as equity. Additional costs directly attributable to the issue ofnew equity securities are shown in equity as a deduction, net of tax, from the proceeds.2.11 Insurance and investment contracts - classificationThe Company issues contracts that transfer insurance risk or financial risk, or both.Contracts in which the Company assumes significant insurance risk of a third party (policyholder)and agrees to compensate him if a specified uncertain event (insurance event) has anadverse effect on him are classified as insurance contracts.Insurance risk is significant if the occurrence of an insurance event forces the Company topay significant amount of insurance risk, which is 10% higher than insurance risk if the insuranceevent does not occur.Insurance risk is not identical to financial risk. Financial risk relates to the possible futurechange in the interest rate, the value of a security, the commodity price, the exchange rate, theprice index or rate, the credit rating, the credit index, or another variable that is independent ofthe contracting parties. An insurance contract may also include a certain financial risk. Investmentcontracts are those contracts that transfer financial risk with no significant insurance risk.A number of insurance and investment contracts contain a DPF (“discretionary participationfeature”). This feature entitles the holder to receive, as a supplement to guaranteed benefits, additionalbenefits or bonuses that are contractually based on:• Realized and/or unrealized investment returns on a specified pool of assets held by theCompany, or• The profit or loss of the Company that issues the contract.The Company recognizes a DPF contained in a contract as a liability.2.12 Insurance contractsa) Recognition and measurementInsurance contracts that the Company concludes are classified into the following categories,depending on whether or not the terms and conditions are fixed.(i)Short-term insurance contractsHere are categorized insurance contracts within portfolio of insurance of property, liability (aswell as insurance contracts concerning responsibility for damages caused by a motor vehicle,including compulsory Motor Third Party Liability Insurance), accident assurance and other short­-term contracts within life and property insurance.Liability insurance contracts protect clients of the Company against the risk of causing harm toa third party as a result of their legitimate activities. The typical protection offered is insurance ofindividuals or businesses that may become liable to pay compensation to a third party for bodilyharm or property damage.Property insurance contracts compensate clients of the Company in case of theft or damagesuffered to their properties.Accident insurance compensates clients of the Company if their health is harmed as a consequenceof injury.Ročná účtovná závierka a komentár I Company Accounts121