Výročná správa 2009 - Komunálna Poisťovňa

(All amount are in thousands of Euros, unless stated otherwise)The Company, together with other companies, acquired a licence that allows it to provide compulsoryinsurance (MTPL).Before 1 January 2002, this insurance was provided by Slovenská poisťovňa, a.s., which alsoadministered all contracts and formed technical reserves. After 1 January 2002, all rights and obligationsas defined in Act no. 381/2001, § 28,paragraph 3 were transferred to Slovenská kanceláriapoisťovateľov (SKP – The Slovak Insurers’ Bureau) together with related provisions. However,Slovenská poisťovňa had not created sufficient provisions for liabilities coming from compulsoryinsurance (MTPL). In 2007, Deloitte performed an audit of the MTPL provisions and estimated adeficit of between EUR 126 and EUR 153 million. All insurance companies present on the SlovakMTPL insurance market are participating in reducing the deficit in proportion to their market share(Note 22).(ii)Long-term insurance contracts with fixed and guaranteed termsThese include mainly universal life insurance, pension insurance, as well as death insurance,sickness and injury insurance, as well as death insurance and injury insurance for a period of atleast five years. These contracts do not include a discretionary participation feature (DPF).RevenuesPremiums are recognized as revenues when they become payable. Premiums are shownbefore the deduction of insurance commissions.Insurance benefitsInsurance benefits include payments upon reaching certain age, pension benefits, paymentsof the surrender value, death benefits, and profit share payments. Payments upon reaching certainage and pension benefits are recognized as an expense when due. Surrender values arerecognized as an expense when paid. Death benefits are recognized as an expense when theinsured event is reported. Liabilities in respect of insurance benefits are estimated as follows:Claims provisionThe amount of reserve is determined as the sum of the aggregate of reserves calculated forparticular insurance events and contains claims handling costs related to processing insuranceevents. If the performance is provided in the form of a pension, the reserve is calculated on basisof actuarial methods.The amount of IBNR in the accounting period is calculated on the basis of actuarial methods,particularly the ‘Chain-Ladder’ method.Life reserveThe technical reserve for life-insurance is an aggregate of reserves calculated according toindividual contracts of life-insurance. They are calculated using actuarial methods, including alreadyadmitted and settled shares in profit and reserves for costs connected with administeringinsurance, after deduction of the present value of future premiums. The reinsurer has no share ina reserve for life insurance, given that valid reinsurance conditions say that only the risk componentof the insurance is reinsured.The same mortalities and guaranteed interest rate as those used for the premium calculationare used for these reserves. For the entire portfolio of the insurance contracts (including thosewhich, upon inception, arose from 2005), the Company calculates and accounts for a Zillmerizedreserve. Negative reserve balances of individual life insurance contracts are zeroed.For insurance contracts (such as those recorded in other IT administration systems uponinception), the Company recognizes a non-Zillmerized reserve.Ročná účtovná závierka a komentár I Company Accounts125