Výročná správa 2009 - Komunálna Poisťovňa

(All amount are in thousands of Euros, unless stated otherwise)Concentration of insurance risk at 31 December 2008 after reinsuranceTotal insurance coverage (in thousands of Euros)0 - 300 300 – 600 600 – 1 000 1 000 – 1 500 Over 1 500 TotalProperty 924,439 402,933 434,517 271,974 863,403 2,897,266Liability 87,885 38,692 67,119 545 1,968 196,209CASCO 894,670 5,097 - - - 899,767MTPL - - 65,743,523 - 1,935,332 67,678,855Other 7,614 169,289 - - - 176,903Total 1,914,608 616,011 66,245,159 272,519 2,800,703 71,849,000Insurance risk with low frequency and material impactThe main risk is natural disasters. In the last few years, the Company was mainly affected byfloods and snow in regard to property insurance. As a result of the risk assessment in this area,the Company set a maximum limit of EUR 3,319 thousand for property insurance. The Companyis participating in ‘Project Acquarius’ for monitoring the countryside for increased risk in this respect.Estimates of future claimsClaims are paid to policyholders as claims occur. The Company is responsible for claimssettlements if the claim occurred within the period of cover, even if the contract is not valid anymore.Due to this fact, claims are settled over longer period of time than that reflected in the IBNRcalculation. There are many parameters that affect the amount and timing of claims settlements.The estimated cost of a claim includes all cost related to settling the liability.4.2 Financial riskThe Company is exposed to financial risk through its financial assets, financial liabilities, insuranceliabilities reinsurance assets, and liabilities. In particular, the key financial risk is that theproceeds from its financial assets are not sufficient to fund the obligations arising from its insuranceand investment contracts. The most important components of this financial risk are market,credit, and liquidity risk. The most important components of market risk are interest rate risk, otherprice risk, and currency risk.In general, the risk management program is focused on the unpredictability of situations inthe financial markets, and seeks to minimize any potential adverse effect on the financial resultsof the Company.4.2.1 Liquidity riskThe underlying principle of assets and liabilities management is to invest in such securitiesthat, by their characteristics, correspond to the substance of insurance contracts covered by them.The Company approaches insurance contracts in life and non-life insurance differently.For non-life insurance, the Company purchases bonds with short-term maturity, mainly withvariable interest rates, taking into account that insurance contracts in non-life insurance are consideredshort-term, with a maturity within one year. Therefore, the Company manages the securityportfolio in such a way as to make the respective cash inflows cover claims arising from liabilitiesfrom insurance contracts at each moment.Ročná účtovná závierka a komentár I Company Accounts145