The Group KD Group and KD Group dd

More documents

Recommendations

Info

The Group KD Group Annual Report 2009 Notes to Consolidated Financial Statements as at and for the year ended 31 December 2009 5.2.1 Liquidity risk Liquidity risk is the risk that cash may not be available to pay obligations due at a reasonable cost. The Group is exposed to liquidity risk in particular with regards to the insurance liabilities (claims) and the contractual obligations pertaining to the acquisition of financial instruments (notably the acquisitions of companies) and the servicing of current liabilities from financial instruments. The liquidity requirements in the field of financial intermediation are specifically regulated by the law, where the most important area for the Group is insurance where it strives to maintain the volume of liquidity in accordance with the regulatory requirements. Exposure to liquidity risk is reflected in the acceptance of insurance risk and the Group’s ability to meet its contractual obligations from existing insurance contracts and liabilities related to the insurer’s day-to-day operations. Liquidity risk stems from an imbalance in inflows and outflows and manifests itself in the potential that the Group, despite having adequate financial assets, would find itself in the position of having to cash in its investments under less favourable conditions (e.g. lower price, higher transaction costs) in order to meet its contractual obligations, which would result in a lower return on investments. The Group manages its liquidity risk through: • maintaining a suitable structure of investments; • diversifying the investment portfolio; • planning future cash flows, ensuring a suitable volume of cash flows from operating and investing activities (payout of interest and principal) to cover future foreseeable liabilities; • providing an adequate volume of high liquidity investments which are readily convertible without loss in order to cover future unforeseeable liabilities. The Group is exposed to interest rate risk via financial assets and liabilities, reinsured receivables and insured liabilities. Due to the nature of its investments and liabilities, the Group particularly faces the risk of changed interest rates. The overview of liquidity risk management is presented below, showing maturity of assets according to contractual cash flows, which are compared with the expected cash flows of insurance and financial contracts. Contractual cash flows for debt securities are calculated using the data of the issuers. The amortisation schedule and coupon rate at the date of calculation is used. For each time interval, the future cash flows (principal and coupon rate) are considered according to the situation of the debt securities portfolio. For the purpose of presenting cash flows of life insurance contracts with DPF and unit-linked life insurance, all the cash flows of future payments of claims and costs arising from life insurance contracts effective at 31 December 2009 were generated. For the purpose of presenting cash flows of financial contracts, all the cash flows of future payments of claims and costs arising from financial contracts effective at 31 December 2009 were generated.. Expected cash flows of property insurance and health insurance represent an assessment of payments for claims (which have already been incurred), including costs and the release of liability from unearned premiums and provisions. Own assets of the Group are not intended for covering liabilities from insurance and financial contracts, and this is the reason the mean duration of assets is not presented. 128
The Group KD Group Annual Report 2009 Notes to Consolidated Financial Statements as at and for the year ended 31 December 2009 Overview of maturity of insurance liabilities in 2009 Carrying amount No stated maturity Expected cash flows (undiscounted) (in EUR) 0-1 year 1 – 5 years 5 - 10 years 10 - 15 years Liabilities More than 15 years Insurance contracts 219,967,795 - 146,060,298 54,871,726 53,269,051 37,558,357 94,793,389 Insurance contracts with DPF 76,130,189 - 6,659,497 30,419,358 40,167,394 31,899,258 68,674,106 Investment contracts with DPF 17,703,254 - 1,542,269 7,157,261 10,365,688 9,489,577 27,521,996 Debt securities (issued) - - - - - - - Total liabilities 313,801,238 - 154,262,064 92,448,345 103,802,133 78,947,192 190,989,491 Overview of maturity of insurance liabilities in 2008 Expected cash flows (undiscounted) (in EUR) Carrying amount No stated maturity 0-1 year 1 – 5 years 5 - 10 years 10 - 15 years Liabilities More than 15 years Insurance contracts 210,745,221 - 137,836,517 49,476,994 18,052,930 5,378,780 - Insurance contracts with DPF 66,935,728 - 5,288,051 51,946,852 30,255,563 25,831,111 57,406,862 Investment contracts with DPF 16,330,164 - 1,457,040 6,645,794 10,255,146 9,309,026 28,586,415 Debt securities (issued) - - - - - - - Total liabilities 294,011,113 - 144,581,608 108,069,640 58,563,639 40,518,917 85,993,277 Overview of maturity of liabilities related to own liabilities in 2009 (in EUR) Liabilities Carrying amount No stated maturity Contractual cash flows (undiscounted) More than 5 0-1 year 1-3 years 3-5 years years Debt securities (issued) 75,521,481 - 6,734,595 - - 68,856,966 Borrowings 119,184,048 2,637,944 106,903,679 7,176,040 10,550,510 3,528,729 Derivative financial instruments 1,426,656 - 279,981 1,146,675 - - Trade and other payables 19,857,435 2,051,446 16,721,623 572,758 21,287 750,408 Total liabilities 215,989,620 4,689,390 130,639,878 8,895,473 10,571,797 73,136,103 Overview of maturity of liabilities related to own liabilities in 2008 (in EUR) Liabilities Carrying amount No stated maturity Contractual cash flows (undiscounted) More than 5 0-1 year 1-3 years 3-5 years years Debt securities (issued) 75,449,991 - 5,353,312 12,362,816 8,240,000 67,331,028 Borrowings 98,107,912 - 65,293,452 16,609,362 21,945,005 657,939 Derivative financial instruments 350,696 - 350,696 - - - Trade and other payables 21,328,173 6,279,526 17,516,072 1,214,985 - 4,745 Total liabilities 195,236,772 6,279,526 88,513,532 30,187,163 30,185,005 67,993,712 129
Page 1 and 2:
The Group KD Group and KD Group d.d
Page 3 and 4:
The KD Group Annual Report 2009 1.
Page 5 and 6:
The KD Group Annual Report 2009 The
Page 7 and 8:
The KD Group Annual Report 2009 Act
Page 9 and 10:
The KD Group Annual Report 2009 Inv
Page 11 and 12:
The KD Group Annual Report 2009 •
Page 13 and 14:
The KD Group Annual Report 2009 EVE
Page 15 and 16:
The KD Group Annual Report 2009 Aug
Page 17 and 18:
The KD Group Annual Report 2009 STR
Page 19 and 20:
The KD Group Annual Report 2009 SHA
Page 21 and 22:
The KD Group Annual Report 2009 Own
Page 23 and 24:
The KD Group Annual Report 2009 COR
Page 25 and 26:
The KD Group Annual Report 2009 2.2
Page 27 and 28:
The KD Group Annual Report 2009 As
Page 29 and 30:
The KD Group Annual Report 2009 4.
Page 31 and 32:
The KD Group Annual Report 2009 ANA
Page 33 and 34:
The KD Group Annual Report 2009 Ope
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
The KD Group Annual Report 2009 In
Page 41 and 42:
The KD Group Annual Report 2009 Hig
Page 43 and 44:
The KD Group Annual Report 2009 man
Page 45 and 46:
The KD Group Annual Report 2009 Int
Page 47 and 48:
The KD Group Annual Report 2009 The
Page 49 and 50:
The KD Group Annual Report 2009 In
Page 51 and 52:
The KD Group Annual Report 2009 COR
Page 53 and 54:
The KD Group Annual Report 2009 You
Page 55 and 56:
The KD Group Annual Report 2009 Cha
Page 57 and 58:
The KD Group Annual Report 2009 Cha
Page 59 and 60:
The KD Group Annual Report 2009 Rom
Page 61 and 62:
The KD Group Annual Report 2009 pol
Page 63 and 64:
The KD Group Annual Report 2009 Man
Page 65 and 66:
The KD Group Annual Report 2009 At
Page 67 and 68:
The KD Group Annual Report 2009 Com
Page 69 and 70:
Consolidated Financial Statements o
Page 72 and 73:
The Group KD Group Annual Report 20
Page 74 and 75:
Page 76 and 77:
Page 78 and 79: The Group KD Group Annual Report 20
show all

The Group KD Group and KD Group dd

Create successful ePaper yourself

Delete template?

Save as template?