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KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
In the case of unfavourable claim events in 2007,
there is a situation of a decrese of reinsurance
protection; the decrease of the reinsurer’s share in
claims would be higher from the decrease of the
reinsurance premium, which would have a negative
effect on profit.
Test of sensitivity of profit or loss to the above-average number and amount of large-scale and mass losses for 2007
Contract year 2007
Change in net
premium
Change in net
losses
Change in net
reserves
(in thousand EUR)
Effect of change
to profit
Total proportional reinsurance - 4,054 - (4,054)
Risk XL reinsurance of fires (146) (420) - 274
Risk XL technical reinsurance (51) (150) - 99
Cat XL property reinsurance excl. vehicle insurance (578) (2,817) - 2,239
Total Fire and technical insurance (775) 667 - (1,442)
XL reinsurance of auto liability and green card - 625 625 (1,250)
XL reinsurance of comprehensive auto insurance - - - -
Cat XL property reinsurance - vehicle insurance (123) 53 - (176)
Total auto insurance (123) 678 625 (1,426)
Test of sensitivity of profit or loss to the above-average number and amount of large-scale and mass losses for 2006
252
Contract year 2006
Change in net
premium
Change in net
losses
Change in net
reserves
(in thousand EUR)
Effect of change
to profit
Total proportional reinsurance - 4,054 - (4,054)
Risk XL reinsurance of fires (89) (420) - 331
Risk XL technical reinsurance (49) (150) - 101
Cat XL property reinsurance excl. vehicle insurance (531) (2,817) - 2,286
Total Fire and technical insurance (669) 667 - (1,336)
XL reinsurance of auto liability and green card - 625 625 (1,250)
XL reinsurance of comprehensive auto insurance - - - -
Cat XL property reinsurance - vehicle insurance (113) 53 - (166)
Total auto insurance (113) 678 625 (1,416)
In the two tables above the following losses have been
added to the actual incidence of loss:
- Fire damage in the amount of EUR 800,000, which
was the subject of quota and fire risk XL reinsurance.
- Installation damage in the amount of EUR
subject to surplus reinsurance to a small degree, and
the remaining portion was covered under quota and
property Cat XL reinsurance.
- Car liability claims in the amounts of EUR 250,000,
750,000, 1,500,000, 3,000,000 and 15,000,000.
6,000,000, which was the subject of surplus (95%)
and technical risk XL reinsurance.
- Storm damage in the amount of 2x flood damage in
September 2007, i.e. EUR 5,652,000, which was
In car liability insurance we assumed that 50% of
additional damages remains in the reservation and
for all other added damages we simulated payout in