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KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
Issuers of securities in Slovenia do not have ratings,
but the insurance part of the Group hase the highest
concentration of investments in debt securities, bank and
government bonds. The credit risk of investment coupons
and equity securities are controlled by diversification of
investments.
In the context of reinsurance, as for financial asset
investment, credit risk management procedures relate
to verifying the reinsurer’s credit rating. In accordance
with the strategy of credit risk management, reinsurancerelated
liabilities are reinsured by prime-grade reinsurers.
This does not, however, discharge the Group’s liability
as primary insurer. If a reinsurer fails to pay a claim for
Procedures of verifying credit ratings are based on
obtaining and reviewing publicly accessible data on
the current financial status of the issuer of financial
instruments and the issuer’s future solvency. The credit
any reason, the Group remains liable for the payment
to policyholder. The creditworthiness of reinsurers is
considered on an annual basis by reviewing their financial
strength prior to finalisation of any contract.
rating of domestic the issuer’s of financial instruments is
determined by the Group itself. In checking the issuer’s
credit using its own sources, the Group checks the issuer’s
future solvency, in particular the issuer’s adequacy of
expected future cash flows from regular activities offset
The Group restructures credit risk through establishing
limits to the counterparty and also according to territory
and industry. These risks are changing regulary.
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against the outflows for settlement of future liabilities.
Maximum credit risk exposure
(in EUR) AAA-A BBB-B Without rating Total
2007 2006 2007 2006 2007 2006 2007 2006
Debt securities 107,619,183 24,513,164 6,031,103 10,075,785 36,797,448 109,493,871 150,447,734 144,082,820
At fair value through P&L 3,613,689 2,819,810 999,623 - 17,976,207 13,784,736 22,589,519 16,604,546
Available for sale 101,702,133 21,484,312 3,666,648 7,960,728 14,899,270 91,045,357 120,268,051 120,490,397
Held to maturity 2,303,361 209,042 1,364,832 2,115,057 3,921,971 4,663,778 7,590,164 6,987,877
Loans and receivables - - - - 135,690,971 132,080,595 135,690,971 132,080,595
Loans and deposits - - - - 57,751,092 60,299,751 57,751,092 60,299,751
Insurance receivables - - - - 35,598,232 32,395,529 35,598,232 32,395,529
Recourse receivables - - - - 11,338,513 8,796,610 11,338,513 8,796,610
Other receivables - - - - 31,003,134 30,588,705 31,003,134 30,588,705
Reinsurance assets - - - - 11,004,824 8,631,597 11,004,824 8,631,597
Cash and cash equivalents 44,572 - 692,174 - 28,661,371 20,309,729 29,398,117 20,309,729
Other assets - - - - 2,870,170 1,765,148 2,870,170 1,765,148
Total assets 107,663,755 24,513,164 6,723,277 10,075,785 215,024,784 272,280,940 329,411,816 306,869,889