IRR310313.pdf - Banco Itaú

l) Impairment of assets – a loss is recognized when there is clear evidence that assets are stated at a nonrecoverable
value. This procedure is adopted semiannually.
m) Insurance, pension plan and capitalization operations - Insurance premiums, acceptance coinsurance
and selling expenses are accounted for in accordance with the insurance effectiveness term, through the
recognition and reversal of the provision for unearned premiums and deferred selling expenses. Interest
arising from fractioning of insurance premiums is accounted for as incurred. Revenues from social security
contributions, gross revenue from capitalization certificates and respective technical provisions are
recognized upon receipt.
I - Credits from operations and other assets related to insurance and reinsurance operations:
Insurance premiums receivable - Refer to installments of insurance premiums receivable, current and
past due, in accordance with insurance policies issued;
Reinsurance recoverable amounts – Refer to claims paid to the insured party pending recovery from
Reinsurer, installments of unsettled claims and incurred but not reported claims - Reinsurance (IBNR),
classified in assets in accordance with the criteria established by CNSP Resolution No. 162, of
December 26, 2006, as amended by CNSP Resolution No. 195, of December 16, 2008, and SUSEP
Circular No. 464, of March 1, 2013;
Reinsurance unearned premiums – Recognized to determine the portion of reinsurance unearned
premiums, calculated “pro rata die”, and for risks of policies not issued computed based on estimates,
based on the actuarial technical study and in compliance with the criteria established by CNSP current
legislation as amended by CNSP Resolution No. 195, of December 16, 2008, and SUSEP Circular No.
464, of March 1, 2013.
II - Technical provisions of insurance, pension plan and capitalization – technical provisions are
recognized according to the technical notes approved by SUSEP and criteria established by CNSP
current legislation and the subsequent amendments.
II.I- Insurance:
Provision for Unearned Premiums – recognized based on premiums issued, calculated “pro
rata die”, and represents the portion of premium corresponding to the policy period not yet
elapsed; Provision for Unearned Premiums for Risks in Force but Not Yet Issued is recognized
based on technical actuarial note, and has the objective of estimating a portion of unearned
premiums related to risks assumed by insurance companies and that are in issue process;
Provision for Premium Deficiency – recognized according to the Technical Actuarial Note if a
premium deficiency is found in relation to claims paid.
Provision for unsettled claims - recognized based on claims of loss in an amount sufficient to
cover future commitments. To determine the value of accrued claims under awaiting judicial
decision, the experts and legal advisors appointed assessments based on the insured amounts
and technical regulations, taking into consideration the likelihood of unfavorable outcome to the
insurance company. It also considers the expectation of the amount of adjustments, not
separable, the value of the provision for unsettled claims (IBNER). For example: reopenings of
claims already closed.
Provision for claims incurred but not reported (IBNR) – recognized for the estimated amount
of claims occurred for risks assumed in the portfolio but not reported.
Other provisions – recognized based on provision for redemptions and/other amounts to be
regularized, in connection with amounts not yet regularized up to the balance sheet date, and the
provision for unexpired risks of individual life operations.
II.II - Pension Plan and Longevity Insurance - The mathematical provisions represent amounts of obligations
assumed as longevity insurance, retirement plans, disability, pension and annuity, and are calculated
according to the method of accounting provided for in the contract.
Itaú Unibanco Holding S.A. – Complete Financial Statements – Mach 31, 2013 105