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Muang Thai Life Assurance Public Company LimitedNotes to the financial statements for the year ended 31 December 2024Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202415(d) Use of judgements and estimates The preparation of financial statements in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of the Company%u2019s accounting policies. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.(1) JudgementsJudgements made in applying accounting policies that have significant effects on the amounts recognised in the financial statements include consideration of whether the Company has a significant influence in the investee companies or not, according to the investments on which equity method is applied, by considering whether the investments result in non-significant influence over a Real Estate Investment Trust and Mutual Funds. The Trust and the Funds are structured entities that have been designed so that voting or similar rights are not the dominant factor in deciding who controls or has influence over the entities. In addition, the financial and operating policies of these entities are directed by means of their trust deeds and managed by their respective fund managers. Therefore, management believes that the Company does not have significant influence over these entities. As of 31 December 2024, the Company has the investments in the unit trust and the funds amounting to Baht 0.8 billion (2023: Baht 0.8 billion).(2) Assumptions and estimation uncertaintiesInformation about assumptions and estimation uncertainties at 31 December 2023 that have a significant risk of resulting in a material adjustment to the carryingamountsof assets and liabilities in the next financial statements is included in the following notes:Note 7 Investments in securitiesNote 13 Insurance contract liabilitiesNote 21 Expected credit loss and impairment losses on investmentsNote 25 Determining the fair value of financial instruments on the basis of significant unobservable inputsProcess involved in determining assumptions of long-term technical reservesThe Company determines the long-term technical reserves by using Net Level Premium Valuation, based onassumptions such as mortality and morbidity in accordance with the standard mortality table, and discounted interest rate used within the rates that were established at the time when insurance products were approved by the Office of Insurance Commission. Process involved in determining assumptions of loss reserves and outstanding claims The Company determines the loss reserves and outstanding claims in accordance with internationally recognised practices. The assumptions used in the estimation of liabilities that are intended to result in provisions which are sufficient to cover any liabilities arising out of insurance contracts to the extent that can be reasonably foreseen.However, given the uncertainty in establishing a provision for insurance claims, it is likely that the final outcome could prove to be significantly different from the original liability established.This provision is made at the reporting date for the expected ultimate cost of settlement of all claims incurred in respect of events up to date, whether reported or not, together with related claims handing expenses, less amounts already paid.Annual Report 2024 I Muang Thai Life Assurance PCL 151