Page 194 - Demo

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 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202460Concentration of insurance risk Concentrations of risk may arise where a particular event or a series of events could impact heavily upon the Company%u2019s insurance contract liabilities.Most of the Company%u2019s contracts are life insurance non-par contract with guaranteed benefit. The amount of risk to which the Company is exposed depends on the level of guarantees inherent in the contracts and current interest rate. The changes in interest rate will not cause a change to the amount of the liability, unless the change is material enough to trigger a liability adequacy test adjustment.The discount interest rates for the purpose of the liability adequacy test are in accordance with industry practice. Management monitors the sensitivity to changes in rates on an ongoing basis. A decrease of 100 basis points from current market interest rates would not trigger a liability adequacy test adjustment. Financial risk management The Company is exposed to normal business risks from changes in market interest rates, currency exchange rates and from the non-performance of contractual obligations by counterparties. The Company does not hold or issue derivatives for speculative or trading purposes. Interest rate risk Interest rate risk is the risk that future movement in market interest rates will affect the interest income from investments. The investments include both short-term and long-term investments that have fixed and floating interest rates. The Company has managed investment risk by considering the risk of investments together with the return on such investments.In addition, the Company has used an interest rate swap to manage exposure to fluctuations in interest rates on a specific loan as disclosed in note 6.As at 31 December 2024 and 2023, significant financial assets and financial liabilities classified by type of interest rate are as follows:Financial statements in which the equity method is applied and separate financial statements 2024 2023Floating Fixed Floating Fixed interest interest Non-interest interest interest Non-interestrate rate bearing rate rate bearing(in thousand Baht)Cash equivalents 8,199,498 416,835 - 5,172,194 308,048 -Debt securities 2,524,163 480,543,525 10,508,836 1,370,173 483,162,657 7,772,392Loans 2,584 3,529,007 - 2,744 3,241,172 -Debts issued and borrowings - (10,224,181) - - (10,285,538) -Total 10,726,245 474,265,186 10,508,836 6,545,111 476,426,339 7,772,392 (in thousand Baht)Financial statements in which the equity method is applied and separate financial statements2024 2023Fixed interestrateFixed interestrateFloating interest rateFloating interest rateNon-interestbearingNon-interestbearing192 %u0e23%u0e32%u0e22%u0e07%u0e32%u0e19%u0e1b%u0e23%u0e30%u0e08%u0e33%u0e33%u0e1b%u0e35%u0e35 2567 I %u0e1a%u0e23%u0e34%u0e34%u0e29%u0e31%u0e31%u0e17 %u0e40%u0e21%u0e37%u0e37%u0e2d%u0e07%u0e44%u0e17%u0e22%u0e1b%u0e23%u0e30%u0e01%u0e31%u0e31%u0e19%u0e0a%u0e35%u0e35%u0e27%u0e34%u0e34%u0e15 %u0e08%u0e33%u0e33%u0e01%u0e31%u0e31%u0e14 (%u0e21%u0e2b%u0e32%u0e0a%u0e19)