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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 202473TFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with discretionary participation features. TFRS 17 introduces the measurement and recognition on insurance contracts with fulfillment cash flows and a contractual service margin. The fulfillment cash flows represent the risk adjusted present value of the insurer%u2019s rights and obligations to the policyholders, comprising estimates of expected future cash flows, discounting, and an explicit risk adjustment for non-financial risk. The contractual service margin represents the unearned profit from contracts that the Company will recognise as the Company provides services over the coverage period based on a pattern of coverage units, reflecting the quantity of benefits provided. The Company may apply a simplified measurement approach when the conditions are met.TFRS 17 also introduces substantial changes in both presentation of the statement of financial position and statement of comprehensive income, as well as more granular disclosure requirements.Management is considering and closely monitoring the potential impact of adopting and initially applying those TFRSs on the financial statements. In addition, the adoption of the new accounting standard TFRS 17 has prompted a reconsideration of the corporate income tax regulation related to the insurance business. The insurance industry is awaiting an update of relevant tax regulations in order to assess the financial impact of such changes. The Company is closely monitoring the development and potential impact.The impact of initial adoption of TFRS 9 and TFRS 17 includes the following:%u2022 Changes in accounting policies resulting from the adoption of TFRS 9 shall be applied retrospectively, except that the Company has elected to restate the comparatives and apply classification overlay in the comparative period presented as permitted under TFRS 17. The classification overlay shall be applied to all financial assets that had been derecognised before 1 January 2025 based on how those assets are expected to be classified on initial adoption of TFRS 9. In applying the classification overlay to financial assets derecognised during the comparative period, the Company has applied the impairment requirements of TFRS 9. %u2022 TFRS 9 redefines the classification of financial assets based on the way in which the assets are managed in order to generate cash flows and their contractual cash flow characteristics (whether the cash flows represent %u2018solely payments of principal and interest%u2019). Financial assets are classified into one of the following categories: financial assets subsequently measured at amortised cost, fair value through other comprehensive income (FVTOCI) and fair value through profit or loss (FVTPL). The Company may designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The Company has accordingly updated the classification and measurement for financial assets in line with TFRS 9.%u2022 The full retrospective approach shall be applied to the extent practicable on changes in accounting policies resulting from the adoption of TFRS 17. The Company adopts the fair value approach when it is impracticable to use a full retrospective approach in determining transition amounts at the TFRS 17 transition date. %u2022 Insurance contract balances will be remeasured under TFRS 17 principles, derecognising the related liabilities and previously reported balances that would not have existed if TFRS 17 had always been applied. These included among others, deferred acquisition costs for insurance contracts, insurance receivables and payables, policy loans and its accrued interest income and provisions from insurance contracts. Under TFRS 17, these are included in the measurement of the insurance contracts.32 Events after reporting period At the meeting of the Board of Directors of the Company held on 28 March 2025, the Board of Directors passed the resolution deemed it appropriate to propose to the shareholders at the Annual General Meeting for consideration and approval of the appropriation of dividends of Baht 1,666 per share, amounting to Baht 1,666 million. The dividends payment is subject to approval of the shareholders at the Annual General Meeting and the Office of Insurance Commission.Muang Thai Life Assurance Public Company LimitedNotes to the financial statementsFor the year ended 31 December 202473TFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with discretionary participation features. TFRS 17 introduces the measurement and recognition on insurance contracts with fulfillment cash flows and a contractual service margin. The fulfillment cash flows represent the risk adjusted present value of the insurer%u2019s rights and obligations to the policyholders, comprising estimates of expected future cash flows, discounting, and an explicit risk adjustment for non-financial risk. The contractual service margin represents the unearned profit from contracts that the Company will recognise as the Company provides services over the coverage period based on a pattern of coverage units, reflecting the quantity of benefits provided. The Company may apply a simplified measurement approach when the conditions are met.TFRS 17 also introduces substantial changes in both presentation of the statement of financial position and statement of comprehensive income, as well as more granular disclosure requirements.Management is considering and closely monitoring the potential impact of adopting and initially applying those TFRSs on the financial statements. In addition, the adoption of the new accounting standard TFRS 17 has prompted a reconsideration of the corporate income tax regulation related to the insurance business. The insurance industry is awaiting an update of relevant tax regulations in order to assess the financial impact of such changes. The Company is closely monitoring the development and potential impact.The impact of initial adoption of TFRS 9 and TFRS 17 includes the following:%u2022 Changes in accounting policies resulting from the adoption of TFRS 9 shall be applied retrospectively, except that the Company has elected to restate the comparatives and apply classification overlay in the comparative period presented as permitted under TFRS 17. The classification overlay shall be applied to all financial assets that had been derecognised before 1 January 2025 based on how those assets are expected to be classified on initial adoption of TFRS 9. In applying the classification overlay to financial assets derecognised during the comparative period, the Company has applied the impairment requirements of TFRS 9. %u2022 TFRS 9 redefines the classification of financial assets based on the way in which the assets are managed in order to generate cash flows and their contractual cash flow characteristics (whether the cash flows represent %u2018solely payments of principal and interest%u2019). Financial assets are classified into one of the following categories: financial assets subsequently measured at amortised cost, fair value through other comprehensive income (FVTOCI) and fair value through profit or loss (FVTPL). The Company may designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The Company has accordingly updated the classification and measurement for financial assets in line with TFRS 9.%u2022 The full retrospective approach shall be applied to the extent practicable on changes in accounting policies resulting from the adoption of TFRS 17. The Company adopts the fair value approach when it is impracticable to use a full retrospective approach in determining transition amounts at the TFRS 17 transition date. %u2022 Insurance contract balances will be remeasured under TFRS 17 principles, derecognising the related liabilities and previously reported balances that would not have existed if TFRS 17 had always been applied. These included among others, deferred acquisition costs for insurance contracts, insurance receivables and payables, policy loans and its accrued interest income and provisions from insurance contracts. Under TFRS 17, these are included in the measurement of the insurance contracts.32 Events after reporting period At the meeting of the Board of Directors of the Company held on 28 March 2025, the Board of Directors passed the resolution deemed it appropriate to propose to the shareholders at the Annual General Meeting for consideration and approval of the appropriation of dividends of Baht 1,666 per share, amounting to Baht 1,666 million. The dividends payment is subject to approval of the shareholders at the Annual General Meeting and the Office of Insurance Commission.32 Events after reporting period206 %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)